FRANKLIN, Tenn., Feb. 14,
2023 /PRNewswire/ -- Community Healthcare Trust
Incorporated (NYSE: CHCT) (the "Company") today announced results
for the three months ended December 31, 2022. The Company
reported net income for the three months ended December 31,
2022 of approximately $5.2 million,
or $0.19 per diluted common share.
Funds from operations ("FFO") and adjusted funds from operations
("AFFO") for the three months ended December 31, 2022 totaled
$0.56 and $0.63, respectively, per diluted common
share.
Highlights include:
- During the three months ended December
31, 2022, the Company acquired 13 real estate properties for
an aggregate purchase price of approximately $50.2 million. Upon acquisition, the properties
totaling approximately 241,000 square feet, were 97.8% leased in
the aggregate with lease expirations through 2034.
- Subsequent to December 31, 2022,
the Company acquired three real estate properties totaling
approximately 99,000 square feet for an aggregate purchase price of
approximately $12.5 million. Upon
acquisition, the properties were 100.0% leased with lease
expirations through 2029.
- The Company has four properties under definitive purchase
agreements for an expected aggregate purchase price of
approximately $20.1 million. The
Company's expected aggregate return on these investments ranges
from approximately 9.2% to 9.5%. The Company expects to close on
these properties during the first half of 2023; however, the
Company cannot provide assurance as to the timing of when, or
whether, these transactions will actually close.
- The Company also has six properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $141.0 million. The Company's expected returns on
these investments are approximately 10.25%. The Company anticipates
closing on these properties throughout 2023 and 2024; however, the
Company cannot provide assurance as to the timing of when, or
whether, these transactions will actually close.
- During the fourth quarter of 2022, the Company issued, through
its at-the-market offering program, 600,000 shares of common stock
at an average gross sales price of $34.94 per share and received net proceeds of
approximately $20.5 million at an
approximate 5.02% current equity yield.
- On December 14, 2022, the Company
amended its credit agreement, adding a new seven-year three-month,
$150.0 million term loan (the "A-5
Term Loan"), which matures on March 14,
2030, and replaced the London interbank offered rate ("LIBOR") as a
benchmark interest rate for loans under the Credit Agreement with
the secured overnight financing rate administered by the Federal
Reserve Bank of New York ("SOFR").
Proceeds of the A-5 Term Loan were used to repay a $50.0 million term loan with a March 29, 2024 maturity, and to repay
$85.0 million aggregate principal
amount of loans outstanding under the existing revolving credit
facility, with the balance of the proceeds used to fund
acquisitions. On December 19, 2022,
the Company entered into interest rate swap agreements that fixed
the interest rate on the A-5 Term Loan and in January 2023, we transitioned our interest rate
swap rates from LIBOR to SOFR.
- On February 9, 2023, the
Company's Board of Directors declared a quarterly common stock
dividend in the amount of $0.4475 per
share. The dividend is payable on March 1,
2023 to stockholders of record on February 21, 2023.
About Community Healthcare Trust Incorporated
Community Healthcare Trust Incorporated is a real estate
investment trust that focuses on owning income-producing real
estate properties associated primarily with the delivery of
outpatient healthcare services in our target sub-markets throughout
the United States. As of December 31, 2022, the Company
had investments of approximately $946.2
million in 174 real estate properties (including a portion
of one property accounted for as a financing lease). The properties
are located in 34 states, totaling approximately 3.8 million square
feet in the aggregate.
Additional information regarding the Company, including this
quarter's operations, can be found at www.chct.reit. Please
contact the Company at 615-771-3052 to request a printed copy of
this information.
Cautionary Note Regarding Forward-Looking
Statements
In addition to the historical information contained within,
the matters discussed in this press release may contain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are generally identifiable by
use of forward-looking terminology such as "believes", "expects",
"may", "will," "should", "seeks", "approximately", "intends",
"plans", "estimates", "anticipates" or other similar words or
expressions, including the negative thereof. Forward-looking
statements are based on certain assumptions and can include future
expectations, future plans and strategies, financial and operating
projections or other forward-looking information. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management. Because
forward-looking statements relate to future events, they are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of the control of Community Healthcare Trust Incorporated
(the "Company"). Thus, the Company's actual results and financial
condition may differ materially from those indicated in such
forward-looking statements. Some factors that might cause such a
difference include the following: general volatility of the capital
markets and the market price of the Company's common stock, changes
in the Company's business strategy, availability, terms and
deployment of capital, the Company's ability to refinance existing
indebtedness at or prior to maturity on favorable terms, or at all,
changes in the real estate industry in general, interest rates or
the general economy, adverse developments related to the healthcare
industry, changes in governmental regulations, the degree and
nature of the Company's competition, the ability to consummate
acquisitions under contract, catastrophic or extreme weather and
other natural events and the physical effects of climate change,
the occurrence of cyber incidents, effects on global and national
markets as well as businesses resulting from increased inflation,
rising interest rates, supply chain disruptions, labor conditions,
the COVID-19 pandemic and/or the conflict between Russia and Ukraine, the Company's Chief Executive
Officer's health prognosis, and the other factors described in the
section entitled "Risk Factors" in the Company's Annual Report on
Form 10-K for the year ended December 31,
2022, and the Company's other filings with the Securities
and Exchange Commission from time to time. Readers are therefore
cautioned not to place undue reliance on the forward-looking
statements contained herein which speak only as of the date hereof.
The Company intends these forward-looking statements to speak only
as of the time of this press release and undertakes no obligation
to update forward-looking statements, whether as a result of new
information, future developments, or otherwise, except as may be
required by law.
COMMUNITY HEALTHCARE
TRUST INCORPORATED
CONSOLIDATED BALANCE
SHEETS
(Dollars and
shares in thousands, except per share amounts)
|
|
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
117,657
|
|
$
97,397
|
Buildings,
improvements, and lease intangibles
|
825,257
|
|
736,465
|
Personal
property
|
253
|
|
223
|
Total real estate
properties
|
943,167
|
|
834,085
|
Less accumulated
depreciation
|
(165,341)
|
|
(133,056)
|
Total real estate
properties, net
|
777,826
|
|
701,029
|
Cash and cash
equivalents
|
11,233
|
|
2,351
|
Restricted
cash
|
835
|
|
516
|
Other assets,
net
|
86,531
|
|
50,337
|
Total
assets
|
$
876,425
|
|
$
754,233
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
352,997
|
|
$
265,625
|
Accounts payable and
accrued liabilities
|
11,377
|
|
7,845
|
Other liabilities,
net
|
15,237
|
|
18,651
|
Total
liabilities
|
379,611
|
|
292,121
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock, $0.01
par value; 50,000 shares authorized; none issued and
outstanding
|
—
|
|
—
|
Common stock, $0.01
par value; 450,000 shares authorized; 25,897 and 24,983
shares
issued and outstanding at December 31, 2022 and
December 31, 2021, respectively
|
259
|
|
250
|
Additional paid-in
capital
|
625,136
|
|
595,624
|
Cumulative net
income
|
81,142
|
|
59,123
|
Accumulated other
comprehensive gain (loss)
|
22,667
|
|
(4,980)
|
Cumulative
dividends
|
(232,390)
|
|
(187,905)
|
Total stockholders'
equity
|
496,814
|
|
462,112
|
Total liabilities
and stockholders' equity
|
$
876,425
|
|
$
754,233
|
The Consolidated
Balance Sheets do not include all of the information and footnotes
required by accounting principles generally accepted in the United
States of America for complete financial statements.
|
COMMUNITY HEALTHCARE
TRUST INCORPORATED
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2022 AND 2021
(Dollars and
shares in thousands, except per share amounts)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
24,383
|
|
$
22,428
|
|
$
94,103
|
|
$
87,661
|
Other operating
interest
|
959
|
|
814
|
|
3,576
|
|
2,918
|
|
25,342
|
|
23,242
|
|
97,679
|
|
90,579
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Property
operating
|
4,156
|
|
3,535
|
|
16,636
|
|
15,158
|
General and
administrative
|
4,149
|
|
3,155
|
|
14,837
|
|
12,113
|
Depreciation and
amortization
|
8,317
|
|
7,825
|
|
32,339
|
|
30,401
|
|
16,622
|
|
14,515
|
|
63,812
|
|
57,672
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES AND OTHER ITEMS
|
8,720
|
|
8,727
|
|
33,867
|
|
32,907
|
Gain on sale of real
estate
|
—
|
|
237
|
|
—
|
|
237
|
Interest
expense
|
(3,464)
|
|
(2,789)
|
|
(11,873)
|
|
(10,542)
|
Deferred
income tax
expense
|
(21)
|
|
(63)
|
|
(41)
|
|
(167)
|
Interest and other
income
|
3
|
|
1
|
|
66
|
|
57
|
NET
INCOME
|
$
5,238
|
|
$
6,113
|
|
$
22,019
|
|
$
22,492
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Net income per common
share – Basic
|
$
0.19
|
|
$
0.23
|
|
$
0.81
|
|
$
0.87
|
Net income per common
share – Diluted
|
$
0.19
|
|
$
0.23
|
|
$
0.81
|
|
$
0.87
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-BASIC
|
23,787
|
|
23,566
|
|
23,631
|
|
23,263
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-DILUTED
|
23,787
|
|
23,566
|
|
23,631
|
|
23,263
|
The Condensed
Consolidated Statements of Income do not include all of the
information and footnotes required by accounting principles
generally accepted in the United States of America for complete
financial statements.
|
COMMUNITY HEALTHCARE
TRUST INCORPORATED
RECONCILIATION OF
FFO and AFFO (1)
(Unaudited;
Dollars and shares in thousands, except per share
amounts)
|
|
|
Three Months Ended
December 31,
|
|
2022
|
|
2021
|
Net income
|
$
5,238
|
|
$
6,113
|
Real
estate depreciation and amortization
|
8,382
|
|
7,884
|
Gain on
sale of depreciable real estate
|
—
|
|
(237)
|
Total
adjustments
|
8,382
|
|
7,647
|
FFO
|
$
13,620
|
|
$
13,760
|
Straight-line rent
|
(854)
|
|
(856)
|
Stock-based compensation
|
2,645
|
|
1,997
|
AFFO
|
$
15,411
|
|
$
14,901
|
FFO per
Common Share-Diluted
|
$
0.56
|
|
$
0.57
|
AFFO
per Common Share-Diluted
|
$
0.63
|
|
$
0.61
|
Weighted Average Common
Shares Outstanding-Diluted (2)
|
24,471
|
|
24,306
|
(1)
|
Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time.
However, since real estate values have historically risen or fallen
with market conditions, many industry investors deem presentations
of operating results for real estate companies that use historical
cost accounting to be insufficient by themselves. For that reason,
the Company considers funds from operations ("FFO") and adjusted
funds from operations ("AFFO") to be appropriate measures of
operating performance of an equity real estate investment trust
("REIT"). In particular, the Company believes that AFFO is useful
because it allows investors, analysts and Company management to
compare the Company's operating performance to the operating
performance of other real estate companies and between periods on a
consistent basis without having to account for differences caused
by unanticipated items and other events.
The Company uses the
National Association of Real Estate Investment Trusts, Inc.
("NAREIT") definition of FFO. FFO is an operating performance
measure adopted by NAREIT. NAREIT defines FFO as the most commonly
accepted and reported measure of a REIT's operating performance
equal to net income (calculated in accordance with GAAP), excluding
gains or losses from the sale of certain real estate assets, gains
and losses from change in control, impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity, plus depreciation and
amortization related to real estate properties, and after
adjustments for unconsolidated partnerships and joint ventures.
NAREIT also provides REITs with an option to exclude gains, losses
and impairments of assets that are incidental to the main business
of the REIT from the calculation of FFO.
In addition to FFO, the
Company presents AFFO and AFFO per share. The Company defines AFFO
as FFO, excluding certain expenses related to closing costs of
properties acquired accounted for as business combinations and
mortgages funded, excluding straight-line rent and the amortization
of stock-based compensation, and including or excluding other
non-cash items from time to time. AFFO presented herein may not be
comparable to similar measures presented by other real estate
companies due to the fact that not all real estate companies use
the same definition.
FFO and AFFO should not
be considered as alternatives to net income (determined in
accordance with GAAP) as indicators of the Company's financial
performance or as alternatives to cash flow from operating
activities (determined in accordance with GAAP) as measures of the
Company's liquidity, nor are they necessarily indicative of
sufficient cash flow to fund all of the Company's needs. The
Company believes that in order to facilitate a clear understanding
of the consolidated historical operating results of the Company,
FFO and AFFO should be examined in conjunction with net income as
presented elsewhere herein.
|
|
|
(2)
|
Diluted weighted
average common shares outstanding for FFO and AFFO are calculated
based on the treasury method, rather than the 2-class method used
to calculate earnings per share.
|
CONTACT: David H. Dupuy,
615-771-3052
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content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-december-31-2022-301746657.html
SOURCE Community Healthcare Trust, Inc.