FRANKLIN, Tenn., May 2, 2023
/PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE:
CHCT) (the "Company") today announced results for the three months
ended March 31, 2023. The Company reported a net loss for
the three months ended March 31, 2023 of approximately
$6.9 million, or a $0.32 loss per diluted common share. Funds from
operations ("FFO") and adjusted funds from operations ("AFFO") for
the three months ended March 31, 2023 totaled $0.09 and $0.62,
respectively, per diluted common share.
Items Impacting Our Results include:
- On March 3, 2023, Timothy G. Wallace, our former Chief Executive
Officer ("CEO"), President and Chairman of the Board passed away
after a brief medical leave of absence. On March 6, 2023, the Company's board of directors
("Board") appointed David H. Dupuy,
who has served as the Company's Chief Financial Officer ("CFO")
since 2019, as the Company's new CEO and Mr. Dupuy will continue to
serve as CFO until a successor is chosen for that position. At the
time of his passing, Mr. Wallace had 624,725 shares of restricted
stock that had not vested. Upon his passing, Mr. Wallace's unvested
shares of restricted stock vested in accordance with the terms of
his employment agreement, and the Company accelerated the
unamortized balance of deferred compensation related to his
unvested shares and recognized an additional $11.8 million of amortization expense in the
first quarter of 2023.
- During the three months ended March 31,
2023, the Company acquired seven real estate properties for
an aggregate purchase price of approximately $23.4 million. Upon acquisition, the properties
totaling approximately 162,000 square feet, were 100.0% leased in
the aggregate with lease expirations through 2031.
- The Company has four properties under definitive purchase
agreements for an expected aggregate purchase price of
approximately $19.7 million. The
Company's expected aggregate return on these investments ranges
from approximately 9.16% to 9.25%. The Company expects to close on
these properties in the second quarter 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 nine properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $214.5 million. The Company's expected returns on
these investments are approximately 9.75% to 10.25%. The Company
anticipates closing on these properties throughout 2023, 2024 and
2025; however, the Company cannot provide assurance as to the
timing of when, or whether, these transactions will actually
close.
- During the first quarter of 2023, the Company issued, through
its at-the-market offering program, 249,205 shares of common stock
at an average gross sales price of $36.69 per share for net proceeds of
approximately $8.9 million at an
approximate 4.978% current equity yield.
- On April 27, 2023, the Company's
Board of Directors declared a quarterly common stock dividend in
the amount of $0.45 per share. The
dividend is payable on May 26, 2023
to stockholders of record on May 12,
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 March 31, 2023, the Company had
investments of approximately $974.0
million in 181 real estate properties (including a portion
of one property accounted for as a sales-type lease). The
properties are located in 34 states, totaling approximately 4.0
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, 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)
|
|
|
(Unaudited)
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
122,702
|
|
$
117,657
|
Buildings,
improvements, and lease intangibles
|
848,060
|
|
825,257
|
Personal
property
|
264
|
|
253
|
Total real estate
properties
|
971,026
|
|
943,167
|
Less accumulated
depreciation
|
(174,346)
|
|
(165,341)
|
Total real estate
properties, net
|
796,680
|
|
777,826
|
Cash and cash
equivalents
|
3,666
|
|
11,233
|
Restricted
cash
|
959
|
|
835
|
Other assets,
net
|
84,989
|
|
86,531
|
Total
assets
|
$
886,294
|
|
$
876,425
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
365,061
|
|
$
352,997
|
Accounts payable and
accrued liabilities
|
10,478
|
|
11,377
|
Other liabilities,
net
|
16,240
|
|
15,237
|
Total
liabilities
|
391,779
|
|
379,611
|
|
|
|
|
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; 26,274 and 25,897
shares
issued and outstanding at March 31, 2023 and December 31,
2022, respectively
|
263
|
|
259
|
Additional paid-in
capital
|
648,384
|
|
625,136
|
Cumulative net
income
|
74,220
|
|
81,142
|
Accumulated other
comprehensive gain
|
15,684
|
|
22,667
|
Cumulative
dividends
|
(244,036)
|
|
(232,390)
|
Total stockholders'
equity
|
494,515
|
|
496,814
|
Total liabilities
and stockholders' equity
|
$
886,294
|
|
$
876,425
|
|
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 OPERATIONS
|
FOR THE THREE MONTHS
ENDED MARCH 31, 2023 AND 2022
|
(Dollars and
shares in thousands, except per share amounts)
|
|
|
Three Months
Ended
March
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
REVENUES
|
|
|
|
Rental
income
|
$
26,128
|
|
$
22,604
|
Other operating
interest
|
1,048
|
|
877
|
|
27,176
|
|
23,481
|
|
|
|
|
EXPENSES
|
|
|
|
Property
operating
|
4,873
|
|
4,091
|
General and
administrative (1)
|
16,205
|
|
3,316
|
Depreciation and
amortization
|
9,018
|
|
7,942
|
|
30,096
|
|
15,349
|
|
|
|
|
(LOSS) INCOME BEFORE
INCOME TAXES AND OTHER ITEMS
|
(2,920)
|
|
8,132
|
Interest
expense
|
(3,992)
|
|
(2,626)
|
Deferred
income tax
expense
|
(35)
|
|
17
|
Interest and other
income
|
25
|
|
1
|
NET (LOSS)
INCOME
|
$
(6,922)
|
|
$
5,524
|
|
|
|
|
NET (LOSS) INCOME
PER COMMON SHARE (1):
|
|
|
|
Net (loss) income per
common share – Basic
|
$
(0.32)
|
|
$
0.21
|
Net (loss) income per
common share – Diluted
|
$
(0.32)
|
|
$
0.21
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-BASIC
|
24,227
|
|
23,570
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-DILUTED
|
24,227
|
|
23,570
|
|
|
|
(1) General
and administrative expenses for the three months ended March 31,
2023 included stock-based compensation expense totaling
approximately $14.3 million, including the accelerated amortization
of stock-based compensation totaling approximately $11.8 million,
or
$0.49 per diluted common share, recognized upon the passing of our
former CEO and President. General and administrative expenses for
the
three months ended March 31, 2022 included stock-based compensation
expense totaling approximately $2.1 million.
|
|
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
March 31,
|
|
2023
|
|
2022
|
Net (loss)
income
|
$
(6,922)
|
|
$
5,524
|
Real
estate depreciation and amortization
|
9,088
|
|
8,001
|
FFO
|
$
2,166
|
|
$
13,525
|
Straight-line rent
|
(917)
|
|
(820)
|
Stock-based compensation
|
2,547
|
|
2,122
|
Accelerated
amortization of stock-based compensation (2)
|
11,799
|
|
—
|
AFFO
|
$
15,595
|
|
$
14,827
|
FFO per
Common Share-Diluted (2)
|
$
0.09
|
|
$
0.56
|
AFFO per
Common Share-Diluted
|
$
0.62
|
|
$
0.61
|
Weighted Average Common
Shares Outstanding-Diluted (3)
|
25,298
|
|
24,344
|
|
|
(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)
|
In the first quarter of
2023, the Company accelerated the amortization of stock-based
compensation totaling $11.8 million, impacting
FFO per diluted share by $0.47, upon the passing of our former CEO
and President.
|
(3)
|
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
View original
content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-march-31-2023-301813693.html
SOURCE Community Healthcare Trust, Inc.