FRANKLIN, Tenn., Aug. 1, 2023
/PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE:
CHCT) (the "Company") today announced results for the three months
ended June 30, 2023. The Company
reported net income for the three months ended June 30, 2023 of approximately $6.6 million, or $0.24 per diluted common share. Funds from
operations ("FFO") and adjusted funds from operations ("AFFO") for
the three months ended June 30, 2023
totaled $0.62 and $0.63, respectively, per diluted common
share.
Items Impacting Our Results include:
- During the three months ended June 30,
2023, the Company acquired three real estate properties and
one land parcel for an aggregate purchase price of approximately
$15.7 million. Upon acquisition, the
properties totaling approximately 76,000 square feet, were 98.3%
leased in the aggregate with lease expirations through 2033.
- Subsequent to June 30, 2023, the
Company acquired three medical office buildings and one inpatient
rehabilitation facility in two separate transactions for an
aggregate purchase price of approximately $35.6 million and cash consideration of
approximately $35.7 million. Upon
acquisition, the properties were 100.0% leased with lease
expirations through 2038. These acquisitions were funded with
proceeds from the Company's Revolving Credit Facility.
- The Company has three properties under definitive purchase
agreements for an expected aggregate purchase price of
approximately $16.1 million. The
Company's expected aggregate return on these investments ranges
from approximately 9.2% to 10.3%. The Company expects to close on
these properties in the third 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 eight properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $191.0 million. The Company's expected returns on
these investments are approximately 9.1% to 9.75%. 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 second quarter of 2023, the Company issued, through
its at-the-market offering program, 236,389 shares of common stock
at an average gross sales price of $34.45 per share for net proceeds of
approximately $8.0 million at an
approximate 5.33% current equity yield.
- The Company incurred property damage due to vandalism at a
property in Houston, Texas which
was covered by our insurance policies. The Company determined that
the estimated amount of the casualty loss was approximately
$1.6 million and received insurance
proceeds totaling $2.3 million,
resulting in a net casualty gain of approximately $0.7 million which was included in Interest and
other income on the Condensed Consolidated Statements of Operations
for the three and six months ended June 30,
2023.
- On July 27, 2023, the Company's
Board of Directors declared a quarterly common stock dividend in
the amount of $0.4525 per share. The
dividend is payable on August 25,
2023 to stockholders of record on August 11, 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 June 30, 2023, the Company had
investments of approximately $991.2
million in 184 real estate properties (including a portion
of one property accounted for as a sales-type lease and one
property classified as held for sale). 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,
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)
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
127,433
|
|
$
117,657
|
Buildings,
improvements, and lease intangibles
|
859,231
|
|
825,257
|
Personal
property
|
284
|
|
253
|
Total real estate
properties
|
986,948
|
|
943,167
|
Less accumulated
depreciation
|
(181,769)
|
|
(165,341)
|
Total real estate
properties, net
|
805,179
|
|
777,826
|
Cash and cash
equivalents
|
2,627
|
|
11,233
|
Restricted
cash
|
1,049
|
|
835
|
Other assets,
net
|
91,611
|
|
86,531
|
Total
assets
|
$
900,466
|
|
$
876,425
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
368,127
|
|
$
352,997
|
Accounts payable and
accrued liabilities
|
10,605
|
|
11,377
|
Other liabilities,
net
|
16,409
|
|
15,237
|
Total
liabilities
|
395,141
|
|
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; 26,541 and 25,897
shares
issued and outstanding
at June 30, 2023 and December 31, 2022, respectively
|
265
|
|
259
|
Additional paid-in
capital
|
657,057
|
|
625,136
|
Cumulative net
income
|
80,797
|
|
81,142
|
Accumulated other
comprehensive gain
|
23,085
|
|
22,667
|
Cumulative
dividends
|
(255,879)
|
|
(232,390)
|
Total stockholders'
equity
|
505,325
|
|
496,814
|
Total liabilities
and stockholders' equity
|
$
900,466
|
|
$
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 AND
SIX MONTHS ENDED JUNE 30, 2023 AND 2022
(Unaudited;
Dollars and shares in thousands, except per share
amounts)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
26,764
|
|
$
23,197
|
|
$
52,892
|
|
$
45,801
|
Other operating
interest
|
1,046
|
|
852
|
|
2,094
|
|
1,729
|
|
27,810
|
|
24,049
|
|
54,986
|
|
47,530
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Property
operating
|
4,786
|
|
4,062
|
|
9,659
|
|
8,153
|
General and
administrative (1)
|
3,787
|
|
3,610
|
|
19,992
|
|
6,926
|
Depreciation and
amortization
|
9,219
|
|
8,077
|
|
18,237
|
|
16,019
|
|
17,792
|
|
15,749
|
|
47,888
|
|
31,098
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES AND OTHER ITEMS
|
10,018
|
|
8,300
|
|
7,098
|
|
16,432
|
Interest
expense
|
(4,140)
|
|
(2,755)
|
|
(8,132)
|
|
(5,381)
|
Deferred
income tax
expense
|
(50)
|
|
(16)
|
|
(85)
|
|
1
|
Interest and other
income
|
749
|
|
55
|
|
774
|
|
56
|
NET INCOME
(LOSS)
|
$
6,577
|
|
$
5,584
|
|
$
(345)
|
|
$
11,108
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
PER COMMON SHARE (1):
|
|
|
|
|
|
|
|
Net income (loss) per
common share – Basic
|
$
0.24
|
|
$
0.21
|
|
$
(0.07)
|
|
$
0.41
|
Net income (loss) per
common share – Diluted
|
$
0.24
|
|
$
0.21
|
|
$
(0.07)
|
|
$
0.41
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-BASIC
|
25,065
|
|
23,578
|
|
24,648
|
|
23,574
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-DILUTED
|
25,065
|
|
23,578
|
|
24,648
|
|
23,574
|
|
|
|
|
|
|
|
(1) General
and administrative expenses for the six months ended June 30,
2023 included stock-based compensation expense totaling
approximately $16.0 million, including the accelerated amortization
of stock-based compensation totaling approximately $11.8 million,
or $0.48 per diluted common share, recognized upon the passing of
our former CEO and President during the first quarter of 2023.
General and administrative expenses for the six months ended
June 30, 2022 included stock-based compensation expense
totaling approximately $4.3 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
June 30,
|
|
2023
|
|
2022
|
Net income
|
$
6,577
|
|
$
5,584
|
Real
estate depreciation and amortization
|
9,293
|
|
8,141
|
FFO
(2)
|
$
15,870
|
|
$
13,725
|
Straight-line rent
|
(819)
|
|
(917)
|
Stock-based compensation
|
1,692
|
|
2,184
|
Net gain from insurance
recovery on casualty loss
|
(706)
|
|
—
|
AFFO
|
$
16,037
|
|
$
14,992
|
FFO per
Common Share-Diluted (2)
|
$
0.62
|
|
$
0.57
|
AFFO per
Common Share-Diluted
|
$
0.63
|
|
$
0.62
|
Weighted Average Common
Shares Outstanding-Diluted (3)
|
25,650
|
|
24,247
|
(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)
|
FFO includes a $0.7
million net casualty gain from insurance proceeds received related
to one property that was vandalized. The net gain increased FFO by
$0.03 per diluted share for the three months ended June 30,
2023.
|
(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: Bill Monroe,
615-771-3052
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SOURCE Community Healthcare Trust, Inc.