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Community Healthcare Trust (CHCT)
NYSE:CHCT
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Community Healthcare
(NYSE:CHCT)
63Neutral
Positive Factors
Dividend Increase
The company raised its quarterly dividend to $0.4675 per share, continuing its trend of increases since its IPO.
Financial Stability
The company has no debt maturities until 2028, indicating a stable financial position.
Rent Collections
Rent collections have been tracking well over the last two quarters.
Negative Factors
FFO Decline
The estimates imply a 16.9% year-over-year normalized FFO per share decline in 2024, marking the company’s first year-over-year decrease since 2017.
Lease and Interest Payment Uncertainty
The company did not give any update regarding the uncertainty around collecting lease and interest payments from a tenant operating a geriatric inpatient behavioral hospital.
Rent Collection Concerns
There are ongoing concerns regarding rent collections from a tenant occupying six buildings and an associated loan.
Community Healthcare (CHCT) vs. S&P 500 (SPY)
Market Cap
$452.01M
Dividend Yield11.63%
Average Volume (3M)250.20K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth2.61%
EPS Growth-221.50%
CountryUS
Employees36
SectorReal Estate
Sector Strength77
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)-0.22
Shares Outstanding28,339,418
10 Day Avg. Volume332,197
30 Day Avg. Volume250,201
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.46
Price to Cash Flow (P/CF)8.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside44.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Community Healthcare Business Overview & Revenue Model
Company DescriptionCommunity 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. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.
How the Company Makes MoneyCommunity Healthcare Trust Incorporated makes money by acquiring, owning, and leasing healthcare real estate properties to healthcare service providers. The company's primary revenue stream comes from rental income generated through long-term lease agreements with tenants. These leases typically include annual rent escalations, providing a predictable and growing income stream. CHCT's business model is supported by its focus on properties in non-urban areas, where competition is less intense and yields can be more attractive. Additionally, the company seeks to grow its portfolio through strategic acquisitions and development of new properties, further enhancing its revenue potential. Significant partnerships with healthcare operators and a diversified tenant base also contribute to the stability and robustness of its earnings.
Community Healthcare Financial Statement Overview
Summary
Community Healthcare exhibits solid revenue growth and operational efficiency, though recent profitability challenges require attention. A debt-free balance sheet underscores financial resilience, while cash flows remain healthy but with areas for improvement in operational cash generation.Income Statement
The income statement shows a steady revenue growth trajectory with a recent dip in net income leading to a negative net profit margin. Gross and EBITDA margins remain robust, indicating operational efficiency. However, the sharp decrease in net income is a concern, impacting overall profitability.72
Positive
Balance Sheet
The balance sheet reveals a strong equity position with zero debt, highlighting financial stability. The equity ratio is healthy, ensuring lower financial leverage and risk. However, the reduction in stockholders' equity over the past year needs monitoring.85
Very Positive
Cash Flow
The cash flow statement shows strong free cash flow generation with a positive operating cash flow to net income ratio, despite net income turning negative. The free cash flow growth is commendable, but reduced operating cash flow compared to the previous year is a concern.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 114.56M | 112.84M | 97.68M | 90.58M | 75.68M | Gross Profit |
| 91.73M | 92.13M | 81.04M | 75.42M | 62.07M | EBIT |
| 20.12M | 25.10M | 33.93M | 32.96M | 28.09M | EBITDA |
| 64.23M | 65.54M | 66.27M | 63.37M | 53.60M | Net Income Common Stockholders |
| -3.18M | 7.71M | 22.02M | 22.49M | 19.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.38M | 3.49M | 11.23M | 2.35M | 2.48M | Total Assets |
| 992.56M | 945.41M | 876.42M | 754.23M | 668.40M | Total Debt |
| 489.98M | 407.31M | 353.00M | 265.63M | 213.17M | Net Debt |
| 485.60M | 403.82M | 341.76M | 263.27M | 210.68M | Total Liabilities |
| 516.60M | 432.16M | 379.61M | 292.12M | 238.49M | Stockholders Equity |
| 475.96M | 513.26M | 496.81M | 462.11M | 429.92M |
| Cash Flow | Free Cash Flow | |||
| 58.88M | 42.40M | 49.90M | 49.13M | 41.38M | Operating Cash Flow |
| 58.88M | 61.38M | 60.28M | 56.35M | 48.37M | Investing Cash Flow |
| -92.66M | -113.67M | -113.77M | -104.43M | -125.06M | Financing Cash Flow |
| 33.53M | 44.86M | 62.69M | 48.05M | 77.56M |
Community Healthcare Technical Analysis
Negative
15.95
Price Trends
17.90
Negative
18.24
Negative
18.29
Negative
Market Momentum
-0.69
Positive
36.61
Neutral
54.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Negative. The current price of 15.95 is below the 20-day moving average (MA) of 16.81, below the 50-day MA of 17.90, and below the 200-day MA of 18.29, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 54.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHCT.
Community Healthcare Risk Analysis
Community Healthcare disclosed 84 risk factors in its most recent earnings report. Community Healthcare reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Community Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.42B | 34.07 | 2.86% | 3.00% | -0.10% | 78.83% | |
64 Neutral | $528.54M | 27.46 | 10.11% | 7.63% | 3.60% | 24.76% | |
63 Neutral | $452.01M | ― | -1.21% | 11.63% | 2.61% | -221.50% | |
59 Neutral | $2.72B | 11.53 | 0.09% | 8679.99% | 5.56% | -16.50% | |
57 Neutral | $540.92M | 608.94 | 1.19% | 11.21% | -0.43% | -94.73% | |
54 Neutral | $537.96M | ― | -17.24% | 1.78% | 6.04% | -25.79% | |
54 Neutral | $135.16M | 19.19 | 31.90% | 4.89% | 17.29% | 47.33% |
* Real Estate Sector Average
Performance Comparison
CHCT
Community Healthcare
15.95
-7.69
-32.53%
DHC
Diversified Healthcare Trust
2.26
-0.11
-4.64%
GMRE
Global Medical REIT
7.52
0.07
0.94%
UHT
Universal Health Realty Income
39.11
7.55
23.92%
STRW
Strawberry Fields REIT Inc
11.33
3.15
38.51%
SILA
Sila Realty Trust, Inc.
25.95
7.67
41.96%
Community Healthcare Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -17.40% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call reveals a mix of achievements and challenges. The company has made significant acquisitions and increased its credit capacity while maintaining a consistent dividend increase. However, financial performance has been impacted by a key tenant's inability to pay rent, leading to a decline in FFO and AFFO. The sentiment is balanced with both positive developments and notable challenges.Highlights
Acquisition Success
Acquired three physician clinics in two transactions totaling 38,000 square feet for $8.2 million during Q4 2024. The properties are 100% leased with leases through 2029 and expected annual returns of 9.4%.
Increased Credit Facility
Increased revolving credit facility from $150 million to $400 million, extended maturity date by five years, and achieved lower pricing.
Dividend Increase
Declared a dividend for Q4 2024 and raised it to $0.4675 per common share, equating to an annualized dividend of $1.87 per share. The company has raised its dividend every quarter since its IPO.
Occupancy and Lease Term
At year-end, occupancy slightly decreased to 90.9% with a weighted average remaining lease term of 6.7 years.
Lowlights
Financial Performance Decline
Funds from operations (FFO) declined 14.5% year over year from $14.9 million in Q4 2023 to $12.7 million in Q4 2024, primarily due to loss of rent and interest from a key tenant.
Geriatric Psychiatric Hospital Rent Issues
Did not receive any rent or interest from a tenant in six properties during Q4 2024, with only a small payment in Q1 2025. The tenant is evaluating strategic alternatives, including potential sales.
Interest Expense Increase
Interest expense increased from $6.3 million in Q3 2024 to $6.4 million in Q4 2024 due to increased borrowings and changes in interest rate spreads.
AFFO Decline
Adjusted funds from operations (AFFO) declined 9% year over year from $16.1 million in Q4 2023 to $14.6 million in Q4 2024 due to tenant issues.
Company Guidance
During the 2024 fourth quarter earnings call for Community Healthcare Trust Incorporated, key metrics and guidance were provided by the company's leadership. The company reported a slight decrease in occupancy to 90.9% and a decline in the weighted average remaining lease term to 6.7 years. They acquired three physician clinics totaling 38,000 square feet for $8.2 million, with expected annual returns of 9.4%. For the year, they acquired nine properties with an aggregate purchase price of $72.1 million, expected to yield returns between 9.1% and 9.75%. The company plans to close two properties for $33 million in the first quarter of 2025. Additionally, they have agreements for six properties with an expected investment of $146 million, with returns projected between 9.1% and 9.75%, anticipated to close through 2027. The company increased its revolving credit facility from $150 million to $400 million and extended its maturity to 2028. The dividend was raised to $0.4675 per share, equating to an annualized $1.87 per share. The company's financial performance showed a slight decrease in total revenue from $29.6 million in Q3 to $29.3 million in Q4, with FFO at $12.7 million and AFFO at $14.6 million, marking a year-over-year decline due to issues with a geriatric psychiatric hospital operator.Community Healthcare Corporate Events
Private Placements and FinancingM&A TransactionsFinancial Disclosures
Community Healthcare Expands Credit Facility to $400 Million
Positive
Feb 18, 2025
Community Healthcare Trust Incorporated reported a net income of approximately $1.8 million for the fourth quarter ended December 31, 2024. The company acquired three properties for $8.2 million and disposed of a property in Texas and a land parcel in Georgia for $1.4 million. Looking forward, the company has agreements to purchase additional properties worth approximately $169.5 million. On October 16, 2024, the company amended its credit agreement, increasing its credit facility to $400 million and extending the maturity date to October 16, 2029.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.