Community Healthcare Trust Inc Reports Solid Q4 Earnings Amidst Strategic Acquisitions
Net Income: Reported $4.6 million, or $0.15 per diluted common share for Q4 2023.
Funds from Operations (FFO): Totaled $0.57 per diluted common share in Q4 2023.
Adjusted Funds from Operations (AFFO): Reached $0.61 per diluted common share in Q4 2023.
Acquisitions: Acquired two properties for $7.1 million, 97.5% leased, and one long-term acute care hospital for $6.5 million, 100% leased.
Portfolio Growth: Total investments of approximately $1.1 billion in 193 real estate properties across 34 states.
Dividend: Declared a quarterly common stock dividend of $0.4575 per share, payable on March 1, 2024.
Balance Sheet: Total assets of $945.4 million and total liabilities of $432.2 million as of December 31, 2023.
On February 13, 2024, Community Healthcare Trust Inc (NYSE:CHCT) released its 8-K filing, announcing its financial results for the fourth quarter ended December 31, 2023. The company, an integrated healthcare real estate investment trust (REIT) in the United States, focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in non-urban markets.
CHCT reported a net income of approximately $4.6 million, or $0.15 per diluted common share, for the quarter. The company's FFO and AFFO for the quarter were $0.57 and $0.61 per diluted common share, respectively. These metrics are crucial for REITs as they provide a clearer picture of the company's operating performance by excluding the effects of depreciation and other non-cash charges.
Strategic Property Acquisitions and Tenant Updates
During the quarter, CHCT strategically expanded its portfolio by acquiring two real estate properties for an aggregate purchase price of approximately $7.1 million. These properties were 97.5% leased, indicating strong occupancy rates and stable income potential. Additionally, CHCT acquired a long-term acute care hospital for about $6.5 million, which was fully leased, further solidifying its revenue stream.
The company also provided an update on the bankruptcy of one of its tenants, GenesisCare. The tenant's plan of reorganization is expected to assume or assign all of CHCT's remaining leases with no material changes to the lease terms, a positive sign for the company's lease stability.
Financial Position and Future Outlook
CHCT's balance sheet as of December 31, 2023, shows total assets of $945.4 million, including net real estate properties valued at $849.4 million. The company's total liabilities stood at $432.2 million, with debt accounting for the majority at $403.3 million. The balance sheet strength is indicative of the company's ability to sustain its operations and support its growth initiatives.
The company's portfolio growth is evident with total investments of approximately $1.1 billion in 193 real estate properties across 34 states, totaling about 4.3 million square feet. This diversification across geographies and property types is important for reducing risk and ensuring a steady income flow.
CHCT's Board of Directors declared a quarterly common stock dividend of $0.4575 per share, showcasing the company's commitment to delivering shareholder value and its confidence in ongoing cash flows.
Community Healthcare Trust Inc's performance in the fourth quarter of 2023 demonstrates its resilience and strategic focus in the healthcare real estate sector. With a series of property acquisitions and a strong balance sheet, CHCT is well-positioned to continue its growth trajectory and capitalize on the demand for healthcare-related real estate in the United States.
Explore the complete 8-K earnings release (here) from Community Healthcare Trust Inc for further details.
This article first appeared on GuruFocus.
