What is the revenue and EPS growth rate for Community Healthcare year over year?

What is the market's earnings forecast for Community Healthcare next quarter?

What guidance did Community Healthcare's management provide for the next earnings period?

What does Community Healthcare do and what are its main business segments?

What is Community Healthcare's latest dividend and current dividend yield?

What is Community Healthcare's gross profit margin?

Did Community Healthcare beat or miss consensus estimates last quarter?

What were the key takeaways from Community Healthcare’s earnings call?

- **Tenant Deal Uncertainty**: Geriatric hospital sale under exclusivity; CHCT reserved $8.7M in notes, expecting minimal recovery beyond transaction proceeds.
- **Acquisition Momentum**: $146M pipeline with 9.1%–9.75% returns, funded via capital recycling; Q2 acquisition of $26.5M rehab facility leased through 2040.
- **Financial Performance**: Core revenue up 2.2% Q/Q to $30.7M; FFO $0.23 (excluding $0.28 one-time charges), AFFO $0.50 (excluding $0.06 charges).
- **Strategic Priorities**: Focus on capital recycling, dividend growth, and improving occupancy to 92%+ over next year.

**【CEO Summary Section】**
- **Geriatric Behavioral Hospital Tenant Update**: Signed a letter of intent to sell operations of 6 hospitals, with CHCT negotiating new leases. The tenant is exploring strategic alternatives, and while the transaction is under exclusivity, it remains uncertain. CHCT has fully reserved notes receivable, recognizing $260,000 in cash rent Q2 vs. $165,000 Q1.
- **Acquisition Pipeline**: Acquired an inpatient rehab facility for $26.5M with a 9.4% return. Six additional properties ($146M total) under purchase agreements, expected to close Q4 2025–Q2 2027 with returns 9.1%–9.75%. Capital recycling efforts aim to fund pipeline without over-leveraging.
- **Leasing Activity**: Occupancy 90.7% (down 0.2% Q/Q). Three properties undergoing redevelopment; one leased July 1, contributing AFFO late Q4 2025.
- **Dividend Growth**: Raised quarterly dividend to $0.4725, annualized $1.89, continuing streak of quarterly increases since IPO.

**【CFO Financial Commentary】**
- **Revenue**: Total Q2 revenue $29.1M, excluding $1.7M interest reversal, core portfolio grew 2.2% Q/Q to $30.7M.
- **Expenses**: Property operating expenses down $500K Q/Q to $5.6M (seasonal). G&A expenses $10.6M, including $5.9M severance charge; normalized G&A $4.7M (down $400K Q/Q).
- **FFO/AFFO**: FFO $0.23 (reduced $0.28 by onetime items), AFFO $0.50 (reduced $0.06). Interest expense up $240K Q/Q to $6.6M due to revolver borrowings.

**【Q&A Highlights】**
- **Funding Strategy**: Prioritize capital recycling over ATM; revolver usage to remain moderate. Disposition cap rates expected 7.5%–8%.
- **Tenant Deal Risk**: Minimal capital needed for asset readiness; no expectation of recovering notes receivable beyond transaction proceeds.
- **Occupancy Outlook**: Target 100+ basis points improvement over next 4–6 quarters, driven by new SVP and portfolio optimization.
- **Leverage Management**: Maintain modest leverage, avoiding over-reliance on revolver for acquisitions.

Community Healthcare Trust Incorporated (CHCT) Q2 2025 Earnings Call Transcript

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