Community Healthcare Trust Reports Q1 2026 Earnings Growth and Strategic Updates
Community Healthcare Trust (CHCT) reported a 4.8% year-over-year increase in total revenue to $31.5 million for the first quarter of 2026, driven by higher rental income from recent acquisitions and property operating expense recoveries. Adjusted Funds From Operations (AFFO) per diluted share rose to $0.56, while the company raised its quarterly dividend to $0.48 per share, marking consistent payout increases since its IPO. Occupancy slightly declined to 89.8% due to lease terminations, but management expects a rebound in the next quarter through renewals and new leasing activities. A significant focus remains on resolving a tenant transition involving six behavioral health hospitals, where the current operator has signed a letter of intent to sell operations to an experienced buyer. Although due diligence is underway, closing timing remains uncertain. CHCT continues its capital recycling strategy, including the purchase of a $28.5 million rehabilitation facility and plans for $99 million in additional acquisitions, while selling lower-priority assets. Interest expenses decreased sequentially but are projected to rise in the second quarter due to expiring interest rate hedges.
Wire timeline
Community Healthcare Trust Reports Q1 2026 Earnings Growth and Strategic Updates
Community Healthcare Trust (CHCT) reported a 4.8% year-over-year increase in total revenue to $31.5 million for the first quarter of 2026, driven by higher rental income from recent acquisitions and property operating expense recoveries. Adjusted Funds From Operations (AFFO) per diluted share rose to $0.56, while the company raised its quarterly dividend to $0.48 per share, marking consistent payout increases since its IPO. Occupancy slightly declined to 89.8% due to lease terminations, but management expects a rebound in the next quarter through renewals and new leasing activities. A significant focus remains on resolving a tenant transition involving six behavioral health hospitals, where the current operator has signed a letter of intent to sell operations to an experienced buyer. Although due diligence is underway, closing timing remains uncertain. CHCT continues its capital recycling strategy, including the purchase of a $28.5 million rehabilitation facility and plans for $99 million in additional acquisitions, while selling lower-priority assets. Interest expenses decreased sequentially but are projected to rise in the second quarter due to expiring interest rate hedges.
Yahoo Finance