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Community Healthcare Trust Inc (CHCT) Q4 2024 Earnings Call Highlights: Navigating Challenges ...

In This Article:

  • Total Revenue: $29.3 million for Q4 2024, compared to $29.6 million in Q3 2024.

  • Property Operating Expenses: Decreased by $500,000 to $5.5 million in Q4 2024.

  • General and Administrative Expenses: Decreased from $4.9 million in Q3 2024 to $4.8 million in Q4 2024.

  • Interest Expense: Increased from $6.3 million in Q3 2024 to $6.4 million in Q4 2024.

  • Funds From Operations (FFO): $12.7 million in Q4 2024, down 14.5% year over year from $14.9 million in Q4 2023.

  • FFO per Diluted Share: $0.48 in Q4 2024, unchanged from the previous quarter.

  • Adjusted Funds From Operations (AFFO): $14.6 million in Q4 2024, same as Q3 2024.

  • AFFO per Diluted Share: $0.55 in Q4 2024, unchanged from the previous quarter.

  • Occupancy Rate: Decreased slightly to 90.9% at year-end 2024.

  • Weighted Average Remaining Lease Term: Declined slightly to 6.7 years.

  • Dividend: Raised to $46.75 per common share, annualized to $1.87 per share.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Community Healthcare Trust Inc (NYSE:CHCT) acquired three physician clinics in the fourth quarter, fully leased with anticipated annual returns of approximately 9.4%.

  • The company has signed definitive purchase agreements for six properties with an expected investment of $146 million, with returns ranging from 9.1% to 9.75%.

  • CHCT increased its revolving credit facility from $150 million to $400 million, extending its maturity date by five years and achieving lower pricing.

  • The company declared a dividend for the fourth quarter and raised it to $46.75 per common share, continuing its streak of raising dividends every quarter since its IPO.

  • CHCT's property operating expenses decreased by approximately $500,000 quarter over quarter, primarily due to lower utility expenses.

Negative Points

  • Occupancy decreased slightly to 90.9%, and the weighted average remaining lease term declined to 6.7 years.

  • The geriatric psychiatric hospital operator, a tenant in six properties, did not pay rent or interest in the fourth quarter, impacting financial results.

  • Funds from operations (FFO) declined by 14.5% year over year, primarily due to the loss of rent and interest from the geriatric psychiatric hospital operator.

  • Interest expense increased from $6.3 million to $6.4 million due to higher borrowings and interest rate spreads.

  • The company's low share price prevented it from issuing shares under its ATM program last quarter, impacting capital raising efforts.