Community Healthcare Trust (CHCT) Q2 2025 Earnings

Community Healthcare Trust delivered a messy second quarter, posting a GAAP net loss of $12.56 million as one-time charges overwhelmed otherwise stable core operations. The healthcare REIT reported AFFO of $0.50 per diluted share against a consensus estimate of $0.54, while revenue of $29.09 million missed expectations by 4.02%, though it still represented a 5.7% increase from the year-ago period. The headline loss stemmed primarily from an $8.70 million credit loss reserve tied to a distressed geriatric behavioral hospital tenant, compounded by $5.90 million in severance charges following a senior executive departure, with these items collectively reducing FFO per diluted share by approximately $0.28. Shares have underperformed the broader market year-to-date, reflecting investor unease over the tenant situation. On the forward-looking side, management pointed to a $146.00 million pipeline of properties under purchase agreements and a post-quarter acquisition of a Florida inpatient rehabilitation facility for $26.50 million at a 9.4% expected return, while a potential sale of the troubled tenant's business to a behavioral healthcare provider offers a possible resolution, though timing remains uncertain.