Community Healthcare Trust Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did CHCT Beat Earnings? Q3 2025 Results
Community Healthcare Trust delivered a strong third quarter, with its key non-GAAP metric driving a headline beat that caught analysts off guard. AFFO per diluted share came in at $0.56, well ahead of the $0.08 consensus estimate for a 600% beat, while revenue of $31.09 million edged past forecasts and grew 4.9% from the $29.64 million reported in Q3 2024. The primary engine behind the quarter's performance was the REIT's continued acquisition activity, highlighted by the $26.5 million purchase of Everest Rehabilitation Hospital Orlando in Ocoee, Florida, a fully leased inpatient rehabilitation facility expected to generate a 9.4% return through a lease running to 2040. An ongoing headwind persists with a geriatric behavioral hospital tenant that paid only roughly $200,000 in rent and interest during the quarter, though a signed letter of intent for the sale of that tenant's business to a new behavioral healthcare operator offers a potential resolution. Looking ahead, the company holds six properties under definitive purchase agreements totaling approximately $146 million, and a planned Q4 asset sale is expected to generate roughly $11.5 million in proceeds earmarked for 1031 exchange acquisitions.
- Acquisition of inpatient rehabilitation facility in Florida for ~$26.5 million at ~9.4% expected return
- Rental income growth to $30.8 million from $29.3 million year-over-year
- NOI increased to $25.2 million from $23.7 million in Q3 2024
- AFFO per diluted share increased to $0.56 from $0.55 in Q3 2024
- FFO per diluted share increased to $0.50 from $0.48 in Q3 2024
Forward Guidance & Outlook
The company has six properties under definitive purchase agreements for an aggregate expected purchase price of approximately $146.0 million, with expected returns of approximately 9.1% to 9.75%. One property is anticipated to close in Q4 2025, with remaining properties expected to close throughout 2026 and 2027. An inpatient rehabilitation facility met held-for-sale criteria in October 2025, with the sale expected in Q4 2025 generating an estimated gain of approximately $11.5 million, with proceeds generally expected to fund acquisitions through 1031 like-kind exchange. The geriatric behavioral hospital tenant has a pending sale of its business to a behavioral healthcare provider, which would include new leases for the six CHCT-owned properties, though timing and completion remain uncertain.
CHCT YoY Financials
Figures from SEC filings and company reports. Not investment advice.