Community Healthcare Trust Incorporated Reports Q3 2024 Financial Results, Highlighting Revenue Growth and Strategic Developments

Community Healthcare Trust Incorporated reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, the company’s total real estate properties increased to $1,135,463 thousand from $1,050,247 thousand at the end of 2023. Total assets also rose to $981,779 thousand, up from $945,412 thousand. However, total liabilities increased significantly to $504,627 thousand from $432,156 thousand, primarily due to a rise in net debt, which grew to $473,716 thousand from $403,256 thousand.

Rental income for the three months ended September 30, 2024, was $29,335 thousand, reflecting a 5.9% increase from $27,690 thousand in the same period of 2023. For the nine months, rental income rose to $85,582 thousand, up 6.2% from $80,582 thousand. This growth was attributed to contributions from properties acquired in 2023 and 2024, although a tenant's transition to cash basis reduced income by approximately $800,000.

Despite the increase in rental income, net income for the three months ended September 30, 2024, fell to $1,749 thousand, a decrease of 49.9% from $3,492 thousand in the prior year. For the nine months, the company reported a net loss of $(5,013) thousand, compared to a net income of $3,147 thousand in 2023. This decline was influenced by increased interest expenses, which rose to $(6,253) thousand, up 34.7% from $(4,641) thousand in Q3 2023, and a significant credit loss reserve of $11.0 million recorded in Q2 2024.

General and administrative expenses for the three months increased by 36.4% to $4,935 thousand, driven by higher compensation-related costs. However, for the nine months, these expenses decreased significantly to $14,249 thousand from $23,610 thousand, largely due to a non-cash accelerated amortization of deferred compensation for the former CEO.

Strategically, the company made several acquisitions, including a physician clinic and an inpatient rehabilitation facility, contributing to its revenue streams. In Q3 2024, it disposed of a surgical center in Texas for approximately $1.0 million. The company also amended its credit facility, increasing the revolving credit capacity from $150 million to $400 million, which will support future acquisitions.

As of September 30, 2024, the company maintained a portfolio that was approximately 91.3% leased, with a weighted average remaining lease term of about 6.8 years. The company continues to focus on expanding its healthcare real estate investments while managing its financial obligations and operational costs effectively.