Community Healthcare Trust — Q3 2026 Earnings Summary

Financial Performance:

• Reported net income of $3.1 million ($0.09 per diluted share) for the three months ended September 30, 2026, compared to $1.6 million ($0.03 per diluted share) in the same period in 2025.
• Funds from operations (FFO) totaled $0.54 per diluted share, an 8.0% increase year-over-year from $0.50 per share in Q3 2025.
• Adjusted funds from operations (AFFO) totaled $0.58 per diluted share, a 3.6% increase year-over-year from $0.56 per share in Q3 2025.
• Total revenue for the quarter was $32.4 million, representing a 4% increase from $31.1 million in Q3 2025, driven by $32.2 million in rental income.
• General and administrative expenses decreased to $4.2 million from $4.7 million in Q3 2025, a 14.3% reduction.
• Debt increased to $558.4 million as of September 30, 2026, from $532.2 million as of December 31, 2025.
• Total assets were $1.0 billion as of September 30, 2026, up from $990.8 million at year-end 2025.

Guidance and Future Outlook:

• Anticipates closing on the first of four properties under definitive purchase agreements in Q4 2026, a second in Q1 2027, and the remaining two between mid-2027 and early 2028.
• Expected returns on the four pending acquisitions (aggregate price ~$99.0 million) are projected between 9.1% and 9.75%.
• Subsequent to the quarter end, the company sold two properties for net proceeds of $31.5 million to fund acquisitions via Section 1031 like-kind exchange and for general corporate purposes.
• Management noted it cannot provide assurance regarding the timing or certainty of closing on the four pending acquisitions or the sale of the geriatric behavioral hospital operator's business.

Business Segments and Product Lines:

• Leased occupancy increased from 89.8% to 90.1% between Q2 and Q3 2026.
• Completed $32.3 million in property dispositions since the close of Q2 2026 to support capital recycling.
• Sold one property during Q3 2026, receiving net proceeds of $0.1 million and recording a $0.7 million loss on sale.
• The portfolio consists of 196 properties (including one sales-type lease and two assets held for sale) across 36 states, totaling 4.5 million square feet.
• No shares were issued under the ATM program during Q3 2026.

Market and Competitive Landscape:

• A tenant in six properties (geriatric behavioral hospital operator) paid $0.5 million in rent during Q3 2026, an increase of $0.2 million from Q2 2026.
• The tenant signed a Letter of Intent in July 2025 to sell its business to a behavioral healthcare provider, with new leases for the six hospital properties included in the transaction.

Risks and Challenges:

• Uncertainty exists regarding the specific timing and ultimate certainty of the closing of the tenant's business sale and the four pending property acquisitions.
• Q3 2026 results included a $0.7 million loss on the sale of one property.
• Net income and FFO were impacted by a $0.9 million reduction in deferred compensation expense compared to Q2 2026, resulting from fully amortized restricted stock awards and forfeited units.
• Forward-looking statements are subject to risks including capital market volatility, interest rate changes, regulatory changes, and potential delays in transaction closings.

Management Commentary and Tone:

• Results reflect measurable progress executing the Strategic Plan announced August 4, 2026.
• Management highlighted total revenue growth of $1.2 million (4%) and a decline in G&A expenses of $0.7 million (14.3%) as key operational highlights.
• FFO per share increased by $0.04 (8.0%) and AFFO per share increased by $0.02 (3.6%) on a year-over-year basis.

Other Key Points:

• The Board of Directors declared a quarterly common stock dividend of $0.33 per share, payable November 25, 2026, to stockholders of record as of November 13, 2026, maintaining the same amount as the prior quarter.
• Nine-month net income for 2026 was $8.0 million ($0.22 per share), compared to a net loss of $9.3 million ($0.43 per share) in the same period in 2025.
• Nine-month G&A expenses were $14.2 million, down from $20.3 million in 2025, which included $1.3 million in severance and $4.6 million in accelerated non-cash stock-based compensation related to a former executive.
• The company holds investments of approximately $1.2 billion in its real estate portfolio.