Key Highlights

  • The board reduced the quarterly dividend by 31% to $0.33 per share, payable August 31.
  • Second quarter net income was $2.4 million, or $0.06 per share, versus a $12.6 million loss in 2025.
  • Non-GAAP FFO was $0.48 per diluted share and AFFO was $0.56, compared with $0.23 and $0.50 a year earlier.
  • Four properties totaling about $99 million are under purchase agreements, and leased occupancy was 89.8% against a 92% target.

Community Healthcare Trust (NYSE:CHCT) shares were trading near their 52-week low at USD 12.63 on October 19, 2026, down 4.61%. The real estate investment trust owns 197 properties in 36 states. Its August 4 second quarter report paired GAAP net income against a year-earlier loss with a lower dividend and a plan built on acquisitions and higher occupancy. One large brokerage has updated its stance since that report.

Brokerage context

Truist reiterated a Buy rating on August 5, one day after the second quarter report and dividend announcement, and a later action dated August 28 lowered its target to $18 from $20. The October 19 price of USD 12.63 sits below the $18 target. Broker ratings and targets are the firms' own views, presented here as context only, and they are neither a prediction nor a recommendation by this article.

Second quarter earnings and the lower dividend

Total revenues rose to $31.2 million from $29.1 million in the second quarter of 2025. Net income was $2.4 million, or $0.06 per basic and diluted share. A year earlier the company posted a net loss of $12.6 million, or $0.50 per share, which included an $8.7 million credit loss reserve on notes tied to a geriatric behavioral hospital operator. General and administrative expense fell to $4.9 million from $10.6 million, and the earlier figure included $1.3 million of severance and transition costs and $4.6 million of accelerated stock-based compensation. Interest expense rose to $7.4 million from $6.6 million.

Funds from operations (FFO), a non-GAAP measure, were $0.48 per diluted share against $0.23, and adjusted funds from operations (AFFO), also non-GAAP, were $0.56 against $0.50.

The board declared a quarterly dividend of $0.33 per share, payable August 31 to holders of record on August 19. The company described that as a 31% reduction from the prior payment of $0.48, and it said the lower payout brings its AFFO payout ratio to about 60%. It expects to retain $25 million to $30 million of capital over the next two years for acquisitions, reinvestment and occupancy.

Credit facility, leverage and occupancy

Debt, net, was $559.3 million at June 30, 2026, up from $532.2 million at December 31, 2025, while cash was $2.7 million. The credit facility includes a $400.0 million revolver maturing October 16, 2029, with $285.0 million drawn and $115.0 million of capacity remaining. Two term loans totaling $275.0 million mature in March 2028 and March 2030 and are fixed through swaps at a weighted average of about 4.7%. The company said it complied with its financial covenants. Its investor presentation put net debt to adjusted EBITDAre, a non-GAAP measure, at 6.0 times on an annualized basis. A $300.0 million at-the-market program had no shares issued in the first six months of 2026.

Leased occupancy was 89.8%, compared with 90.7% a year earlier. The geriatric behavioral hospital operator, which leases six of the company's properties, paid $0.4 million of rent in the quarter. It signed a letter of intent in July 2025 to sell its business, and the company said it cannot assure the timing or certainty of a closing.

Outlook: occupancy, reinvestment and acquisitions

Management's stated priorities for the next 18 to 24 months are lifting leased occupancy to 92%, reinvesting in existing properties at yields of 9% to 12%, selling more than $70 million of marketed properties and recycling that capital into acquisitions. Four properties are under definitive purchase agreements for about $99.0 million in total, at expected returns of 9.1% to 9.75%, and the company would acquire them after completion and occupancy. It expects one closing in the third quarter of 2026, one in the fourth quarter and two in 2027, without assurance. The release gave no formal earnings or FFO guidance.