Community Healthcare Trust Incorporated (CHCT) reported its financial results for the fiscal year ending December 31, 2024, revealing a net loss of $3.2 million, a significant decline from a net income of $7.7 million in the previous year. The company's rental income increased by approximately $5.9 million, or 5.4%, totaling $114.6 million, primarily driven by properties acquired in 2024 and 2023. However, this growth was offset by a reduction in rental income due to lease terminations and tenants on a cash basis, which collectively accounted for a decrease of about $5.1 million.
In terms of operational metrics, CHCT's real estate portfolio consisted of 200 properties across 36 states, with a total gross investment of approximately $1.2 billion. The properties were approximately 90.9% leased, with a weighted average remaining lease term of 6.7 years. The company acquired nine properties during 2024 for a total of $72.4 million, with these assets being 99.3% leased at the time of acquisition. Additionally, CHCT disposed of two properties and a land parcel, generating net proceeds of approximately $2.3 million.
The company’s financial position showed a total debt of $486 million as of December 31, 2024, an increase from $403 million in the previous year. This rise in debt was attributed to the company's strategy of leveraging its credit facility to finance acquisitions and manage operational costs. The debt-to-total capitalization ratio stood at 40.3%, slightly above the company's target of 40%. Interest expense also rose significantly, increasing by 33.2% to approximately $23.7 million, primarily due to higher interest rates and increased borrowing.
Looking ahead, CHCT has a robust acquisition pipeline, with definitive agreements for additional properties totaling approximately $169.5 million, expected to close throughout 2025 and beyond. The company anticipates that these acquisitions will enhance its revenue-generating capacity. However, management acknowledged potential risks, including economic conditions, tenant defaults, and regulatory changes that could impact future performance. The company remains committed to maintaining its status as a Real Estate Investment Trust (REIT) and plans to continue its focus on healthcare-related properties, which are less susceptible to economic downturns compared to other real estate sectors.
About Community Healthcare Trust Inc
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.