Community Healthcare Trust Reports Q3 2025 Financial Results with Increased Rental Income but Net Loss

Community Healthcare Trust Incorporated reported its financial results for the third quarter and the first nine months of 2025, revealing a rental income of $30.8 million for the quarter, a 5% increase from $29.3 million in the same period last year. For the nine months ending September 30, 2025, rental income rose to $90.7 million, compared to $85.6 million in 2024. However, the company recorded a net loss of $9.3 million for the nine months, a decline from a loss of $5.0 million in the prior year. The net income per share for the third quarter was $0.03, down from $0.04 in 2024.

The company’s total assets decreased slightly to $987.3 million as of September 30, 2025, from $992.6 million at the end of 2024. Total liabilities increased to $560.4 million, up from $516.6 million, primarily due to higher debt levels, which rose to $530.1 million from $486.0 million. Stockholders' equity also saw a decline, falling to $426.8 million from $476.0 million, attributed to increased cumulative dividends and a decrease in accumulated other comprehensive income.

Strategically, Community Healthcare Trust continued to expand its portfolio, acquiring two properties for approximately $36.1 million during the first nine months of 2025. The company also disposed of two properties, generating net proceeds of about $1.3 million. As of September 30, 2025, the company owned 200 real estate properties across 36 states, with a total gross investment of approximately $1.2 billion. The properties were approximately 90.1% leased, reflecting a stable occupancy rate.

Operationally, the company faced challenges with credit losses, particularly related to a geriatric behavioral hospital tenant, leading to a credit loss reserve of $8.7 million. General and administrative expenses surged by 42.6% to $20.3 million for the nine months, largely due to severance and transition costs following the termination of a senior executive. The company also reported an increase in interest expenses, which rose by 15.7% to $20.0 million, driven by higher borrowing costs.

Looking ahead, Community Healthcare Trust remains focused on its acquisition pipeline, with six properties under definitive purchase agreements expected to close in the coming years. The company anticipates funding these acquisitions through cash from operations, equity or debt issuances, and asset sales. The management expressed confidence in its ability to navigate market conditions and maintain liquidity, with a remaining borrowing capacity of approximately $144 million under its revolving credit facility.