Community Healthcare Trust Incorporated (CHCT) reported its financial results for the fiscal year ending December 31, 2025, revealing a revenue increase of approximately $6.8 million, or 5.9%, compared to the previous year, totaling $121.4 million. This growth was primarily driven by income from properties acquired in 2025 and 2024, which contributed about $5.4 million to rental income. However, the company also faced challenges, including a decrease in other operating interest, which fell by $1.4 million due to credit loss reserves related to a tenant in the geriatric behavioral hospital sector. The net income for the year was $5.1 million, a recovery from a net loss of $3.2 million in 2024.
In terms of strategic developments, CHCT acquired three real estate properties during 2025 for a total of approximately $64.5 million, all of which were fully leased upon acquisition. The company also disposed of five properties, generating net proceeds of about $32.9 million and recognizing a net gain of $11.6 million from these sales. As of December 31, 2025, CHCT's real estate portfolio consisted of 198 properties across 36 states, with a total gross investment of approximately $1.2 billion. The properties were approximately 90.6% leased, with a weighted average remaining lease term of about 7.0 years.
Operationally, CHCT's employee count remained stable at 35 as of the end of 2025, with a voluntary turnover rate of approximately 11%. The company emphasized its commitment to employee development and diversity, noting that 46% of its workforce and 32% of its management team were female. The company also reported a significant increase in general and administrative expenses, which rose by 31.7% to $25.1 million, largely due to severance and accelerated stock-based compensation expenses following the termination of a senior executive.
Looking ahead, CHCT has five properties under definitive purchase agreements, with an expected aggregate purchase price of approximately $122.5 million. The company anticipates closing on one of these properties in the first quarter of 2026, with the remainder expected to close throughout 2026 and 2027. The expected returns on these investments are projected to be between 9.1% and 9.75%. However, the company acknowledged potential risks, including inflationary pressures and interest rate fluctuations, which could impact its financial performance and operational strategies moving forward.
About Community Healthcare Trust Inc
Community Healthcare Trust Inc. is a healthcare real estate investment trust (REIT) that owns and manages a diversified portfolio of approximately 200 healthcare properties across 36 states. Its properties include medical office buildings, outpatient facilities, and specialty centers leased to leading healthcare providers. The company focuses on stable, need-based healthcare assets, emphasizing off-market acquisitions, long-term leases, and strategic relationships to generate reliable rental income and long-term growth.
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