Community Healthcare Trust Reports Q1 2026 Financial Results with $2.5 Million Net Income

Community Healthcare Trust Incorporated reported its financial results for the first quarter of 2026, revealing a net income of $2.5 million, or $0.07 per diluted share, compared to $1.6 million, or $0.03 per diluted share, in the same period of 2025. The company’s rental income increased by approximately 5.2%, reaching $31.3 million, up from $29.7 million a year earlier. This growth was primarily driven by acquisitions made in 2025 and early 2026, which contributed an additional $2.1 million in rental income. However, the company also faced a decrease in rental income due to property dispositions and a lease conversion that affected revenue.

In terms of operational metrics, Community Healthcare Trust's total assets rose to $1.01 billion as of March 31, 2026, compared to $990.8 million at the end of 2025. The company’s real estate properties, net of accumulated depreciation, increased to $947.1 million from $922.9 million. The total liabilities also grew, reaching $588.8 million, up from $561.4 million, largely due to increased borrowings under its revolving credit facility, which stood at $285 million at the end of the quarter.

Strategically, the company acquired one inpatient rehabilitation facility in Pinellas Park, Florida, for $28.5 million during the first quarter. This property is fully leased with a lease expiration in 2044. Additionally, the company disposed of a property in Florida, generating net proceeds of approximately $5.2 million. As of March 31, 2026, Community Healthcare Trust owned 198 properties across 36 states, with an occupancy rate of approximately 89.8% and a weighted average remaining lease term of 7.2 years.

Looking ahead, Community Healthcare Trust has four properties under definitive purchase agreements, with an expected aggregate purchase price of approximately $99 million. The company plans to fund these acquisitions through cash from operations, equity or debt issuances, and its revolving credit facility. The company’s management remains cautious about the impact of inflation and interest rate fluctuations on its operations, particularly as it relates to its variable-rate borrowings. The company declared a quarterly dividend of $0.48 per share, payable on May 22, 2026, reflecting its commitment to returning value to shareholders while navigating the current economic landscape.