Community Healthcare Trust Reports $12.6 Million Net Loss in Q2 2025

Community Healthcare Trust Incorporated reported its financial results for the second quarter of 2025, revealing a net loss of $12.6 million, or $0.50 per share, compared to a net loss of $10.4 million, or $0.42 per share, in the same period of 2024. For the first half of 2025, the company recorded a net loss of $11.0 million, up from a loss of $6.8 million in the prior year. The increase in losses was attributed to higher general and administrative expenses, which surged by approximately $5.8 million due to compensation-related costs associated with the termination of the former Executive Vice President of Asset Management. Rental income for the quarter increased by 8.0% to $30.1 million, driven by acquisitions and reversals of revenues related to a specific tenant.

In terms of operational metrics, Community Healthcare Trust's total assets decreased to $966.3 million as of June 30, 2025, down from $992.6 million at the end of 2024. The company’s total liabilities also rose to $528.5 million, compared to $516.6 million at the end of the previous fiscal year. The increase in liabilities was primarily due to higher debt levels, which reached $500.1 million, up from $486.0 million. The company’s stockholders' equity fell to $437.8 million from $476.0 million, reflecting the net losses and dividend payments.

Strategically, the company made significant moves in its real estate portfolio, acquiring a behavioral specialty facility for approximately $9.7 million in the first quarter, which was recognized in the second quarter after the lease commenced. Additionally, on July 9, 2025, Community Healthcare Trust acquired an inpatient rehabilitation facility in Florida for about $26.5 million. The company has six properties under definitive purchase agreements, with an expected aggregate purchase price of approximately $146.0 million, anticipated to close throughout 2025 to 2027.

The company’s operational performance indicators showed that its real estate portfolio was approximately 90.7% leased, with 200 properties across 36 states. The weighted average remaining lease term was about 6.6 years. However, the company faced challenges with credit loss reserves, recording an additional $8.7 million reserve related to notes receivable from a geriatric behavioral hospital tenant, which impacted overall financial performance.

Looking ahead, Community Healthcare Trust remains focused on expanding its portfolio through strategic acquisitions while managing its financial obligations. The company expects to fund future acquisitions through cash from operations, equity or debt issuances, and its revolving credit facility. The outlook remains cautious, with management acknowledging potential impacts from inflation and interest rate fluctuations on operational costs and asset values.