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CLOSED · 03:15 ET
Market ClerkRecap
Sun Oct 25 · markets closed1 signal on Oct 2494 insider buys this week · $48.3MCIRO short report next: Oct 30The week ahead

CHCT

Community Healthcare Trust Inc
NYSE · REAL ESTATE · REAL ESTATE INVESTMENT TRUSTS
13.00
+0.07 +0.54%
USD · close Oct 23
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MKT CAP $372.5MP/E 19.4DIV YIELD 14.65%FCF YIELD 10.40%REV TTM $124.8M +5.7%NET INCOME $21MNET DEBT $556.6M52W 12.64 – 19.02SEC XBRL · TTM TO Invalid Date

How CHCT rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
84%
of sentences unchanged
Added
75
new sentences
Dropped
72
sentences removed
Length
+326
words, now 29,893

New in FY2025

  • Real Estate Investments As of December 31, 2025, we had gross investments of approximately $1.2 billion in 198 real estate properties (including one property, with sales-type leases, with a gross amount totaling approximately $8.1 million and one property classified as held for sale with a net investment totaling approximately $5.3 million).
  • The properties are located in 36 states, totaling approximately 4.5 million square feet in the aggregate, with a weighted average remaining lease term of approximately 7.0 years.
  • Excluding the real estate asset held for sale at December 31, 2025, the properties were approximately 90.6% leased.
  • Number of Properties Annualized Rent (%) Medical Office Building (MOB) 93 36.0 % Inpatient Rehabilitation Facilities (IRF) 10 21.2 % Acute Inpatient Behavioral (AIB) 5 12.6 % Specialty Centers (SC) 36 8.9 % Physician Clinics (PC) 33 8.2 % Behavioral Specialty Facilities (BSF) 13 7.1 % Surgical Centers and Hospitals (SCH) 6 4.0 % Long-term Acute Care Hospitals (LTACH) 2 2.0 % Total real estate investments 198 100.0 % Customer Concentrations The Company's real estate portfolio is leased to a diverse tenant base.
  • While no tenants provided more than 10% of our annualized rent as of December 31, 2025, our largest tenants were US Healthvest which provided 7.3% and Lifepoint Health which provided 6.4% of our annualized rent.
  • Geographic Concentrations The Company's portfolio is currently located in 36 states with 26.7% of our annualized rent as of December 31, 2025 derived from properties located in Texas (14.3%) and Florida (12.4%).
  • No other states provided annualized rent over 10% as of December 31, 2025.
  • See each of the discussions under Item 1A, "Risk Factors," under the captions " Adverse economic or other conditions in the geographic markets in which we conduct business could negatively affect our occupancy levels and rental rates and have a material adverse effect on our operating results ," and " A large percentage of our annualized rent is provided by properties that are located in Texas and Florida and changes in these markets may materially adversely impact our business and financial condition." 2025 Real Estate Investments During the year ended December 31, 2025, the Company acquired three real estate properties, as detailed in Note 4 – Real Estate Acquisitions, Dispositions, and Assets Held for Sale to the Consolidated Financial Statements.
  • Upon acquisition, the properties were 100.0% leased in the aggregate with lease expirations through 2040.
  • Human Capital Resource Management We believe our employees are a critical component to the achievement of our business objectives.
  • Our employees are comprised of accountants, asset managers, leasing personnel, administrative staff, investment and construction management personnel, and the corporate management team.
  • We believe that by supporting and investing in our employees, we are able to attract and retain the highest quality talent.
  • We provide health benefits, 401(k) matching up to 3.5%, HSA contributions annually, tuition and other employee education reimbursements, as well as other in-house training, annual restricted stock grants, and restricted stock award matching for deferred compensation elections.
  • We are committed to fostering and cultivating a culture of diversity and inclusion and embrace employee differences in race, color, religion, sex, sexual orientation, national origin, age, disability, and other characteristics that make our employees unique.
  • As of December 31, 2025, we had 35 employees.
  • We have a stable workforce with an average tenure of 4.0 years.
  • During 2025, we had total voluntary employee turnover of approxim ately 11%, including 3% of retirements.
  • At December 31, 2025, 46% of our employees, 32% of our management team, and 33% of our board of directors were female.
  • We offer competitive benefits and training programs to develop employees’ expertise and skill sets, use training, communication, appropriate investments and clear corporate policies to strive to provide a safe, harassment-free work environment guided by principles of fair and equal treatment, and prioritize employee engagement.
  • Our executive management team averages over 25 years of healthcare, real estate and/or public REIT management experience.
  • Monroe IV, our Executive Vice President and Chief Financial Officer, and Leigh Ann Stach, our Executive Vice President and Chief Accounting Officer, our management team has significant experience in acquiring, owning, operating and managing healthcare facilities and providing full service real estate solutions for the healthcare industry.
  • Stach has experience in healthcare and public healthcare RE IT accounting and financial reporting. • Conservative Capital Structure.
  • At December 31, 2025, we had $258.0 million outstanding on our revolving credit facility and had $275.0 million outstanding on our term loans under our second amendment to the third amended and restated credit agreement, dated as of October 16, 2024, by and among Community Healthcare Trust Incorporated, as borrower, the several banks and financial institutions party thereto as lenders, and Truist Bank, as administrative agent (collectively, our "Credit Facility") with a 42.9% debt-to-total capitalization ratio (debt plus stockholders' equity plus accumulated depreciation).
  • Tax Status We have qualified as a REIT for U.S. federal income tax purposes since 2015, the year we began operations, and we expect that we will remain qualified as a REIT for U.S. federal income tax purposes for the year ending December 31, 2026.
  • We believe that we are organized in conformity with the requirements for qualification as a REIT under the Code and that our manner of operations will enable us to continue to meet the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes for the year ending December 31, 2026.
  • Each kind of healthcare tenant has a different and complex set of laws related to reimbursement and reimbursement models, which may affect the tenant’s ability to collect revenues and meet the terms of their leases.
  • Other changes brought about by legislation or regulatory changes could negatively impact reimbursement for any one of the kind of provider tenants as outlined below.
  • The Affordable Care Act altered reimbursement from private insurers and managed care organizations.
  • More recently, in July 2025, CMS proposed regulatory changes to expand site-neutral policies to drug administration costs in response to prior direction from the Trump Administration’s April 15, 2025 Executive Order 14723 “Covering Drug Prices by Once Again Putting Americans First.” While such site neutral changes are expected to lower overall Medicare spending, our medical office buildings located on hospital campuses could become more valuable as hospital tenants keep their higher Medicare rates for on-campus outpatient services.
  • While the Biden Administration supported the Affordable Care Act through legislation and Executive Orders, early in 2025 the Trump Administration continued its previous legislative and regulatory efforts to limit various aspects of the ACA as indicated by its January 20, 2025 Executive Orders rescinding several Biden Administration health care-related Executive Orders, including Executive Order 14009 (Strengthening Medicaid and the Affordable Care Act, January 28, 2021); the Affordable Care Act (January 28, 2021); Executive Order 14070 (Continuing to Strengthen Americans’ Access to Affordable, Quality Health Coverage, April 5, 2022); Executive Order 14087 (Lowering Prescription Drug Costs for Americans, October 14, 2022).
  • Following these Executive Orders, the One Big Beautiful Bill Act (“OBBBA”) of 2025, which was enacted on July 4, 2025, made significant changes to the Affordable Care Act that could affect patient access to care, including: (i) reducing funding for ACA marketplace subsidiaries possibly as much as $100 billion over ten (10) years; (ii) not extending premium tax credits which results in higher insurance premiums for many which may impact their ability to afford coverage; (iii) eliminating automatic re-enrollment and implementing additional enrollment verification requirements which could make maintaining and obtaining coverage more difficult; and (iv) shortening the annual open enrollment period.
  • The Congressional Budget Office (“CBO”) projects that these changes will cause 10 to 16.9 million people to lose coverage by 2034.
  • In addition, the OBBBA made significant changes to Medicaid, including over $900 billion in Federal funding reductions.
  • Given this significant decrease in Federal Medicaid funding, states may decrease reimbursement to health care providers or eliminate certain benefits.
  • The CBO estimates that OBBBA’s changes to the Medicaid program may result in 7.5 to 7.8 million more uninsured people by 2034.
  • While it is unclear what additional legislative and regulatory changes may be forthcoming, and we cannot accurately predict future legislative or regulatory actions of any administration, any changes that adversely impact the ability of patients to obtain and pay for health care services could have an adverse effect on our business and operations.
  • Examples of significant legislation currently under consideration, recently enacted or in the process of implementation, include: • continued changes to the Affordable Care Act and proposed amendments and any further repeal measures and related actions at the federal and state level; • changes affecting access to individual healthcare insurance through legislative initiatives, including proposed changes to the Inflation Reduction Act of 2022; • quality control, cost containment, and payment system reforms for Medicaid, Medicare and other public funding, such as expansion of pay-for-performance criteria and value-based purchasing programs, bundled provider payments, accountable care organizations, increased patient cost-sharing, geographic payment variations, comparative effectiveness research, and lower payments for hospital readmissions; • implementation of health insurance exchanges and regulations governing their operation, whether run by the state or by the federal government, whereby individuals and small businesses purchase health insurance, including government-funded plans, many assisted by federal subsidies that are under ongoing legal challenges; • equalization of Medicare payment rates across different facility-type settings (i.e., the Bipartisan Budget Act of 2015, Section 603, lowered Medicare payment rates, effective January 1, 2017, for services provided in off-campus, provider-based outpatient departments to the same level of rates for physician-office settings for those facilities not grandfathered-in under the current Medicare rates as of the law’s date of enactment, November 2, 2015 and beginning January 1, 2019, CMS implemented site neutral changes in Medicare reimbursement for clinic visits provided in off-campus locations that were previously exempted from payment reductions); • the continued adoption by providers of federal standards for, and the associated audits of, the meaningful-use of electronic health records and the transition to ICD-10 coding; • federal and state legislative changes requiring advance notice and approval of health care provider material change transactions, including sale or transfers of assets involving equity investors, and otherwise limiting or prohibiting arrangements between health care providers and private equity investors, including REITs; • the continued effort to expand the utilization of telehealth services; • implementation of federal rules requiring healthcare providers and third party payors to comply with electronic health system interoperability rules intended to allow for more efficient sharing of healthcare data; • changes made by the Trump Administration to reverse actions taken by the Biden Administration that impacted enrollment in health insurance exchanges and Medicaid; • a continuing trend of provider consolidation and associated antitrust scrutiny; • tax law changes affecting non-profit providers; • legislation modifying the rules for determining Medicare coverage, including efforts to promote home health care services; • regulatory changes designed to address health equity and disparities as a critical aspect of health and health care; • regulatory and legislative changes related to the use of artificial intelligence in healthcare; and • regulatory changes to health care fraud and abuse laws that could affect health care providers' delivery of services and business operations.
  • During the year ended December 31, 2025, the whistleblower officer received no whistleblower complaints.
  • Risks Related to Our Business Our real estate investments are concentrated in healthcare properties, making us more vulnerable economically than if our investments were diversified in other segments of the economy.
  • Inflation and the U.S. government’s response thereto could adversely impact our tenants and our operations.

and 35 more.

Gone since FY2024

  • Real Estate Investments As of December 31, 2024, we had gross investments of approximately $1.2 billion in 200 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as held for sale with an aggregate amount totaling approximately $6.8 million).
  • The properties are located in 36 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 90.9% leased, excluding real estate assets held for sale, at December 31, 2024 with a weighted average remaining lease term of approximately 6.7 years.
  • Number of Properties Annualized Rent (%) Medical Office Building (MOB) 93 36.9 % Inpatient Rehabilitation Facilities (IRF) 9 19.2 % Acute Inpatient Behavioral (AIB) 5 13.0 % Specialty Centers (SC) 37 10.3 % Physician Clinics (PC) 35 8.3 % Behavioral Specialty Facilities (BSF) 12 6.2 % Surgical Centers and Hospitals (SCH) 7 4.0 % Long-term Acute Care Hospitals (LTACH) 2 2.1 % Total real estate investments 200 100.0 % Customer Concentrations The Company's real estate portfolio is leased to a diverse tenant base.
  • Lifepoint Health accounted for 8.7% of annualized revenues and US Healthvest accounted for 7.5% of annualized revenues as of December 31, 2024.
  • Geographic Concentrations The Company's portfolio is currently located in 36 states with 38.4% of our annualized rent as of December 31, 2024 derived from properties located in Texas (16.7%), Illinois (11.6%), and Ohio (10.1%).
  • See each of the discussions under Item 1A, "Risk Factors," under the captions "Adverse economic or other conditions in the geographic markets in which we conduct business could negatively affect our occupancy levels and rental rates and have a material adverse effect on our operating results," and " A large percentage of our properties are located in Texas, Illinois, and Ohio , and changes in these markets may materially adversely affect us." 2024 Real Estate Investments During the year ended December 31, 2024, the Company acquired nine real estate properties, in seven separate transactions, as detailed in Note 4 – Real Estate Acquisitions, Disposition, and Assets Held for Sale to the Consolidated Financial Statements.
  • Upon acquisition, the properties were 99.3% leased in the aggregate with lease expirations through 2039.
  • Human Capital Resource Management As of December 31, 2024, we had 36 employees.
  • We have a stable, but growing workforce with an average tenure of 3.9 years and voluntary employee turnover of approximately 3% during the year ended December 31, 2024.
  • At December 31, 2024, 39% of our employees, 33% of our management team, and 33% of our board of directors were female.
  • We offer competitive benefits and training programs to develop employees’ expertise and skillsets, use training, communication, appropriate investments and clear corporate policies to strive to provide a safe, harassment-free work environment guided by principles of fair and equal treatment, and prioritize employee engagement.
  • Our executive management team averages over 25 years of healthcare, real estate and/or public REIT management experience on average.
  • Monroe IV, our Executive Vice President and Chief Financial Officer, Leigh Ann Stach, our Executive Vice President and Chief Accounting Officer, and Timothy L.
  • Meyer, our Executive Vice President, Asset Management, our management team has significant experience in acquiring, owning, operating and managing healthcare facilities and providing full service real estate solutions for the healthcare industry.
  • Stach has experience in public healthcare RE IT accounting and financial reporting.
  • Meyer has experience in real estate and asset management in public healthcare REITs. • Growth Oriented Capital Structure.
  • At December 31, 2024, we had $212.0 million outstanding on our revolving credit facility and had $275.0 million outstanding on our term loans under our second amendment to the third amended and restated credit agreement, dated as of October 16, 2024, by and among Community Healthcare Trust Incorporated, as borrower, the several banks and financial institutions party thereto as lenders, and Truist Bank, as administrative agent (collectively, our "Credit Facility") with a 40.3% debt-to-total capitalization ratio (debt plus stockholders' equity plus accumulated depreciation).
  • Tax Status We have qualified as a REIT for U.S. federal income tax purposes since 2015, the year we began operations, and we expect that we will remain qualified as a REIT for U.S. federal income tax purposes for the year ending December 31, 2025.
  • We believe that we are organized in conformity with the requirements for qualification as a REIT under the Code and that our manner of operations will enable us to continue to meet the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes for the year ending December 31, 2025.
  • The Affordable Care Act has continued to change how healthcare services are covered, delivered and reimbursed.
  • The Affordable Care Act includes payment reform provisions intended to drive Medicare towards more value-based purchasing which, in turn, increases accountability for healthcare providers for the quality and costs of the healthcare services they provide.
  • While more individuals now carry healthcare coverage as a result of the Affordable Care Act, the full effects of the changes to reimbursement models for both public and commercial coverage continue to evolve.
  • Each kind of healthcare provider tenant has a different and complex set of laws related to reimbursement and reimbursement models, which may affect the tenant’s ability to collect revenues and meet the terms of their leases.
  • Other changes brought about by the Affordable Care Act could negatively impact reimbursement for any one of the kind of provider tenants as outlined below.
  • The Affordable Care Act also altered reimbursement from private insurers and managed care organizations.
  • While such site neutral changes are expected to lower overall Medicare spending, our medical office buildings located on hospital campuses could become more valuable as hospital tenants keep their higher Medicare rates for on-campus outpatient services.
  • Through Executive Orders issued January 28, 2021, the Biden Administration signaled its strong support for the Affordable Care Act by taking steps to reverse various actions by the first Trump Administration and to strengthen Medicaid and the Affordable Care Act.
  • These efforts have resulted in more than 16 million Americans enrolling in ACA health plans and an additional 14 million low-income Americans being enrolled in the ACA’s Medicaid expansion coverage from a pre-ACA baseline.
  • Other Biden Administration legislative initiatives and policies were implemented in an attempt to expand access to health care coverage.
  • For example, on August 22, 2022, the Inflation Reduction Act of 2022 was signed into law and extended increased premium subsidies available in the ACA marketplaces through 2025, which prevents an estimated 2 million individuals from losing coverage.
  • In addition, on October 11, 2022, the IRS issued a final rule changing how affordability of coverage and minimum value is determined for an employee’s relatives under the ACA.
  • Specifically, the new rule provides for a separate affordability test where an eligible employer-sponsored plan is affordable for an employee’s relative if the employee’s required contribution for family coverage under the plan does not exceed 9.5% of the employee’s household income.
  • Previously, health coverage affordability and adequacy had been measured solely for the employee, but not for coverage of the employee’s family.
  • Department of Health and Human Services' data shows continued growth in access to care under the ACA, with over 20 million people selecting an ACA Marketplace plan in the 2024 Open Enrollment Period, including over 3.7 million people who were new to ACA Marketplace plans.
  • While the Biden Administration supported the Affordable Care Act through legislation and Executive Orders, the Trump Administration may continue its previous legislative and regulatory efforts to limit various aspects of the ACA as indicated by its January 20, 2025 Executive Order immediately rescinding several Biden Administration health care-related Executive Orders, including Executive Order 14009 (Strengthening Medicaid and the Affordable Care Act, January 28, 2021); the Affordable Care Act (January 28, 2021); Executive Order 14070 (Continuing to Strengthen Americans’ Access to Affordable, Quality Health Coverage, April 5, 2022); Executive Order 14087 (Lowering Prescription Drug Costs for Americans, October 14, 2022).
  • It is unclear what legislative and regulatory changes will result from these initial executive actions, and we cannot predict the nature of any future legislative or regulatory actions of the current Trump Administration.
  • Examples of significant legislation currently under consideration, recently enacted or in the process of implementation, include: • the Affordable Care Act and proposed amendments and any further repeal measures and related actions at the federal and state level; • the 2019 repeal of a portion of the Affordable Care Act for the mandate that all individuals purchase health insurance or pay a tax penalty; • mandatory expansion of healthcare services and increased access to individual healthcare insurance through legislative initiatives, including the Inflation Reduction Act of 2022; • quality control, cost containment, and payment system reforms for Medicaid, Medicare and other public funding, such as expansion of pay-for-performance criteria and value-based purchasing programs, bundled provider payments, accountable care organizations, increased patient cost-sharing, geographic payment variations, comparative effectiveness research, and lower payments for hospital readmissions; • implementation of health insurance exchanges and regulations governing their operation, whether run by the state or by the federal government, whereby individuals and small businesses purchase health insurance, including government-funded plans, many assisted by federal subsidies that are under ongoing legal challenges; • equalization of Medicare payment rates across different facility-type settings (i.e., the Bipartisan Budget Act of 2015, Section 603, lowered Medicare payment rates, effective January 1, 2017, for services provided in off-campus, provider-based outpatient departments to the same level of rates for physician-office settings for those facilities not grandfathered-in under the current Medicare rates as of the law’s date of enactment, November 2, 2015 and beginning January 1, 2019, CMS implemented site neutral changes in Medicare reimbursement for clinic visits provided in off-campus locations that were previously exempted from payment reductions); • the continued adoption by providers of federal standards for, and the associated audits of, the meaningful-use of electronic health records and the transition to ICD-10 coding; • federal and sate legislative changes requiring advance notice and approval of health care provider material change transactions, including sale or transfers of assets involving equity investors, and otherwise limiting or prohibiting arrangements between health care providers and private equity investors, including REITs; • the continued effort to expand the utilization of telehealth services; • implementation of federal rules requiring healthcare providers and third party payors to comply with electronic health system interoperability rules intended to allow for more efficient sharing of healthcare data; • changes made by the Trump Administration to reverse actions taken by the Biden Administration that impacted enrollment in health insurance exchanges and Medicaid; • a continuing trend of provider consolidation and associated antitrust scrutiny; • tax law changes affecting non-profit providers; • legislation modifying the rules for determining Medicare coverage, including efforts to promote home health care services; • regulatory changes designed to address health equity and disparities as a critical aspect of health and health care; and • regulatory and legislative changes related to the use of artificial intelligence in healthcare.
  • During the year ended December 31, 2024, the whistleblower officer received no whistleblower complaints.
  • Risks Related to Our Business Inflation and the U.S. government’s response thereto could adversely impact our tenants and our operations.
  • Although the Federal Reserve lowered the benchmark federal funds rate in September 2024 and November 2024, it may raise the federal funds rate in the future, which would likely lead to higher interest rates in the credit markets and the possibility of slowing economic growth.

and 32 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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