CHCT earnings analysis
What we found in CHCT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CHCT delivered modest underlying property growth in Q2 2026: rental income rose 2.8% year over year, NOI increased to $25.359 million, and AFFO per share rose to $0.56 from $0.50. GAAP net income improved to $2.364 million from a $12.557 million loss, although the comparison benefits from prior-year credit-loss and severance charges. Operating cash flow improved to approximately $31.3 million for the first six months, but interest expense increased as $75.0 million of swaps expired, and occupancy was 89.8%. Total revenue, GAAP EPS, gross/operating margins, segment revenue, cash balance, receivables, inventories, and working-capital balances were not provided in the extracted filing text.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Rental income grew 2.8% year over year
- Rental income increased approximately $0.8 million, or 2.8%, year over year in Q2 2026. Acquisitions contributed approximately $2.3 million of incremental rent, partially offset by a $0.3 million rent decline and $0.6 million reduction in straight-line rent from a tenant moved to cash-basis accounting.
- NOI and AFFO improved
- NOI rose to $25.359 million in Q2 2026 from $23.500 million in Q2 2025, while AFFO increased to $15.405 million from $13.585 million. AFFO per diluted share increased to $0.56 from $0.50.
- GAAP earnings returned to profit
- GAAP net income was $2.364 million in Q2 2026 versus a $12.557 million loss in Q2 2025. The prior-year result included an $8.672 million credit-loss reserve and $5.902 million of severance and transition-related compensation.
- Operating cash flow increased
- Six-month operating cash flow increased to approximately $31.3 million from $28.2 million in the prior-year period. The company deployed approximately $28.5 million to acquire one property and $9.2 million for capital expenditures and tenant improvements.
- Liquidity supports identified pipeline
- The company had approximately $115.0 million of remaining revolver capacity at June 30, 2026 and a $300.0 million unused ATM capacity. It also has four properties under definitive agreements totaling approximately $99.0 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Unhedged floating-rate debt raises interest cost
- Interest expense increased approximately $0.8 million, or 12.7%, year over year in Q2 after swaps on $75.0 million of revolver borrowings matured in March 2026 and were not replaced. The revolver floating rate was approximately 5.3% at June 30, 2026.
- Occupancy and lease rollover remain headwinds
- Portfolio occupancy was approximately 89.8% at June 30, 2026. During the first six months, leases covering approximately 388,000 square feet expired or terminated, while only approximately 342,000 square feet were leased or renewed.
- Debt-funded growth limits financing flexibility
- The company had $285.0 million outstanding on its revolver and $275.0 million of term loans at June 30, 2026, against approximately $115.0 million of unused revolver capacity. This leverage must also accommodate a $99.0 million acquisition pipeline and up to $30.0 million of permitted tenant-improvement commitments.
- No material formal risk-factor updates
- Item 1A states there were no material changes to risk factors from the Form 10-K for the year ended December 31, 2025. The principal new quantified market-risk disclosure is the first-quarter expiration of $75.0 million of interest-rate swaps.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS guidance. Management expects to close one of four contracted properties in Q3 2026, another in Q4 2026, and the remaining two in 2027; aggregate expected purchase price is approximately $99.0 million, with closing timing and completion not assured.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Community Healthcare Trust experienced a 5.2% increase in rental income year-over-year for Q1 2026, reaching approximately $30M in revenue. The gross margin remains solid at 80.7%, showing resilience despite increased…
- 10-K · February 17, 2026
- Community Healthcare Trust reports a stable, diversified healthcare real estate portfolio (198 properties; ~$1.2 billion gross investment) with high occupancy (~90.6%) and a 7.0-year weighted average remaining lease…
- 10-Q · October 28, 2025
- Community Healthcare Trust reported Q3 2025 revenues of $31,086,000 (up $1,447,000 vs. Q3 2024) with improved gross margin (80.9%) and operating margin (30.9%). GAAP diluted EPS for the quarter was $0.03 (down from…
- 10-Q · April 29, 2025
- Community Healthcare Trust reported Q1 revenue of $30,078,000, up $745,000 (+2.5%) versus Q1 2024, while diluted EPS fell to $0.03 from $0.11 a year ago. Operating cash flow strengthened to $14,409,000 and free cash…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing CHCT makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever