Community Healthcare Trust Inc

Previous wording

The Company has seven properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $169.5 million. The Company anticipates closing on these properties throughout 2025, 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. The Company expects to fund these acquisitions with cash from operations, with net proceeds from equity or debt issuances, with the Company's Revolving Credit Facility, or from asset sales.

Current wording

The Company has six properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $146.0 million. The Company anticipates closing on these properties throughout 2025, 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. The Company expects to fund these acquisitions with cash from operations, with net proceeds from equity or debt issuances, with the Company's Revolving Credit Facility, or from asset sales.

Previous wording

In April 2025, the Company disposed of a building in Ohio and received net proceeds of approximately $0.6 million from the sale.

Current wording

During the second quarter of 2025, the Company disposed of a building in Ohio, received net proceeds of approximately $0.6 million, and recognized a gain of approximately $0.2 million on the sale. The property was previously classified as an asset held for sale on the Company's Condensed Consolidated Balance Sheet. Also, during the second quarter of 2025, the Company amended an operating lease on a property that resulted in a sales-type lease. As such the Company reclassified the real estate to other assets on the Condensed Consolidated Balance Sheet and recognized a gain on sale of the real estate totaling approximately $1.3 million.

Previous wording

As of March 31, 2025, our real estate portfolio was approximately 90.9% leased, excluding real estate properties held for sale. During the first three months of 2025, we had expiring or terminated leases related to approximately 166,000 square feet, and we leased or renewed leases relating to approximately 168,000 square feet.

Current wording

As of June 30, 2025, our real estate portfolio was approximately 90.7% leased, excluding a real estate property held for sale. During the first six months of 2025, we had expiring or terminated leases related to approximately 287,000 square feet, and we leased or renewed leases relating to approximately 279,000 square feet.

Previous wording

At March 31, 2025, the Company had an aggregate gross investment of approximately $31.5 million in 9 real estate properties with purchase options exercisable at March 31, 2025 that had not been exercised.

Current wording

At June 30, 2025, the Company had an aggregate gross investment of approximately $37.4 million in 12 real estate properties with purchase options exercisable at June 30, 2025 that had not been exercised.

Previous wording

The Company's results of operations for the three months ended March 31, 2025 compared to the same period in 2024 were impacted by real estate acquisitions, lease receivables placed on cash basis, notes receivable put on non-accrual, compensation expense, including non-cash stock compensation, interest expense, as well as other items discussed in more detail below.

Current wording

The Company's results of operations for the three and six months ended June 30, 2025 compared to the same period in 2024 were impacted by credit loss reserves, real estate acquisitions, lease receivables placed on cash basis, severance and transition charges related to an employee termination, other compensation expense, including non-cash stock compensation, interest expense, as well as other items discussed in more detail below.

Previous wording

Rental income increased approximately $1.4 million, or 4.9%, for the three months ended March 31, 2025 compared to the same period in 2024. Rental income on properties acquired during 2024 resulted in additional rental income of approximately $1.9 million in 2025 compared to 2024 and the impact of moving a tenant to cash basis in the second quarter of 2024 resulted in a reduction of approximately $0.8 million in 2025 compared to 2024. The remaining $0.3 million increase resulted from net leasing activities.

Current wording

Rental income increased approximately $2.2 million, or 8.0%, for the three months ended June 30, 2025 compared to the same period in 2024. Rental income on properties acquired during 2024 and 2025 resulted in additional rental income of approximately $0.8 million in 2025 compared to 2024. Also, the reversal of revenues in each of the three months ended June 30, 2024 and 2025 related to the geriatric behavioral hospital tenant resulted in an increase in revenues of approximately $1.2 million for the three months ended June 30, 2025 as compared to the same period in 2024. The remaining $0.2 million increase resulted from net leasing activities.

Previous wording

Other operating interest decreased approximately $0.6 million, or 64.9%, for the three months ended March 31, 2025 compared to the same period in 2024 due mainly to placing a tenant note on non-accrual in the second quarter of 2024.

Current wording

Other operating interest decreased approximately $0.7 million for the three months ended June 30, 2025 compared to the same period in 2024 due mainly to reversing interest receivables due from a geriatric behavioral hospital tenant in both 2025 and 2024.

Previous wording

•Depreciation and amortization on real estate acquired during 2024 resulted in an increase of approximately $0.8 million;

Current wording

•Depreciation and amortization on real estate acquired during 2024 and 2025 resulted in an increase of approximately $0.3 million;

Previous wording

•Fully amortized building improvements resulted in a decrease of approximately $0.1 million; and

Current wording

•Fully amortized building improvements resulted in a decrease of approximately $0.2 million; and

Previous wording

•Fully amortized real estate lease intangibles which generally have a shorter depreciable life than a building resulted in a decrease of approximately $0.6 million.

Current wording

•Fully amortized real estate lease intangibles which generally have a shorter depreciable life than a building resulted in a decrease of approximately $0.5 million.

Previous wording

Interest expense increased approximately $1.3 million, or 25.5%, for the three months ended March 31, 2025 compared to the same period in 2024 due mainly to increases in the weighted average balance and interest rates on the Credit Facility.

Current wording

Interest expense increased approximately $0.6 million, or 10.1%, for the three months ended June 30, 2025 compared to the same period in 2024 due mainly to increases in the weighted average balance and interest rates on the Credit Facility.

Previous wording

Property operating expenses increased approximately $0.3 million, or 5.2%, for the three months ended March 31, 2025 compared to the same period in 2024. Property operating expenses on properties acquired during 2024 resulted in an increase of approximately $0.2 million in 2025 compared to 2024, with the remaining increase due to various fluctuations in expenses on the existing portfolio.

Current wording

Property operating expenses increased approximately $0.3 million, or 2.8%, for the six months ended June 30, 2025 compared to the same period in 2024, primarily due to properties acquired during 2024 and 2025.

Previous wording

The non-GAAP financial measures and key performance indicators presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income, as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs.

Current wording

The non-GAAP financial measures and key performance indicators presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income, as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs. Management believes that in order to facilitate a clear understanding of the Company's historical consolidated operating results, these measures should be examined in conjunction with net income and cash flows from operations as presented in the Condensed Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO, AFFO, FFO per share and AFFO per share provide an understanding of the operating performance of the Company’s properties without giving effect to certain significant non-cash items, primarily depreciation and amortization expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. The Company believes that by excluding the effect of depreciation, amortization, impairments and gains or losses from sales of real estate, losses and impairment of incidental assets, all of which are based on historical costs and which may be of limited relevance in evaluating current performance, FFO, AFFO, FFO per share and AFFO per share can facilitate comparisons of operating performance between periods. The table below reconciles net income to FFO and AFFO for the three months ended March 31, 2025 compared to the same periods in 2024.

Current wording

Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO, AFFO, FFO per share and AFFO per share provide an understanding of the operating performance of the Company’s properties without giving effect to certain significant non-cash items, primarily depreciation and amortization expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. The Company believes that by excluding the effect of depreciation, amortization, impairments and gains or losses from sales of real estate, losses and impairment of incidental assets, all of which are based on historical costs and which may be of limited relevance in evaluating current performance, FFO, AFFO, FFO per share and AFFO per share can facilitate comparisons of operating performance between periods. The table below reconciles net loss to FFO and AFFO for the three and six months ended June 30, 2025 compared to the same periods in 2024.

Previous wording

The table below reconciles net income to NOI for the three months ended March 31, 2025 compared to the same periods in 2024.

Current wording

The table below reconciles net loss to NOI for the three and six months ended June 30, 2025 compared to the same periods in 2024.

Previous wording

The table below reconciles net income to EBITDAre and Adjusted EBITDAre for the three months ended March 31, 2025 compared to the same periods in 2024.

Current wording

The table below reconciles net loss to EBITDAre and Adjusted EBITDAre for the three and six months ended June 30, 2025 compared to the same periods in 2024.

Previous wording

The Company’s current financing policy limits aggregate debt (secured or unsecured) in excess of 40% of the Company's total capitalization, except for short-term, transitory periods. At March 31, 2025, our debt to total capitalization ratio (debt plus stockholders' equity plus accumulated depreciation) was approximately 41.0%.

Current wording

The Company’s current financing policy limits aggregate debt (secured or unsecured) in excess of 40% of the Company's total capitalization, except for short-term, transitory periods. At June 30, 2025, our debt to total capitalization ratio (debt plus stockholders' equity plus accumulated depreciation) was approximately 41.6%.

Previous wording

At March 31, 2025, the Company had $222.0 million outstanding on its Revolving Credit Facility with a maturity on October 16, 2029. In addition, the Company has $275.0 million outstanding in Term Loans with expirations beginning in 2028 through 2030. The Company has entered into interest rate swaps to fix the interest rates on $275.0 million of the Term Loans, with maturities matching the maturity dates of the notes, and $75.0 million of the Revolving Credit Facility, which will mature on March 29, 2026. See Note 5 – Debt, net to the Condensed Consolidated Financial Statements which provide more details on the Company's Credit Facility. At March 31, 2025, the Company had borrowing capacity remaining under the Revolving Credit Facility of approximately $178.0 million.

Current wording

At June 30, 2025, the Company had $226.0 million outstanding on its Revolving Credit Facility with a maturity on October 16, 2029. In addition, the Company has $275.0 million outstanding in Term Loans with expirations beginning in 2028 through 2030. The Company has entered into interest rate swaps to fix the interest rates on $275.0 million of the Term Loans, with maturities matching the maturity dates of the notes, and $75.0 million of the Revolving Credit Facility, which will mature on March 29, 2026. See Note 5 – Debt, net to the Condensed Consolidated Financial Statements which provide more details on the Company's Credit Facility. At June 30, 2025, the Company had borrowing capacity remaining under the Revolving Credit Facility of approximately $174.0 million.

Previous wording

At March 31, 2025, the Company was obligated, as the lessee, under four non-prepaid ground leases accounted for as operating leases with expiration dates, including renewal options, through 2076, and two non-prepaid ground leases accounted for as financing leases with expiration dates through 2109, including renewal options. Any rental increases related to the Company's ground leases are generally either stated or based on the Consumer Price Index. At March 31, 2025, the Company's aggregate obligation under these ground leases was approximately $8.7 million. See Note 3 – Real Estate Leases to the Condensed Consolidated Financial Statements.

Current wording

At June 30, 2025, the Company was obligated, as the lessee, under four non-prepaid ground leases accounted for as operating leases with expiration dates, including renewal options, through 2076, and two non-prepaid ground leases accounted for as financing leases with expiration dates through 2109, including renewal options. Any rental increases related to the Company's ground leases are generally either stated or based on the Consumer Price Index. At June 30, 2025, the Company's aggregate obligation under these ground leases was approximately $8.6 million. See Note 3 – Real Estate Leases to the Condensed Consolidated Financial Statements.

Previous wording

The Company has seven properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $169.5 million. The Company anticipates closing on these properties throughout 2025, 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. The Company expects to fund these acquisitions with cash from operations, with net proceeds from equity or debt issuances, with the Company's Revolving Credit Facility, or from asset sales.

Current wording

The Company has six properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $146.0 million. The Company anticipates closing on these properties throughout 2025, 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. The Company expects to fund these acquisitions with cash from operations, with net proceeds from equity or debt issuances, with the Company's Revolving Credit Facility, or from asset sales.

Previous wording

Subject to Company approval, we may fund or reimburse tenants for tenant improvements, which are allowed for in certain leases, of up to approximately $28.2 million as of March 31, 2025. At March 31, 2025, two of these projects, totaling $10.3 million, represented redevelopment projects on buildings with tenants backed by long-term leases.

Current wording

Subject to Company approval, we may fund or reimburse tenants for tenant improvements, which are allowed for in certain leases, of up to approximately $29.4 million as of June 30, 2025. At June 30, 2025, $7.2 million of this commitment relates primarily to one ongoing redevelopment project on a building with a tenant backed by a long-term lease.

Previous wording

The Company has also entered into contracts regarding certain capital expenditures with remaining commitments totaling approximately $3.3 million as of March 31, 2025. Four of these projects totaling $1.9 million, represent redevelopment projects of buildings into different healthcare uses backed by long-term leases.

Current wording

The Company has also entered into contracts regarding certain capital expenditures with remaining commitments totaling approximately $4.1 million as of June 30, 2025. At June 30, 2025, $1.6 million of this commitment relates primarily to two redevelopment projects of buildings into different healthcare uses backed by long-term leases.

Previous wording

The Company has a note with a tenant with unfunded commitments remaining totaling $5.0 million at March 31, 2025. See Note 10 – Other Assets, net to the Condensed Consolidated Financial Statements.

Current wording

The Company has a note with a tenant with unfunded commitments remaining totaling $5.8 million at June 30, 2025. Any future requests for borrowings under the revolving credit facility from this tenant will require review and approval by management. See Note 10 – Other Assets, net to the Condensed Consolidated Financial Statements.

Previous wording

Cash flows provided by operating activities for the three months ended March 31, 2025 and 2024 were approximately $14.4 million and $12.6 million, respectively. Cash flows provided by operating activities were generally provided by contractual rents and interest on our notes receivable, net of property operating expenses not reimbursed by the tenants, general and administrative expenses, and interest expense paid on our Credit Facility.

Current wording

Cash flows provided by operating activities for the six months ended June 30, 2025 and 2024 were approximately $28.2 million and $29.4 million, respectively. Cash flows provided by operating activities were generally provided by contractual rents and interest on our notes receivable, net of property operating expenses not reimbursed by the tenants, general and administrative expenses, and interest expense paid on our Credit Facility.

Previous wording

Cash flows used in investing activities for the three months ended March 31, 2025 and 2024 were approximately $12.6 million and $38.5 million, respectively. During the three months ended March 31, 2025, the Company invested in one property for cash consideration of approximately $9.7 million. Also, during the three months ended March 31, 2025, the Company received payments on its notes totaling $1.8 million and funded capital expenditures and tenant improvements on its existing portfolio totaling approximately $4.7 million.

Current wording

Cash flows used in investing activities for the six months ended June 30, 2025 and 2024 were approximately $13.0 million and $68.8 million, respectively. During the six months ended June 30, 2025, the Company invested in one property for cash consideration of approximately $9.7 million, received payments on its notes totaling $5.0 million and funded capital expenditures and tenant improvements on its existing portfolio totaling approximately $8.9 million.

Previous wording

During the three months ended March 31, 2024, the Company invested in four properties for an aggregate cash consideration of approximately $34.3 million. Also, during the three months ended March 31, 2024, the Company received payments on its notes receivable totaling $0.9 million and funded capital expenditures and tenant improvements on its existing portfolio totaling approximately $5.1 million.

Current wording

During the six months ended June 30, 2024, the Company invested in four properties for an aggregate cash consideration of approximately $57.8 million, received payments on its notes receivable totaling $1.6 million and funded capital expenditures and tenant improvements on its existing portfolio totaling approximately $12.3 million.

Previous wording

Cash flows used in financing activities for the three months ended March 31, 2025 were approximately $3.9 million and cash flows provided by financing activities for the three months ended March 31, 2024 were $26.2 million. During the three months ended March 31, 2025, the Company borrowed $10.0 million under its Revolving Credit Facility and paid dividends totaling approximately $13.3 million.

Current wording

Cash flows used in financing activities for the six months ended June 30, 2025 were approximately $14.7 million and cash flows provided by financing activities for the six months ended June 30, 2024 were $35.5 million. During the six months ended June 30, 2025, the Company borrowed $14.0 million under its Revolving Credit Facility and paid dividends totaling approximately $26.6 million. Also, upon the vesting of stock-based awards for certain employees, the Company withheld shares and paid taxes totaling approximately $1.7 million on behalf of employees.

Previous wording

During the three months ended March 31, 2024, the Company (i) borrowed $39.0 million under its Revolving Credit Facility, (ii) completed equity offerings under its at-the-market program, resulting in net proceeds, net of underwriters' discount and offering costs, of approximately $0.5 million, (iii) upon the vesting of stock-based awards for certain employees, withheld shares and paid taxes totaling approximately $0.6 million on behalf of employees, and (iv) paid dividends totaling approximately $12.7 million.

Current wording

During the six months ended June 30, 2024, the Company (i) borrowed $59.0 million under its Revolving Credit Facility, (ii) completed equity offerings under its at-the-market program, resulting in net proceeds, net of underwriters' discount and offering costs, of approximately $7.4 million, (iii) upon the vesting of stock-based awards for certain employees, withheld shares and paid taxes totaling approximately $0.6 million on behalf of employees, and (iv) paid dividends totaling approximately $25.5 million.

Previous wording

As of March 31, 2025, the Company held approximately $3.3 million in security deposits for the benefit of the Company in the event the obligated tenant fails to perform under the terms of its respective lease. Generally, the Company may, at its discretion and upon notification to the tenant, draw upon the security deposits if there are any defaults under the leases.

Current wording

As of June 30, 2025, the Company held approximately $2.6 million in security deposits for the benefit of the Company in the event the obligated tenant fails to perform under the terms of its respective lease. Generally, the Company may, at its discretion and upon notification to the tenant, draw upon the security deposits if there are any defaults under the leases.

Previous wording

On April 24, 2025, the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.47 per share. The dividend is payable on May 23, 2025 to stockholders of record on May 9, 2025. This rate equates to an annualized dividend of $1.88 per share.

Current wording

On July 24, 2025, the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.4725 per share. The dividend is payable on August 22, 2025 to stockholders of record on August 8, 2025. This rate equates to an annualized dividend of $1.89 per share.