Community Healthcare Trust Inc
For the period ended Sep 30, 2025. Filed Oct 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 28, 2025
CHCT$14.71-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001628280-25-036446
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-28.
0001631569-25-000091
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 153 current paragraphs.
72 unchanged; 47 reworded; 31 added; 23 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
Asset Acquisitions
Current report
During the first nine months of 2025, the Company acquired two real estate properties totaling approximately 75,000 square feet for an aggregate purchase price of approximately $36.0 million and cash consideration of approximately $36.1 million. The properties are each 100.0% leased with both lease expirations in 2040. These acquisitions were funded with net proceeds from the Company's Revolving Credit Facility and from asset sales. See Note 4 – Real Estate Acquisitions, Dispositions, and Assets Held for Sale to the Condensed Consolidated Financial Statements for more details on these acquisitions.
Current report
During the third quarter of 2025, a tenant exercised its purchase option on one property with a gross investment of $1.4 million. The tenant is in the process of working through financing options. The purchase price for the property is $1.8 million, and if the transaction closes, the Company expects to recognize a gain on sale.
Current report
During the second quarter of 2025, the Company recorded additional reserves, fully reserving its notes and interest with a geriatric inpatient behavioral hospital tenant, totaling approximately $8.7 million on its notes and approximately $1.7 million of interest receivables. See Note 10 – Other Assets, net to the Condensed Consolidated Financial Statements for more details on these reserves.
Current report
Rental income increased approximately $1.5 million, or 5.0%, for the three months ended September 30, 2025 compared to the same period in 2024 due mainly to the following:
Current report
•The Company amended an expired lease with a tenant which converted it from an operating lease to a sales-type lease, resulting in a decrease in rental revenue of approximately $0.1 million for the three months ended September 30, 2025 compared to the same period in 2024; and
Current report
General and administrative expenses decreased approximately $0.3 million for the three months ended September 30, 2025 compared to the same period in 2024 due mostly to a reduction in compensation-related expenses.
Current report
Depreciation and amortization expense remained fairly flat for the three months ended September 30, 2025 compared to the same period in 2024; however, depreciation and amortization expense was impacted by the following:
Current report
•Depreciation and amortization on real estate sold or classified as held for sale during the three months ended September 30, 2025 resulted in a decrease of approximately $0.1 million.
Current report
(Loss) Gains on sale and impairments of real estate assets
Current report
(Loss) Gains on sale and impairments of real estate assets reduced net income by approximately $0.9 million for the three months ended September 30, 2025 compared to the same period in 2024 due mainly to the following:
Current report
•During the three months ended September 30, 2025, the Company sold a property in Pennsylvania and recognized a loss on sale of approximately $0.2 million; and
Current report
•During the three months ended September 30, 2025, the Company entered into a contract to sell a property in Rhode Island, classified the property as an asset held for sale, and recorded an impairment on the property at the lower of its net book value and fair value less estimated cost to sell of approximately $0.7 million.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
Rental income increased approximately $5.1 million, or 5.9%, for the nine months ended September 30, 2025 compared to the same period in 2024 due mainly to the following:
Current report
•Properties sold during 2024 and 2025 resulted in a decrease in rental income of approximately $0.3 million; and
Current report
•The remaining $0.9 million net increase resulted from various other items, including leasing activities.
Current report
•A decrease in interest revenue of approximately $1.5 million due to reserving notes with a geriatric behavioral hospital borrower/tenant in six properties; offset partially by
Current report
•An increase in interest revenue of approximately $0.1 million from a sales-type lease with a tenant that was previously an operating lease discussed above in Revenues.
Current report
•Property operating expenses increased approximately $0.3 million due to property acquisitions during 2024 and 2025;
Current report
•Property operating expenses increased approximately $0.2 million due to utilities, $0.1 million due to insurance, and $0.1 million due to landscaping costs (including snow plow); offset partially by
Current report
•A reduction of approximately $0.2 million due to properties sold during 2024 and 2025; and
Current report
•A reduction in repairs and maintenance costs of approximately $0.2 million.
Current report
General and administrative expenses increased approximately $6.1 million, or 42.6%, for the nine months ended September 30, 2025 compared to the same period in 2024 due mainly to:
Current report
•Properties that were sold or classified as held for sale during 2024 and 2025 resulted in a decrease of approximately $0.3 million;
Current report
(Loss) Gains on sale and impairments of real estate assets
Current report
(Loss) Gains on sale and impairments of real estate assets increased net loss by approximately $0.1 million for the nine months ended September 30, 2025 compared to the same period in 2024. This decrease was due mainly to the following:
Current report
•During the nine months ended September 30, 2024, the Company sold a property in Texas and, during the second quarter of 2024, recognized an impairment at the lower of its net book value and fair value less estimated cost to sell of approximately $0.1 million; partially offset by
Current report
•During the nine months ended September 30, 2025, the Company entered into a contract to sell a property in Rhode Island, classified the property as an asset held for sale, and recorded an impairment on the property at the lower of its net book value and fair value less estimated cost to sell of approximately $0.7 million;
Current report
•During the nine months ended September 30, 2025, the Company sold a property in Pennsylvania and recognized a loss on the sale of approximately $0.2 million;
Current report
•During the nine months ended September 30, 2025, the Company entered into a contract to sell a property in Florida that was previously classified as an asset held for sale and recorded an impairment on the property at the lower of its net book value and fair value less estimated cost to sell of approximately $0.9 million.
Removed paragraphs (23)
Previous report
Asset Acquisition
Previous report
During the first quarter of 2025, the Company acquired a behavioral specialty facility for cash consideration of approximately $9.7 million. Because the lease had not yet commenced and was accounted for as a sale-leaseback transaction, the Company could not recognize the acquisition as a real estate purchase during the first quarter of 2025 but rather accounted for it as a financing transaction. During the second quarter of 2025, the lease commenced, the real estate purchase was recognized, and the asset was reclassified from other assets to real estate properties on the Company's Condensed Consolidated Balance Sheet. The property is 100.0% leased to a tenant with a lease expiration in 2040.
Previous report
On July 9, 2025, the Company acquired one inpatient rehabilitation facility in Florida upon completion of construction for a purchase price of approximately $26.5 million and cash consideration of approximately $26.4 million. Upon acquisition, the property was 100.0% leased to a tenant with a lease expiration in 2040.
Previous report
The Company determined that the collectability of the remaining balances on notes and interest with a geriatric inpatient behavioral hospital tenant were not reasonably assured. As a result, in the second quarter of 2025, the Company determined that it should recognize an additional credit loss reserve for the remaining balances of the notes, totaling approximately $8.7 million and should also reserve the remaining outstanding interest receivable on these notes totaling approximately $1.7 million.
Previous report
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 report
Depreciation and amortization expense increased approximately $0.1 million, or 0.8%, for the three months ended June 30, 2025 compared to the same period in 2024. This increase was due mainly to the following:
Previous report
Gains on sale, net of impairments of real estate assets
Previous report
Gains on sale, net of impairments increased approximately $0.8 million for the three months ended June 30, 2025 compared to the same period in 2024. This increase was due mainly to the following:
Previous report
•The impairment of a property held for sale during the second quarter of 2024 resulted in an increase of $0.1 million; and
Previous report
•The impairment of a property held for sale during the second quarter of 2025 resulted in a decrease of $0.9 million.
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
General and administrative expenses increased approximately $6.3 million, or 68.1%, for the six months ended June 30, 2025 compared to the same period in 2024 due mainly to:
Previous report
Gains on sale, net of impairment of real estate assets
Previous report
Gains on sale, net of impairment increased approximately $0.8 million for the six months ended June 30, 2025 compared to the same period in 2024. This increase was due mainly to the following:
Previous report
•During the six months ended June 30, 2025, the Company amended an operating lease on a property that resulted in a sales-type lease. The Company recognized a gain on sale of the real estate totaling approximately $1.3 million;
Previous report
•During the six months ended June 30, 2025, the Company recognized a gain on the sale of a property in Ohio of approximately $0.2 million;
Previous report
•The impairment of a property held for sale during the second quarter of 2024 resulted in an increase of $0.1 million; offset by
Previous report
•The impairment of a property held for sale during the second quarter of 2025 resulted in a decrease of $0.9 million.
Previous report
Credit loss reserve
Previous report
A credit loss reserve totaling $11.0 million was recorded during the six months ended June 30, 2024 related to notes receivable with a geriatric inpatient behavioral hospital tenant. An additional credit loss reserve of approximately $8.7 million related to the same tenant was recorded during the six months ended June 30, 2025 to fully reserve the notes. See Note 10 – Other Assets, net for more details on the credit loss reserve.
Previous report
Financing Policy
Previous report
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 report
On July 9, 2025, the Company acquired one inpatient rehabilitation facility in Florida upon completion of construction for a purchase price of approximately $26.5 million and cash consideration of approximately $26.4 million. Upon acquisition, the property was 100.0% leased to a tenant with a lease expiration in 2040. The acquisition was funded with net proceeds from the Revolving Credit Facility and cash on hand.
Reworded paragraphs (47)
Previous wording
This report and other materials that Community Healthcare Trust Incorporated (the "Company") has filed or may file with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made, or to be made, by management of the Company, contain, or will contain, statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “believes”, “expects”, “may”, "will', “should”, “seeks”, “approximately”, “intends”, “plans”, “estimates”, “anticipates” or other similar words or expressions, including the negative thereof. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Because forward-looking statements relate to future events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Thus, the Company’s actual results and financial condition may differ materially from those indicated in such forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company’s common stock, changes in the Company’s business strategy, availability, terms and deployment of capital, the Company’s ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, changes in the real estate industry in general, interest rates or the general economy, adverse developments related to the healthcare industry, changes in governmental regulations, the degree and nature of the Company’s competition, the ability to consummate acquisitions under contract, catastrophic or extreme weather and other natural events and the physical effects of climate change, the occurrence of cyber incidents, effects on global and national markets as well as businesses resulting from increased inflation, changes in interest rates, supply chain disruptions, labor conditions, tariffs and global trade tensions, and/or conflicts in Ukraine and the Middle East, and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Company’s other filings with the Securities and Exchange Commission from time to time. Readers are therefore cautioned not to place undue reliance on the forward-looking statements contained herein which s…
Excerpt shortened here; the source contains the full paragraph.
Current wording
This report and other materials that Community Healthcare Trust Incorporated (the "Company") has filed or may file with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made, or to be made, by management of the Company, contain, or will contain, statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “believes”, “expects”, “may”, "will', “should”, “seeks”, “approximately”, “intends”, “plans”, “estimates”, “anticipates” or other similar words or expressions, including the negative thereof. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Because forward-looking statements relate to future events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Thus, the Company’s actual results and financial condition may differ materially from those indicated in such forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company’s common stock, changes in the Company’s business strategy, availability, terms and deployment of capital, the Company’s ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, changes in the real estate industry in general, interest rates or the general economy, adverse developments related to the healthcare industry, changes in governmental regulations, the degree and nature of the Company’s competition, the ability to consummate acquisitions under contract, catastrophic or extreme weather and other natural events and the physical effects of climate change, the occurrence of cyber incidents, effects on global and national markets as well as businesses resulting from increased inflation, changes in interest rates, supply chain disruptions, labor conditions, prolonged government shutdown or budgetary reductions or impasses, tariffs and global trade tensions, and/or conflicts in Ukraine and the Middle East, and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Company’s other filings with the Securities and Exchange Commission from time to time. Readers are therefore cautioned not to place undue …
Excerpt shortened here; the source contains the full paragraph.
Previous 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.
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 one of these properties in the fourth quarter of 2025, and the remaining properties throughout 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
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.
Current wording
During the third quarter of 2025, the Company disposed of a building in Pennsylvania, received net proceeds of approximately $0.7 million, and recognized a loss of approximately $0.2 million on the sale. During the second quarter of 2025, the Company disposed of a building in Ohio classified as an asset held for sale, received net proceeds of approximately $0.6 million, and recognized a gain of approximately $0.2 million on the sale. Also during the second quarter of 2025, the Company amended an expired lease with a tenant which converted it from an operating lease to a sales-type lease and recognized a gain on sale of approximately $1.3 million.
Previous 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.
Current wording
As of September 30, 2025, our real estate portfolio was approximately 90.1% leased, excluding real estate properties held for sale. During the first nine months of 2025, we had expiring or terminated leases related to approximately 612,000 square feet, and we leased or renewed leases relating to approximately 562,000 square feet.
Previous 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.
Current wording
At September 30, 2025, the Company had an aggregate gross investment of approximately $38.6 million in 12 real estate properties with purchase options exercisable at September 30, 2025 that had not been exercised.
Previous wording
Inflation has significantly increased during the past couple of years and a prolonged period of high and persistent
Current wording
Inflation has significantly increased during the past several years and a prolonged period of high and persistent
Previous wording
2022 and 2023, however, the Federal Reserve lowered interest rates in 2024 and may provide additional rate changes during 2025. Higher interest rates may adversely impact real estate asset values and increase our interest expense on our variable-rate borrowings under our revolving credit facility.
Current wording
2022 and 2023, however, the Federal Reserve lowered interest rates in 2024 and 2025, and may provide additional rate changes during 2025. Higher interest rates may adversely impact real estate asset values and increase our interest expense on our variable-rate borrowings under our revolving credit facility.
Previous 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.
Current wording
The Company's results of operations for the three and nine months ended September 30, 2025 compared to the same period in 2024 were impacted by credit loss, rent and interest reserves related to a geriatric inpatient hospital tenant, real estate acquisitions, severance and transition charges related to an employee termination, interest expense, and gains/losses on sales and impairments of real estate properties held for sale, as well as other items discussed in more detail below.
Previous 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.
Current wording
•Acquisitions of properties during 2024 and 2025 resulted in additional rental income of approximately $1.2 million in 2025 compared to 2024;
Previous wording
•Depreciation and amortization on real estate acquired during 2024 and 2025 resulted in an increase of approximately $0.3 million;
Current wording
•Depreciation and amortization on real estate acquired during 2024 and 2025 resulted in an increase of approximately $0.4 million;
Previous wording
•Depreciation on tenant and other capital improvements resulted in an increase of approximately $0.6 million; offset partially by
Current wording
•Depreciation on tenant and other capital improvements resulted in an increase of approximately $0.3 million; offset partially by
Previous wording
•Fully amortized building improvements resulted in a decrease of approximately $0.7 million; and
Current wording
•Fully amortized building improvements resulted in a decrease of approximately $0.1 million;
Previous wording
•Fully amortized real estate lease intangibles which generally have a shorter depreciable life than a building resulted in a decrease of approximately $0.5 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; and
Previous 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.
Current wording
Interest expense increased approximately $0.8 million, or 13.1%, for the three months ended September 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
Interest and other income, net decreased approximately $0.3 million for the three months ended June 30, 2025 compared to the same period in 2024. During the three months ended June 30, 2024, the Company recognized income related to an undistributed allowance for tenant improvements totaling $0.3 million upon expiration of the lease.
Current wording
Interest and other income, net decreased approximately $0.2 million for the three months ended September 30, 2025 compared to the same period in 2024. During the three months ended September 30, 2024, the Company received earnest money on a terminated contract on a property held for sale.
Previous wording
Rental income increased approximately $3.6 million, or 6.4%, for the six months ended June 30, 2025 compared to the same period in 2024. Income on properties acquired during 2024 and 2025 increased rental income by approximately $2.7 million. Also, the reversal of revenues related to the geriatric behavioral hospital tenant resulted in an increase in revenues of approximately $0.4 million for the six months ended June 30, 2025 as compared to the same period in 2024.
Current wording
•Income on properties acquired during 2024 and 2025 increased rental income by approximately $3.9 million;
Previous wording
Other operating interest decreased $1.3 million for the six 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.
Current wording
Other operating interest decreased $1.3 million for the nine months ended September 30, 2025 compared to the same period in 2024 due mainly to the following:
Previous 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.
Current wording
Property operating expenses increased approximately $0.3 million, or 1.5%, for the nine months ended September 30, 2025 compared to the same period in 2024, due mainly to:
Previous wording
•An increase in compensation-related expenses associated with the termination of our former Executive Vice President of Asset Management, effective May 31, 2025. Upon termination, unvested shares of restricted stock and restricted stock units vested in accordance with the terms of his employment agreement, and the Company accelerated the unamortized remaining balance of deferred compensation and recognized approximately $4.6 million of non-cash amortization expense in the second quarter of 2025. Additionally, the Company recognized approximately $1.3 million of severance and transition-related expenses;
Current wording
•Effective May 31, 2025, the Company terminated its former Executive Vice President of Asset Management. Upon termination, unvested shares of restricted stock and restricted stock units vested in accordance with the terms of his employment agreement, and the Company accelerated the unamortized remaining balance of deferred compensation and recognized approximately $4.6 million of non-cash amortization expense. Additionally, the Company recognized approximately $1.3 million of severance and transition-related expenses; and
Previous wording
•Compensation expense increased approximately $0.7 million for the six months ended June 30, 2025 compared to the same period in 2024, partially related to a $0.3 million increase to non-cash amortization of stock-based compensation; and
Current wording
•Compensation expense increased approximately $0.5 million for the nine months ended September 30, 2025 compared to the same period in 2024, partially related to a $0.3 million increase to non-cash amortization of stock-based compensation; offset partially by
Previous wording
•Professional fees decreased by $0.2 million for the six months ended June 30, 2025 compared to the same period in 2024.
Current wording
•Professional fees decreased by $0.3 million for the nine months ended September 30, 2025 compared to the same period in 2024.
Previous wording
Depreciation and amortization expense increased approximately $0.8 million, or 3.6%, for the six months ended June 30, 2025 compared to the same period in 2024. This increase was comprised mainly of the following:
Current wording
Depreciation and amortization expense increased approximately $0.7 million, or 2.3%, for the nine months ended September 30, 2025 compared to the same period in 2024. This increase was comprised mainly of the following:
Previous wording
•Acquisitions of real estate in 2024 and 2025 resulted in an increase of approximately $1.1 million;
Current wording
•Acquisitions of real estate in 2024 and 2025 resulted in an increase of approximately $1.5 million;
Previous wording
•Tenant improvements and other capital expenditures resulted in an increase of approximately $1.6 million;
Current wording
•Tenant improvements and other capital expenditures resulted in an increase of approximately $1.4 million; partially offset by
Previous wording
•Fully amortized building improvements resulted in a decrease of approximately $0.2 million; and
Current wording
•Fully amortized building improvements resulted in a decrease of approximately $0.4 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 $1.1 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 $1.5 million.
Previous wording
•During the three months ended June 30, 2025, the Company amended an operating lease on a property that resulted in a sales-type lease. The Company recognized a gain on sale of the real estate totaling approximately $1.3 million;
Current wording
•During the nine months ended September 30, 2025, the Company amended an expired lease with a tenant which converted it from an operating lease to a sales-type lease. The Company recognized a gain on sale of the real estate totaling approximately $1.3 million;
Previous wording
•During the three months ended June 30, 2025, the Company recognized a gain on the sale of a property in Ohio of approximately $0.2 million;
Current wording
•During the nine months ended September 30, 2025, the Company sold a property in Ohio and recognized a gain on the sale of approximately $0.2 million;
Previous wording
A credit loss reserve totaling $11.0 million was recorded during the three months ended June 30, 2024 related to notes receivable with a geriatric inpatient behavioral hospital tenant. An additional credit loss reserve of approximately $8.7 million related to the same tenant was recorded during the three months ended June 30, 2025 to fully reserve the notes. See Note 10 – Other Assets, net for more details on the credit loss reserve.
Current wording
A credit loss reserve totaling $8.7 million and $11.0 million, respectively, was recorded during the nine months ended September 30, 2025 and 2024 related to notes receivable with a geriatric inpatient behavioral hospital tenant, fully reserving these notes in 2025. See Note 10 – Other Assets, net for more details on these notes and the credit loss reserve.
Previous wording
Interest expense increased approximately $1.9 million, or 17.2%, for the six 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, including the maturity of two interest rate swaps in 2024, which were replaced with two forward-starting interest swaps at higher interest rates.
Current wording
Interest expense increased approximately $2.7 million, or 15.7%, for the nine months ended September 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, including the maturity of two interest rate swaps in 2024, which were replaced with two forward-starting interest swaps at higher interest rates.
Previous wording
Interest and other income, net decreased approximately $0.3 million for the six months ended June 30, 2025 compared to the same period in 2024. During the six months ended June 30, 2024, the Company recognized into income an undistributed allowance for tenant improvements totaling $0.3 million upon expiration of the lease.
Current wording
Interest and other income, net decreased approximately $0.5 million for the nine months ended September 30, 2025 compared to the same period in 2024. During the nine months ended September 30, 2024, the Company recognized into income an undistributed allowance for tenant improvements totaling $0.3 million upon expiration of the lease and received earnest money on a terminated contract on a property held for sale of approximately $0.2 million.
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 loss to FFO and AFFO for the three and six months ended June 30, 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 income (loss) to FFO and AFFO for the three and nine months ended September 30, 2025 compared to the same periods in 2024.
Previous wording
(1) During the three and six months ended June 30, 2025, the Company recorded a credit loss reserve on its notes related to a geriatric behavioral hospital tenant totaling approximately $8.7 million. During the three and six months ended June 30, 2024, the Company recorded an $11.0 million credit loss reserve related to its notes receivable with this geriatric behavioral hospital tenant. Because these notes are incidental to the Company's main business, the Company added back these reserves in its calculations of FFO and AFFO.
Current wording
(1) During the nine months ended September 30, 2025 and 2024, the Company recorded a credit loss reserve on its notes related to a geriatric behavioral hospital tenant totaling approximately $8.7 million and $11.0 million, respectively. Because these notes are incidental to the Company's main business, the Company added back these reserves in its calculations of FFO and AFFO.
Previous wording
(2) During the three months and six months ended June 30, 2025, the Company recorded severance and transition-related charges totaling approximately $5.9 million, including non-cash accelerated amortization of stock-based compensation of approximately $4.6 million which reduced FFO per diluted common share by approximately $0.22 for the three and six months ended June 30, 2025.
Current wording
(2) During the nine months ended September 30, 2025, the Company recorded severance and transition-related charges totaling approximately $5.9 million, including non-cash accelerated amortization of stock-based compensation of approximately $4.6 million, which in total reduced FFO per diluted common share by approximately $0.22 for the nine months ended September 30, 2025.
Previous wording
(3) During the three months ended June 30, 2025, the Company reversed interest related to a geriatric behavioral hospital tenant totaling approximately $1.7 million, resulting in a reduction of FFO and AFFO per diluted share of approximately $0.06. During the three months ended June 30, 2024, the Company reversed rent and interest related to this geriatric behavioral hospital tenant totaling approximately $3.2 million, including straight-line rent of approximately $0.9 million, resulting in a reduction of FFO per diluted share of approximately $0.12. AFFO, which adds back straight-line rent, was reduced by approximately $0.09 per diluted share for the three months ending June 30, 2024.
Current wording
(3) During the nine months ended September 30, 2025, the Company reversed interest related to a geriatric behavioral hospital tenant totaling approximately $1.7 million, resulting in a reduction of FFO and AFFO per diluted share of approximately $0.06. During the nine months ended September 30, 2024, the Company reversed rent and interest related to this geriatric behavioral hospital tenant totaling approximately $3.2 million, including straight-line rent of approximately $0.9 million, resulting in a reduction of FFO per diluted share of approximately $0.12. AFFO, which adds back straight-line rent, was reduced by approximately $0.09 per diluted share for the nine months ending September 30, 2024.
Previous 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.
Current wording
The table below reconciles net income (loss) to NOI for the three and nine months ended September 30, 2025 compared to the same periods in 2024.
Previous 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.
Current wording
The table below reconciles net income (loss) to EBITDAre and Adjusted EBITDAre for the three and nine months ended September 30, 2025 compared to the same periods in 2024.
Previous 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.
Current wording
At September 30, 2025, the Company had $256.0 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 September 30, 2025, the Company had borrowing capacity remaining under the Revolving Credit Facility of approximately $144.0 million.
Previous 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.
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 one of these properties in the fourth quarter of 2025, and the remaining properties throughout 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 $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.
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 $29.9 million as of September 30, 2025. At September 30, 2025, $7.7 million of this commitment relates primarily to three ongoing redevelopment projects on buildings with tenants backed by long-term leases.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•Rental income related to the geriatric behavioral hospital tenant resulted in an increase in revenues of approximately $0.2 million for the three months ended September 30, 2025 as compared to the same period in 2024; offset partially by
Current report — wording carried from elsewhere
•The remaining $0.2 million increase resulted from net leasing activities.
Current report — wording carried from elsewhere
•Rental income related to the geriatric inpatient behavioral hospital tenant resulted in an increase in revenues of approximately $0.6 million for the nine months ended September 30, 2025 as compared to the same period in 2024;
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
General and administrative expenses increased approximately $5.8 million for the three months ended June 30, 2025 compared to the same period in 2024 due almost entirely to compensation-related expenses associated with the termination of our former Executive Vice President of Asset Management, effective May 31, 2025. Upon termination, unvested shares of restricted stock and restricted stock units vested in accordance with the terms of his employment agreement, and the Company accelerated the unamortized remaining balance of deferred compensation and recognized approximately $4.6 million of non-cash amortization expense in the second quarter of 2025. Additionally, the Company recognized approximately $1.3 million of severance and transition-related expenses.