Community Healthcare Trust Inc Q3 FY2024 earnings call

• Successfully refinanced revolving credit facility to $400 million with lower pricing and extended maturity. • Geriatric psychiatric hospital tenant's operator stabilized staffing, reduced costs, improved processes, and saw improved census in October. • Occupancy decreased to 91.3% due to lease terminations/expirations but good leasing activity. • Five properties undergoing redevelopment/renovations, 3 to commence leases in Q1 2025. • Acquired one physician clinic for $6.2 million, 4 properties under purchase agreements for $8.8 million, 7 properties under purchase agreements for $169.5 million. • Dividend raised to $0.465 per share annualized. • FFO and AFFO increased quarter-over-quarter, with dividend well covered at 85% payout ratio.

Total revenue grew from $28.7 million in Q3 2023 to $29.6 million in Q3 2024, a 3.1% annual growth. FFO in Q3 2024 was $12.8 million, up from $11.6 million in Q2 2024. AFFO in Q3 2024 was $14.6 million, up from $14.3 million in Q2 2024. The geriatric psychiatric hospital operator has 6 properties, ~79,000 square feet, and $3.2 million base rent.

• Expect 3 redevelopment projects to commence leases in Q1 2025. • Anticipate closing 4 properties under purchase agreements in Q4 2024. • Plan to close 7 properties under purchase agreements throughout 2025-2027. • Evaluating capital recycling opportunities and potential share repurchases while maintaining modest leverage.

• Impact of hurricanes Helene and Milton on others but not CHCT properties. • Geriatric psychiatric tenant not paying rent yet, timing and amounts uncertain. • Watch list tenants change month over month, with idiosyncratic tenant situations rather than sector-wide issues.

Q: Could you provide more color on the geriatric tenants issue?

A: Consultants stabilized staffing, reduced costs, improved processes; seeing improved census; multiple paths to receive rent/interest.

Q: Any other tenants on watch list?

A: No other top 10 tenants on watch list; watch list tenants change monthly.

Q: Details on redevelopment projects?

A: 3 projects expected to commence leases in Q1 2025, meaningful pickup in rent.

Q: About lender attributes?

A: Diversified portfolio, strong dividend coverage, modest leverage, track record of resolving tenant issues helped lenders.