CHCT Filings — Community Healthcare Trust Inc - FilingSpy
CHCT
Community Healthcare Trust Inc
A real estate investment trust that buys and leases healthcare facilities — medical office buildings, inpatient rehabilitation centers, and other care properties — to hospitals and health systems across dozens of states. It grew by snapping up off-market and lightly marketed properties in smaller, less competitive deals rather than big auctions. Its portfolio is deliberately spread across many facility types, tenants, and states, so no single tenant or region drives the business.
G&A costs fell sharply from last year's severance spike, but the portfolio leased rate held at 89.8% and interest expense kept climbing.
The portfolio leased rate stayed at its lowest point in the periods shown. rose 2.8% to $31.0 million and rose 27.1% to $17.5 million, but the gain came entirely from the absence of a $5.9 million severance-and-stock charge that hit the prior-year quarter. The company enters the second half with its occupancy still under pressure and its cost of floating-rate debt still rising.
Key takeaways
General and administrative expenses fell 53.7% to $4.9 million, almost entirely because Q2 2025 included $4.6 million in accelerated stock compensation and $1.3 million in severance tied to the termination of the EVP of Asset Management.
rose 2.8% to $31.0 million, as $2.3 million from acquisitions was partly offset by $0.7 million from property dispositions and $0.9 million from a tenant moved to .
increased 12.7% to $7.4 million, driven by a higher weighted-average balance on the and the maturity of $75 million in interest rate swaps that were not replaced, moving that debt to a .
Section summaries
Management's Discussion and Analysis
Rental income grew 2.8% in Q2 2026 driven by acquisitions, while G&A fell sharply due to absence of prior-year severance costs.
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Rental income rose $0.8 million (2.8%) in Q2 2026, as $2.3 million from acquisitions was partly offset by $0.7 million from dispositions and $0.9 million from a tenant moved to .
The portfolio leased rate was 89.8% at quarter-end, unchanged from the prior quarter; new and renewed leases covered 342,000 square feet in the first half of 2026 while expirations and terminations covered 388,000 square feet.
The company has four properties under definitive purchase agreements totaling an expected $99.0 million, with closings anticipated from Q3 2026 through 2027, and $115.0 million in remaining borrowing capacity on its .
What changed
The $5.9 million in combined severance and accelerated stock compensation that drove the Q2 2025 G&A spike did not recur, confirming those costs were one-time as flagged in the prior two quarters.
The portfolio leased rate held at 89.8%, the same level reached in Q1 2026 after slipping from 90.6% at year-end 2025; the 9.0% of annualized lease expiring in 2026 remains a live concern.
continued to climb as the $75 million of matured swaps moved that debt to a of approximately 5.3%, adding to the pressure from a higher credit-facility balance that has been flagged since 2023.
was flat sequentially at $559.3 million, pausing a multi-quarter rise, while fell another 1.7% to $414.2 million as accumulated losses and dividends kept eroding the base.
What to watch
Whether the portfolio leased rate can be stabilized or improved as 9.0% of annualized lease expires in 2026 and new leasing covered less square footage than was lost in the first half.
Whether the $99.0 million acquisition pipeline closes at yields that remain accretive relative to the on the , now approximately 5.3% on the unhedged portion.
The trajectory of as the full effect of the $75 million in matured swaps flows through and the company draws on its $115.0 million in remaining credit-facility capacity to fund acquisitions.
Whether , now at $414.2 million and down 5.4% , continues to erode under the weight of dividends and accumulated losses.
General and administrative expenses dropped $5.7 million (53.7%) in Q2 2026, primarily because Q2 2025 included $4.6 million in accelerated deferred compensation and $1.3 million in severance for a former executive.
increased $0.8 million (12.7%) in Q2 2026 due to a higher weighted-average balance on the and the maturity of $75 million in interest rate swaps that were not replaced.
Portfolio leased rate was 89.8% at June 30, 2026; expiring or terminated leases covered 388,000 square feet while new leases or renewals covered 342,000 square feet in the first half of 2026.
The Company has four properties under definitive purchase agreements for an expected $99.0 million, with closings anticipated from Q3 2026 through 2027, and $115.0 million in remaining borrowing capacity on its .
Quantitative and Qualitative Disclosures About Market Risk
Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. We may use certain derivative financial instrumen…
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Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. We may use certain derivative financial instruments to manage, or hedge, interest rate risks related to our borrowings. We will not use derivatives for trading or speculative purposes and only enter into contracts with major financial institutions based upon their credit rating and other factors. An interest rate swap is a contractual agreement entered into by two counterparties under which each agrees to make periodic payments to the other for an agreed period of time based on a notional amount of principal. Under the most common form of interest rate swap, known from our perspective as a floating-to-fixed interest rate swap, a series of floating, or variable, rate payments on a notional amount of principal is exchanged for a series of fixed interest rate payments on such notional amount. During the six months ended June 30, 2026, there were no material changes in the quantitative and qualitative disclosures about market risks presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, other than the expiration of the $75.0 million of interest rate swaps in the first quarter of 2026 as discussed in Note 5 – Debt, net to the Condensed Consolidated Financial Statements.
The Company may, from time to time, be involved in litigation arising in the ordinary course of business or which may be expected to be covered by insurance. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a mate…
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The Company may, from time to time, be involved in litigation arising in the ordinary course of business or which may be expected to be covered by insurance. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
In addition to the other information set forth in our Quarterly Reports on Form 10-Q for the current year, an investor should consider the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025 and other reports that may be filed by the Comp…
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In addition to the other information set forth in our Quarterly Reports on Form 10-Q for the current year, an investor should consider the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025 and other reports that may be filed by the Company. There were no material changes in the risk factors presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.