COMMUNITY HEALTHCARE TRUST INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except per share amounts)

June 30,

2015

December 31,

2014

ASSETS

Real estate properties:

Land

$

9,357

$

—

Buildings, improvements, and lease intangibles

78,349

—

Total real estate properties

87,706

—

Less accumulated depreciation

(577)

—

Total real estate properties, net

87,129

—

Cash and cash equivalents

39,552

2

Other assets

1,139

—

Total assets

$

127,820

$

2

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Revolving credit facility

$

—

$

—

Accounts payable and accrued liabilities

1,098

—

Other liabilities

687

—

Total liabilities

1,785

—

Commitments and contingencies

Stockholders' Equity

Preferred stock, $0.01 par value; 50,000,000 shares authorized; none outstanding

—

—

Common stock, $0.01 par value; 450,000,000 shares authorized; 7,596,940 and 200,000 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively

76

2

Additional paid-in capital

127,468

—

Cumulative net income (deficit)

(1,509)

—

Cumulative dividends

—

—

Total stockholders' equity

126,035

2

Total liabilities and stockholders' equity

$

127,820

$

2

(1)

The Condensed Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

COMMUNITY HEALTHCARE TRUST INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND THE THREE MONTHS ENDED JUNE 30, 2014 AND

 FOR THE PERIOD FROM MARCH 28, 2014 (INCEPTION) THROUGH JUNE 30, 2014

(Unaudited)

(Dollars in thousands, except per share amounts)

Three Months Ended

June 30,

Six Months Ended

For the Period

March 28, 2014(inception)

through

2015

June 30, 2015

June 30, 2014

REVENUES

Rental income

$

729

$

—

$

729

$

—

Tenant reimbursements

107

—

107

—

836

—

836

—

EXPENSES

Property operating

138

—

138

—

General and administrative

1,603

—

1,603

—

Depreciation and amortization

577

—

577

—

2,318

—

2,318

—

OTHER INCOME (EXPENSE)

Interest expense

(41)

—

(41)

—

Interest and other income, net

14

—

14

—

(27)

—

(27)

—

NET LOSS AND COMPREHENSIVE LOSS

$

(1,509)

$

—

$

(1,509)

$

—

LOSS PER COMMON SHARE:

Net loss per common share – Basic

$

(0.42)

$

—

$

(0.80)

$

—

Net loss per common share – Diluted

$

(0.42)

$

—

$

(0.80)

$

—

WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-BASIC

3,574,392

200,000

1,896,518

200,000

WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-DILUTED

3,574,392

200,000

1,896,518

200,000

(1)

The Condensed Consolidated Statements of Comprehensive Loss do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

COMMUNITY HEALTHCARE TRUST INCORPORATED

RECONCILIATION OF FFO AND NORMALIZED FFO ⁽¹⁾

(Dollars in thousands, except per share amounts)

(Unaudited)

Three Months Ended June 30,

2015

2014

Net loss

$

(1,509)

$

—

   Real estate depreciation and amortization

577

—

   Total adjustments

577

—

Funds From Operations

$

(932)

$

—

   Transaction costs

1,546

—

Normalized Funds From Operations

$

614

$

—

   Funds from Operations per Common Share-Diluted

$

(0.26)

$

—

   Normalized Funds From Operations Per Common Share-Diluted

$

0.17

$

—

FFO Weighted Average Common Shares Outstanding

3,574,392

200,000

Normalized FFO Weighted Average Common Shares Outstanding (2)

3,563,389

200,000

(1)

Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time.  However, since real estate values have historically risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.  For that reason, the Company considers FFO and normalized FFO to be appropriate measures of operating performance of an equity REIT.  In particular, the Company believes that normalized FFO is useful because it allows investors, analysts and Company management to compare the Company's operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences caused by unanticipated items and other events.

The Company uses the NAREIT definition of FFO.  Funds from operations ("FFO") and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to "net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." The Company has included normalized FFO above which it has defined as FFO excluding certain expenses related to the Company's initial public offering and acquisition costs of 29 properties acquired during the period.  Normalized FFO presented herein may not be comparable to similar measures presented by other real estate companies due to the fact that not all real estate companies use the same definition.

FFO, normalized FFO and FAD should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company's financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company's liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company's needs.  The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and normalized FFO should be examined in conjunction with net income as presented elsewhere herein.

(2)

Weighted average common shares outstanding used in calculating Normalized FFO includes the dilutive effect of 11,003 shares of restricted common stock that were excluded in calculating the weighted average common shares outstanding for FFO because the effect was anti-dilutive due to the net loss incurred in the period.