COMMUNITY HEALTHCARE TRUST INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except per share amounts)

December 31,
2015

December 31,
2014

ASSETS

Real estate properties:

Land

$

13,216

$

—

Buildings, improvements, and lease intangibles

119,716

—

Personal property

35

—

Total real estate properties

132,967

—

Less accumulated depreciation

(5,203)

—

Total real estate properties, net

127,764

—

Cash and cash equivalents

2,018

2

Mortgage note receivable, net

10,897

—

Other assets, net

2,124

—

Total assets

$

142,803

$

2

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Revolving credit facility

$

17,000

$

—

Accounts payable and accrued liabilities

812

—

Other liabilities

2,721

—

Total liabilities

20,533

—

Commitments and contingencies

Stockholders' Equity

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

—

—

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

76

2

Additional paid-in capital

127,578

—

Cumulative net income (deficit)

(1,456)

—

Cumulative dividends

(3,928)

—

Total stockholders' equity

122,270

2

Total liabilities and stockholders' equity

$

142,803

$

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 INCOME (LOSS)

FOR THE THREE MONTHS ENDED DECEMBER 31, 2015 AND 2014,

THE YEAR ENDED DECEMBER 31, 2015 AND

 FOR THE PERIOD FROM MARCH 28, 2014 (INCEPTION) THROUGH DECEMBER 31, 2014

(Unaudited)

(Dollars in thousands, except per share amounts)

Three Months Ended

December 31,

Year Ended

For the Period

March 28, 2014

(inception)

through

2015

2014

December 31, 2015

December 31, 2014

REVENUES

Rental income

$

3,050

$

—

$

6,364

$

—

Tenant reimbursements

1,202

—

1,964

—

Mortgage interest

304

—

304

—

4,556

—

8,632

—

EXPENSES

Property operating

1,123

—

2,012

—

General and administrative

646

—

2,472

—

Depreciation and amortization

2,416

—

5,204

—

Bad debts

71

—

71

—

4,256

—

9,759

—

OTHER INCOME (EXPENSE)

Interest expense

(183)

—

(364)

—

Interest and other income, net

4

—

35

—

(179)

—

(329)

—

NET INCOME (LOSS) AND COMPREHENSIVE
INCOME (LOSS)

$

121

$

—

$

(1,456)

$

—

INCOME (LOSS) PER COMMON SHARE:

Net income (loss) per common share – Basic

$

0.02

$

—

$

(0.31)

$

—

Net income (loss) per common share – Diluted

$

0.02

$

—

$

(0.31)

$

—

WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-BASIC

7,511,183

200,000

4,726,925

200,000

WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-DILUTED

7,511,815

200,000

4,726,925

200,000

(1)

The Condensed Consolidated Statements of Comprehensive Income (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 December 31,

2015

2014

Net income

$

121

$

—

   Real estate depreciation and amortization

2,415

—

   Total adjustments

2,415

—

Funds From Operations

$

2,536

$

—

   Transaction costs

243

—

Normalized Funds From Operations

$

2,779

$

—

   Funds from Operations per Common Share-Diluted

$

0.34

$

—

   Normalized Funds From Operations Per Common Share-Diluted

$

0.37

$

—

FFO Weighted Average Common Shares Outstanding

7,511,815

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 closing costs of properties acquired and mortgages funded.  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 and normalized FFO 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.