News Releases

Community Healthcare Trust Announces Results for the Three Months Ended December 31, 2017

FRANKLIN, Tenn., Feb. 22, 2018 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended December 31, 2017. The Company reported net income for the fourth quarter of approximately $1.6 million, or $0.08 per diluted common share. Normalized funds from operations and adjusted funds from operations ("AFFO") for the three months ended December 31, 2017 totaled $0.37 per diluted common share.

Highlights include:

  • During the fourth quarter of 2017, the Company acquired six real estate properties for an aggregate purchase price of approximately $40.2 million. The Company's expected returns on these investments range from approximately 9.0% to 10.5%. Upon acquisition, the properties were 100.0% leased in the aggregate with lease expirations ranging from 2021 through 2032. In addition, we purchased $11.45 million face value of certain promissory notes, secured by accounts receivable of our bankrupt borrower, for $8.75 million from a syndicate of banks, a $2.7 million discount to face value.

  • On February 1, 2018, the Company's Board of Directors declared a quarterly common stock dividend in the amount of $0.3975 per share. The dividend is payable on March 2, 2018 to stockholders of record on February 16, 2018.

  • The Company has three properties under definitive purchase agreements for an aggregate purchase price of approximately $16.8 million with expected returns ranging from approximately 9.0% to 9.6%. The Company anticipates these properties will close during the first quarter of 2018. However, the Company is currently performing due diligence procedures customary for these types of transactions and cannot provide assurance as to the timing of when, or whether, these transactions will actually close.

  • The Company also has three properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $40.4 million. The Company expects to close on one of these properties sometime in the first half of 2018 and expects to close on the remaining two properties sometime in the second half of 2018. The Company's expected aggregate return on these investments ranges up to approximately 11%.  However, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close.

About Community Healthcare Trust Incorporated

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in non-urban markets throughout the United States. The Company had investments of approximately $399.1 million in 86 real estate properties, including one mortgage note, as of December 31, 2017, located in 26 states, totaling approximately 2.0 million square feet.

Additional information regarding the Company, including this quarter's operations, can be found at www.chct.reit.  Please contact the Company at 615-771-3052 to request a printed copy of this information.

Cautionary Note Regarding Forward-Looking Statements

This press release contains 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", "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, the degree and nature of the Company's competition, the ability to consummate acquisitions under contract and the 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, 2017 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 speak only as of the date hereof.  The Company intends these forward-looking statements to speak only as of the time of this release and the Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments, or otherwise, except as may be required by law.

 

COMMUNITY HEALTHCARE TRUST INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except per share amounts)



December 31, 2017


December 31, 2016





ASSETS




Real estate properties:




Land and land improvements

$

44,419



$

29,884


Buildings, improvements, and lease intangibles

343,955



222,755


Personal property

112



97


Total real estate properties

388,486



252,736


Less accumulated depreciation

(36,136)



(18,404)


Total real estate properties, net

352,350



234,332


Cash and cash equivalents

2,130



1,568


Mortgage note receivable, net

10,633



10,786


Other assets, net

20,653



4,843


Total assets

$

385,766



$

251,529






LIABILITIES AND STOCKHOLDERS' EQUITY




Liabilities




Debt, net

$

93,353



$

51,000


Accounts payable and accrued liabilities

4,056



3,541


Other liabilities

4,983



2,981


Total liabilities

102,392



57,522






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; 18,085,798 and
12,988,482 shares issued and outstanding at December 31, 2017 and 2016, respectively

181



130


Additional paid-in capital

324,303



214,323


Cumulative net income

4,775



1,265


Accumulated other comprehensive loss

258




Cumulative dividends

(46,143)



(21,711)


Total stockholders' equity

283,374



194,007


Total liabilities and stockholders' equity

$

385,766



$

251,529


 

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 INCOME

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016

(Unaudited)

(Amounts in thousands, except per share amounts)



Three Months Ended
December 31,


Twelve Months Ended
December 31,


2017


2016


2017


2016

REVENUES








Rental income

$

9,103



$

5,811



$

31,071



$

18,999


Tenant reimbursements

1,451



1,314



5,071



4,564


Mortgage interest

248



267



1,022



1,634


Other operating

160





179





10,962



7,392



37,343



25,197










EXPENSES








Property operating

2,579



1,504



8,682



4,744


General and administrative

801



856



3,475



3,228


Depreciation and amortization

4,983



3,558



17,732



13,201


Bad debts



52



67



155



8,363



5,970



29,956



21,328


OTHER INCOME (EXPENSE)








Interest expense

(1,051)



(391)



(3,948)



(1,178)


Interest and other income, net

4



2



71



30



(1,047)



(389)



(3,877)



(1,148)


NET INCOME

$

1,552



$

1,033



$

3,510



$

2,721










NET INCOME PER COMMON SHARE:








Net income per common share – Basic

$

0.08



$

0.08



$

0.19



$

0.24


Net income per common share – Diluted

$

0.08



$

0.08



$

0.19



$

0.24


WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-
BASIC

17,574



12,686



14,815



11,238


WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-
DILUTED

17,574



12,759



14,815



11,320


 

The Condensed Consolidated Statements of Income 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, NORMALIZED FFO, and AFFO (1)

(Amounts in thousands, except per share amounts)

(Unaudited)



Three Months Ended December 31,


2017


2016

Net income

$

1,552



$

1,033


   Real estate depreciation and amortization

4,978



3,554


   Total adjustments

4,978



3,554


Funds From Operations

$

6,530



$

4,587


   Transaction costs (2)

25



200


Normalized Funds From Operations

$

6,555



$

4,787


   Straight line rent

(351)



(201)


   Deferred compensation

428



221


AFFO

$

6,632



$

4,807


   Funds from Operations per Common Share-Diluted

$

0.37



$

0.36


   Normalized Funds From Operations Per Common Share-Diluted

$

0.37



$

0.38


   AFFO Per Common Share-Diluted

$

0.37



$

0.38


Weighted Average Common Shares Outstanding-Diluted (3)

17,769



12,759


 

(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 funds from operations ("FFO"), normalized FFO and adjusted funds from operations ("AFFO") to be appropriate measures of operating performance of an equity real estate investment trust ("REIT"). In particular, the Company believes that normalized FFO and AFFO are useful because they allow 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 National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of FFO. FFO and FFO per share are operating performance measures adopted by 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 which it has defined as FFO excluding certain expenses related to closing costs of properties acquired accounted for as business combinations and mortgages funded and has included AFFO which it has defined as normalized FFO excluding straight-line rent and deferred compensation and may include other non-cash items from time to time. Normalized FFO and AFFO 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 definitions.

 

FFO, normalized FFO and AFFO 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, normalized FFO and AFFO should be examined in conjunction with net income as presented elsewhere herein.

 

(2)

Upon the adoption of Accounting Standards Update ("ASU") No, 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, on January 1, 2017, the Company expects that substantially all of its acquisitions will be accounted for as asset acquisitions. As such, transaction costs related to its acquisitions will be capitalized into the real estate property. The transaction costs of $25,000 above for the three months ended December 31, 2017 relate to costs associated with the acquisition of $8.75 million in promissory notes.

 

(3)

Diluted weighted average common shares outstanding for FFO are calculated based on the treasury method, rather than the 2-class method.

 

CONTACT:  W. Page Barnes, 615-771-3052

 

SOURCE Community Healthcare Trust Incorporated


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