# Community Healthcare Trust Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Community Healthcare Trust Inc).

## Overview

Community Healthcare Trust Inc. is a self-administered healthcare REIT that owns and leases properties used by hospitals, physicians, healthcare systems, and other healthcare service providers. Its portfolio is built through small to mid-sized acquisitions, often off-market or via sale-leaseback transactions, with an emphasis on long-term, contract-based rental income from need-based healthcare real estate.

## Products & services

• Ownership and leasing of healthcare real estate
• Medical office buildings and physician clinics
• Surgical centers, hospitals, and specialty care facilities
• Behavioral health, rehab, and long-term acute care properties
• Sale-leaseback acquisitions from healthcare operators
• Tenant improvements and redevelopment of healthcare buildings

- **Healthcare property leasing** (80%) — Long-term leases on properties used for medical and healthcare delivery.
- **Property acquisition and sale-leaseback transactions** (10%) — Acquisition of healthcare facilities, often through off-market or lightly marketed deals.
- **Tenant improvements and redevelopment** (5%) — Capital invested to refurbish, reposition, or convert healthcare buildings for new uses.
- **Interest and other property-related income** (5%) — Ancillary income including notes receivable and other contractual property-related items.

- Ownership and leasing of healthcare real estate
- Medical office buildings and physician clinics
- Surgical centers, hospitals, and specialty care facilities
- Behavioral health, rehab, and long-term acute care properties
- Sale-leaseback acquisitions from healthcare operators
- Tenant improvements and redevelopment of healthcare buildings

## Customers

The company’s customers are healthcare operators that need specialized real estate rather than general office space. These include hospitals, physician groups, healthcare systems, dialysis providers, behavioral health operators, and rehabilitation-focused tenants that value long-duration leases and facility-specific layouts. Demand is driven by providers seeking capital-efficient occupancy through sale-leasebacks or expansion into targeted submarkets.

- **Hospitals and health systems** (primary) — Lease hospitals and system-affiliated facilities to support clinical operations and long-term occupancy needs.
- **Physicians and outpatient clinics** (primary) — Lease medical office and clinic space for routine care, diagnostics, and specialty practices.
- **Behavioral health and rehabilitation operators** (secondary) — Lease specialty facilities for inpatient behavioral care and rehabilitation services.
- **Specialty care providers** (secondary) — Lease dialysis, surgical, and other niche healthcare buildings tailored to service delivery.
- **Healthcare sellers in sale-leaseback transactions** (secondary) — Sell properties to the REIT and remain as tenants to raise capital while preserving operating control.

- Hospitals and health systems leasing mission-critical facilities
- Physician groups and clinics needing outpatient space
- Behavioral health and inpatient rehabilitation operators
- Dialysis and specialty care providers with specialized layouts
- Tenants using sale-leasebacks to unlock real estate capital

## Geography

The portfolio is spread across 36 U.S. states, which reduces reliance on any single local market but still leaves the company exposed to state-level healthcare and real estate conditions. Texas and Florida are the largest concentrations, together representing 26.7% of annualized rent as of December 31, 2025, so performance in those markets matters disproportionately. The company’s acquisition strategy targets submarkets rather than major urban cores, which shapes both tenant mix and competitive dynamics.

- **Texas** (14.3%) — State-level concentration disclosed in annualized rent.
- **Florida** (12.4%) — State-level concentration disclosed in annualized rent.
- **Other U.S. states** (73.3%) — Residual share across the remaining 34 states.

- Portfolio spans 36 U.S. states
- Texas contributes 14.3% of annualized rent
- Florida contributes 12.4% of annualized rent
- No other state exceeds 10% of annualized rent
- Submarket focus lowers competition versus urban healthcare assets

## Strategy

The company is focused on growing through disciplined acquisitions of smaller healthcare properties, typically in the $3 million to $30 million range, where it believes competition is lower and pricing is more attractive. It also seeks to deepen relationships with healthcare providers and use sale-leasebacks, OP units, and selective redevelopment to expand the portfolio while keeping leases long-dated and cash flows predictable.

- **Disciplined healthcare property acquisition** (short-term) — Small, off-market deals can improve returns and reduce auction competition.
- **Portfolio diversification** (medium-term) — Diversification across tenants, facility types, and states reduces concentration risk.
- **Relationship-driven sourcing** (medium-term) — Deep provider and intermediary relationships create proprietary acquisition flow.
- **Selective redevelopment and capital recycling** (medium-term) — Redevelopment can reposition assets and asset sales can fund new investments.

- Acquire off-market or lightly marketed healthcare properties
- Target smaller deals in the $3 million to $30 million range
- Use sale-leasebacks to source properties from operators
- Diversify by facility type, tenant, and geography
- Redevelop selected assets for higher-value healthcare uses
- Maintain long-term, predictable rental cash flows

## Risks

The business is exposed to tenant credit risk, because rent depends on healthcare operators that are themselves affected by reimbursement, regulation, and operating performance. It also faces concentration risk in healthcare real estate and in states such as Texas and Florida, while leverage, interest rates, and acquisition execution can affect growth and dividend capacity.

- **Tenant credit deterioration** [high] — Rental income depends on healthcare operators remaining solvent and current on lease payments.
- **Healthcare regulation and reimbursement changes** [high] — Operators may face lower margins or licensure issues, which can impair their ability to pay rent.
- **Geographic concentration** [medium] — A meaningful share of rent comes from Texas and Florida, so local downturns could affect results.
- **Acquisition execution risk** [medium] — Growth depends on sourcing and closing accretive healthcare property deals at acceptable prices.
- **Interest rate and leverage risk** [medium] — Higher borrowing costs can reduce acquisition returns and pressure dividend coverage.

- Tenant distress can reduce rent collections and occupancy
- Healthcare regulation and reimbursement changes can pressure operators
- State concentration in Texas and Florida increases local market exposure
- Acquisition pricing and integration risk can hurt returns
- Interest rates and leverage affect financing costs and dividend coverage
- Cybersecurity and climate events can disrupt operations and property values

## Accounting

Revenue is driven mainly by contractual rent and operating expense reimbursements, so lease commencement timing and occupancy changes can shift reported results. Investors should also watch impairment testing, tenant improvement commitments, sale-leaseback classification, and credit loss reserves, because these judgments can materially affect earnings, asset values, and balance sheet presentation.

- **Revenue recognition from leases** — A lease starting later can defer real estate revenue recognition.
- **Sale-leaseback accounting** — Can shift amounts between other assets, real estate properties, and income timing.
- **Long-lived asset impairment** — Could create non-cash impairment charges on real estate assets.
- **Credit loss reserves** — Directly reduces earnings and signals tenant-specific credit stress.
- **Tenant improvement and redevelopment commitments** — Affects future cash outflows and may change asset basis and depreciation.

- Rental income and reimbursements depend on lease terms and occupancy
- Sale-leaseback timing can change whether a deal is booked as financing or purchase
- Real estate impairments depend on fair value and recoverability judgments
- Tenant improvement commitments affect future capital needs and cash flow
- Credit loss reserves can materially reduce earnings when tenant credit weakens

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*Last updated: 2026-04-28T19:58:43.305031+00:00*