FRANKLIN, Tenn., Aug. 4, 2020 /PRNewswire/ -- Community
Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today
announced results for the three months ended June 30,
2020. The Company reported net income for the second quarter
of approximately $4.5 million, or
$0.19 per diluted common share. Funds
from operations and adjusted funds from operations ("AFFO") for the
three months ended June 30, 2020 totaled $0.51 and $0.52,
respectively, per diluted common share.
Highlights include:
- During the second quarter of 2020, the Company issued, through
its at-the-market offering program ("ATM Program"), 578,759 shares
of common stock at an average gross sales price of $41.70 per share and received net proceeds of
approximately $23.7 million at an
approximate 4.11% current equity yield.
- During the second quarter of 2020, the Company acquired seven
real estate properties totaling approximately 92,000 square feet
and also acquired a land parcel adjacent to one of our existing
properties to be used for additional parking for an aggregate
purchase price of approximately $21.3
million and cash consideration of approximately $21.5 million. Upon acquisition, the real estate
properties were 100% leased in the aggregate with lease expirations
through 2035.
- The Company has two properties under definitive purchase
agreements for an aggregate expected purchase price of
approximately $2.6 million and
expected aggregate returns of approximately 9.3%. The Company
expects to close on these properties in the third quarter of 2020;
however, the Company cannot provide assurance as to the timing of
when, or whether, these transactions will actually close.
- The Company has three properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $68.0 million. The Company's expected aggregate
returns on these investments range from approximately 9.5% to
11.0%. The Company expects to close on one of these properties in
the fourth quarter and the other two through the middle of 2021;
however, the Company cannot provide assurance as to the timing of
when, or whether, these transactions will actually close.
- On August 3, 2020, the Company's
Board of Directors declared a quarterly common stock dividend in
the amount of $0.4225 per share. The
dividend is payable on August 28,
2020 to stockholders of record on August 17, 2020.
COVID-19 Pandemic
- Many healthcare providers have been impacted by the COVID-19
pandemic. Some of them were unable to see patients for a period of
time; others have seen a reduced number of elective procedures
and/or patient visits; while others have experienced limited
impact, or have even seen improved cash flows from either increases
in census or from government funding.
- As of July 31, 2020, the Company
has entered into, or anticipates entering into, deferral agreements
with up to approximately 20 tenants representing less than one
percent of our annualized rent. Pursuant to these agreements, the
tenants are generally required to repay the deferred amounts in
equal monthly installments during the third and fourth quarters of
2020.
Highland Update:
- On July 1, 2020, the bankruptcy
sale of Highland Hospital was completed and the operator who had
been managing the facility acquired its operations and entered into
a lease with the Company.
- The Company provided debtor in possession financing (the "DIP")
to facilitate the sale and, as of the closing of the sale, had an
approximately $1.2 million net
payable. In addition, the Company continued to have a net
investment of $550,000 in a separate
note (the "Note"), secured by all assets of Highland Hospital.
- As of the date of this filing, the DIP and the Note have been
combined into a single net receivable balance of approximately
$1.4 million.
- The Company expects this receivable to be repaid in the next
few months, as well as other amounts previously owed to the
Company. However, the Company cannot provide assurance as to the
timing or whether the receivable and other amounts will be
received.
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 our target
sub-markets throughout the United States. The Company had
investments of approximately $664.7
million in 131 real estate properties as of
June 30, 2020, located in 33 states, totaling approximately
2.8 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, effects on global and
national markets as well as businesses resulting from the COVID-19
pandemic, 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, 2019,
in the Quarterly Report on Form 10-Q for the Quarter Ending
March 31, 2020, 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)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
|
78,999
|
|
|
$
|
68,129
|
|
Buildings,
improvements, and lease intangibles
|
585,454
|
|
|
534,503
|
|
Personal
property
|
234
|
|
|
220
|
|
Total real estate
properties
|
664,687
|
|
|
602,852
|
|
Less accumulated
depreciation
|
(89,698)
|
|
|
(77,523)
|
|
Total real estate
properties, net
|
574,989
|
|
|
525,329
|
|
Cash and cash
equivalents
|
4,896
|
|
|
1,730
|
|
Restricted
cash
|
351
|
|
|
293
|
|
Other assets,
net
|
32,068
|
|
|
35,179
|
|
Total
assets
|
$
|
612,304
|
|
|
$
|
562,531
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
|
197,309
|
|
|
$
|
194,243
|
|
Accounts payable and
accrued liabilities
|
5,497
|
|
|
3,606
|
|
Other
liabilities
|
22,395
|
|
|
11,271
|
|
Total
liabilities
|
225,201
|
|
|
209,120
|
|
|
|
|
|
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; 22,726,141 and 21,410,578
shares issued and outstanding at June 30, 2020 and December 31,
2019, respectively
|
227
|
|
|
214
|
|
Additional paid-in
capital
|
500,477
|
|
|
447,916
|
|
Cumulative net
income
|
26,180
|
|
|
17,554
|
|
Accumulated other
comprehensive (loss) income
|
(13,969)
|
|
|
(4,808)
|
|
Cumulative
dividends
|
(125,812)
|
|
|
(107,465)
|
|
Total
stockholders' equity
|
387,103
|
|
|
353,411
|
|
Total liabilities
and stockholders' equity
|
$
|
612,304
|
|
|
$
|
562,531
|
|
|
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 SIX MONTHS ENDED JUNE 30, 2020 AND
2019
(Unaudited; Dollars in thousands, except per share
amounts)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
|
17,830
|
|
|
$
|
13,361
|
|
|
$
|
35,258
|
|
|
$
|
26,259
|
|
Other operating
interest
|
450
|
|
|
955
|
|
|
958
|
|
|
1,498
|
|
|
18,280
|
|
|
14,316
|
|
|
36,216
|
|
|
27,757
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Property
operating
|
3,223
|
|
|
2,993
|
|
|
6,566
|
|
|
6,068
|
|
General and
administrative
|
1,919
|
|
|
1,776
|
|
|
4,111
|
|
|
3,561
|
|
Depreciation and
amortization
|
6,119
|
|
|
5,299
|
|
|
12,178
|
|
|
10,545
|
|
|
11,261
|
|
|
10,068
|
|
|
22,855
|
|
|
20,174
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
Loss on sale of real
estate
|
(313)
|
|
|
—
|
|
|
(313)
|
|
|
—
|
|
Interest
expense
|
(2,183)
|
|
|
(2,251)
|
|
|
(4,432)
|
|
|
(4,305)
|
|
Interest and other
income, net
|
3
|
|
|
69
|
|
|
10
|
|
|
238
|
|
|
(2,493)
|
|
|
(2,182)
|
|
|
(4,735)
|
|
|
(4,067)
|
|
NET
INCOME
|
$
|
4,526
|
|
|
$
|
2,066
|
|
|
$
|
8,626
|
|
|
$
|
3,516
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Net income per common
share – Basic
|
$
|
0.19
|
|
|
$
|
0.09
|
|
|
$
|
0.37
|
|
|
$
|
0.16
|
|
Net income per common
share – Diluted
|
$
|
0.19
|
|
|
$
|
0.09
|
|
|
$
|
0.37
|
|
|
$
|
0.16
|
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-BASIC
|
21,264
|
|
|
18,246
|
|
|
20,999
|
|
|
18,101
|
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-DILUTED
|
21,264
|
|
|
18,246
|
|
|
20,999
|
|
|
18,101
|
|
|
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 and AFFO (1)
(Unaudited; Amounts in thousands, except per share
amounts)
|
|
|
Three Months Ended
June 30,
|
|
2020
|
|
2019
|
Net income
|
$
|
4,526
|
|
|
$
|
2,066
|
|
Real
estate depreciation and amortization
|
6,168
|
|
|
5,340
|
|
Loss on
sale of depreciable real estate
|
313
|
|
|
—
|
|
Total
adjustments
|
6,481
|
|
|
5,340
|
|
Funds From
Operations
|
$
|
11,007
|
|
|
$
|
7,406
|
|
Straight-line rent
|
(725)
|
|
|
(413)
|
|
Stock-based compensation
|
1,070
|
|
|
899
|
|
AFFO
|
$
|
11,352
|
|
|
$
|
7,892
|
|
Funds
from Operations per Common Share-Diluted
|
$
|
0.51
|
|
|
$
|
0.40
|
|
AFFO
Per Common Share-Diluted
|
$
|
0.52
|
|
|
$
|
0.42
|
|
Weighted Average
Common Shares Outstanding-Diluted (2)
|
21,750
|
|
|
18,685
|
|
|
|
|
(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") 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 AFFO 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
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 (calculated in accordance with
GAAP), excluding gains or losses from the sale of certain real
estate assets and gains or losses from change in control, plus
depreciation and amortization related to real estate, plus
impairment write-downs of certain real estate assets and
investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity, and after adjustments for unconsolidated
partnerships and joint ventures, as well as other items discussed
in NAREIT's Funds From Operations White Paper - 2018 Restatement.
NAREIT also provides REITs with an option to exclude gains, losses
and impairments of assets that are incidental to the main business
of the REIT from the calculation of FFO. 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 definition.
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 and AFFO should be examined in conjunction with net income as
presented elsewhere herein.
|
|
|
|
(2)
|
|
Diluted weighted
average common shares outstanding for FFO are calculated based on
the treasury method, rather than the 2-class method used to
calculate earnings per share.
|
CONTACT: David H. Dupuy,
615-771-3052
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SOURCE Community Healthcare Trust Incorporated