Key Points – Revenue and profitability improved in the first quarter, with total revenue rising 4.8% year over year to $31.5 million and FFO/AFFO also increasing.
AFFO per diluted share came in at $0.56, up from both a year ago and the prior quarter. – Occupancy slipped modestly to 89.8% due to lease terminations, but management expects leased occupancy to rebound next quarter as renewals and new leasing progress
The company also continues to work through a tenant transition involving six behavioral health hospitals, though timing for a closing remains uncertain. – Capital recycling and redevelopment remain central to strategy, with CHCT buying a $28.5 million rehabilitation facility, planning roughly $99 million of additional post-completion acquisitions, and selling lower-priority assets. The company also raised its quarterly dividend to $0.48 per share and said it has increased the payout every quarter since its IPO. Community Healthcare Trust (NYSE:CHCT) reported higher first-quarter revenue and funds from operations while management said it is continuing to focus on capital recycling, selective acquisitions and resolving an ongoing tenant transition involving six behavioral health hospitals.
On the company’s 2026 first-quarter earnings call, Chief Executive Officer Dave Dupuy said a geriatric behavioral hospital operator that leases six Community Healthcare Trust properties paid about $300,000 in rent during the quarter, up $100,000 from the prior quarter. Dupuy said the tenant signed a letter of intent on July 17, 2025, to sell the operations of all six hospitals to an experienced behavioral healthcare operator and remains under exclusivity with that buyer. “The buyer is finalizing legal and business due diligence and has entered the drafting phase of the definitive purchase documents, including new leases on the six hospitals owned by the company,” Dupuy said. He added that the company remains in “frequent, productive communication” with the buyer’s team,…