Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-generating real estate primarily associated with the provision of outpatient healthcare services in our target submarkets across the United States.
| Revenue (TTM) | $126.14M |
| Gross Profit (TTM) | $101.91M |
| EBITDA | $79.66M |
| Operating Margin | 35.80% |
| Return on Equity | 5.33% |
| Return on Assets | 2.23% |
| Revenue/Share (TTM) | $4.67 |
| Book Value | $15.26 |
| Price-to-Book | 1.02 |
| Price-to-Sales (TTM) | 3.36 |
| EV/Revenue | 7.81 |
| EV/EBITDA | 10.33 |
| Quarterly Earnings Growth (YoY) | 179.90% |
| Quarterly Revenue Growth (YoY) | 4.40% |
| Shares Outstanding | $28.74M |
| Float | $25.26M |
| % Insiders | 6.40% |
| % Institutions | 82.31% |
Volatility is currently expanding
Community Healthcare Trust NYSE: CHCT reported higher third-quarter revenue and funds from operations as occupancy improved and expenses remained under control, while executives outlined plans to sell properties and reinvest the proceeds in acquisitions.
Community Healthcare Trust maintains a 9.2% dividend yield after a 31% dividend cut, targeting a safer 60% AFFO payout ratio. CHCT's Q3 AFFO rose 3.6% quarter-over-quarter to $0.58, with the AFFO payout ratio at 57% and the FAD payout ratio at 77%. Management is reinvesting retained capital to drive occupancy, evidenced by a 30 bps quarter-over-quarter increase in leased occupancy.
Community Healthcare Trust Incorporated (CHCT) Q3 2026 Earnings Call Transcript
Community Healthcare Trust cut its dividend by 31%, triggering a 28% stock decline and a current 10% yield. CHCT trades at a steep 40% discount to peers on AFFO/FFO multiples, reflecting elevated leverage and recent dividend uncertainty. Management redirected capital from dividends to acquisitions, targeting 60–65% AFFO payout and incremental AFFO growth of $0.06–$0.07/share annually.
High-yield 'mousetrap' REITs consistently underperform, with average returns lagging the VNQ by 1090–1380 bps due to dividend cuts and price declines. Dividend Safety grades of F indicate a roughly 40% chance of a cut within 12 months, making these REITs especially risky for income-focused investors. Nine REITs, including CLPR, BDN, CHCT, GOOD, NXRT, GNL, ALX, BRT, and AFCG, currently offer yields above 6.85% but have severe Dividend Safety concerns.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Community Healthcare Trust (CHCT) remains overvalued at $15.58, with fair value estimated at $12 per share based on true AFFO analysis. CHCT faces headwinds from high lease rollovers, lower property quality, and tenant retention issues, pressuring future same-store NOI and requiring substantial tenant improvements. Resolution of six troubled behavioral health facilities is progressing, but new leases will likely reduce NOI while stabilizing risk.
Community Healthcare Trust (CHCT) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.
Community Healthcare Trust Incorporated is rated a 'buy' following a 32% dividend cut, viewed as a prudent capital allocation decision. Retained earnings from the dividend cut, estimated at $25–$30 million, will fund accretive acquisitions, reinvestment, and occupancy improvements. CHCT's Q2 FAD per share is $0.47, supporting a sustainable 68% payout ratio post-cut, compared to an unsustainable 100%+ previously.
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