Yahoo Finance Community Healthcare Trust Inc (CHCT) Q1 Earnings: Misses EPS Estimates, Outperforms on Revenue
Net Income: Reported at $3.7 million for Q1 2024, falling short of the estimated $4.25 million.
Earnings Per Share (EPS): Achieved $0.11 per diluted share, below the estimated $0.18.
Revenue: Totalled $29.33 million, slightly below the estimated $29.81 million.
Acquisitions: Acquired four real estate properties with a total investment of $34.2 million, enhancing the portfolio by 165,000 square feet.
Dividend: Declared a quarterly dividend of $0.46 per share, payable on May 24, 2024.
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO): Reported FFO at $0.53 and AFFO at $0.59 per diluted common share for Q1 2024.
Future Outlook: Seven properties under definitive agreements for acquisition, signaling continued growth and investment.
On April 30, 2024, Community Healthcare Trust Inc (NYSE:CHCT) disclosed its financial outcomes for the first quarter ended March 31, 2024, through its 8-K filing. The company reported a net income of approximately $3.7 million, translating to $0.11 per diluted common share, which falls short of the analyst's EPS estimate of $0.18. However, the revenue stood at $29.33 million, surpassing the anticipated $29.81 million, showcasing a robust operational performance.
About Community Healthcare Trust Inc
Community Healthcare Trust Inc is a real estate investment trust (REIT) focusing on healthcare-related properties across non-urban U.S. markets. The company's portfolio primarily includes assets leased to hospitals, healthcare systems, and other service providers, generating income through property and mortgage notes.
Operational Highlights and Strategic Acquisitions
During the quarter, CHCT expanded its asset base by acquiring four real estate properties for a total of $34.2 million, boasting a high occupancy rate of 98.6%. Additionally, the company secured an inpatient rehabilitation facility for $23.5 million, fully leased until 2039. These acquisitions are part of CHCT's strategic expansion, funded through its Revolving Credit Facility, enhancing its footprint in the healthcare real estate sector.
Financial Performance Analysis
The company's Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the quarter were $0.53 and $0.59 per diluted common share, respectively. The increase in FFO and AFFO reflects a strong operational focus and efficient asset management. The balance sheet shows a solid position with total assets increasing to $982.7 million from $945.4 million at the end of the previous year.
Challenges and Forward-Looking Statements
CHCT faces challenges including the execution of its acquisition pipeline and the potential sale of a property, with specific transactions expected to close between 2024 and 2027. The company also noted changes in executive compensation and the emergence of a tenant from bankruptcy, which could influence future financials.
Dividend Declaration
The Board of Directors declared a quarterly dividend of $0.46 per share, payable on May 24, 2024, to shareholders of record as of May 10, 2024. This dividend declaration underscores CHCT's commitment to delivering shareholder value.
Conclusion
While CHCT missed the EPS estimates, its revenue outperformance and strategic property acquisitions highlight its growth trajectory in the healthcare real estate sector. Investors and stakeholders might watch how the company navigates its upcoming property acquisitions and manages operational challenges in subsequent quarters.
For further details on CHCT's quarterly performance and future outlook, interested parties are encouraged to review the full earnings release available through the SEC filing.
Explore the complete 8-K earnings release (here) from Community Healthcare Trust Inc for further details.
This article first appeared on GuruFocus.
