FRANKLIN, Tenn., Feb. 25,
2020 /PRNewswire/ -- Community Healthcare Trust Incorporated
(NYSE: CHCT) (the "Company") today announced results for the three
months ended December 31, 2019. The Company reported net
income for the fourth quarter of approximately $2.2 million, or $0.09 per diluted common share. Funds from
operations and adjusted funds from operations ("AFFO") for the
three months ended December 31, 2019 totaled $0.47 and $0.49,
respectively, per diluted common share.
Highlights include:
- During the fourth quarter of 2019, the Company sold, through
its at-the-market offering program ("ATM Program"), 1,352,985
shares of common stock at an average gross sales price of
$45.73 per share and received net
proceeds of approximately $60.6
million at an approximate 3.63% current equity yield. Of the
shares sold during 2019, 120,100 shares of common stock settled in
January 2020 for net proceeds of
approximately $5.0 million.
- During the fourth quarter of 2019, the Company acquired seven
real estate properties totaling approximately 113,458 square feet
for an aggregate purchase price of approximately $34.8 million and cash consideration of
approximately $34.4 million. Upon
acquisition, the properties were 100% leased in the aggregate with
lease expirations through 2034.
- Subsequent to December 31, 2019,
the Company acquired three real estate properties totaling
approximately 56,000 square feet for an aggregate purchase price of
approximately $11.7 million and cash
consideration of approximately $11.8
million. Upon acquisition, the properties were 96.1% leased
in the aggregate with lease expirations through 2026.
- The Company has two properties under definitive purchase
agreements for an aggregate expected purchase price of
approximately $6.3 million. The
Company's expected aggregate returns on these investments range
from approximately 9.4% to 9.9%. The Company is currently
performing due diligence procedures customary for these types of
transactions. The Company expects to close these properties in the
first quarter of 2020; however, the Company cannot provide
assurance as to the timing of when, or whether, these transactions
will actually close.
- The Company also has four properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $73.4 million. The Company's expected aggregate
returns on these investments range from approximately 9.5% to
11.0%. The Company expects to close one of these properties
with a purchase price of approximately $19.0
million during the first quarter of 2020 and the rest of
these properties through the first half of 2021; however, the
Company cannot provide assurance as to the timing of when, or
whether, these transactions will actually close.
- On February 6, 2020, the Company's Board of Directors
declared a quarterly common stock dividend in the amount of
$0.4175 per share. The dividend is
payable on February 28, 2020 to stockholders of record on
February 18, 2020.
Highland Transition Update:
- Highland Hospital is expected to file a pre-packaged bankruptcy
in the first quarter of 2020, with an anticipated sale to the new
operator, in order to facilitate the transfer of licenses.
The new operator continues to manage Highland Hospital pursuant to
a management agreement. The Company will provide liquidity if
required, secured by all assets of Highland Hospital, if needed, to
ensure the sale transaction is finalized.
- The Company's lease with the new operator will become effective
upon the closing of the anticipated bankruptcy sale. The Company
has received and anticipates continuing to receive monthly
payments.
- The Company does not anticipate any material adverse long-term
effect to its cash flows or net income related to the transition or
subsequent leasing of this facility. The Company cannot provide
assurance as to the timing or whether, this transaction will
actually close.
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 non-urban markets throughout the
United States. The Company had investments of approximately
$602.9 million in 118 real estate
properties as of December 31, 2019, located in 32 states,
totaling approximately 2.6 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 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 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)
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
|
68,129
|
|
|
$
|
50,270
|
|
Buildings,
improvements, and lease intangibles
|
534,503
|
|
|
394,527
|
|
Personal
property
|
220
|
|
|
133
|
|
Total real estate
properties
|
602,852
|
|
|
444,930
|
|
Less accumulated
depreciation
|
(77,523)
|
|
|
(55,298)
|
|
Total real estate
properties, net
|
525,329
|
|
|
389,632
|
|
Cash and cash
equivalents
|
1,730
|
|
|
2,007
|
|
Restricted
cash
|
293
|
|
|
385
|
|
Other assets,
net
|
35,179
|
|
|
34,546
|
|
Total
assets
|
$
|
562,531
|
|
|
$
|
426,570
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
|
194,243
|
|
|
$
|
147,766
|
|
Accounts payable and
accrued liabilities
|
3,606
|
|
|
3,196
|
|
Other
liabilities
|
11,271
|
|
|
3,949
|
|
Total
liabilities
|
209,120
|
|
|
154,911
|
|
|
|
|
|
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; 21,410,578 and
18,634,502 shares issued and outstanding at December 31, 2019 and
2018, respectively
|
214
|
|
|
186
|
|
Additional paid-in
capital
|
447,916
|
|
|
337,180
|
|
Cumulative net
income
|
17,554
|
|
|
9,178
|
|
Accumulated other
comprehensive (loss) income
|
(4,808)
|
|
|
633
|
|
Cumulative
dividends
|
(107,465)
|
|
|
(75,518)
|
|
Total
stockholders' equity
|
353,411
|
|
|
271,659
|
|
Total liabilities
and stockholders' equity
|
$
|
562,531
|
|
|
$
|
426,570
|
|
|
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
TWELVE MONTHS ENDED DECEMBER 31, 2019 AND 2018
|
(Unaudited;
Dollars in thousands, except per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
|
16,292
|
|
|
$
|
11,710
|
|
|
$
|
58,269
|
|
|
$
|
46,453
|
|
Other operating
interest
|
541
|
|
|
479
|
|
|
2,580
|
|
|
2,104
|
|
|
16,833
|
|
|
12,189
|
|
|
60,849
|
|
|
48,557
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Property
operating
|
2,840
|
|
|
2,447
|
|
|
12,235
|
|
|
9,944
|
|
General and
administrative
|
2,126
|
|
|
1,542
|
|
|
7,719
|
|
|
5,634
|
|
Depreciation and
amortization
|
5,906
|
|
|
5,068
|
|
|
22,225
|
|
|
19,539
|
|
|
10,872
|
|
|
9,057
|
|
|
42,179
|
|
|
35,117
|
|
|
|
|
|
|
|
|
|
INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
AND OTHER ITEMS
|
5,961
|
|
|
3,132
|
|
|
18,670
|
|
|
13,440
|
|
Gain on sale of real
estate
|
—
|
|
|
295
|
|
|
—
|
|
|
295
|
|
Interest
expense
|
(2,513)
|
|
|
(1,817)
|
|
|
(9,301)
|
|
|
(6,299)
|
|
Impairment of note
receivable
|
—
|
|
|
(5,000)
|
|
|
—
|
|
|
(5,000)
|
|
Income tax
(expense) benefit
|
(1,421)
|
|
|
1,547
|
|
|
(1,430)
|
|
|
1,547
|
|
Interest and other
income, net
|
186
|
|
|
(42)
|
|
|
437
|
|
|
420
|
|
INCOME FROM
CONTINUING OPERATIONS
|
2,213
|
|
|
(1,885)
|
|
|
8,376
|
|
|
4,403
|
|
NET
INCOME
|
$
|
2,213
|
|
|
$
|
(1,885)
|
|
|
$
|
8,376
|
|
|
$
|
4,403
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Net income per common
share – Basic
|
$
|
0.09
|
|
|
$
|
(0.12)
|
|
|
$
|
0.37
|
|
|
$
|
0.19
|
|
Net income per common
share – Diluted
|
$
|
0.09
|
|
|
$
|
(0.12)
|
|
|
$
|
0.37
|
|
|
$
|
0.19
|
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-BASIC
|
19,686
|
|
|
17,848
|
|
|
18,685
|
|
|
17,669
|
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-DILUTED
|
19,686
|
|
|
17,848
|
|
|
18,685
|
|
|
17,669
|
|
|
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
December 31,
|
|
2019
|
|
2018
|
Net income
|
$
|
2,213
|
|
|
$
|
(1,885)
|
|
Real
estate depreciation and amortization
|
5,943
|
|
|
5,109
|
|
Impairment of note receivable (2)
|
—
|
|
|
5,000
|
|
Income
tax expense (benefit) (2)
|
1,321
|
|
|
(1,321)
|
|
Gain
from sale of depreciable real estate
|
—
|
|
|
(295)
|
|
Total
adjustments
|
7,264
|
|
|
8,493
|
|
Funds From
Operations
|
$
|
9,477
|
|
|
$
|
6,608
|
|
Straight-line rent
|
(699)
|
|
|
(126)
|
|
Stock-based compensation
|
1,085
|
|
|
747
|
|
AFFO
|
$
|
9,863
|
|
|
$
|
7,229
|
|
Funds
from Operations per Common Share-Diluted
|
$
|
0.47
|
|
|
$
|
0.37
|
|
AFFO
Per Common Share-Diluted
|
$
|
0.49
|
|
|
$
|
0.41
|
|
Weighted Average
Common Shares Outstanding-Diluted (3)
|
20,220
|
|
|
17,848
|
|
|
|
(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.
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)
|
In the fourth quarter
of 2018, the Company recorded a $5.0 million impairment related to
its mezzanine loan with Highland Hospital and recorded a related
tax benefit and deferred tax asset of approximately $1.3 million.
This deferred tax asset was impaired in the fourth quarter of 2019
and the tax benefit was reversed resulting in tax expense of $1.3
million. The Company believes that the mezzanine loan is incidental
to the main operations of the Company. As such, the Company has
excluded the impairment of the note receivable and the related tax
impact from its calculation of FFO. The $5.0 million impairment on
the loan and related tax benefit of $1.3 million recorded in 2018
was previously recognized as an adjustment to AFFO rather than FFO
for the year ended December 31, 2018 and has been reclassified as
an adjustment to Funds from Operations rather than to Adjusted
Funds from Operations for 2018 to conform to the current year
presentation.
|
(3)
|
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, Inc.