Mission Statement, Vision, & Core Values (2024) of Community Healthcare Trust Incorporated (CHCT)

An Overview of Community Healthcare Trust Incorporated (CHCT)

General Summary of Community Healthcare Trust Incorporated (CHCT)

Community Healthcare Trust Incorporated (CHCT) was founded in 2015, focusing on acquiring, owning, and managing healthcare-related real estate. The company primarily invests in properties leased to healthcare operators across various sectors, including medical office buildings, inpatient rehabilitation hospitals, acute care facilities, and specialty centers.

As of 2024, CHCT has gross investments of approximately $1.1 billion in 198 real estate properties. The company has diversified its portfolio by property type and geographic location. The current sales figures indicate that for the nine months ended September 30, 2024, the rental income was approximately $85.6 million, reflecting a 6.2% increase compared to the previous year.

Company's Financial Performance in the Latest Financial Reports

In the latest financial report for the nine months ended September 30, 2024, Community Healthcare Trust reported a net loss of $5.0 million, compared to a net income of $3.1 million in the same period in 2023. The funds from operations (FFO) for the nine months ended September 30, 2024, were $38.5 million, up from $33.0 million in 2023.

The company’s revenue from rental income increased by approximately $5.0 million, or 6.2%, primarily due to properties acquired during 2023 and 2024. However, the report noted a significant credit loss reserve of $11.0 million recorded in the second quarter of 2024 related to notes receivable from a tenant.

The table below summarizes key financial metrics for CHCT for the nine months ended September 30, 2024 compared to 2023:

Introduction to Company as One of the Leaders in the Industry

Community Healthcare Trust Incorporated is recognized as a leading player in the healthcare real estate investment trust (REIT) sector. The company has established a diverse portfolio that includes various property types, ensuring stability and growth potential in its revenue streams.

As of September 30, 2024, CHCT's investment strategy has resulted in a robust presence across multiple states, with significant investments in Texas, Illinois, and Ohio, among others. The company's focus on healthcare properties positions it uniquely within the real estate market, particularly as demand for healthcare services continues to grow.

Investors and analysts alike are encouraged to explore further why Community Healthcare Trust Incorporated stands out as a successful entity within the healthcare real estate industry.

Mission Statement of Community Healthcare Trust Incorporated (CHCT)

Mission Statement of Community Healthcare Trust Incorporated (CHCT)

Community Healthcare Trust Incorporated (CHCT) is committed to acquiring, developing, and managing healthcare-related real estate. The mission statement emphasizes the importance of providing high-quality healthcare facilities to enhance community well-being. This guiding principle plays a crucial role in shaping the company's long-term strategies and operational goals.

Core Component 1: Commitment to Quality Healthcare

The first core component of CHCT's mission is its commitment to quality healthcare. This commitment reflects in their property acquisitions, which include various types of healthcare facilities such as Medical Office Buildings (MOBs), Long-term Acute Care Hospitals (LTACHs), and Inpatient Rehabilitation Facilities (IRFs).

As of September 30, 2024, CHCT had gross investments of approximately $1.1 billion in 198 real estate properties. This significant investment underscores their dedication to enhancing healthcare delivery through quality infrastructure.

Core Component 2: Community Focus

The second core component emphasizes CHCT's focus on community health. The company aims to support local healthcare providers by ensuring that essential healthcare services are accessible to communities across various regions. This is achieved through strategic partnerships and investments in facilities that cater to specific healthcare needs.

For instance, CHCT has made recent acquisitions in multiple states, including:

• New Bedford, MA - LTACH - $6,500,000
• Elkton, MD - MOB - $4,500,000
• Bemidji, MN - MOB - $23,200,000
• San Antonio, TX - IRF - $23,500,000
• Camp Hill, PA - PC - $6,200,000

The total investment for these acquisitions was approximately $64.0 million. This illustrates CHCT’s ongoing commitment to enhancing healthcare access and services in communities they serve.

Core Component 3: Financial Sustainability

The third core component of CHCT's mission statement revolves around financial sustainability. The company strives to maintain a robust financial position to support its ongoing operations and future growth. This is reflected in their financial performance metrics and strategic financial management.

For the nine months ended September 30, 2024, CHCT reported:

• Rental income: $85,582,000
• Net income (loss): $(5,013,000)
• Funds from Operations (FFO): $38,472,000
• Adjusted Funds from Operations (AFFO): $44,632,000

Despite a net loss, CHCT's FFO and AFFO indicate operational efficiency and the ability to generate cash flow from its real estate investments. This financial sustainability supports the company’s mission to continue investing in quality healthcare facilities for community benefit.

Vision Statement of Community Healthcare Trust Incorporated (CHCT)

Vision Statement of Community Healthcare Trust Incorporated (CHCT)

The vision statement of Community Healthcare Trust Incorporated (CHCT) focuses on the commitment to provide high-quality healthcare facilities that enhance community health outcomes. The company aims to be a leading healthcare real estate investment trust (REIT) by strategically investing in healthcare properties that cater to the needs of communities across the United States.

CHCT emphasizes its dedication to investing in properties that support high-quality healthcare services. This commitment is reflected in the company’s portfolio, which as of September 30, 2024, consists of 198 real estate properties, with a gross investment of approximately $1.1 billion. These properties include a variety of healthcare facilities such as:

• Medical Office Buildings: 96 properties valued at $478 million
• Inpatient Rehabilitation Hospitals: 9 properties valued at $198 million
• Acute Inpatient Behavioral Facilities: 5 properties valued at $130 million
• Specialty Centers: 37 properties valued at $118 million
• Physician Clinics: 31 properties valued at $95 million
• Surgical Centers and Hospitals: 9 properties valued at $58 million
• Behavioral Specialty Facilities: 9 properties valued at $45 million
• Long-term Acute Care Hospitals: 2 properties valued at $21 million

CHCT's vision includes a strategic approach to geographic diversification. The company’s properties are spread across various states, enhancing its market presence and risk management. As of September 30, 2024, the distribution of properties by state includes:

CHCT's vision also encompasses a focus on long-term sustainability in the healthcare real estate sector. The company aims to ensure that its investments are not only profitable but also contribute positively to community health and wellbeing. As of September 30, 2024, the company has committed approximately $26 million for tenant improvements and $3.1 million for capital improvement projects. This strategic investment underscores CHCT's commitment to maintaining high-quality facilities that meet evolving healthcare needs.

The overarching goal of CHCT's vision is to enhance community health outcomes. By providing strategically located and well-maintained healthcare facilities, the company aims to improve access to quality healthcare services for the communities it serves. The company’s focus on long-term leases, with expiration dates extending through 2044, ensures stability and continuity of healthcare services. This approach not only solidifies CHCT’s presence in the healthcare market but also fosters trust and reliability within the communities it operates in.

Conclusion

CHCT's vision statement reflects its commitment to quality, strategic diversification, sustainability, and community health enhancement. By focusing on these core components, CHCT positions itself as a leader in the healthcare real estate sector, dedicated to improving health outcomes across the United States.

Core Values of Community Healthcare Trust Incorporated (CHCT)

Integrity

The core value of Integrity at Community Healthcare Trust Incorporated (CHCT) is expressed through transparent operations and ethical dealings with stakeholders. This commitment ensures trust and accountability in all business transactions.

CHCT demonstrates its integrity by adhering to strict compliance regulations and maintaining open communication with investors and tenants. For example, the company provides comprehensive reports on its financial performance, including a net income (loss) of $1.749 million for Q3 2024. This transparency fosters trust and strengthens relationships with all stakeholders.

Commitment to Excellence

CHCT's Commitment to Excellence reflects its dedication to providing high-quality healthcare facilities. The company continually seeks to enhance its portfolio through strategic acquisitions and property improvements.

In 2024, CHCT acquired six properties totaling approximately $63.9 million, with an aggregate square footage of 223,422. This commitment is also evident in the ongoing capital improvements, with approximately $3.1 million allocated for projects enhancing property functionality.

Collaboration

The value of Collaboration is central to CHCT’s operations, fostering teamwork among employees, tenants, and other stakeholders to achieve shared goals.

CHCT actively engages with tenants to address their needs, resulting in a leasing rate of approximately 91.3% across its real estate portfolio. This collaborative approach not only enhances tenant satisfaction but also supports the company's financial stability.

Community Engagement

Community Engagement is a vital value for CHCT, emphasizing its role in supporting local health initiatives and improving healthcare access.

In 2024, CHCT has committed approximately $26.0 million for tenant improvements, with several projects aimed at enhancing healthcare services in underserved areas. This engagement not only strengthens community ties but also aligns with the company's mission to improve health outcomes.

Innovation

CHCT values Innovation by integrating cutting-edge technology and practices in its property management and healthcare facilities.

The company has invested in modernizing its healthcare properties, ensuring they meet the evolving needs of tenants and patients. For instance, CHCT has committed to funding capital improvements, including technology upgrades, to enhance operational efficiency and patient care.

Article updated on 8 Nov 2024

Resources:

• Community Healthcare Trust Incorporated (CHCT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Community Healthcare Trust Incorporated (CHCT)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Community Healthcare Trust Incorporated (CHCT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.