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Community Healthcare
(NYSE:CHCT)
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Rating:65Neutral
Price Target:
$13.50
▼(-9.70% Downside)
Action:Reiterated
Date:08/05/26
CHCT’s score is driven primarily by improving financial performance (profitability recovery and stronger TTM free cash flow) and a constructive, target-driven earnings-call reset focused on reinvestment and occupancy gains. The main drags are weak near-term technical momentum and a very high P/E that outweighs the attractive headline dividend yield.
Positive Factors
Improving revenue and margins
Steady revenue expansion combined with a return to positive net margins indicates improving operating performance rather than relying solely on portfolio growth. If sustained, stronger profitability can support reinvestment, improve earnings quality, and provide greater resilience across the next several quarters.
Negative Factors
Material dividend reduction
The sizeable dividend reduction is a meaningful setback for income-oriented shareholders and signals that prior capital allocation constrained reinvestment capacity. Although retained cash may support growth, the cut lowers current shareholder distributions and places greater importance on management delivering the planned returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving revenue and margins
Steady revenue expansion combined with a return to positive net margins indicates improving operating performance rather than relying solely on portfolio growth. If sustained, stronger profitability can support reinvestment, improve earnings quality, and provide greater resilience across the next several quarters.
Read all positive factors
Community Healthcare (CHCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$366.20M
Dividend Yield13.79%
Average Volume (3M)360.75K
Price to Earnings (P/E)19.0
Beta (1Y)0.37
Revenue Growth5.66%
EPS GrowthN/A
CountryUS
Employees35
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.67
Shares Outstanding28,653,843
10 Day Avg. Volume299,008
30 Day Avg. Volume360,755
Financial Highlights & Ratios
PEG Ratio-1.59
Price to Book (P/B)1.03
Price to Sales (P/S)3.64
P/FCF Ratio12.28
Enterprise Value/Market Cap2.88
Enterprise Value/Revenue8.48
Enterprise Value/Gross Profit13.41
Enterprise Value/Ebitda10.95
Forecast
1Y Price Target
$16.00Price Target Upside7.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.36
Revenue Forecast (FY)$125.29M
Community Healthcare Business Overview & Revenue Model
Company Description
Community Healthcare Trust Incorporated is a real estate investment trust. It focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout t...
How the Company Makes Money
CHCT primarily makes money by owning income-producing healthcare real estate and collecting contractual rent from tenants under lease agreements. Its key revenue stream is rental revenue (including base rent and, where applicable, additional rent ...
Community Healthcare Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presents a constructive and proactive strategic reset: management implemented a material dividend reduction to retain capital, launched clearer disclosure and recycling initiatives, and outlined a multi-pronged plan (occupancy improvement, redeployment, dispositions and acquisitions) with concrete targets and yield expectations. Near-term negatives include a sizable dividend cut, flat AFFO per share quarter-over-quarter, prior reduced acquisition cadence and execution risk around the behavioral health transaction. However, leasing momentum, defined acquisition targets for 2026, visible disposition proceeds and attractive redevelopment yields provide a credible path to accelerate AFFO and portfolio quality, leading management to portray confidence in achieving the plan.Positive Updates
Dividend Rightsizing Frees Capital for Growth
Quarterly dividend reduced from $0.48 to $0.33 per share (‑31.25%), expected to retain $25M to $30M over the next 2 years (up to ~$15M per year) to fund accretive acquisitions and reinvestment.
Negative Updates
Significant Dividend Cut
Quarterly dividend reduced by 31.25% from $0.48 to $0.33, a near-term negative for yield-focused shareholders and reflective of prior capital allocation constraints.
Read all updates
Q2-2026 Updates
Positive
Negative
Dividend Rightsizing Frees Capital for Growth
Quarterly dividend reduced from $0.48 to $0.33 per share (‑31.25%), expected to retain $25M to $30M over the next 2 years (up to ~$15M per year) to fund accretive acquisitions and reinvestment.
Read all positive updates
Company Guidance
Management guided a clear capital‑reallocation plan: they right‑sized the quarterly dividend from $0.48 to $0.33 (dividend to be reviewed annually), which will free $25–$30 million over the next two years (≈up to $15M/year); on a leverage‑neutral basis (~40% debt-to-capitalization) that can fund ≈$25M/year of incremental acquisitions/reinvestment and drive $0.06–$0.07 of incremental AFFO per year assuming 9–10% yields, while targeting a 60–65% AFFO payout ratio and maintaining current target leverage. Operational targets include a 70‑bp occupancy improvement to 90.5% by year‑end 2026 with a path to ~92% within ~18 months (up to $6M NOI upside), redeploying into projects with 9–12% yields on cost, continuing strategic capital recycling (7 properties sold for $38.5M net proceeds; >$70M of assets in market), and stepping up acquisitions to $85–$90M in 2026 (after $64.5M and $72.1M in the prior two years) plus four signed deals aggregating ~$99M (expected returns 9.1%–9.75%) with scheduled closings in Q3/Q4 2026 and H2 2027; Q2 financials cited: revenue $31.2M, property operating expenses $5.9M, G&A $4.9M, interest $7.4M, FFO $13.2M ($0.48/sh), AFFO $15.4M ($0.56/sh).Community Healthcare Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 124.51M | 121.19M | 115.79M | 112.84M | 97.68M | 90.58M |
| Gross Profit | 78.70M | 10.49M | 92.95M | 92.13M | 81.04M | 75.42M |
| EBITDA | 96.43M | 82.71M | 63.30M | 66.25M | 67.13M | 64.43M |
| Net Income | 20.98M | 5.10M | -3.18M | 7.71M | 22.02M | 22.49M |
Balance Sheet | ||||||
| Total Assets | 1.00B | 990.76M | 992.56M | 945.41M | 876.42M | 754.23M |
| Cash, Cash Equivalents and Short-Term Investments | 2.67M | 3.34M | 4.38M | 3.49M | 11.23M | 2.35M |
| Total Debt | 564.51M | 536.20M | 489.98M | 412.28M | 357.06M | 269.39M |
| Total Liabilities | 589.35M | 561.37M | 516.60M | 432.16M | 379.61M | 292.12M |
| Stockholders Equity | 414.24M | 429.39M | 475.96M | 513.26M | 496.81M | 462.11M |
Cash Flow | ||||||
| Free Cash Flow | 59.25M | 35.91M | 34.24M | 42.40M | 49.90M | 49.13M |
| Operating Cash Flow | 59.49M | 56.43M | 58.88M | 61.38M | 60.28M | 56.35M |
| Investing Cash Flow | -65.75M | -47.70M | -92.66M | -113.67M | -113.77M | -104.43M |
| Financing Cash Flow | 4.07M | -9.78M | 33.53M | 44.86M | 62.69M | 48.05M |
Community Healthcare Technical Analysis
Negative
14.95
Price Trends
14.14
Negative
15.67
Negative
15.91
Negative
Market Momentum
-0.42
Positive
34.56
Neutral
30.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Negative. The current price of 14.95 is above the 20-day moving average (MA) of 13.33, above the 50-day MA of 14.14, and below the 200-day MA of 15.91, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 34.56 is Neutral, neither overbought nor oversold. The STOCH value of 30.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHCT.
Community Healthcare Risk Analysis
Community Healthcare disclosed 85 risk factors in its most recent earnings report. Community Healthcare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Community Healthcare Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $11.21B | 75.01 | 3.67% | 1.96% | 16.39% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $366.20M | 19.03 | 4.96% | 13.79% | 5.66% | ― | |
64 Neutral | $43.70B | 203.24 | 1.52% | 2.45% | 21.49% | 26.45% | |
63 Neutral | $6.13B | -68.20 | -1.94% | 5.37% | -6.28% | 77.63% | |
62 Neutral | $13.44B | 54.34 | 3.30% | 6.41% | 5.52% | 48.98% | |
59 Neutral | $511.61M | 25.04 | 13.83% | 8.12% | 0.75% | 7.29% |
* Real Estate Sector Average
CHCT
Community Healthcare
12.75
-0.16
-1.23%
DOC
Healthpeak Properties
18.55
2.09
12.71%
VTR
Ventas
81.07
12.97
19.04%
HR
Healthcare Realty Trust
17.53
0.66
3.90%
UHT
Universal Health Realty Income
36.76
3.01
8.91%
AHR
American Healthcare REIT, Inc.
51.50
7.83
17.94%
Community Healthcare Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Community Healthcare Resets Dividend, Refocuses Growth Strategy
Neutral
Aug 4, 2026
For the three months ended June 30, 2026, Community Healthcare Trust reported net income of about $2.4 million, or $0.06 per diluted share, with FFO and AFFO of $0.48 and $0.56 per diluted share, respectively. The results were accompanied on Augus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.