Community Healthcare Trust Incorporated (CHCT): History, Ownership, Mission, How It Works & Makes Money

When you look at the stability of healthcare real estate, how does Community Healthcare Trust Incorporated (CHCT), with Q3 2025 total assets of nearly $987.2 million, manage to carve out a niche in non-urban markets? Honestly, it's about a focused strategy: they operate as a self-managed Real Estate Investment Trust (REIT), generating a trailing twelve-month revenue of $119.55 million by owning essential medical facilities like physician offices and inpatient rehabilitation centers. Right now, the company is defintely in an expansion phase, with a near-term acquisition pipeline of six properties valued at roughly $146.0 million, so understanding their history, mission, and unique business model is crucial for assessing their future dividend stability and growth trajectory in this key sector.

Community Healthcare Trust Incorporated (CHCT) History

Community Healthcare Trust Incorporated (CHCT) was born from a clear strategy: focus on the essential, non-urban healthcare real estate market. This approach has allowed the company to consistently grow its asset base and dividend, even through challenging market cycles, making it a reliable player in the specialized Real Estate Investment Trust (REIT) sector.

Given Company's Founding Timeline

Year established

The company was organized in the State of Maryland on March 28, 2014, with the goal of acquiring and owning properties leased to healthcare providers primarily outside of major urban centers.

Original location

Community Healthcare Trust Incorporated is headquartered in Franklin, Tennessee, a location that aligns with its focus on community-based, non-urban healthcare facilities across the United States.

Founding team members

While the company was organized in 2014, its initial success was largely attributed to the deep industry relationships of its first leadership. The former CEO, Tim Wallace, held the post since the company's inception and was integral to its early strategy and growth until his passing in March 2023. The current leadership team, including CEO David H. Dupuy, continues to execute on this original vision.

Initial capital/funding

The company's major foundational funding came through its Initial Public Offering (IPO) in May 2015. This offering sold 7,187,500 shares of common stock at $19.00 per share, generating gross proceeds of over $136 million. That capital was immediately deployed to acquire the initial 35-property portfolio.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been defined by three key strategic decisions that set it apart from larger, more urban-focused healthcare REITs. Honestly, this niche focus is what makes the model work.

• The Non-Urban Focus: From the start, Community Healthcare Trust Incorporated focused on acquiring smaller, off-market properties in secondary and tertiary markets. This strategy allows the company to avoid competitive bidding wars, which often pushes cap rates (capitalization rates) down in major metropolitan areas, and instead secure properties with higher initial yields, often in the 9% to 10% range.
• Aggressive Asset Growth Post-IPO: The company rapidly deployed its IPO capital, growing its total assets from $143 million in 2015 to approximately $966 million by Q2 2025. This represents a 576% growth in assets, substantially outpacing major market indices over the same period. This kind of defintely disciplined growth is rare.
• Navigating 2025 Headwinds: The company showed resilience and decisive action in 2025. For example, the Q2 2025 results included a significant, one-off charge of approximately $5.9 million for severance and transition-related payments, which impacted the quarter's Adjusted Funds From Operations (AFFO) per share. This was a necessary clean-up to optimize the team and structure for the next phase of growth, even if it hurt the short-term numbers.

As of September 30, 2025, the company's total investments stood at approximately $1.2 billion across 200 properties in 36 states, showing the massive scale achieved through their targeted acquisition model. You can dig deeper into the current financial health and valuation in Breaking Down Community Healthcare Trust Incorporated (CHCT) Financial Health: Key Insights for Investors.

Community Healthcare Trust Incorporated (CHCT) Ownership Structure

You need to know who is really calling the shots at Community Healthcare Trust Incorporated, and the answer is clear: institutional money holds the vast majority of the control. This is a publicly traded Real Estate Investment Trust (REIT), so it's governed by a board and its executive team, but the major investment firms are the primary stakeholders driving the long-term capital strategy.

Community Healthcare Trust Incorporated's Current Status

Community Healthcare Trust Incorporated is a publicly held Real Estate Investment Trust (REIT) trading on the New York Stock Exchange (NYSE) under the ticker symbol CHCT. This structure means the company is legally required to distribute at least 90% of its taxable income to shareholders, which is why you see that consistent dividend. As of November 2025, the company's market capitalization stands at approximately $421.54 million, reflecting its valuation as a mid-sized player in the healthcare real estate sector. The company's investment portfolio, focused on outpatient healthcare facilities, was valued at approximately $1.2 billion across 200 properties in 36 states as of September 30, 2025. You can see how this portfolio's performance impacts the bottom line in Breaking Down Community Healthcare Trust Incorporated (CHCT) Financial Health: Key Insights for Investors.

Community Healthcare Trust Incorporated's Ownership Breakdown

The ownership structure is heavily weighted toward large financial institutions, which is typical for a stable, dividend-paying REIT. This concentration of ownership means that decisions are largely influenced by the mandates of massive funds like Vanguard Group Inc and BlackRock, Inc., who are focused on long-term, stable returns. Insider ownership is healthy, aligning management's interests with yours, but it's defintely not a majority stake. Here's the quick math on the breakdown:

Community Healthcare Trust Incorporated's Leadership

The company is steered by an experienced, self-managed team that focuses on property acquisition and asset management, which is crucial for a REIT. The average tenure of the Board of Directors is long-around nine years-providing consistent strategic oversight. The executive team is responsible for executing the strategy of acquiring and managing the diverse portfolio of medical properties.

• David H. Dupuy: Chief Executive Officer and President. He has been CEO since January 2021 and his total yearly compensation is approximately $3.12 million.
• William Monroe: Executive Vice President and Chief Financial Officer. He manages the financial operations, a critical role given the REIT structure and debt management.
• Leigh Stach: Executive Vice President and Chief Accounting Officer. She oversees the complex accounting necessary for a real estate portfolio.
• Mark Kearns: Senior Vice President of Asset Management. Appointed in May 2025, he brings over 25 years of healthcare real estate experience to focus on portfolio leasing and optimization.

This leadership structure shows a commitment to stability at the board level but a recent, strategic move in May 2025 to bring in new, deep expertise in asset management to boost operational momentum. That's a clear action mapping to the near-term opportunity of optimizing their existing 200 properties.

Community Healthcare Trust Incorporated (CHCT) Mission and Values

Community Healthcare Trust Incorporated's core purpose is to be a real estate investment trust (REIT) focused on acquiring and owning healthcare properties, specifically providing vital infrastructure to non-urban communities while delivering stable, long-term returns to shareholders. The company's cultural DNA is anchored in its commitment to Environmental, Social, and Governance (ESG) principles, which it views as central to its long-term success.

Community Healthcare Trust Incorporated's Core Purpose

You're looking beyond the balance sheet, which is smart, because a company's mission dictates its long-term strategy and risk appetite. Community Healthcare Trust Incorporated's purpose is not just about collecting rent; it's about strategically funding and managing the physical spaces that deliver essential healthcare services, mostly outside of major metropolitan areas.

This focus is what drives their investment strategy. For instance, as of September 30, 2025, the company had total investments of approximately $1.2 billion in a portfolio of 200 properties across 36 states, concentrating on outpatient facilities like medical office buildings and specialty centers.

Official Mission Statement

While the company does not publish a single, formal mission statement in the style of a marketing tagline, their stated business objective and corporate commitment define their mission with precision. This mission is dual-focused: financial performance for investors and community impact.

• Own income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in target sub-markets throughout the United States.
• Provide vital healthcare infrastructure to create value for shareholders and the non-urban communities served.
• Prioritize responsible corporate citizenship and sustainability in all decision-making processes.

Vision Statement

The company's vision is best captured in its commitment to sustainability, which the CEO has framed as a blueprint for the future. They see their role as a long-term steward of essential community assets.

• Build a future where responsible and sustainable business practices lead the way to a better world.
• Continuously improve, innovate, and adapt to challenges and opportunities in the healthcare real estate sector.
• Maintain a robust and diversified portfolio of healthcare-related properties to meet the evolving needs of the industry.

This vision is backed by concrete action, like the development of a comprehensive ESG plan in 2023 to establish targets for 2030, showing they defintely think long-term. You can find more details on their financial health and how these investments perform at Breaking Down Community Healthcare Trust Incorporated (CHCT) Financial Health: Key Insights for Investors.

Community Healthcare Trust Incorporated's Core Values

The company's core values are explicitly tied to Environmental, Social, and Governance (ESG) performance, which is a crucial lens for any modern investor to use when evaluating a REIT (Real Estate Investment Trust). They believe their success is intertwined with the well-being of the planet and the communities they serve.

• Responsible Corporate Citizenship: Being a company built to last by weaving ESG principles into all actions and decisions.
• Transparency & Accountability: Ensuring ethical conduct and clear public disclosures, overseen by the Board of Directors.
• Sustainable Solutions: Delivering innovative and sustainable healthcare real estate solutions.

Here's the quick math: while the company reported a net income of approximately $1.6 million for the third quarter of 2025, that bottom line is increasingly judged against how well they uphold these non-financial values, especially as investors demand more than just dividends.

Given Company slogan/tagline

Community Healthcare Trust Incorporated does not publicly use a commercial slogan or tagline in its investor or corporate communications. The focus is purely on the factual description of its business model: a real estate investment trust specializing in outpatient healthcare properties in non-urban markets.

Community Healthcare Trust Incorporated (CHCT) How It Works

Community Healthcare Trust Incorporated (CHCT) operates as a specialized real estate investment trust (REIT), generating revenue by owning and leasing a diversified portfolio of income-producing healthcare properties across the US, primarily in non-urban markets.

The company's core strategy is simple: acquire essential, smaller healthcare facilities-often through off-market deals-and secure long-term leases with healthcare providers, ensuring stable, predictable cash flow for its investors. As of September 30, 2025, CHCT's total investments were approximately $1.2 billion, spanning 200 properties in 36 states.

Community Healthcare Trust Incorporated's Product/Service Portfolio

CHCT's portfolio is its product, offering healthcare providers specialized, mission-critical real estate under long-term net leases. This structure means the tenants-not CHCT-handle most property expenses, which is how REITs maintain strong operating margins.

Community Healthcare Trust Incorporated's Operational Framework

You're looking for where the rubber meets the road-how CHCT converts real estate into shareholder value. The operational framework is built around disciplined acquisition and conservative asset management, especially in the secondary and tertiary markets where competition is defintely lower.

• Acquisition Engine: Focus on off-market deals for properties typically valued between $5 million and $30 million, avoiding the competitive bidding wars of major urban centers.
• Value Creation via Lease Structure: Uses primarily triple-net leases, which shifts operating costs (taxes, insurance, maintenance) to the tenant, stabilizing CHCT's cash flow.
• Active Portfolio Management: Continuously recycles capital by disposing of mature or non-core assets to fund higher-yielding acquisitions. For example, a Q4 2025 asset sale is expected to generate a gain of approximately $11.5 million.
• Financial Performance: The company reported Adjusted Funds from Operations (AFFO)-a key metric for REIT cash flow-of $0.56 per diluted common share for the third quarter of 2025.

Here's the quick math: The long weighted average remaining lease term of 6.6 years (as of Q2 2025) provides a clear, long-term revenue visibility.

Community Healthcare Trust Incorporated's Strategic Advantages

The company's market success isn't about owning the biggest buildings; it's about smart, niche positioning and execution. They have a clear, repeatable model that capitalizes on a specific market inefficiency.

• Non-Urban Niche Focus: By targeting smaller markets, CHCT faces less competition from larger, institutional healthcare REITs, leading to higher expected risk-adjusted returns on investment.
• Relationship-Driven Sourcing: Management leverages its strong network of relationships with local and regional healthcare providers to source properties directly, often through sale/leaseback transactions that bypass brokers and public auctions.
• Demographic Tailwinds: The portfolio is inherently defensive, benefiting from the non-cyclical, increasing demand for healthcare services driven by the aging U.S. population.
• Diversification: With 200 properties and 314 tenants across 36 states, the risk is spread out. No single tenant accounts for more than 16.3% of annualized rent, which is a key stability factor.

What this estimate hides is the ongoing risk from tenant financial health, especially with some recent credit loss reserves recorded in 2025, but the overall portfolio diversity helps cushion those individual blows. For a deeper look at the ownership structure, check out Exploring Community Healthcare Trust Incorporated (CHCT) Investor Profile: Who's Buying and Why?

Community Healthcare Trust Incorporated (CHCT) How It Makes Money

Community Healthcare Trust Incorporated, a healthcare real estate investment trust (REIT), primarily generates revenue by leasing its portfolio of medical properties to healthcare providers under long-term agreements. This model provides predictable, recurring rental income, which is the financial engine of the business.

The company focuses on acquiring and managing income-producing properties, like medical office buildings and inpatient rehabilitation facilities, mostly in non-urban, secondary markets across the United States, where competition is often lower and initial yields (capitalization rates) are higher. This strategy is about maximizing yield and securing stable cash flow from essential healthcare services.

Community Healthcare Trust Incorporated's Revenue Breakdown

The vast majority of Community Healthcare Trust Incorporated's income is derived from rental payments on its real estate portfolio. Based on the most recent quarterly data, rental income is the dominant stream, with a minor contribution from mortgage interest and other property-related fees.

Here's the quick math using the TTM revenue of $119.55 million as of Q3 2025, with rental income consistently accounting for nearly all of the total revenue.

Business Economics

The underlying economics of Community Healthcare Trust Incorporated's business are built on long-term, triple-net leases (NNN), which is a huge advantage. In a NNN lease, the tenant-the healthcare provider-is responsible for most property expenses, including real estate taxes, building insurance, and maintenance, so the company's operating expenses stay low and predictable.

• Lease Stability: As of Q1 2025, the portfolio's weighted average remaining lease term was 6.7 years, which locks in future cash flows for a significant period.
• High Occupancy: The portfolio was approximately 90.1% leased as of September 30, 2025, demonstrating strong demand for its specialized properties.
• Pricing Strategy (Acquisition Yields): The company's growth is fueled by acquisitions at attractive yields. For instance, the Q3 2025 inpatient rehabilitation facility acquisition was completed for approximately $26.5 million with an expected return of approximately 9.4%. This is a solid return in the current environment.
• Acquisition Pipeline: The company has a significant pipeline of six properties under definitive purchase agreements totaling approximately $146.0 million, with expected returns ranging from 9.1% to 9.75%. That's a clear path to future revenue growth.

What this estimate hides is the risk from tenant concentration; honestly, if one of your large tenants struggles, it hits the top line fast. The company did have a geriatric behavioral hospital operator tenant with collectability issues in 2025, which required a reserve and is a key risk to watch.

Community Healthcare Trust Incorporated's Financial Performance

When evaluating a REIT, you need to look past simple net income and focus on cash flow metrics like Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO). These show the real cash generated by the properties.

• FFO and AFFO (Q3 2025): The company reported FFO of $0.50 and AFFO of $0.56 per diluted common share for the three months ended September 30, 2025. The AFFO number, which adjusts for non-cash items like straight-line rent, gives you the clearest picture of distributable cash flow.
• Total Revenue (TTM): Trailing twelve months revenue ending Q3 2025 reached $119.55 million, reflecting a 3.40% year-over-year increase, driven by strategic property acquisitions.
• Dividend Payout: The company declared a quarterly common stock dividend of $0.4750 per share, payable in November 2025, which represents an annualized rate of $1.90 per share. The dividend has been consistently raised every quarter since its IPO, which is a defintely positive signal for income investors.
• Asset Base: As of September 30, 2025, the company had investments of approximately $1.2 billion across 200 properties in 36 states, showing a well-diversified portfolio geographically.

For a deeper dive into how these metrics stack up against the sector, you should check out the full analysis: Breaking Down Community Healthcare Trust Incorporated (CHCT) Financial Health: Key Insights for Investors

Community Healthcare Trust Incorporated (CHCT) Market Position & Future Outlook

Community Healthcare Trust Incorporated maintains a highly specialized, small-cap position within the vast healthcare real estate investment trust (REIT) sector, focusing on high-yield, off-market assets in non-urban areas. This niche strategy is driving accretive growth, evidenced by a projected full-year 2025 Funds From Operations (FFO) estimate of $2.00 per share, but it also exposes the company to specific tenant-concentration risks. [cite: 22 in first search]

Competitive Landscape

You need to understand that Community Healthcare Trust Incorporated is not competing head-to-head with the mega-cap REITs on scale; its strength is in its niche and superior acquisition yields. Here's a quick look at how the company stacks up against the sector giants, using market capitalization as a proxy for market share in the approximately $178.5 billion US Healthcare REIT sector as of early 2025. [cite: 8, 11, 16, 17 in first search, 4, 8, 17 in second search]

Opportunities & Challenges

The company's forward strategy is clear: double down on its niche. The near-term opportunity is capturing high-yield assets before larger capital enters the smaller markets, but the risk of tenant issues remains a constant factor. Exploring Community Healthcare Trust Incorporated (CHCT) Investor Profile: Who's Buying and Why?

Industry Position

Community Healthcare Trust Incorporated is a highly specialized micro-cap player in a macro-cap industry. Its total investments of approximately $1.2 billion as of September 30, 2025, are a fraction of its largest peers, but that's by design. [cite: 15 in first search]

• Maintain Focus: The company's core strength is its focus on smaller, non-urban medical office buildings (MOBs) and inpatient rehabilitation facilities, where competition is lower and initial yields are higher.
• Portfolio Stability: Occupancy is projected to hold steady at around 91.7% through 2025, providing a stable revenue base despite tenant issues. [cite: 22 in first search]
• Growth Engine: The strategy is to drive growth through accretive acquisitions, not same-store net operating income (NOI) growth like the larger REITs.
• Balance Sheet: Management is proactively addressing tenant issues and using asset sales, like the expected $11.5 million gain, to fund new deals via like-kind exchanges (Section 1031 of the Internal Revenue Code). [cite: 4, 5 in first search] You defintely want to see that capital recycling.