EX-99.1 2 earningspressrelease2016q2.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1




News Release

Community Healthcare Trust Announces Results for the Three Months Ended June 30, 2016
FRANKLIN, Tenn., August 11, 2016 / PRNewswire / -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended June 30, 2016.  Normalized funds from operations for the three months ended June 30, 2016 totaled $0.34 per diluted common share.  The Company reported net income for the second quarter of approximately $508,000.

Highlights include:
•
During the second quarter of 2016, the Company acquired three properties for a total purchase price of $33.5 million, including cash consideration of $21.1 million and the repayment of a $12.5 million mortgage note that the Company funded in the first quarter of 2016. The three properties, located in three states, total approximately 153,446 square feet and were 93.7% leased upon acquisition.
•
A common stock dividend of 0.3825 per common share was declared on August 4, 2016 for the second quarter of 2016. This dividend is payable on September 2, 2016 to shareholders of record on August 19, 2016.
•
On August 10, 2016, the Company amended its revolving credit facility increasing the maximum borrowing capacity from $75.0 million to $150.0 million. Interest on the amended credit facility was adjusted downward by 25 basis points, certain financial covenants were adjusted or replaced, and the amended credit facility will mature on August 9, 2019, with two options to extend the facility, subject to the satisfaction of certain conditions.

About Community Healthcare Trust Incorporated
Community Healthcare Trust 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 $205.0 million in 48 real estate properties and mortgages as of June 30, 2016, located in 18 states, totaling approximately 1.1 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
In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks and uncertainties are discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein which speak only as of the date hereof. The Company undertakes no obligation to update forward-looking statements, whether as the result of new information, future developments, or otherwise, except as may be required by law.
 





1



COMMUNITY HEALTHCARE TRUST INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per share amounts)
 
June 30, 2016
 
December 31, 2015
ASSETS
 
 
 
Real estate properties:
 
 
 
Land and land improvements
$
22,601

 
$
13,216

Buildings, improvements, and lease intangibles
171,407

 
119,716

Personal property
81

 
35

Total real estate properties
194,089

 
132,967

Less accumulated depreciation
(11,350
)
 
(5,203
)
Total real estate properties, net
182,739

 
127,764

Cash and cash equivalents
10,920

 
2,018

Mortgage note receivable, net
10,872

 
10,897

Other assets, net
3,082

 
2,124

Total assets
$
207,613

 
$
142,803

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Revolving credit facility
$
—

 
$
17,000

Accounts payable and accrued liabilities
2,521

 
812

Other liabilities
3,625

 
2,721

Total liabilities
6,146

 
20,533

 
 
 
 
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; 12,911,078 and 7,596,940 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively
129

 
76

Additional paid-in capital
213,912

 
127,578

Cumulative net loss
(832
)
 
(1,456
)
Cumulative dividends
(11,742
)
 
(3,928
)
Total stockholders’ equity
201,467

 
122,270

Total liabilities and stockholders' equity
$
207,613

 
$
142,803


(1)
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.
 




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COMMUNITY HEALTHCARE TRUST INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2016 AND 2015
(Unaudited)
(Dollars in thousands, except per share amounts)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
REVENUES
 
 
 
 
 
 
 
Rental income
$
4,530

 
$
729

 
$
8,203

 
$
729

Tenant reimbursements
1,105

 
107

 
2,062

 
107

Mortgage interest
561

 
—

 
1,097

 
—

 
6,196

 
836

 
11,362

 
836

 
 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
 
Property operating
1,228

 
138

 
2,277

 
138

General and administrative
895

 
1,603

 
1,701

 
1,603

Depreciation and amortization
3,332

 
577

 
6,147

 
577

Bad debts
30

 
—

 
30

 
—

 
5,485

 
2,318

 
10,155

 
2,318

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
Interest expense
(222
)
 
(41
)
 
(602
)
 
(41
)
Interest and other income, net
19

 
14

 
19

 
14

 
(203
)
 
(27
)
 
(583
)
 
(27
)
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
$
508

 
$
(1,509
)
 
$
624

 
$
(1,509
)
 
 
 
 
 
 
 
 
INCOME (LOSS) PER COMMON SHARE:
 
 
 
 
 
 
 
Net income (loss) per common share – Basic
$
0.04

 
$
(0.42
)
 
$
0.06

 
$
(0.80
)
Net income (loss) per common share – Diluted
$
0.04

 
$
(0.42
)
 
$
0.06

 
$
(0.80
)
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-BASIC
12,038,381

 
3,574,392

 
9,774,782

 
1,896,518

WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-DILUTED
12,064,839

 
3,574,392

 
9,834,050

 
1,896,518


(1)
The Condensed Consolidated Statements of Comprehensive Income (loss) 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.



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COMMUNITY HEALTHCARE TRUST INCORPORATED
RECONCILIATION OF FFO AND NORMALIZED FFO (1) 
(Dollars in thousands, except per share amounts)
(Unaudited)
 
Three Months Ended June 30,
 
2016
 
2015
Net income (loss)
$
508

 
$
(1,509
)
   Real estate depreciation and amortization
3,330

 
577

   Total adjustments
3,330

 
577

Funds From Operations
$
3,838

 
$
(932
)
   Transaction costs
204

 
1,546

   Straight line rent
(138
)
 
(14
)
   Deferred compensation
140

 
26

Normalized Funds From Operations
$
4,044

 
$
626

   Funds from Operations per Common Share-Diluted
$
0.32

 
$
(0.26
)
   Normalized Funds From Operations Per Common Share-Diluted
$
0.34

 
$
0.18

FFO Weighted Average Common Shares Outstanding
12,064,839

 
3,574,392

Normalized FFO Weighted Average Common Shares Outstanding (2)
12,064,839

 
3,563,389

 
(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 normalized FFO to be appropriate measures of operating performance of an equity real estate investment trust ("REIT"). In particular, the Company believes that normalized FFO 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 (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." The Company has included normalized FFO above which it has defined as FFO excluding certain expenses related to equity offerings, closing costs of properties acquired and mortgages funded, straight-line rent, deferred compensation and other non-cash items. Normalized FFO 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 normalized FFO 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 normalized FFO should be examined in conjunction with net income as presented elsewhere herein.
(2
)
Weighted average common shares outstanding used in calculating Normalized FFO for the three months ended June 30, 2015 includes the dilutive effect of 11,003 shares of restricted common stock that were excluded in calculating the weighted average common shares outstanding for FFO because the effect was anti-dilutive due to the net loss incurred in the period.
 
CONTACT: W. Page Barnes, 615-771-3052
SOURCE: Community Healthcare Trust Incorporated


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