EX-99.2 3 supplementalinfo2023q1.htm EX-99.2 Document


                Exhibit 99.2
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CHCT
LISTED
NYSE
                
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SUPPLEMENTAL INFORMATION
Q1 2023

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Community Healthcare Trust1Q 2023 | Supplemental Information

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ABOUT US
CHCT is a self-managed healthcare real estate investment trust (“REIT”) that owns a diverse portfolio of properties including medical office buildings, acute inpatient behavioral facilities, inpatient rehabilitation facilities, physician clinics, specialty centers, behavioral specialty facilities, and surgical centers and hospitals across the United States, primarily outside of urban centers. As a result of favorable demographic trends, increases in healthcare spending, and the shift in the delivery of healthcare services to community-based facilities, we believe our properties are essential for healthcare providers to serve their local markets. 




TABLE OF CONTENTS



Community Healthcare Trust1Q 2023 | Supplemental Information

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COMPANY SNAPSHOT
                                                        
March 31, 2023
Gross real estate investments (in thousands) (1)
$974,042 
Total properties181 
% Leased91.6 %
Total square feet owned3,951,330 
Weighted Average remaining lease term (years)7.4
Cash and cash equivalents and restricted cash (in thousands)$4,625 
Debt to Total Capitalization35.3 %
Weighted average interest rate per annum on Revolving Line of Credit6.6 %
Weighted average interest rate per annum on Term Loans4.3 %
Equity market cap (in millions)$961.6 
Quarterly dividend paid in the period (per share)$0.4475 
Quarter end stock price (per share)$36.60 
Dividend yield4.89 %
Common shares outstanding26,273,701 
___________
(1) Includes a portion of one property accounted for as a sales-type lease.

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Community Healthcare Trust
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CORPORATE INFORMATION
Community Healthcare Trust Incorporated
3326 Aspen Grove Drive, Suite 150
Franklin, TN 37067
Phone: 615-771-3052
E-mail: Investorrelations@chct.reit
Website: www.chct.reit
BOARD OF DIRECTORS
Alan GardnerRobert HensleyClaire GulmiR. Lawrence Van HornCathrine CotmanDavid Dupuy
Chairman of the
Board
Audit Committee
Chair
Compensation Committee
Chair
ESG Committee
Chair
Board
member
Board
member
EXECUTIVE MANAGEMENT TEAM
David H. DupuyLeigh Ann StachTimothy L. Meyer
Chief Executive Officer and
Chief Financial Officer
Executive Vice President
Chief Accounting Officer
Executive Vice President
Asset Management
COVERING ANALYSTS
A. Goldfarb - Piper SandlerM. Lewis - Truist Securities
S. Sakwa - Evercore ISIR. Stevenson - Janney Capital Markets
D. Rodgers - BairdD. Toti - Colliers International Securities
PROFESSIONAL SERVICES
Independent Registered Public Accounting Firm Transfer Agent
BDO USA, LLPAmerican Stock Transfer & Trust Company, LLC
501 Commerce Street, Suite 1400Operations Center
Nashville, TN 37203
6201 15th Avenue
Brooklyn, NY 11219
1-800-937-5449


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FINANCIAL HIGHLIGHTS
Three Months Ended
1Q 20234Q 20223Q 20222Q 20221Q 2022
(Unaudited and in thousands, except per share data)
STATEMENTS OF OPERATIONS ITEMS
Revenues$27,176 $25,342 $24,807 $24,049 $23,481 
Net (loss) income (1)
$(6,922)$5,238 $5,673 $5,584 $5,524 
NOI$22,303 $21,186 $20,480 $19,987 $19,390 
EBITDAre
$6,123 $17,040 $16,725 $16,432 $16,075 
Adjusted EBITDAre
$20,469 $19,685 $19,189 $18,616 $18,197 
FFO$2,166 $13,620 $13,751 $13,725 $13,525 
AFFO$15,595 $15,411 $15,362 $14,992 $14,827 
Per Diluted Share:
Net (loss) income attributable to common shareholders$(0.32)$0.19 $0.21 $0.21 $0.21 
FFO$0.09 $0.56 $0.57 $0.57 $0.56 
AFFO$0.62 $0.63 $0.63 $0.62 $0.61 
___________
(1) Net loss for the first quarter of 2023 includes accelerated amortization of $11.8 million recognized upon passing of our former CEO and President.
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FINANCIAL HIGHLIGHTS (Continued)
As of
1Q 20234Q 20223Q 20222Q 20221Q 2022
(Unaudited and dollars in thousands)
BALANCE SHEET ITEMS
ASSETS
Total real estate properties$971,026 $943,167 $886,958 $866,481 $840,755 
Total assets$886,294 $876,425 $811,929 $786,034 $761,230 
CAPITALIZATION
Net debt$365,061 $352,997 $310,781 $291,726 $269,670 
Total capitalization$1,033,922 $1,015,152 $946,307 $913,737 $881,769 
Net debt/total capitalization35.3 %34.8 %32.8 %31.9 %30.6 %
Market valuation$961,617 $927,129 $828,547 $908,844 $1,058,303 
Enterprise value$1,322,053 $1,268,058 $1,135,990 $1,198,212 $1,326,274 
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CONSOLIDATED BALANCE SHEETS
As of
1Q 20234Q 20223Q 20222Q 20221Q 2022
ASSETS
(Unaudited; Dollars and shares in thousands, except per share data)
Real estate properties
Land and land improvements
$122,702 $117,657 $103,413 $101,909 $98,561 
Buildings, improvements, and lease intangibles
848,060 825,257 783,308 764,338 741,969 
Personal property
264 253 237 234 225 
Total real estate properties
971,026 943,167 886,958 866,481 840,755 
Less accumulated depreciation
(174,346)(165,341)(157,040)(149,049)(140,985)
Total real estate properties, net
796,680 777,826 729,918 717,432 699,770 
Cash and cash equivalents
3,666 11,233 2,656 1,699 1,178 
Restricted cash
959 835 682 659 521 
Other assets, net
84,989 86,531 78,673 66,244 59,761 
Total assets
$886,294 $876,425 $811,929 $786,034 $761,230 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net
$365,061 $352,997 $310,781 $291,726 $269,670 
Accounts payable and accrued liabilities
10,478 11,377 8,143 7,219 6,894 
Other liabilities, net
16,240 15,237 14,519 14,127 13,552 
Total liabilities
391,779 379,611 333,443 313,072 290,116 
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 50,000 shares authorized
— — — — — 
Common stock, $0.01 par value; 450,000 shares authorized
263 259 253 251 251 
Additional paid-in capital
648,384 625,136 601,968 599,631 597,548 
Cumulative net income
74,220 81,142 75,904 70,231 64,647 
Accumulated other comprehensive gain
15,684 22,667 21,468 12,761 7,542 
Cumulative dividends
(244,036)(232,390)(221,107)(209,912)(198,874)
Total stockholders’ equity
494,515 496,814 478,486 472,962 471,114 
Total liabilities and stockholders' equity
$886,294 $876,425 $811,929 $786,034 $761,230 

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CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
1Q 20234Q 20223Q 20222Q 20221Q 2022
(Unaudited; Dollars and shares in thousands, except per share data)
REVENUES
Rental income
$26,128 $24,383 $23,919 $23,197 $22,604 
Other operating interest
1,048 959 888 852 877 
27,176 25,342 24,807 24,049 23,481 
EXPENSES
Property operating
4,873 4,156 4,327 4,062 4,091 
        General and administrative (1) (2)
16,205 4,149 3,762 3,610 3,316 
Depreciation and amortization
9,018 8,317 8,003 8,077 7,942 
30,096 16,622 16,092 15,749 15,349 
INCOME BEFORE INCOME TAXES AND OTHER ITEMS
(2,920)8,720 8,715 8,300 8,132 
Interest expense
(3,992)(3,464)(3,028)(2,755)(2,626)
Deferred income tax (expense) benefit
(35)(21)(21)(16)17 
Interest and other income
25 55 
NET (LOSS) INCOME
$(6,922)$5,238 $5,673 $5,584 $5,524 
NET (LOSS) INCOME PER COMMON SHARE
NET (LOSS) INCOME PER DILUTED COMMON SHARE
$(0.32)$0.19 $0.21 $0.21 $0.21 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
24,227 23,787 23,587 23,578 23,570 
DIVIDENDS DECLARED, PER COMMON SHARE, IN THE PERIOD
$0.4475 $0.4450 $0.4425 $0.4400 $0.4375 
                                      
(1) GENERAL AND ADMINISTRATIVE EXPENSES:
Non-cash vs. Cash:
     Non-cash (stock-based compensation)
57.8 %63.8 %65.5 %60.5 %64.0 %
     Cash
42.2 %36.2 %34.5 %39.5 %36.0 %
As a % of Revenue:
     Non-cash (stock-based compensation)
9.3 %10.4 %9.9 %9.1 %9.0 %
     Cash
6.8 %5.9 %5.2 %5.9 %5.1 %
(2) General and administrative expenses for the three months ended March 31, 2023 includes the accelerated amortization of stock-based compensation totaling $11.8 million recognized upon the passing of our former CEO and President but the accelerated amortization is not included in the calculations above in footnote (1).

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RECONCILIATION OF NON-GAAP MEASURES
FUNDS FROM OPERATIONS (FFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
Three Months Ended
1Q 20234Q 20223Q 20222Q 20221Q 2022
(Unaudited; Dollars and shares in thousands, except per share data)
NET (LOSS) INCOME$(6,922)$5,238 $5,673 $5,584 $5,524 
Real estate depreciation and amortization9,088 8,382 8,078 8,141 8,001 
FFO2,166 13,620 13,751 13,725 13,525 
Straight-line rent(917)(854)(853)(917)(820)
Stock-based compensation2,547 2,645 2,464 2,184 2,122 
Accelerated amortization of stock-based compensation11,799 — — — — 
AFFO$15,595 $15,411 $15,362 $14,992 $14,827 
FFO PER COMMON SHARE $0.09 $0.56 $0.57 $0.57 $0.56 
AFFO PER COMMON SHARE$0.62 $0.63 $0.63 $0.62 $0.61 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING25,298 24,471 24,312 24,247 24,344 
AFFO, ADJUSTED FOR ACQUISITIONS (1)
AFFO$15,595 $15,411 $15,362 $14,992 $14,827 
Revenue on Properties Acquired in the period (2)383 1,116 308 302 132 
Property operating expense adjustment (2)(104)(308)(4)(31)(59)
Interest expense adjustment (3)(65)(232)(58)(32)(11)
AFFO, ADJUSTED FOR ACQUISITIONS$15,809 $15,987 $15,608 $15,231 $14,889 
                                   
(1) AFFO is adjusted to reflect acquisitions as if they had occurred on the first day of the applicable period.
(2) Revenue and expense adjustments are calculated based on expected returns and leases in place at acquisition.
(3) Assumes that acquisitions were 40% funded with debt and the remainder funded with equity. The interest expense adjustment was calculated using the weighted average interest rate on the Company's revolving credit facility for the period.
AMORTIZATION OF STOCK-BASED COMPENSATION (1)
Amortization Required by GAAP (2)$2,547 $2,675 $2,464 $2,184 $2,122 
Amortization Based on Legal Vesting Periods1,830 1,845 1,822 1,701 1,671 
Acceleration of Amortization$717 $830 $642 $483 $451 
                                   
(1) Excludes the accelerated amortization totaling $11.8 million recognized upon the passing of our former CEO and President.
(2) GAAP requires that deferred compensation be amortized over the earlier of the vesting or retirement eligibility date.

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RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)
NET OPERATING INCOME (NOI)
Three Months Ended
1Q 20234Q 20223Q 20222Q 20221Q 2022
(Unaudited; Dollars and shares in thousands, except per share data)
NET OPERATING INCOME
Net (loss) income$(6,922)$5,238 $5,673 $5,584 $5,524 
General and administrative4,406 4,149 3,762 3,610 3,316 
Accelerated amortization of stock-based compensation11,799 — — — — 
Depreciation and amortization9,018 8,317 8,003 8,077 7,942 
Interest expense3,992 3,464 3,028 2,755 2,626 
Deferred Income tax expense (benefit)35 21 21 16 (17)
Interest and other income, net(25)(3)(7)(55)(1)
NOI$22,303 $21,186 $20,480 $19,987 $19,390 
EBITDAre and ADJUSTED EBITDAre
EBITDAre
Net (loss) income$(6,922)$5,238 $5,673 $5,584 $5,524 
Interest expense3,992 3,464 3,028 2,755 2,626 
Depreciation and amortization9,018 8,317 8,003 8,077 7,942 
Deferred Income tax expense (benefit)35 21 21 16 (17)
EBITDAre
$6,123 $17,040 $16,725 $16,432 $16,075 
Non-cash stock-based compensation expense2,547 2,645 2,464 2,184 2,122 
Accelerated amortization of stock-based compensation11,799 — — — — 
ADJUSTED EBITDAre
$20,469 $19,685 $19,189 $18,616 $18,197 
ADJUSTED EBITDAre ANNUALIZED (1)
$81,876 

(1)
Adjusted EBITDAre multiplied by 4. This annualized amount may differ significantly from the actual full year results.



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WEIGHTED AVERAGE SHARES
Three Months Ended
1Q 20234Q 20223Q 20222Q 20221Q 2022
(Unaudited; Dollars and shares in thousands, except per share data)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding26,043 25,498 25,221 25,087 25,060 
Unvested restricted shares
(1,816)(1,711)(1,634)(1,509)(1,490)
Weighted average common shares outstanding - EPS
24,227 23,787 23,587 23,578 23,570 
Weighted average common shares outstanding - FFO Basic
24,227 23,787 23,587 23,578 23,570 
Dilutive potential common shares (from below) 1,071 684 725 669 774 
Weighted average common shares outstanding - FFO Diluted25,298 24,471 24,312 24,247 24,344 
TREASURY SHARE CALCULATION
Unrecognized deferred compensation-end of period$24,465 $33,652 $36,364 $30,886 $32,087 
Unrecognized deferred compensation-beginning of period$33,652 $36,364 $30,886 $32,087 $29,943 
Average unrecognized deferred compensation$29,059 $35,008 $33,625 $31,487 $31,015 
Average share price per share$39.01 $34.06 $36.97 $37.47 $43.30 
Treasury shares745 1,027 909 840 716 
Unvested restricted shares1,816 1,711 1,634 1,509 1,490 
Treasury shares(745)(1,027)(909)(840)(716)
Dilutive potential common shares1,071 684 725 669 774 


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EXECUTIVE COMPENSATION
Performance Based Incentive Compensation
Name and PositionYearTotal
Compensation
Salary
Taken In
Stock (1)
Other (2)Bonus
Stock (1)
Alignment
of Interest
Stock (3)
1-Year Total
Shareholder
 Return
 Stock
3-Year Total
Shareholder
 Return
 Stock
5-Year Total Shareholder Return
 Stock
Total
Performance
Based
Incentive
Compensation
Percent
of Total
Timothy G. Wallace (4)2022$4,540,328 $794,200 $12,425 $913,330 $1,710,257 $— $222,023 $888,093 $3,733,703 82.2 %
Former Chief Executive Officer and President2021$4,788,861 $750,000 $11,650 $862,500 $1,621,703 $— $771,504 $771,504 $4,027,211 84.1 %
2020$3,737,563 $645,000 $13,382 $548,250 $1,402,181 $483,750 $645,000 $— $3,079,181 82.4 %
David H. Dupuy (5)2022$2,785,183 $487,200 $7,487 $560,280 $1,049,216 $— $136,192 $544,808 $2,290,496 82.2 %
Chief Executive Officer, President and
Chief Financial Officer
2021$3,183,341 $460,000 $253,262 $529,000 $994,675 $— $473,202 $473,202 $2,470,079 77.6 %
2020$2,451,981 $392,000 $188,572 $333,200 $852,209 $294,000 $392,000 $— $1,871,409 76.3 %
Leigh Ann Stach2022$2,342,141 $410,500 $1,750 $472,075 $883,998 $— $114,764 $459,054 $1,929,891 82.4 %
Executive Vice President and
Chief Accounting Officer
2021$2,472,513 $387,600 $3,648 $445,740 $838,123 $— $398,701 $398,701 $2,081,265 84.2 %
2020$1,895,617 $326,800 $8,734 $277,780 $710,403 $245,100 $326,800 $— $1,560,083 82.3 %
Timothy L. Meyer (6)2022$1,785,445 $312,400 $4,311 $359,260 $672,777 $— $87,339 $349,358 $1,468,734 82.3 %
Executive Vice President -
Asset Management
2021$917,202 $280,000 $14,789 $165,000 $457,413 $— $— $— $622,413 67.9 %
(1) Each Executive Officer has elected to take 100% of their salary and cash bonus in deferred stock with an 8-year cliff vesting.
(2) Other includes employer contributions to the executive officer's health savings account (HSA) and 401(k); the value of the grant of 5,000 shares of restricted stock to Mr. Dupuy in each of the years 2020 and 2021, and the value of the grant of 260 shares of restricted stock to Mr. Meyer in 2021.
(3) Alignment of interest stock grants per the Alignment Interest Program which is part of the Company's Incentive Plan.
(4) Mr. Wallace, our former CEO and President, passed away on March 3, 2023.
(5) Mr. Dupuy was appointed as CEO effective March 6, 2023. He will continue in his role as CFO until a successor is chosen.
(6) Mr. Meyer joined the Company on July 1, 2019 and was promoted to Executive Vice President on October 1, 2021.
CEO Pay Ratios
Former CEO and
President
Median
Employee
Average
Employee (1)
Lowest Paid
Employee (1)
Cash$— $123,900 $114,349 $63,500 
Compensation Taken in Stock4,527,903 68,500 295,291 — 
Other Compensation12,425 3,047 4,638 1,348 
Total Compensation$4,540,328 $195,447 $414,278 $64,848 
CEO to Employee Ratio23:111:170:1
___________
(1) Excludes part-time employees who worked less than 20 hours per week.
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DEBT SUMMARY
As of March 31, 2023
Principal
Balance
Stated
Rate
Hedged
Rate
(in thousands)
Revolving credit facility$12,000 6.55 %— 
Term loan A-375,000 2.05 %4.29 %
Term loan A-4125,000 2.05 %3.35 %
Term loan A-5150,000 2.05 %5.11 %
Total Credit Facility362,000 
Secured mortgage loan4,915 4.98 %— 
Debt366,915 
Deferred Financing Costs, net(1,854)
Debt, net$365,061 

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Select CovenantsRequired1Q 2023
Leverage ratio≤ 60.0%36.3 %
Fixed charge coverage ratio≥ 1.50x5.33
Tangible net worth (in thousands)≥ $472,403$644,060
Secured indebtedness≤ 30.0%0.5 %
Minimum debt service coverage ratio≥ 2.06.16

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2023 PROPERTY ACQUISITIONS
PropertyMarketProperty
Type
Date
Acquired
% Leased at Acquisition
Purchase
 Price
(in thousands)
Square Feet
Emory HealthcareLaGrange, GAMOB01/18/23100.0 %$8,007 55,310 
Emory HealthcareWest Point, GAMOB01/18/23100.0 %811 5,600 
Hills & Dales Professional CenterCanton, OHMOB01/30/23100.0 %3,669 27,920 
Northeastern Eye InstituteScranton, PAMOB02/23/23100.0 %1,957 22,743 
Northeastern Eye InstituteScranton, PAMOB02/23/23100.0 %2,207 15,768 
Emory Southern OrthopedicsLaGrange, GAMOB03/06/23100.0 %6,469 31,473 
Emory Southern OrthopedicsLaGrange, GAMOB03/06/23100.0 %249 2,972 
100.0 %$23,369 161,786 
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PORTFOLIO DIVERSIFICATION
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Property Type Annualized Rent (%)
Medical Office Building (MOB)33.8 %
Inpatient Rehabilitation Facilities (IRF)17.4 %
Acute Inpatient Behavioral (AIB)14.7 %
Specialty Centers (SC)12.9 %
Physician Clinics (PC)8.9 %
Surgical Centers and Hospitals (SCH)5.5 %
Behavioral Specialty Facilities (BSF)5.1 %
Long-term Acute Care Hospitals (LTACH)1.7 %
Total100.0 %


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StateAnnualized
Rent (%)
Texas (TX)14.5 %
Ohio (OH)11.8 %
Illinois (IL)11.5 %
Florida (FL)8.4 %
Pennsylvania (PA)4.6 %
All Others (Less than 4%)49.2 %
Total100.0 %


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TenantAnnualized
Rent (%)
LifePoint Health10.1 %
US Healthvest8.5 %
Genesis Care (Genesis)4.1 %
All Others (Less than 4%)77.3 %
Total100.0 %
            

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LEASE EXPIRATIONS
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Total Leased Sq. Ft.Annualized Rent
YearNumber of
Leases Expiring
AmountPercent (%)
Amount ($)
(thousands)
Percent (%)
202332 181 5.0 %$3,602 3.9 %
202460 318 8.8 %6,583 7.2 %
202540 297 8.2 %7,965 8.7 %
202656 513 14.2 %10,879 11.9 %
202738 212 5.9 %4,413 4.8 %
202833 226 6.2 %3,983 4.3 %
202918 243 6.7 %6,330 6.9 %
203015 141 3.9 %3,704 4.1 %
203116 286 7.9 %7,922 8.6 %
203210 126 3.5 %1,700 1.9 %
Thereafter41 1,037 28.6 %33,836 36.9 %
Month-to-Month13 38 1.1 %722 0.8 %
Totals372 3,618 100.0 %$91,639 100.0 %
Total portfolio was approximately 91.6% leased in the aggregate at March 31, 2023 with lease expirations ranging from 2023 through 2039.

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PROPERTY LOCATIONS
                                                                            
Approximately 48% of our property revenues are in MSAs with populations over 1,000,000 and approximately 91% are in MSAs with populations over 100,000.
Property NameProperty
 Type
Area% of
Square
 Feet
Annualized
 Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Lancaster MOBMOB10,646 0.27%$204.7 0.22%13,200,998Los Angeles-Long Beach-Anaheim, CA2
Future Diagnostics GroupSC8,876 0.22%$390.9 0.43%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Gurnee Medical Office BuildingMOB22,943 0.58%$134.9 0.15%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Joliet Oncology-Hematology AssociatesPC7,905 0.20%$375.6 0.41%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Morris Cancer CenterMOB18,470 0.47%$608.4 0.66%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Center for Reconstructive Surgery - Oak LawnMOB33,356 0.84%$403.3 0.44%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
PresencePC14,863 0.38%$304.7 0.33%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Presence Regional Cancer CenterSC44,888 1.14%$1,431.6 1.56%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Skin MDPC13,565 0.34%$500.5 0.55%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Chicago Behavioral HospitalAIB85,000 2.15%$2,139.7 2.33%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
US HealthVest - LakeAIB83,658 2.12%$2,920.7 3.19%9,618,502Chicago-Naperville-Elgin, IL-IN-WI3
Texas Rehabilitation Hospital of Fort Worth, LLCIRF39,761 1.01%$1,988.2 2.17%7,637,387Dallas-Fort Worth-Arlington, TX4
Bayside Medical CenterMOB50,593 1.28%$869.4 0.95%7,122,240Houston-The Woodlands-Sugar Land, TX5
Gessner Road MOBMOB14,360 0.36%$301.8 0.33%7,122,240Houston-The Woodlands-Sugar Land, TX5
Clear Lake Institute for RehabilitationIRF55,646 1.41%$2,913.2 3.18%7,122,240Houston-The Woodlands-Sugar Land, TX5
Northwest Surgery CenterSCH11,200 0.28%$— —%7,122,240Houston-The Woodlands-Sugar Land, TX5
2301 Research BoulevardMOB93,079 2.36%$1,987.1 2.17%6,385,162Washington-Arlington-Alexandria, DC-VA-MD-WV6
Haddon Hill Professional CenterMOB25,118 0.64%$247.5 0.27%6,245,051Philadelphia-Camden-Wilmington, PA-NJ-DE-MD7
Hopebridge - WestlakeBSF15,057 0.38%$229.6 0.25%6,245,051Philadelphia-Camden-Wilmington, PA-NJ-DE-MD7
Continuum Wellness CenterMOB8,227 0.21%$156.9 0.17%4,845,832Phoenix-Mesa-Chandler, AZ11
Desert Endoscopy CenterSCH11,722 0.30%$278.5 0.30%4,845,832Phoenix-Mesa-Chandler, AZ11
Mountain View Surgery CenterSCH14,046 0.36%$547.8 0.60%4,845,832Phoenix-Mesa-Chandler, AZ11
Associated Surgical Center of DearbornSCH12,400 0.31%$353.4 0.39%4,392,041Detroit-Warren-Dearborn, MI14
Berry Surgical CenterSCH27,217 0.69%$615.4 0.67%4,392,041Detroit-Warren-Dearborn, MI14
Smokey Point Behavioral HospitalAIB70,100 1.77%$2,731.8 2.98%4,018,762Seattle-Tacoma-Bellevue, WA15
Sanderling DialysisSC11,300 0.29%$414.6 0.45%3,298,634San Diego-Chula Vista-Carlsbad, CA17
Bay Area Physicians Surgery CenterMOB18,708 0.47%$267.3 0.29%3,175,275Tampa-St. Petersburg-Clearwater, FL18
Liberty DialysisSC8,450 0.21%$267.9 0.29%2,963,821Denver-Aurora-Lakewood, CO19
Waters Edge MedicalMOB23,388 0.59%$411.1 0.45%2,844,510Baltimore-Columbia-Towson, MD20
Righttime Medical CareSC6,236 0.16%$330.9 0.36%2,844,510Baltimore-Columbia-Towson, MD20
Eyecare PartnersPC6,487 0.16%$139.0 0.15%2,820,253St. Louis, MO-IL21
Eyecare PartnersPC5,560 0.14%$45.3 0.05%2,820,253St. Louis, MO-IL21
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Property NameProperty
 Type
Area% of
Square
 Feet
Annualized
 Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Eyecare PartnersSCH16,608 0.42%$310.6 0.34%2,820,253St. Louis, MO-IL21
Eyecare PartnersPC6,311 0.16%$49.5 0.05%2,820,253St. Louis, MO-IL21
Bassin Center For Plastic-Surgery-VillagesPC2,894 0.07%$166.0 0.18%2,673,376Orlando-Kissimmee-Sanford, FL22
Bassin Center For Plastic Surgery-OrlandoPC2,420 0.06%$138.8 0.15%2,673,376Orlando-Kissimmee-Sanford, FL22
Kissimmee Physicians ClinicPC4,902 0.12%$107.1 0.12%2,673,376Orlando-Kissimmee-Sanford, FL22
Orthopaedic Associates of OsceolaPC15,167 0.38%$347.2 0.38%2,673,376Orlando-Kissimmee-Sanford, FL22
Medical Village at WintergardenMOB21,532 0.54%$588.9 0.64%2,673,376Orlando-Kissimmee-Sanford, FL22
Baptist HealthPC13,500 0.34%$391.4 0.43%2,558,143San Antonio-New Braunfels, TX24
San Antonio Head & Neck Surgical AssociatesPC6,500 0.16%$184.2 0.20%2,558,143San Antonio-New Braunfels, TX24
Butler Medical CenterMOB10,116 0.26%$265.3 0.29%2,370,930Pittsburgh, PA27
Forefront Dermatology BuildingMOB15,650 0.40%$332.1 0.36%2,370,930Pittsburgh, PA27
Greentree Primary CareMOB34,077 0.86%$885.6 0.97%2,370,930Pittsburgh, PA27
Vascular Access Centers of Southern NevadaSC4,800 0.12%$95.0 0.10%2,265,461Las Vegas-Henderson-Paradise, NV29
Assurance Health SystemBSF14,381 0.36%$539.2 0.59%2,256,884Cincinnati, OH-KY-IN30
Cavalier Medical & Dialysis CenterMOB17,614 0.45%$218.2 0.24%2,256,884Cincinnati, OH-KY-IN30
51 Cavalier BlvdMOB18,016 0.46%$183.4 0.20%2,256,884Cincinnati, OH-KY-IN30
Anderson Ferry PlazaMOB43,599 1.10%$482.4 0.53%2,256,884Cincinnati, OH-KY-IN30
Everest Rehabilitation HospitalIRF37,720 0.95%$2,408.8 2.63%2,256,884Cincinnati, OH-KY-IN30
Davita Commercial WaySC4,980 0.13%$— —%2,256,884Cincinnati, OH-KY-IN30
Fresenius Florence Dialysis CenterMOB17,845 0.45%$304.3 0.33%2,256,884Cincinnati, OH-KY-IN30
Prairie Star Medical Facility IMOB24,724 0.63%$906.3 0.99%2,192,035Kansas City, MO-KS31
Prairie Star Medical Facility IIMOB24,840 0.63%$152.8 0.17%2,192,035Kansas City, MO-KS31
Ravines EdgeMOB16,751 0.42%$262.1 0.29%2,138,926Columbus, OH32
Court Street Surgery CenterSCH7,787 0.20%$77.9 0.08%2,138,926Columbus, OH32
Hopebridge - ColumbusBSF13,969 0.35%$170.9 0.19%2,138,926Columbus, OH32
Sedalia Medical CenterMOB20,043 0.51%$318.5 0.35%2,138,926Columbus, OH32
Assurance Health, LLCBSF10,200 0.26%$362.1 0.40%2,111,040Indianapolis-Carmel-Anderson, IN33
Assurance Health SystemBSF13,722 0.35%$495.8 0.54%2,111,040Indianapolis-Carmel-Anderson, IN33
Kindred Hospital Indianapolis NorthLTACH37,270 0.94%$1,521.2 1.66%2,111,040Indianapolis-Carmel-Anderson, IN33
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Property NameProperty
 Type
Area% of
Square
 Feet
Annualized
 Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Brook Park Medical BuildingMOB18,444 0.47%$392.1 0.43%2,088,251Cleveland-Elyria, OH34
Northern Ohio Regional Cancer CenterMOB16,802 0.43%$310.3 0.34%2,088,251Cleveland-Elyria, OH34
Assurance - HudsonBSF13,290 0.34%$554.2 0.60%2,088,251Cleveland-Elyria, OH34
Rockside Medical CenterMOB55,316 1.40%$1,002.3 1.09%2,088,251Cleveland-Elyria, OH34
Virginia Orthopaedic & Spine SpecialistsPC8,445 0.21%$153.1 0.17%1,799,674Virginia Beach-Norfolk-Newport News, VA-NC37
Genesis Care - WarwickSC10,236 0.26%$380.8 0.42%1,676,579Providence-Warwick, RI-MA38
South County HospitalPC13,268 0.34%$311.3 0.34%1,676,579Providence-Warwick, RI-MA38
Ortho Rhode Island - WarwickPC7,340 0.19%$212.8 0.23%1,676,579Providence-Warwick, RI-MA38
Mercy Rehabilitation HospitalIRF39,637 1.00%$1,988.2 2.17%1,425,695Oklahoma City, OK41
Memphis CenterMOB11,669 0.30%$227.7 0.25%1,337,779Memphis, TN-MS-AR43
Sanderling DialysisSC10,133 0.26%$536.3 0.59%1,337,779Memphis, TN-MS-AR43
GlastonburyMOB49,593 1.26%$529.8 0.58%1,213,531Hartford-East Hartford-Middletown, CT48
Sterling Medical CenterMOB28,685 0.73%$420.3 0.46%1,166,902Buffalo-Cheektowaga, NY49
Gardendale MOBMOB12,956 0.33%$317.4 0.35%1,115,289Birmingham-Hoover, AL50
Genesis Care - SouthbridgeSC20,046 0.51%$841.3 0.92%978,529Worcester, MA-CT57
Worcester BehavioralAIB81,972 2.07%$2,651.1 2.89%978,529Worcester, MA-CT57
Los Alamos Professional PlazaMOB43,395 1.10%$580.3 0.63%870,781McAllen-Edinburg-Mission, TX65
Cardiology Associates of Greater WaterburyPC16,793 0.42%$310.7 0.34%864,835New Haven-Milford, CT68
Columbia Gastroenterology Surgery CenterMOB17,016 0.43%$304.3 0.33%829,470Columbia, SC72
Davita Turner RoadSC18,125 0.46%$351.2 0.38%814,049Dayton-Kettering, OH73
Davita Springboro PikeSC10,510 0.27%$182.0 0.20%814,049Dayton-Kettering, OH73
Davita Business Center CourtSC12,988 0.33%$228.4 0.25%814,049Dayton-Kettering, OH73
Genesis Care - Bonita SpringsSC4,445 0.11%$279.7 0.31%760,822Cape Coral-Fort Myers, FL78
Cape Coral Suite 3SC12,130 0.31%$437.3 0.48%760,822Cape Coral-Fort Myers, FL78
Cape Coral Suite 3AMOB2,023 0.05%$37.9 0.04%760,822Cape Coral-Fort Myers, FL78
Cape Coral Suite 5 & 6MOB6,379 0.16%$92.5 0.10%760,822Cape Coral-Fort Myers, FL78
Genesis Care - Fort MyersSC46,356 1.17%$804.7 0.88%760,822Cape Coral-Fort Myers, FL78
Corporate Office 3660MOB22,104 0.56%$602.3 0.66%760,822Cape Coral-Fort Myers, FL78
Corporate Annex BuildingMOB16,000 0.40%$301.1 0.33%760,822Cape Coral-Fort Myers, FL78
Wildwood Hammock RPET FacilitySC10,832 0.27%$416.6 0.45%760,822Cape Coral-Fort Myers, FL78
Wildwood Hammock - Diagnostic ImagingSC9,376 0.24%$393.8 0.43%760,822Cape Coral-Fort Myers, FL78
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Property NameProperty
 Type
Area% of
Square
 Feet
Annualized
 Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Wildwood Hammock - NorthlandMOB1,201 0.03%$12.6 0.01%760,822Cape Coral-Fort Myers, FL78
Parkway Professional PlazaMOB40,918 1.04%$739.5 0.81%725,046Lakeland-Winter Haven, FL81
Mercy One Physicians ClinicPC17,318 0.44%$382.7 0.42%709,466Des Moines-West Des Moines, IA82
Novus ClinicSCH14,315 0.36%$296.3 0.32%702,219Akron, Oh83
UH Walden Health CenterPC11,000 0.28%$320.5 0.35%702,219Akron, Oh83
UW Health Clinic- PortagePC14,000 0.35%$325.1 0.35%680,796Madison, WI87
Daytona Medical OfficeMOB20,193 0.51%$391.3 0.43%668,921Deltona-Daytona Beach-Ormond Beach, FL90
Debary Professional PlazaMOB22,854 0.58%$185.6 0.20%668,921Deltona-Daytona Beach-Ormond Beach, FL90
Cypress Medical CenterMOB39,746 1.01%$371.7 0.41%647,610Wichita, KS93
Family Medicine EastPC16,581 0.42%$331.6 0.36% 647,610 Wichita, KS93
Grene Vision CenterPC18,681 0.47%$314.8 0.34% 647,610 Wichita, KS93
Perrysburg Medical Arts BuildingMOB25,930 0.66%$438.4 0.48% 646,604 Toledo, OH94
St. Vincent Mercy Medical Center, Inc.PC23,368 0.59%$319.9 0.35% 646,604 Toledo, OH94
Assurance - ToledoBSF13,290 0.34%$520.8 0.57% 646,604 Toledo, OH94
Granite CircleMOB17,164 0.43%$236.0 0.26% 646,604 Toledo, OH94
Bassin Center For Plastic Surgery-MelbournePC5,228 0.13%$299.9 0.33% 606,612 Palm Bay-Melbourne-Titusville, FL96
Penn State Health - Camp HillSC8,400 0.21%$173.0 0.19% 591,712 Harrisburg-Carlisle, PA98
Penn State Health - HarrisburgSC10,000 0.25%$206.0 0.22% 591,712 Harrisburg-Carlisle, PA98
Eynon Surgery CenterSCH6,500 0.16%$190.5 0.21% 567,559 Scranton--Wilkes-Barre, PA100
Riverview Medical CenterMOB26,199 0.66%$440.3 0.48% 567,559 Scranton--Wilkes-Barre, PA100
NEIMOB22,743 0.58%$409.4 0.45%567,559Scranton--Wilkes-Barre, PA100
NEIMOB15,768 0.40%$304.9 0.33%567,559Scranton--Wilkes-Barre, PA100
Grandview PlazaMOB20,000 0.51%$303.7 0.33%552,984Lancaster, PA102
Pinnacle HealthPC10,753 0.27%$241.2 0.26%552,984Lancaster, PA102
Manteca Medical Group BuildingPC10,564 0.27%$304.3 0.33%552,878Modesto, CA103
Everest Rehabilitation HospitalIRF38,817 0.98%$2,195.8 2.40%546,725Fayetteville-Springdale-Rogers, AR105
Treasure Coast Medical PavilionMOB55,844 1.41%$856.0 0.93%487,657Port St. Lucie, FL115
AMG Specialty Hospital - LafayetteMOB29,062 0.74%$— —%478,384Lafayette, LA116
Everest Rehabilitation HospitalIRF38,817 0.98%$2,246.6 2.45%475,367Killeen-Temple, TX118
Genesis Care - AshevilleSC10,850 0.27%$223.2 0.24%469,015Asheville, NC120
Genesis Care - WeavervilleSC10,696 0.27%$443.2 0.48%469,015Asheville, NC120
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Property NameProperty
 Type
Area% of
Square
 Feet
Annualized
 Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Martin Foot & Ankle ClinicPC27,100 0.69%$414.9 0.45%456,438York-Hanover, PA121
Affinity Health CenterMOB47,366 1.20%$506.7 0.55%401,574Canton-Massillon, OH137
Hills & Dales Professional CenterMOB27,920 0.71%$371.4 0.41%401,574Canton-Massillon, OH137
Prattville Town Center Medical Office BldgMOB13,319 0.34%$377.0 0.41%386,047Montgomery, AL142
Wellmont Bristol Urgent CareSC4,548 0.12%$76.2 0.08%307,614Kingsport-Bristol, TN-VA165
Bristol Pediatric AssociatesMOB10,804 0.27%$180.2 0.20%307,614Kingsport-Bristol, TN-VA165
Bluewater Orthopedics CenterMOB10,255 0.26%$215.6 0.24%286,973Crestview-Fort Walton Beach-Destin, FL171
Everest Rehabilitation HospitalIRF38,817 0.98%$2,246.6 2.45%286,184Longview, TX172
Londonderry CentreMOB21,115 0.53%$338.8 0.37%277,547Waco, TX176
Meridian Behavioral Health SystemsAIB132,430 3.35%$3,075.3 3.36%258,859Charleston, WV190
Gulf Coast Cancer Centers-FoleySC6,146 0.16%$169.6 0.19%231,767Daphne-Fairhope-Foley, AL200
Gulf Coast Cancer Centers- Gulf ShoresSC6,398 0.16%$131.8 0.14%231,767Daphne-Fairhope-Foley, AL200
Monroe Surgical HospitalSCH58,121 1.47%$2,354.5 2.57%207,104Monroe, LA219
Fresenius Ft. ValleySC4,920 0.12%$98.3 0.11%191,614Warner Robins, GA228
Tuscola Professional BuildingMOB25,500 0.65%$610.2 0.67%190,124Saginaw, MI229
Genesis Care - ReddingSC12,206 0.31%$587.5 0.64%182,155Redding, CA233
KedplasmaSC12,870 0.33%$272.1 0.30%171,415Burlington, NC251
Decatur Morgan Hospital Medical Office BuildingMOB35,933 0.91%$579.0 0.63%156,494Decatur, AL268
Provena Medical CenterMOB54,894 1.39%$660.8 0.72%107,502Kankakee, IL346
Parkside Family & Davita ClinicsMOB15,637 0.40%$215.5 0.24%98,331Victoria, TX361
Cub Lake SquareMOB49,059 1.24%$1,113.6 1.21%106,717Show Low, AZN/A
Cub Lake Square - Building BMOB— 0.00%$— —%106,717Show Low, AZN/A
Cub Lake Square - Building CMOB— 0.00%$— —%106,717Show Low, AZN/A
Emory HealthcareMOB61,301 1.55%$846.6 0.92%104,198LaGrange, GA-ALN/A
Emory Southern OrthopedicsMOB31,473 0.80%$688.7 0.75%104,198LaGrange, GA-ALN/A
Emory Southern OrthopedicsMOB2,972 0.08%$59.1 0.06%104,198LaGrange, GA-ALN/A
Emory HealthcareMOB5,600 0.14%$77.3 0.08%104,198LaGrange, GA-ALN/A
Marion Medical PlazaMOB27,246 0.69%$346.1 0.38%65,359Marion, OHN/A
Fresenius Gallipolis Dialysis CenterSC15,110 0.38%$159.3 0.17%54,673Point Pleasant, WV-OHN/A
Davita Etowah Dialysis CenterSC4,720 0.12%$67.4 0.07%53,276Athens, TNN/A
Fresenius Dialysis CenterMOB17,746 0.45%$347.3 0.38%52,624Corsicana, TXN/A
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Property NameProperty
 Type
Area% of
Square
 Feet
Annualized
 Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Davita DialysisMOB12,545 0.32%$447.4 0.49%51,591Pahrump, NVN/A
Arkansas Valley Surgery CenterMOB10,853 0.27%$257.3 0.28%48,939Cañon City, CON/A
Sanford West Behavioral FacilityBSF96,886 2.45%$1,287.0 1.40%45,014Grand Rapids, MNN/A
Wellmont Norton Urgent CareSC4,843 0.12%$56.8 0.06%39,817Big Stone Gap, VAN/A
Wellmont Associates ComplexMOB32,757 0.83%$353.0 0.39%39,817Big Stone Gap, VAN/A
Eyecare PartnersPC8,421 0.21%$134.3 0.15%37,729Centralia, ILN/A
Fremont Medical Office Building & Surgery CtrMOB13,050 0.33%$321.8 0.35%37,167Fremont, NEN/A
Gulf Coast Cancer Centers-BrewtonSC3,971 0.10%$109.6 0.12%36,757Atmore, ALN/A
Baylor Scott & White ClinicPC37,354 0.95%$485.8 0.53%35,805Brenham, TXN/A
Ottumwa Medical ClinicMOB68,895 1.74%$726.1 0.79%35,437Ottumwa, IAN/A
Ottumwa Medical ClinicMOB6,850 0.17%$111.2 0.12%35,437Ottumwa, IAN/A
Sanderling Dialysis CenterSC4,186 0.11%$295.1 0.32%27,743Crescent City, CAN/A
Russellville Medical PlazaMOB29,129 0.74%$158.9 0.17%County: 31,362 Rural - No CBSAN/A
Genesis Care - AndalusiaSC10,373 0.26%$394.2 0.43% County: 37,049 Rural - No CBSAN/A
Lexington Carilion ClinicPC15,820 0.40%$369.3 0.40%County: 22,573 Rural - No CBSAN/A
Dahlonega Medical MallMOB22,804 0.58%$280.8 0.31% County: 33,610 Rural - No CBSAN/A
Batesville Regional Medical CenterMOB9,263 0.23%$48.1 0.05% County: 34,192 Rural - No CBSAN/A
Tri Lakes BehavioralBSF58,400 1.48%$527.0 0.57%County: 34,192 Rural - No CBSAN/A
North Mississippi Health ServicesMOB17,629 0.45%$91.6 0.10%County: 35,252 Rural - No CBSAN/A
North Mississippi Health ServicesMOB27,743 0.70%$144.2 0.16% County: 35,252 Rural - No CBSAN/A
North Mississippi Health ServicesMOB18,074 0.46%$93.9 0.10%County: 35,252 Rural - No CBSAN/A
North Mississippi Health ServicesMOB9,890 0.25%$51.4 0.06%County: 35,252 Rural - No CBSAN/A
Genesis Care - PrincetonSC7,236 0.18%$198.5 0.22%County: 58,758 Rural - No CBSAN/A
Sanderling Dialysis CenterSC5,217 0.13%$270.7 0.30% County: 13,279 Rural - No CBSAN/A
North Mississippi Health ServicesMOB3,378 0.09%$17.6 0.02% City: 5,205; County: 35,252 Rural - No CBSAN/A
Rettig Family HealthcarePC12,000 0.30%$180.0 0.20%County: 23,437 Rural - No CBSAN/A
Wellmont Lebanon Urgent CareSC8,369 0.21%$104.6 0.11%County: 26,586 Rural - No CBSAN/A
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REPORTING DEFINITIONS
Acute Inpatient Behavioral Facilities (AIB)
Behavioral inpatient acute care facilities are healthcare facilities that provide a range of clinical services for mental health and/or substance abuse diagnoses on an inpatient basis. Behavioral health services provided may include assessment, treatment, individual medical evaluation and management (including medication management), individual and group therapy, behavioral health counseling, family therapy and psychological testing for recipients of all ages.

AFFO, Adjusted for Acquisitions
AFFO, Adjusted for Acquisitions, adjusts AFFO to show the impact of the real estate properties acquired in the period as if they had been acquired on the first day of the reporting period, using the expected returns and in-place leases at the time of the acquisition. The Company believes that AFFO, Adjusted for Acquisitions, is useful because it allows investors, analysts and Company management visibility into the impact on the Company's results of operations in future reporting periods resulting from its current period acquisitions.

Annualized Rent
Base rent for the current month multiplied by 12.

Behavioral Specialty Facilities (BSF)
Behavioral specialty facilities are healthcare facilities that provide a range of clinical services for mental health and/or substance abuse diagnoses. Behavioral health services provided may include assessment, treatment, individual medical evaluation and management (including medication management), individual and group therapy, behavioral health counseling, family therapy and psychological testing for recipients of all ages.

EBITDAre and Adjusted EBITDAre
The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of EBITDAre which is net income plus interest expense, income tax expense, and depreciation and amortization, plus losses or minus gains on the disposition of depreciable property, including losses/gains on change of control, plus impairment write-downs of depreciable property and of investments in unconsolidated affiliates caused by a decrease in value of depreciable property in the affiliate, plus or minus adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates and consolidated affiliates with non-controlling interest. The Company also presents Adjusted EBITDAre which is EBITDAre before non-cash stock-based compensation amortization.

We consider EBITDAre and Adjusted EBITDAre important measures because they provide additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt.

Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
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.
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REPORTING DEFINITIONS (continued)
The Company uses the NAREIT definition of FFO. FFO is an operating performance measure 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, gains and losses from change in control, 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, plus depreciation and amortization related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT also provides REITs with an option to exclude gains, losses and impairments of assets that are incidental to the main business of the REIT from the calculation of FFO. The Company has included AFFO which it has defined as FFO, excluding certain expenses related to closing costs of properties acquired accounted for as business combinations and mortgages funded, excluding straight-line rent and the amortization of stock-based compensation, and including or excluding other non-cash items from time to time. 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.

Inpatient Rehabilitation Facilities (IRF)
Inpatient rehabilitation facilities are free standing rehabilitation hospitals, or may be units within an acute care hospital, that provide intensive rehabilitation programs to patients.

Long-Term Acute Care Hospitals (LTACH)
Long-term acute care hospitals provide inpatient services for patients with complex medical conditions who require more sensitive care, monitoring or emergency support than that available in most skilled nursing facilities.

Medical Office Building (MOB)
Medical office buildings are buildings occupied by healthcare providers and may be located near hospitals or other facilities where healthcare services are rendered or in close proximity to a population base. Medical office buildings can be leased to physicians, physician practice groups, hospitals, healthcare systems or other healthcare providers.

Metropolitan Statistical Area (MSA or MISA)
MSAs or MISAs are geographical regions with relatively higher population densities at their core and have close economic ties throughout their area. MSAs and MISAs are defined by the Office of Management and Budget.

Net Operating Income (NOI)
NOI is a non-GAAP financial measure that is defined as net income or loss, computed in accordance with GAAP, generated from our total portfolio of properties and other investments before general and administrative expenses, depreciation and amortization expense, gains or loss on the sale of real estate properties or other investments, interest expense, and income tax expense. We believe that NOI provides an accurate measure of operating performance of our operating assets because NOI excludes certain items that are not associated with management of the properties. CHCT's use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing NOI.


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REPORTING DEFINITIONS (continued)
Physician Clinics (PC)
Physician clinics are freestanding healthcare facilities that are primarily devoted to the care of ambulatory patients, can be privately operated or publicly managed and funded, and typically provide primary healthcare needs of populations in local communities utilizing physicians and other healthcare providers.

Specialty Centers (SC)
Specialty centers include various types of centers which may, among others, include oncology centers, dialysis centers, urgent care centers, and blood plasma centers.

Surgical Centers and Hospitals (SCH)
Surgical centers and hospitals may include outpatient surgery centers where surgical procedures not requiring an overnight hospital stay are performed; as well as specialty hospitals that focus on providing care for certain conditions and performing certain procedures, such as cardiovascular and orthopedic surgery.

Total Capitalization
Debt plus stockholders' equity plus accumulated depreciation.
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DISCLAIMERS

FORWARD-LOOKING STATEMENTS
Certain statements made in this supplemental information package constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, our statements regarding anticipated market conditions are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as "believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” "outlook," "continue," "projects," “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, expectations, or intentions. 
 
Forward-looking statements reflect the views of our management regarding current expectations and projections about future events and are based on currently available information. These forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data, or methods which may be incorrect or imprecise and we may not be able to realize them. 
 
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this supplemental information package, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements. For a discussion of factors that could impact our future results, performance or transactions, see Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company’s other filings with the Securities and Exchange Commission from time to time.  
 

NON-GAAP FINANCIAL MEASURES 
This presentation includes EBITDAre, Adjusted EBITDAre, Adjusted EBITDAre Annualized, Net Operating Income (or NOI), Funds From Operations (or FFO), Adjusted Funds From Operations (or AFFO), and AFFO, Adjusted for Acquisitions, which are non-GAAP financial measures. For purposes of the Securities and Exchange Commission’s (“SEC”) Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets or statements of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this presentation, GAAP refers to generally accepted accounting principles in the United States of America. Our use of the non-GAAP financial measure terms herein may not be comparable to that of other real estate investment trusts. Pursuant to the requirements of Regulation G, we have provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. 

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