EX-99.2 3 supplementalinfo2024q1.htm EX-99.2 Document


Exhibit 99.2                
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CHCT
LISTED
NYSE
                
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SUPPLEMENTAL INFORMATION
Q1 2024

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Community Healthcare Trust1Q 2024 | 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 2024 | Supplemental Information

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COMPANY SNAPSHOT
                                                        
March 31, 2024
Gross real estate investments (in thousands) (1)
$1,101,171 
Total properties197 
% Leased (2)
92.3 %
Total square feet owned4,418,834 
Weighted Average remaining lease term (years)6.9
Cash and cash equivalents and restricted cash (in thousands)$4,946 
Debt to Total Capitalization38.0 %
Weighted average interest rate per annum on Revolving Line of Credit7.1 %
Weighted average interest rate per annum on Term Loans4.4 %
Equity market cap (in millions)$735.5 
Quarterly dividend paid in the period (per share)$0.4575 
Quarter end stock price (per share)$26.55 
Dividend yield6.89 %
Common shares outstanding27,701,196 
___________
(1) Includes a portion of one property accounted for as a sales-type lease and two properties classified as held for sale.
(2) Excludes real estate assets held for sale.

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Community Healthcare Trust
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1Q 2024 | Supplemental Information

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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 H. Dupuy
Chairman of the
Board
Audit Committee
Chair
Compensation Committee
Chair
ESG Committee
Chair
Board
member
Board
member
EXECUTIVE MANAGEMENT TEAM
David H. DupuyWilliam G. Monroe IVLeigh Ann StachTimothy L. Meyer
Chief Executive Officer
and President
Executive Vice President
Chief Financial Officer
Executive Vice President
Chief Accounting Officer
Executive Vice President
Asset Management
COVERING ANALYSTS
A. Goldfarb - Piper SandlerM. Lewis - Truist Securities
J. Kammert - Evercore ISIR. Stevenson - Janney Capital Markets
W. Golladay - BairdB. Oxford - Colliers International Securities
PROFESSIONAL SERVICES
Independent Registered Public Accounting Firm Transfer Agent
BDO USA, P.C.Equiniti Trust Company, LLC
501 Commerce Street, Suite 1400Operations Center
Nashville, TN 37203
6201 15th Avenue
Brooklyn, NY 11219
1-800-937-5449


Community Healthcare Trust
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1Q 2024 | Supplemental Information

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FINANCIAL HIGHLIGHTS
Three Months Ended
1Q 20244Q 20233Q 20232Q 20231Q 2023
(Unaudited and in thousands, except per share data)
STATEMENTS OF OPERATIONS ITEMS
Revenues$29,333 $29,124 $28,735 $27,810 $27,176 
Net income (loss) (1)(2)(3)
$3,665 $4,567 $3,492 $6,577 $(6,922)
NOI$23,542 $23,526 $23,279 $23,024 $22,303 
EBITDAre
$18,989 $19,834 $19,664 $19,986 $6,123 
Adjusted EBITDAre
$21,413 $21,863 $21,562 $20,972 $20,469 
FFO (2)
$14,043 $14,914 $14,969 $15,870 $2,166 
AFFO$15,712 $16,071 $16,423 $16,037 $15,595 
Per Diluted Share:
Net income (loss) attributable to common shareholders $0.11 $0.15 $0.11 $0.24 $(0.32)
FFO$0.53 $0.57 $0.58 $0.62 $0.09 
AFFO$0.59 $0.61 $0.63 $0.63 $0.62 
___________
(1) Net loss for the first quarter of 2023 included accelerated amortization of deferred compensation upon the passing of our former CEO and President of approximately $11.8 million, or $0.47 per diluted common share and $0.46 FFO per diluted share.
(2) Net income for the second quarter of 2023 includes a $0.7 million net casualty gain recognized from insurance proceeds received related to one property that was vandalized, increasing FFO by $0.03 per diluted share.
(3) Net income for the third quarter of 2023 included accelerated amortization of lease intangibles on the two GenesisCare properties where the leases have been rejected of approximately $1.5 million, or $0.06 per diluted common share.
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Community Healthcare Trust
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1Q 2024 | Supplemental Information

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FINANCIAL HIGHLIGHTS (Continued)
As of
1Q 20244Q 20233Q 20232Q 20231Q 2023
(Unaudited and dollars in thousands)
BALANCE SHEET ITEMS
ASSETS
Total real estate properties$1,090,690 $1,050,247 $1,044,893 $986,948 $971,026 
Total assets$982,701 $945,412 $955,126 $900,466 $886,294 
CAPITALIZATION
Net debt$442,320 $403,256 $401,192 $368,127 $365,061 
Total capitalization$1,165,024 $1,117,322 $1,116,448 $1,055,221 $1,033,922 
Net debt/total capitalization38.0 %36.1 %35.9 %34.9 %35.3 %
Market valuation$735,467 $735,603 $809,760 $876,392 $961,617 
Enterprise value$1,172,841 $1,134,226 $1,206,019 $1,240,843 $1,322,053 
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Community Healthcare Trust
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CONSOLIDATED BALANCE SHEETS
As of
1Q 20244Q 20233Q 20232Q 20231Q 2023
ASSETS
(Unaudited; Dollars and shares in thousands, except per share data)
Real estate properties
Land and land improvements
$142,120 $136,532 $135,809 $127,433 $122,702 
Buildings, improvements, and lease intangibles
948,253 913,416 908,788 859,231 848,060 
Personal property
317 299 296 284 264 
Total real estate properties
1,090,690 1,050,247 1,044,893 986,948 971,026 
Less accumulated depreciation
(211,058)(200,810)(192,962)(181,769)(174,346)
Total real estate properties, net
879,632 849,437 851,931 805,179 796,680 
Cash and cash equivalents
3,805 3,491 3,885 2,627 3,666 
Restricted cash
1,141 1,142 1,048 1,049 959 
Real estate properties held for sale7,466 7,466 1,115 1,252 — 
Other assets, net
90,657 83,876 97,147 90,359 84,989 
Total assets
$982,701 $945,412 $955,126 $900,466 $886,294 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net
$442,320 $403,256 $401,192 $368,127 $365,061 
Accounts payable and accrued liabilities
11,775 12,032 15,446 10,605 10,478 
Other liabilities, net
16,960 16,868 16,194 16,409 16,240 
Total liabilities
471,055 432,156 432,832 395,141 391,779 
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
277 276 273 265 263 
Additional paid-in capital
690,491 688,156 676,716 657,057 648,384 
Cumulative net income
92,521 88,856 84,289 80,797 74,220 
Accumulated other comprehensive gain
21,490 16,417 29,038 23,085 15,684 
Cumulative dividends
(293,133)(280,449)(268,022)(255,879)(244,036)
Total stockholders’ equity
511,646 513,256 522,294 505,325 494,515 
Total liabilities and stockholders' equity
$982,701 $945,412 $955,126 $900,466 $886,294 
Community Healthcare Trust
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1Q 2024 | Supplemental Information

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CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
1Q 20244Q 20233Q 20232Q 20231Q 2023
(Unaudited; Dollars and shares in thousands, except per share data)
REVENUES
Rental income
$28,342 $28,100 $27,690 $26,764 $26,128 
Other operating interest
991 1,024 1,045 1,046 1,048 
29,333 29,124 28,735 27,810 27,176 
EXPENSES
Property operating
5,791 5,598 5,456 4,786 4,873 
        General and administrative (1) (2)
4,554 3,728 3,618 3,787 16,205 
Depreciation and amortization
10,262 10,248 11,208 9,219 9,018 
20,607 19,574 20,282 17,792 30,096 
OTHER INCOME (EXPENSE)
Impairment of real estate asset— — (102)— — 
Interest expense(5,062)(5,019)(4,641)(4,140)(3,992)
Deferred income tax expense— — (221)(50)(35)
Interest and other income, net36 749 25 
$(5,061)$(4,983)$(4,961)$(3,441)$(4,002)
NET INCOME (LOSS)$3,665 $4,567 $3,492 $6,577 $(6,922)
NET INCOME (LOSS) PER DILUTED COMMON SHARE
$0.11 $0.15 $0.11 $0.24 $(0.32)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
26,297 25,981 25,514 25,065 24,227 
DIVIDENDS DECLARED, PER COMMON SHARE, IN THE PERIOD
$0.4575 $0.4550 $0.4525 $0.4500 $0.4475 
                                      
(1) GENERAL AND ADMINISTRATIVE EXPENSES:
Non-cash vs. Cash:
     Non-cash (stock-based compensation)
53.2 %54.4 %52.5 %44.7 %57.8 %
     Cash
46.8 %45.6 %47.5 %55.3 %42.2 %
As a % of Revenue:
     Non-cash (stock-based compensation)
8.3 %6.9 %6.6 %5.9 %9.3 %
     Cash
7.3 %5.8 %6.0 %7.3 %6.8 %
(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).
Community Healthcare Trust
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RECONCILIATION OF NON-GAAP MEASURES
FUNDS FROM OPERATIONS (FFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
Three Months Ended
1Q 20244Q 20233Q 20232Q 20231Q 2023
(Unaudited; Dollars and shares in thousands, except per share data)
NET INCOME (LOSS)$3,665 $4,567 $3,492 $6,577 $(6,922)
Real estate depreciation and amortization10,378 10,347 11,375 9,293 9,088 
Impairment of real estate asset— — 102 — — 
Total adjustments10,378 10,347 11,477 9,293 9,088 
FFO (1)$14,043 $14,914 $14,969 $15,870 $2,166 
Straight-line rent(755)(872)(444)(819)(917)
Stock-based compensation2,424 2,029 1,898 1,692 2,547 
Accelerated amortization of stock-based compensation— — — — 11,799 
Net gain from insurance recovery on casualty loss— — — (706)— 
AFFO$15,712 $16,071 $16,423 $16,037 $15,595 
FFO PER COMMON SHARE (1)$0.53 $0.57 $0.58 $0.62 $0.09 
AFFO PER COMMON SHARE$0.59 $0.61 $0.63 $0.63 $0.62 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING26,707 26,346 26,025 25,650 25,298 
________________
(1) FFO for the second quarter of 2023 includes a $0.7 million net casualty gain from insurance proceeds received related to one property that was vandalized. The net gain increased FFO by $0.03 per diluted share for the three months ended June 30, 2023.
AFFO, ADJUSTED FOR ACQUISITIONS (1)
AFFO$15,712 $16,071 $16,423 $16,037 $15,595 
Revenue on Properties Acquired in the period (2)774 15 757 308 383 
Property operating expense adjustment (2)(71)(5)(149)(71)(104)
Interest expense adjustment (3)(205)(3)(165)(68)(65)
AFFO, ADJUSTED FOR ACQUISITIONS$16,210 $16,078 $16,866 $16,206 $15,809 
                                   
(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)$2,107 $2,029 $1,898 $1,692 $2,547 
Amortization Based on Legal Vesting Periods1,746 1,563 1,540 1,430 1,830 
Acceleration of Amortization$361 $466 $358 $262 $717 
                                   
(1) Excludes the accelerated amortization totaling $11.8 million recognized in the first quarter of 2023 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.
Community Healthcare Trust
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1Q 2024 | Supplemental Information

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RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)
NET OPERATING INCOME (NOI)
Three Months Ended
1Q 20244Q 20233Q 20232Q 20231Q 2023
(Unaudited; Dollars and shares in thousands, except per share data)
NET OPERATING INCOME
Net income (loss)$3,665 $4,567 $3,492 $6,577 $(6,922)
General and administrative4,554 3,728 3,618 3,787 4,406 
Accelerated amortization of stock-based compensation— — — — 11,799 
Depreciation and amortization10,262 10,248 11,208 9,219 9,018 
Impairment of real estate asset— — 102 — — 
Interest expense5,062 5,019 4,641 4,140 3,992 
Deferred Income tax expense— — 221 50 35 
Interest and other income, net(1)(36)(3)(749)(25)
NOI$23,542 $23,526 $23,279 $23,024 $22,303 
EBITDAre and ADJUSTED EBITDAre
EBITDAre
Net income (loss)$3,665 $4,567 $3,492 $6,577 $(6,922)
Interest expense5,062 5,019 4,641 4,140 3,992 
Depreciation and amortization10,262 10,248 11,208 9,219 9,018 
Deferred Income tax expense— — 221 50 35 
Impairment of real estate asset— — 102 — — 
EBITDAre
$18,989 $19,834 $19,664 $19,986 $6,123 
Non-cash stock-based compensation expense2,424 2,029 1,898 1,692 2,547 
Accelerated amortization of stock-based compensation— — — — 11,799 
Net gain from insurance recovery on casualty loss— — — (706)— 
ADJUSTED EBITDAre
$21,413 $21,863 $21,562 $20,972 $20,469 
ADJUSTED EBITDAre ANNUALIZED (1)
$85,652 

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



Community Healthcare Trust
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1Q 2024 | Supplemental Information

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WEIGHTED AVERAGE SHARES
Three Months Ended
1Q 20244Q 20233Q 20232Q 20231Q 2023
(Unaudited; Dollars and shares in thousands, except per share data)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding27,680 27,355 26,823 26,358 26,043 
Unvested restricted shares
(1,383)(1,374)(1,309)(1,293)(1,816)
Weighted average common shares outstanding - EPS
26,297 25,981 25,514 25,065 24,227 
Weighted average common shares outstanding - FFO Basic
26,297 25,981 25,514 25,065 24,227 
Dilutive potential common shares (from below) 410 365 511 585 1,071 
Weighted average common shares outstanding - FFO Diluted26,707 26,346 26,025 25,650 25,298 
TREASURY SHARE CALCULATION
Unrecognized deferred compensation-end of period$28,564 $26,776 $28,814 $24,780 $24,465 
Unrecognized deferred compensation-beginning of period$26,776 $28,814 $24,780 $24,465 $33,652 
Average unrecognized deferred compensation$27,670 $27,795 $26,797 $24,623 $29,059 
Average share price per share$26.36 $27.54 $33.56 $34.78 $39.01 
Treasury shares1,049 1,009 798 708 745 
Unvested restricted shares(1,383)(1,374)(1,309)(1,293)(1,816)
Unvested restricted share units(76)— — — — 
Treasury shares1,049 1,009 798 708 745 
Dilutive potential common shares410 365 511 585 1,071 
Community Healthcare Trust
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1Q 2024 | Supplemental Information

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DEBT SUMMARY
As of March 31, 2024
Principal
Balance
Stated
Rate
Hedged
Rate
(in thousands)
Revolving credit facility$89,000 7.06 %— 
Term loan A-375,000 4.29 %
Term loan A-4125,000 3.35 %
Term loan A-5150,000 5.36 %
Total Credit Facility439,000 
Secured mortgage loan4,788 4.98 %— 
Debt443,788 
Deferred Financing Costs, net(1,468)
Debt, net$442,320 

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Select CovenantsRequired1Q 2024
Leverage ratio≤ 60.0%39.1 %
Fixed charge coverage ratio≥ 1.50x4.2
Tangible net worth (in thousands)≥ $499,262$691,103
Secured indebtedness≤ 30.0%0.4 %
Minimum debt service coverage ratio≥ 2.04.7

Community Healthcare Trust
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1Q 2024 | Supplemental Information

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2024 PROPERTY ACQUISITIONS
PropertyMarketProperty
Type
Date
Acquired
% Leased at Acquisition
Purchase
 Price
(in thousands)
Square Feet
Hospital of SE Mass.New Bedford, MALTACH1/31/2024100.0 %$6,500 70,657 
Northbay Professional PavilionElkton, MAMOB3/25/202489.5 %4,500 19,656 
Sanford Health Bemidji 1611Bemidji, MNMOB3/29/2024100.0 %16,534 45,800 
Sanford Health Bemidji 1705Bemidji, MNMOB3/29/2024100.0 %6,666 28,900 
98.6 %$34,200 165,013 
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PORTFOLIO DIVERSIFICATION
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Property Type Annualized Rent (%)
Medical Office Building (MOB)39.9 %
Inpatient Rehabilitation Facilities (IRF)17.7 %
Acute Inpatient Behavioral (AIB)13.2 %
Specialty Centers (SC)10.5 %
Physician Clinics (PC)7.2 %
Behavioral Specialty Facilities (BSF)4.8 %
Surgical Centers and Hospitals (SCH)4.6 %
Long-term Acute Care Hospitals (LTACH)2.1 %
Total100.0 %

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StateAnnualized
Rent (%)
Texas (TX)15.5 %
Illinois (IL)11.2 %
Ohio (OH)10.4 %
Florida (FL)8.2 %
Pennsylvania (PA)5.8 %
All Others48.9 %
Total100.0 %



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TenantAnnualized
Rent (%)
Lifepoint Health11.1 %
US HealthVest7.6 %
All Others (less than 4%)81.3 %
Total100.0 %
            

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LEASE EXPIRATIONS
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Total Leased Sq. Ft.Annualized Rent
YearNumber of
Leases Expiring
Amount
(thousands)
Percent (%)
Amount ($)
(thousands)
Percent (%)
202452 243 6.0 %$5,086 4.9 %
202556 335 8.3 %8,979 8.6 %
202669 555 13.8 %11,901 11.4 %
202757 347 8.6 %7,337 7.1 %
202859 372 9.3 %7,529 7.2 %
202930 295 7.3 %7,597 7.3 %
203015 112 2.8 %3,194 3.1 %
203125 356 8.8 %9,625 9.3 %
203211 133 3.3 %1,882 1.8 %
203312 75 1.9 %1,561 1.5 %
Thereafter44 1,161 28.8 %38,479 37.0 %
Month-to-Month10 43 1.1 %789 0.8 %
Totals440 4,027 100.0 %$103,959 100.0 %
Total portfolio was approximately 92.3% leased in the aggregate, excluding real estate assets held for sale, at March 31, 2024 with lease expirations ranging from 2024 through 2039.

Community Healthcare Trust
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1Q 2024 | Supplemental Information

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PROPERTY LOCATIONS
                                                                            
Approximately 49% of our property revenues are in MSAs with populations over 1,000,000 and approximately 92% are in MSAs with populations over 100,000.
Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Lancaster MOBMOB10,646 0.24 %$335.6 0.32 %12,799,100 Los Angeles-Long Beach-Anaheim, CA2
Congress Medical Building 350MOB17,543 0.40 %$404.5 0.39 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Congress Medical Building 390MOB30,855 0.70 %$460.3 0.44 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Oak Lawn Medical PlazaMOB33,356 0.75 %$375.1 0.36 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Chicago Behavioral HospitalAIB85,000 1.92 %$2,182.5 2.10 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Future Diagnostics GroupSC8,876 0.20 %$390.9 0.38 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Gurnee Medical Office BuildingMOB22,968 0.52 %$239.6 0.23 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Joliet Oncology-Hematology AssociatesPC7,905 0.18 %$385.0 0.37 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Morris Cancer CenterMOB18,470 0.42 %$623.4 0.60 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
PresencePC14,863 0.34 %$310.8 0.30 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Presence Regional Cancer CenterSC44,888 1.02 %$1,453.1 1.40 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Skin MDPC13,565 0.31 %$512.2 0.49 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
US HealthVest - LakeAIB83,658 1.89 %$2,964.5 2.85 %9,262,825 Chicago-Naperville-Elgin, IL-IN3
Texas Rehabilitation Hospital of Fort Worth, LLCIRF39,761 0.90 %$2,028.0 1.95 %8,100,037 Dallas-Fort Worth-Arlington, TX4
Bayside Medical CenterMOB50,593 1.14 %$1,104.1 1.06 %7,510,253 Houston-Pasadena-The Woodlands, TX5
Clear Lake Institute for RehabilitationIRF55,646 1.26 %$2,986.0 2.87 %7,510,253 Houston-Pasadena-The Woodlands, TX5
Gessner Road MOBMOB14,360 0.32 %$356.8 0.34 %7,510,253 Houston-Pasadena-The Woodlands, TX5
Northwest Surgery CenterSCH11,200 0.25 %$— — %7,510,253 Houston-Pasadena-The Woodlands, TX5
Clinton Towers MOBMOB37,344 0.85 %$966.8 0.93 %6,304,975 Washington-Arlington-Alexandria, DC-VA-MD-WV7
2301 Research BoulevardMOB93,079 2.11 %$2,038.5 1.96 %6,304,975 Washington-Arlington-Alexandria, DC-VA-MD-WV7
Haddon Hill Professional CenterMOB25,118 0.57 %$278.2 0.27 %6,246,160 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD8
Hopebridge - WestlakeBSF15,057 0.34 %$232.7 0.22 %6,246,160 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD8
Continuum Wellness CenterMOB8,227 0.19 %$161.0 0.15 %5,070,110 Phoenix-Mesa-Chandler, AZ10
Desert Endoscopy CenterSCH11,722 0.27 %$— — %5,070,110 Phoenix-Mesa-Chandler, AZ10
Mountain View Surgery CenterSCH14,046 0.32 %$519.7 0.50 %5,070,110 Phoenix-Mesa-Chandler, AZ10
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Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Associated Surgical Center of DearbornSCH12,400 0.28 %$361.3 0.35 %4,342,304 Detroit-Warren-Dearborn, MI14
Berry Surgical CenterSCH27,217 0.62 %$627.7 0.60 %4,342,304 Detroit-Warren-Dearborn, MI14
Smokey Point Behavioral HospitalAIB70,100 1.59 %$2,772.8 2.67 %4,044,837 Seattle-Tacoma-Bellevue, WA15
Sanford Health Bemidji 1611MOB45,800 1.04 %$1,523.5 1.47 %3,712,020 Minneapolis-St. Paul-Bloomington, MN-WI16
Sanford Health Bemidji 1705MOB28,900 0.65 %$624.3 0.60 %3,712,020 Minneapolis-St. Paul-Bloomington, MN-WI16
Bay Area Physicians Surgery CenterMOB17,943 0.41 %$290.1 0.28 %3,342,963 Tampa-St. Petersburg-Clearwater, FL17
Sanderling DialysisSC11,300 0.26 %$427.0 0.41 %3,269,973 San Diego-Chula Vista-Carlsbad, CA18
Liberty DialysisSC8,450 0.19 %$275.9 0.27 %3,005,131 Denver-Aurora-Centennial, CO19
Waters Edge MedicalMOB23,388 0.53 %$392.0 0.38 %2,834,316 Baltimore-Columbia-Towson, MD20
Northbay Professional PavilionMOB19,656 0.44 %$479.0 0.46 %2,834,316 Baltimore-Columbia-Towson, MD20
Righttime Medical CareSC6,236 0.14 %$347.4 0.33 %2,834,316 Baltimore-Columbia-Towson, MD20
Bassin Center For Plastic-Surgery-VillagesPC2,894 0.07 %$170.2 0.16 %2,817,933 Orlando-Kissimmee-Sanford, FL21
Bassin Center For Plastic Surgery-OrlandoPC2,420 0.05 %$142.3 0.14 %2,817,933 Orlando-Kissimmee-Sanford, FL21
Kissimmee Physicians ClinicPC4,902 0.11 %$110.3 0.11 %2,817,933 Orlando-Kissimmee-Sanford, FL21
Orthopaedic Associates of OsceolaPC15,167 0.34 %$357.6 0.34 %2,817,933 Orlando-Kissimmee-Sanford, FL21
Medical Village at WintergardenMOB21,532 0.49 %$606.9 0.58 %2,817,933 Orlando-Kissimmee-Sanford, FL21
Eyecare PartnersPC6,487 0.15 %$— — %2,796,999 St. Louis, MO-IL23
Eyecare PartnersPC5,560 0.13 %$52.8 0.05 %2,796,999 St. Louis, MO-IL23
Eyecare PartnersSCH16,608 0.38 %$310.6 0.30 %2,796,999 St. Louis, MO-IL23
Eyecare PartnersPC6,311 0.14 %$49.5 0.05 %2,796,999 St. Louis, MO-IL23
Baptist HealthPC13,500 0.31 %$403.1 0.39 %2,703,999 San Antonio-New Braunfels, TX24
San Antonio Head & Neck Surgical AssociatesPC6,500 0.15 %$187.9 0.18 %2,703,999 San Antonio-New Braunfels, TX24
JDH Professional BuildingMOB12,376 0.28 %$261.9 0.25 %2,703,999 San Antonio-New Braunfels, TX24
Butler Medical CenterMOB10,116 0.23 %$273.3 0.26 %2,422,725 Pittsburgh, PA27
The Heart & Vascular CenterMOB15,878 0.36 %$315.5 0.30 %2,422,725 Pittsburgh, PA27
Forefront Dermatology BuildingMOB15,650 0.35 %$342.0 0.33 %2,422,725 Pittsburgh, PA27
Greentree Primary CareMOB34,077 0.77 %$885.6 0.85 %2,422,725 Pittsburgh, PA27
Vascular Access Centers of Southern NevadaSC4,800 0.11 %$97.9 0.09 %2,336,573 Las Vegas-Henderson-North Las Vegas, NV29
Assurance Health SystemBSF14,381 0.33 %$555.4 0.53 %2,271,479 Cincinnati, OH-KY-IN30
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Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Cavalier Medical & Dialysis CenterMOB17,614 0.40 %$218.7 0.21 %2,271,479 Cincinnati, OH-KY-IN30
51 Cavalier BlvdMOB17,935 0.41 %$182.8 0.18 %2,271,479 Cincinnati, OH-KY-IN30
Anderson Ferry PlazaMOB43,671 0.99 %$497.6 0.48 %2,271,479 Cincinnati, OH-KY-IN30
Liberty Rehabilitation HospitalIRF37,720 0.85 %$2,444.9 2.35 %2,271,479 Cincinnati, OH-KY-IN30
Davita Commercial WaySC4,980 0.11 %$— — %2,271,479 Cincinnati, OH-KY-IN30
Fresenius Florence Dialysis CenterMOB17,845 0.40 %$254.5 0.24 %2,271,479 Cincinnati, OH-KY-IN30
Prairie Star Medical Facility IMOB24,724 0.56 %$628.5 0.60 %2,221,343 Kansas City, MO-KS31
Prairie Star Medical Facility IIMOB24,840 0.56 %$87.9 0.08 %2,221,343 Kansas City, MO-KS31
Court Street Surgery CenterSCH7,787 0.18 %$80.2 0.08 %2,180,271 Columbus, OH32
Ravines EdgeMOB16,751 0.38 %$263.9 0.25 %2,180,271 Columbus, OH32
Hopebridge - ColumbusBSF13,969 0.32 %$173.0 0.17 %2,180,271 Columbus, OH32
Sedalia Medical CenterMOB19,324 0.44 %$295.0 0.28 %2,180,271 Columbus, OH32
Brook Park Medical BuildingMOB18,444 0.42 %$283.2 0.27 %2,158,932 Cleveland, OH33
Assurance - HudsonBSF13,290 0.30 %$570.8 0.55 %2,158,932 Cleveland, OH33
Smith RoadMOB16,802 0.38 %$318.3 0.31 %2,158,932 Cleveland, OH33
Rockside Medical CenterMOB55,316 1.25 %$1,023.1 0.98 %2,158,932 Cleveland, OH33
Assurance Health, LLCBSF10,200 0.23 %$372.9 0.36 %2,138,468 Indianapolis-Carmel-Greenwood, IN34
Assurance Health SystemBSF13,722 0.31 %$510.6 0.49 %2,138,468 Indianapolis-Carmel-Greenwood, IN34
Kindred Hospital Indianapolis NorthLTACH37,270 0.84 %$1,566.9 1.51 %2,138,468 Indianapolis-Carmel-Greenwood, IN34
Virginia Orthopaedic & Spine SpecialistsPC8,445 0.19 %$153.1 0.15 %1,787,169 Virginia Beach-Chesapeake-Norfolk, VA-NC37
Hospital of SE Mass.LTACH70,657 1.60 %$633.8 0.61 %1,677,803 Providence-Warwick, RI-MA39
Warwick Oncology CenterSC10,236 0.23 %$393.5 0.38 %1,677,803 Providence-Warwick, RI-MA39
South County HospitalPC13,268 0.30 %$317.5 0.31 %1,677,803 Providence-Warwick, RI-MA39
Ortho Rhode Island - WarwickPC7,340 0.17 %$217.0 0.21 %1,677,803 Providence-Warwick, RI-MA39
Mercy Rehabilitation HospitalIRF39,637 0.90 %$2,028.0 1.95 %1,477,926 Oklahoma City, OK42
Memphis CenterMOB11,669 0.26 %$232.3 0.22 %1,335,674 Memphis, TN-MS-AR45
Sanderling DialysisSC10,133 0.23 %$552.4 0.53 %1,335,674 Memphis, TN-MS-AR45
Gardendale MOBMOB12,956 0.29 %$325.7 0.31 %1,184,290 Birmingham, AL47
Sterling Medical CenterMOB28,685 0.65 %$520.8 0.50 %1,155,604 Buffalo-Cheektowaga, NY50
GlastonburyMOB49,593 1.12 %$673.3 0.65 %1,151,543 Hartford-West Hartford-East Hartford, CT51
Los Alamos Professional PlazaMOB43,395 0.98 %$563.2 0.54 %898,471 McAllen-Edinburg-Mission, TX65
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Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
El Paso Rehabilitation HospitalIRF38,000 0.86 %$2,138.5 2.06 %873,331 El Paso, TX68
UMass Memorial Health Cancer CenterSC20,046 0.45 %$861.4 0.83 %866,866 Worcester, MA69
Worcester BehavioralAIB81,972 1.86 %$2,690.9 2.59 %866,866 Worcester, MA69
Columbia Gastroenterology Surgery CenterMOB17,016 0.39 %$344.1 0.33 %858,302 Columbia, SC70
Cape Coral Suite 3SC12,130 0.27 %$450.4 0.43 %834,573 Cape Coral-Fort Myers, FL72
Cape Coral Suite 3AMOB2,023 0.05 %$39.0 0.04 %834,573 Cape Coral-Fort Myers, FL72
Cape Coral Suite 5 & 6MOB6,379 0.14 %$98.1 0.09 %834,573 Cape Coral-Fort Myers, FL72
Colonial Blvd OfficeSC46,356 1.05 %$— — %834,573 Cape Coral-Fort Myers, FL72
Corporate Office 3660MOB22,104 0.50 %$620.5 0.60 %834,573 Cape Coral-Fort Myers, FL72
Corporate Annex BuildingMOB16,000 0.36 %$310.1 0.30 %834,573 Cape Coral-Fort Myers, FL72
Genesis Care - Bonita SpringsSC4,445 0.10 %$289.0 0.28 %834,573 Cape Coral-Fort Myers, FL72
Wildwood Hammock RPET FacilitySC10,832 0.25 %$429.1 0.41 %834,573 Cape Coral-Fort Myers, FL72
Wildwood Hammock - Diagnostic ImagingSC9,376 0.21 %$405.6 0.39 %834,573 Cape Coral-Fort Myers, FL72
Wildwood Hammock - NorthlandMOB1,201 0.03 %$13.2 0.01 %834,573 Cape Coral-Fort Myers, FL72
Eye Health of America 4101MOB43,322 0.98 %$1,005.0 0.97 %834,573 Cape Coral-Fort Myers, FL72
Eye Health of America 2665MOB3,200 0.07 %$54.7 0.05 %834,573 Cape Coral-Fort Myers, FL72
Eye Health of America 1320MOB6,757 0.15 %$79.7 0.08 %834,573 Cape Coral-Fort Myers, FL72
Parkway Professional PlazaMOB41,909 0.95 %$986.5 0.95 %818,330 Lakeland-Winter Haven, FL75
Davita Turner RoadSC18,125 0.41 %$358.2 0.34 %814,363 Dayton-Kettering-Beavercreek, OH76
Davita Springboro PikeSC10,510 0.24 %$185.6 0.18 %814,363 Dayton-Kettering-Beavercreek, OH76
Davita Business Center CourtSC12,988 0.29 %$233.0 0.22 %814,363 Dayton-Kettering-Beavercreek, OH76
Mercy One Physicians ClinicPC17,318 0.39 %$390.4 0.38 %737,164 Des Moines-West Des Moines, IA81
Daytona Medical OfficeMOB20,193 0.46 %$373.9 0.36 %721,796 Deltona-Daytona Beach-Ormond Beach, FL83
Debary Professional PlazaMOB21,874 0.50 %$274.1 0.26 %721,796 Deltona-Daytona Beach-Ormond Beach, FL83
Novus ClinicSCH14,315 0.32 %$300.7 0.29 %698,398 Akron, Oh85
UH Walden Health CenterPC11,000 0.25 %$— — %698,398 Akron, Oh85
UW Health Clinic- PortagePC14,000 0.32 %$325.1 0.31 %694,345 Madison, WI87
Cypress Medical CenterMOB39,746 0.90 %$382.0 0.37 %652,939 Wichita, KS90
Family Medicine EastPC16,581 0.38 %$331.6 0.32 %652,939 Wichita, KS90
Grene Vision CenterPC18,681 0.42 %$— — %652,939 Wichita, KS90
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Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Bassin Center For Plastic Surgery-MelbournePC5,228 0.12 %$307.4 0.30 %643,979 Palm Bay-Melbourne-Titusville, FL91
Penn State Health - Camp HillSC8,400 0.19 %$178.2 0.17 %606,055 Harrisburg-Carlisle, PA95
Penn State Health - HarrisburgSC10,000 0.23 %$195.0 0.19 %606,055 Harrisburg-Carlisle, PA95
Assurance - ToledoBSF13,290 0.30 %$536.4 0.52 %600,141 Toledo, OH97
Perrysburg Medical Arts BuildingMOB25,930 0.59 %$443.4 0.43 %600,141 Toledo, OH97
St. Vincent Mercy Medical Center, Inc.PC23,368 0.53 %$326.2 0.31 %600,141 Toledo, OH97
Granite CircleMOB17,164 0.39 %$237.7 0.23 %600,141 Toledo, OH97
Mercy Rehabilitation Hospital - Northwest ArkansasIRF38,817 0.88 %$2,228.7 2.14 %590,337 Fayetteville-Springdale-Rogers, AR98
Eynon Surgery CenterSCH6,500 0.15 %$183.8 0.18 %569,413 Scranton--Wilkes-Barre, PA100
Riverview Medical CenterMOB26,199 0.59 %$450.8 0.43 %569,413 Scranton--Wilkes-Barre, PA100
Northeast Eye InstituteMOB22,743 0.51 %$409.4 0.39 %569,413 Scranton--Wilkes-Barre, PA100
Northeast Eye InstituteMOB15,768 0.36 %$304.9 0.29 %569,413 Scranton--Wilkes-Barre, PA100
Cardiology Associates of Greater WaterburyPC16,793 0.38 %$323.3 0.31 %568,158 New Haven, CT101
Grandview PlazaMOB20,000 0.45 %$310.3 0.30 %558,589 Lancaster, PA104
Pinnacle HealthPC10,753 0.24 %$246.0 0.24 %558,589 Lancaster, PA104
Manteca Medical Group BuildingPC10,564 0.24 %$306.1 0.29 %551,430 Modesto, CA105
Treasure Coast Medical PavilionMOB55,844 1.26 %$879.4 0.85 %536,901 Port St. Lucie, FL106
Gulf Coast Cancer Centers-BrewtonSC3,971 0.09 %$— — %530,090 Pensacola-Ferry Pass-Brent, FL107
Temple Rehabilitation HospitalIRF38,817 0.88 %$2,280.3 2.19 %501,333 Killeen-Temple, TX110
Martin Foot & Ankle ClinicPC27,100 0.61 %$423.3 0.41 %464,640 York-Hanover, PA116
UPMC Specialty CareMOB25,982 0.59 %$453.4 0.44 %425,969 Youngstown-Warren, OH128
Biltmore Medical OfficeSC10,850 0.25 %$— — %417,202 Asheville, NC131
Genesis Care - WeavervilleSC10,696 0.24 %$456.3 0.44 %417,202 Asheville, NC131
Behavioral Hospital of LafayetteMOB31,650 0.72 %$1,360.9 1.31 %414,288 Lafayette, LA132
Affinity Health CenterMOB47,366 1.07 %$506.7 0.49 %399,474 Canton-Massillon, OH138
Hills & Dales Professional CenterMOB27,920 0.63 %$356.3 0.34 %399,474 Canton-Massillon, OH138
Prattville Town Center Medical Office BldgMOB13,319 0.30 %$385.0 0.37 %385,480 Montgomery, AL143
Bristol Pediatric AssociatesMOB10,804 0.24 %$183.5 0.18 %313,025 Kingsport-Bristol, TN-VA167
Wellmont Bristol Urgent CareSC4,548 0.10 %$76.2 0.07 %313,025 Kingsport-Bristol, TN-VA167
Wellmont Norton Urgent CareSC4,843 0.11 %$57.9 0.06 %313,025 Kingsport-Bristol, TN-VA167
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Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Norton Medical PlazaMOB32,757 0.74 %$359.1 0.35 %313,025 Kingsport-Bristol, TN-VA167
Londonderry CentreMOB21,115 0.48 %$286.9 0.28 %304,865 Waco, TX169
Westlake Medical OfficeMOB14,100 0.32 %$252.9 0.24 %304,865 Waco, TX169
Bluewater Orthopedics CenterMOB10,255 0.23 %$218.2 0.21 %304,818 Crestview-Fort Walton Beach-Destin, FL170
Longview Rehabilitation HospitalIRF38,817 0.88 %$2,280.3 2.19 %293,498 Longview, TX173
Gulf Coast Cancer Centers-FoleySC6,146 0.14 %$172.2 0.17 %253,507 Daphne-Fairhope-Foley, AL194
Gulf Coast Cancer Centers- Gulf ShoresSC6,398 0.14 %$134.4 0.13 %253,507 Daphne-Fairhope-Foley, AL194
Monroe Surgical HospitalSCH58,121 1.32 %$2,413.3 2.32 %221,885 Monroe, LA214
Meridian Behavioral Health SystemsAIB132,430 3.00 %$3,136.8 3.02 %203,164 Charleston, WV228
Fresenius Ft. ValleySC4,920 0.11 %$83.6 0.08 %200,779 Warner Robins, GA232
Tuscola Professional BuildingMOB25,500 0.58 %$610.2 0.59 %187,782 Saginaw, MI239
Redding Oncology CenterSC12,206 0.28 %$607.0 0.58 %180,366 Redding, CA247
KedplasmaSC12,870 0.29 %$272.1 0.26 %179,165 Burlington, NC249
Decatur Morgan Hospital Medical Office BuildingMOB35,933 0.81 %$583.0 0.56 %158,635 Decatur, AL271
Provena Medical CenterMOB54,894 1.24 %$775.6 0.75 %105,940 Kankakee, IL351
Parkside Family & Davita ClinicsMOB15,637 0.35 %$216.8 0.21 %98,808 Victoria, TX366
Cub Lake SquareMOB49,059 1.11 %$1,127.3 1.08 %109,175 Show Low, AZn/a
Cub Lake Square - Building BMOB— — %$— — %109,175 Show Low, AZn/a
Cub Lake Square - Building CMOB— — %$— — %109,175 Show Low, AZn/a
Emory HealthcareMOB61,301 1.39 %$897.9 0.86 %104,821 LaGrange, GA-ALn/a
Emory Southern OrthopedicsMOB31,473 0.71 %$570.4 0.55 %104,821 LaGrange, GA-ALn/a
Emory Southern OrthopedicsMOB2,972 0.07 %$61.5 0.06 %104,821 LaGrange, GA-ALn/a
Emory HealthcareMOB5,600 0.13 %$82.0 0.08 %104,821 LaGrange, GA-ALn/a
Nesbitt PlaceMOB56,003 1.27 %$1,105.5 1.06 %104,821 Lawrence County, PAn/a
Davita Etowah Dialysis CenterSC4,720 0.11 %$68.8 0.07 %69,369 Athens, TNn/a
Marion Medical PlazaMOB27,246 0.62 %$346.9 0.33 %64,851 Marion, OHn/a
Davita DialysisMOB12,545 0.28 %$457.8 0.44 %55,720 Pahrump, NVn/a
Fresenius Dialysis CenterMOB17,746 0.40 %$355.7 0.34 %55,635 Corsicana, TXn/a
Arkansas Valley Surgery CenterMOB10,853 0.25 %$271.0 0.26 %50,318 Cañon City, COn/a
Sanford West Behavioral FacilityBSF96,886 2.19 %$1,338.5 1.29 %45,365 Grand Rapids, MNn/a
Fremont Medical Office Building & Surgery CtrMOB13,050 0.30 %$328.2 0.32 %37,187 Fremont, NEn/a
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Property NameProperty TypeArea% of Square Feet Annualized
Rent ($000's)
% of Annualized
 Rent
PopulationMSA/MISARank
Baylor Scott & White ClinicPC37,354 0.85 %$490.7 0.47 %37,007 Brenham, TXn/a
Eyecare PartnersPC8,421 0.19 %$134.3 0.13 %36,673 Centralia, ILn/a
Ottumwa Medical ClinicMOB68,895 1.56 %$755.8 0.73 %35,166 Ottumwa, IAn/a
Ottumwa Medical ClinicMOB6,850 0.16 %$92.5 0.09 %35,166 Ottumwa, IAn/a
Fresenius Gallipolis Dialysis CenterSC15,110 0.34 %$157.9 0.15 %28,986 Gallipolis, OHn/a
Sanderling Dialysis CenterSC4,186 0.09 %$303.9 0.29 %26,589 Crescent City, CAn/a
Andalusia Medical PlazaSC10,373 0.23 %$407.0 0.39 %County: 37,049 Rural - No CBSAn/a
Russellville Medical PlazaMOB29,129 0.66 %$163.5 0.16 %County: 31,362 Rural - No CBSAn/a
Batesville Regional Medical CenterMOB9,263 0.21 %$49.5 0.05 %County: 34,192 Rural - No CBSAn/a
Tri Lakes BehavioralBSF58,400 1.32 %$696.0 0.67 %County: 34,192 Rural - No CBSAn/a
Dahlonega Medical MallMOB22,804 0.52 %$400.2 0.39 %County: 33,610 Rural - No CBSAn/a
Lexington Carilion ClinicPC15,820 0.36 %$376.7 0.36 %County: 22,573 Rural - No CBSAn/a
North Mississippi Health ServicesMOB17,629 0.40 %$94.3 0.09 %County: 35,252 Rural - No CBSAn/a
North Mississippi Health ServicesMOB27,743 0.63 %$148.4 0.14 %County: 35,252 Rural - No CBSAn/a
North Mississippi Health ServicesMOB18,074 0.41 %$96.7 0.09 %County: 35,252 Rural - No CBSAn/a
North Mississippi Health ServicesMOB9,890 0.22 %$52.9 0.05 %County: 35,252 Rural - No CBSAn/a
North Mississippi Health ServicesMOB3,378 0.08 %$18.1 0.02 %County: 35,252 Rural - No CBSAn/a
Princeton Cancer CenterSC7,236 0.16 %$205.1 0.20 %County: 58,758 Rural - No CBSAn/a
Rettig Family HealthcarePC12,000 0.27 %$180.0 0.17 %County: 23,437 Rural - No CBSAn/a
Sanderling Dialysis CenterSC5,217 0.12 %$278.9 0.27 %County: 13,279 Rural - No CBSAn/a
Wellmont Lebanon Urgent CareSC8,369 0.19 %$104.6 0.10 %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.
Community Healthcare Trust
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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, 2023 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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