Community Healthcare Trust Sees Marginal AFFO Growth on Lower Funding Costs and Higher Occupancy
Community Healthcare Trust expects marginally higher Q4 2025 AFFO driven by lower funding costs, portfolio rotation and improved occupancy following strong returns since late 2025. Shares remain down year-over-year despite early 2026 momentum ahead of its February 17 earnings report.
1. Strong Start in 2026 but Shares Still Below Prior Year
Community Healthcare Trust shares have climbed more than 8% since the start of 2026, building on a 6% gain recorded between late November and year-end 2025. Despite this momentum, CHCT stock remains approximately 4% below its price one year ago. Investors point to recent acquisitions of three outpatient medical facilities totaling 120,000 square feet in Texas and Florida as a catalyst for near-term growth, while the sale of a noncore asset in Pennsylvania for $15 million in December helped strengthen the balance sheet.
2. Q4 2025 AFFO Outlook Underpinned by Financing and Portfolio Actions
Management has guided for a modest increase in adjusted funds from operations (AFFO) per share for the fourth quarter, projecting growth in the range of 1% to 2% year-over-year. This is expected to be driven by a 25 basis-point decline in average borrowing costs following a $200 million unsecured debt refinancing at a weighted average interest rate of 3.8%, as well as the completion of portfolio rotation initiatives that divested two lower-yielding assets and acquired three higher-yielding outpatient properties. Occupancy across the 200-property portfolio rose to 95% as of December 31, up from 93% at midyear, supporting rental revenue growth.
3. Q4 Earnings Release and Investor Call Details
Community Healthcare Trust will release fourth-quarter 2025 results after market close on Tuesday, February 17, 2026, with a conference call scheduled for 9:00 a.m. Central Time on February 18. Investors can access the call via domestic dial-in (1-888-347-1332), international line (1-412-902-4278) or Canada toll-free number (1-855-669-9657). A live webcast and subsequent replay will be available on the company’s Investor Relations website. As of September 30, 2025, CHCT held $1.2 billion in real estate investments across 200 outpatient healthcare facilities totaling 4.6 million square feet in 36 states.