Welcome to Community Healthcare Trust Incorporated 2026 First Quarter Earnings Release Conference Call. On the call today, the company will discuss its 2026 first quarter financial results. It will also discuss progress made in various aspects of its business. Following the remarks, the phone lines will be opened for a question and answer session. The company's earnings release was distributed last evening and has also been posted on its website chct.reit. The company wants to emphasize that some of the information that may be discussed on this call will be based on information as of today, 05/06/2026, and may contain forward-looking statements that involve risks and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the company's disclosures regarding forward-looking statements in its earnings release as well as its risk factors and MD&A in its SEC filings. The company undertakes no obligation to update forward-looking statements whether as a result of new information, future developments, or otherwise, except as may be required by law. During this call, the company will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in its earnings release, which is posted on its website. Call participants are advised that this conference call is being recorded for playback purposes. An archive of the call will be made available on the company's Investor Relations website for approximately 30 days. It is the property of the company. This call may not be recorded or otherwise reproduced or distributed without the company's prior written permission. Now I would like to turn the call over to David H. Dupuy, CEO of Community Healthcare Trust Incorporated.

Thank you very much. Good morning, everyone, and thank you for joining us today for the 2026 first quarter conference call. On the call with me today is William G. Monroe, our Chief Financial Officer, Leanne Stack, our Chief Accounting Officer, and Mark Kearns, our Senior Vice President of Asset Management. Our earnings announcement and supplemental data report were released last night and furnished on Form 8-K along with our quarterly report on Form 10-Q. In addition, an updated investor presentation was posted to our website last night. During the first quarter, the behavioral hospital operator, a tenant in six of the company's properties, paid rent of approximately $300 thousand, an increase of $100 thousand over last quarter. On 07/17/2025, this tenant signed a letter of intent for the sale of the operations of all six of its hospitals to an experienced behavioral health care operator and is under exclusivity with that buyer. The buyer is finalizing legal and business due diligence and has entered the drafting phase of the definitive purchase documents, including new leases on the six hospitals owned by the company. We continue to maintain frequent, productive communication with the buyer's team to advance the closing process. While the transaction is progressing, we cannot provide specific timing or certainty that it will close. However, we remain committed to providing further updates as the process moves forward. We had a busy first quarter from both an operations and a capital recycling perspective and continue to be selective from an acquisition standpoint. Our occupancy decreased from 90.6% to 89.8% during the quarter due to lease terminations. However, our leasing team is very busy with renewals and new leasing activity and we expect leased occupancy to grow next quarter. Our weighted average lease term increased slightly from 7.0 to 7.1 years, and our asset management team continues to do a great job serving our tenants while focusing on property operating costs. We have three properties that are undergoing redevelopment or significant renovations with long-term tenants in place once the redevelopment or renovations are complete. The largest of these projects, a behavioral healthcare facility, received its certificate of occupancy in March. Due to health care licensure requirements, we expect this property to commence its lease and contribute NOI during 2026. During the first quarter, we acquired an inpatient rehabilitation facility after completion of construction for a purchase price of $28.5 million. We entered into a new lease with a lease expiration in 2044 and an anticipated annual return of approximately 9.3%. We also have signed definitive purchase and sale agreements for four properties to be acquired after completion and occupancy for an aggregate expected investment of $99 million. The expected return on these investments should range from 9.1% to 9.75%. We expect to close on two of these properties in 2026 and the remaining two in 2027. In February, we sold one building in Fort Myers, Florida and received net proceeds of approximately $5.2 million, resulting in a small loss on the property sale. We also received net proceeds of approximately $700 thousand from the disposition of a property in 2025. We did not issue any shares under our ATM last quarter. However, we continue to evaluate capital recycling opportunities and we would anticipate having sufficient capital from selected asset sales, coupled with our revolver availability, to fund near-term acquisitions. Going forward, we will evaluate the best uses of our capital, all while maintaining modest leverage levels. To wrap up, we declared our first quarter dividend and raised it to $0.48 per common share. This equates to an annualized dividend of $1.92 per share, and we are proud to have raised our dividend every quarter since our IPO. That takes care of the items I wanted to cover, so I will hand things off to Bill to discuss the numbers.

Thank you, Dave. I will now provide more details on our first quarter financial performance. I am pleased to report total revenue grew from $30.1 million in 2025 to $31.5 million in 2026, representing 4.8% annual growth over the same period last year. On a quarter-over-quarter basis, total revenue grew 1.9%, primarily from higher rental income from our recent acquisitions and higher property operating expense recoveries, partially offset by recent capital recycling dispositions and net leasing activity. Moving to expenses, property operating expenses increased by approximately $360 thousand quarter over quarter to $6.4 million for 2026. This increase was a result of seasonally higher snow plow and utility expense at several properties that we typically see in January and February in particular. Total general and administrative expense was $5.1 million in 2026, which was approximately $330 thousand higher quarter over quarter, primarily as a result of higher noncash amortization of deferred compensation and our typical first-quarter adjustments due to the timing of annual employee salary increases, employer HSA and 401(k) contributions, and employer tax payments. On a year-over-year basis, G&A did not increase from the same $5.1 million in the first quarter 2025. Interest expense decreased by $160 thousand quarter over quarter to $6.8 million in 2026 due to two fewer days in the first quarter and slightly lower floating rates on our revolving credit facility. I will note that we expect our second quarter interest expense to be higher, however, based on an additional day in the second quarter, a full quarter of our current revolver balance which includes net borrowings from our inpatient rehabilitation facility acquisition in February, and the expiration in late March of $75 million of interest rate hedges. Moving to funds from operations, FFO in 2026 was $13.4 million, a 5.8% increase year over year compared to the $12.7 million of FFO in 2025. On a diluted common share basis, FFO increased $0.02 year over year from $0.47 in 2025 to $0.49 in 2026, and remained the same quarter over quarter from the $0.49 of FFO in 2025. Adjusted funds from operations, or AFFO, which adjusts for straight-line rents and stock-based compensation, totaled $15.4 million in 2026, a 4.1% increase year over year compared to the $14.7 million of AFFO in 2025. AFFO on a diluted common share basis was $0.56 in 2026, which was $0.01 higher both year over year and quarter over quarter from the $0.55 of AFFO in 2025. That concludes our prepared remarks. Dorwin, we are now ready to begin the question and answer session.

We will now open the call for questions. Please pick up your handset before pressing any keys. At this time, we will pause momentarily to assemble our roster. Our first question comes from Alexander Goldfarb with Piper Sandler. Please go ahead.

Thank you, and good morning down there. Dave, you made some promising comments about the Assurance hospital transfer. It sounds like things are progressing, getting into the late stages. Can you just give a little bit more color? Do you feel like we are getting close to the end, or is this typical government work where you have to enjoy the process? And at this point, based on the shot clock, are we at the point where this should be coming to a conclusion?

Hey, Alex. Thanks for the question. We feel we have definitely made some progress over the last quarter. Some of the roadblocks that we have seen, as you alluded to, have related to getting some confirmation on some outstanding liabilities from a couple of the various governing bodies that pay. In particular, as it relates to Ohio Medicaid, firming up the amount that is owed. But we do feel like we are making good progress. The company is highly engaged, the buyer is highly engaged in the process, and we do feel like we are hopefully going to get final confirmation on timing and everything very shortly. As I said in the prepared remarks, we are currently exchanging documents and purchase agreements, and we would anticipate getting this in a good place, hopefully, in the next quarter.

Okay. That is certainly good to hear. Second question is, obviously, housing is all the rage these days, and MOB, I think your traditional property types, may not be as in vogue, at least when you look at the public stock prices. When you look in the market for acquisitions, is that the same that you see in the private market? Or is your acquisition pipeline coming down mainly relative to your cost of capital? I am also trying to understand what is going on in valuation land and if all the health care private capital is heading only to senior housing, and your traditional target class remains still very attractive, and therefore your decision to pull the pipeline down is more based on just your cost of capital versus everything once again getting bid up and therefore there is less product of interest to you.

No, it really has to do with the latter, Alex. We see a number of acquisitions. We continue to have an investment committee every couple of weeks where we go through opportunities, and if we were in a different position and were not doing capital recycling and having to sequence those asset sales in order to acquire new assets—because we do not want to raise capital through our ATM—we would definitely see the types of properties and the types of opportunities that we would like to invest in. What we are doing in terms of focusing on capital recycling is using this as an opportunity to do two things. Obviously, we are using this as an opportunity to trim some of the properties that are in less attractive markets. A lot of these facilities that we sold, we sold five properties in 2025; we sold another one in 2026. We are using this as an opportunity to really prune the portfolio and improve the portfolio. It is not the most fun in terms of selling a property in order to buy properties, but that is what we are going to focus our time and efforts on. What we expect is in the second half of the year, as some of these redevelopment projects and other things that we have been working on come online, we would expect to start posting AFFO growth, and we hope that is recognized as a positive in the marketplace and puts us in a position to start doing what we have been doing historically as a company, which is not just growing the portfolio performance through leasing, but also growing the portfolio through acquisitions.

Thanks, Alex. Our next question comes from Jim Kammert with Evercore. Please go ahead.

Hi. Good morning. Thank you. The acquisition you noted was quoted at about a 9.3% yield, I believe. Is that a GAAP or a cash yield? And if GAAP, I am trying to understand what are the representative annual escalators on that long lease, and are they representative of the other four assets in the pipeline?

That is a cash yield, that 9.3% cap rate. Jim, you were not coming through very clearly. Are you asking what the escalators are on that property?

Yes, sorry, Dave. Thank you. What are the escalators, and are they representative of the other four assets?

Yes. They are 2% escalators and would be consistent with the other ones that are in the pipeline.

Great. That is all I had. Thank you.

We have no further questions at this time. I would now like to turn the conference back over to management for closing comments. Over to you.

Great. Thanks, Dorwin, and thank you, everybody, for dialing in. We hope to see many of you at NAREIT coming up in June.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.