false000163156900016315692020-11-032020-11-03

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 3, 2020 (November 3, 2020)

COMMUNITY HEALTHCARE TRUST INCORPORATED

(Exact Name of Registrant as Specified in Charter)

Maryland

001-37401

46-5212033

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

3326 Aspen Grove Drive, Suite 150, Franklin, Tennessee 37067

(Address of principal executive offices) (Zip Code)

(615) 771-3052

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class

Trading Symbol

Name of each exchange on which registered

Common stock, $0.01 par value per share

CHCT

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02    Results of Operations and Financial Condition

    On November 3, 2020, Community Healthcare Trust Incorporated (the "Company") issued a press release announcing its earnings for the third quarter ended September 30, 2020. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.

    This information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.

Item 7.01     Regulation FD Disclosure

    The Company is furnishing its Supplemental Information for the third quarter ended September 30, 2020, which is also contained on its website (www.chct.reit). See Exhibit 99.2 to this Current Report on Form 8-K.

    The Company has prepared an investor presentation for the third quarter ended September 30, 2020 that is expected to be used in meetings with current and potential investors. A copy of this presentation is available on the Company's website (www.chct.reit).

    This information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.

Item 9.01 Financial Statements and Exhibits

The exhibits required by Item 601 of Regulation S-K which are filed with this report are listed in the Exhibit Index and are hereby incorporated in by reference.

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EXHIBIT INDEX

Exhibit Number			Description
99.1			Press release dated November 3, 2020
99.2			Supplemental Information - Third Quarter 2020

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SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			COMMUNITY HEALTHCARE TRUST INCORPORATED
			By:			/s/ David H. Dupuy David H. Dupuy Executive Vice President and Chief Financial Officer
November 3, 2020

Exhibit 99.1

News Release

Community Healthcare Trust Announces Results for the Three Months Ended September 30, 2020

FRANKLIN, Tenn., November 3, 2020 / PRNewswire / -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended September 30, 2020. The Company reported net income for the third quarter of approximately $5.2 million, or $0.22 per diluted common share. Funds from operations and adjusted funds from operations ("AFFO") for the three months ended September 30, 2020 totaled $0.52 and $0.53, respectively, per diluted common share. 

Highlights include:

•During the third quarter of 2020, the Company issued, through its at-the-market offering program ("ATM Program"), 536,839 shares of common stock at an average gross sales price of $47.40 per share and received net proceeds of approximately $24.9 million at an approximate 3.64% current equity yield.

•During the third quarter of 2020, the Company acquired a land parcel adjacent to one of our existing properties for a purchase price and cash consideration of approximately $1.1 million.

•During the fourth quarter of 2020, through November 3, 2020, the Company acquired 10 properties for an aggregate purchase price and cash consideration of approximately $67.9 million. The facilities were 100% leased in the aggregate with lease expirations through 2035.

•The Company has three properties under definitive purchase agreements for an aggregate expected purchase price of approximately $12.8 million and expected aggregate returns ranging from approximately 9.2% to 10.8%. The Company expects to close on these properties through the first quarter of 2021; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close.

•The Company has two properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $38.0 million. The Company's expected aggregate returns on these investments of approximately 11.0%. The Company expects to close on these properties during the first half of 2021; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close.

•On November 2, 2020, the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.425 per share. The dividend is payable on November 27, 2020 to stockholders of record on November 16, 2020.

Highland Update:

•On July 1, 2020, the bankruptcy sale of Highland Hospital was completed and the operator who had been managing the facility acquired its operations and entered into a lease with the Company.

•The Company provided debtor in possession financing (the “DIP”) to facilitate the sale and held a note receivable with a net investment of $0.6 million (the "Note"), secured by all assets of Highland Hospital. The DIP and the Note were subsequently combined into a single net receivable with a net balance of approximately $0.2 million as of September 30, 2020. This amount was subsequently collected in October 2020.

COVID-19 Pandemic

•Many healthcare providers have been impacted by the COVID-19 pandemic. Some of them were unable to see patients for a period of time; others have seen a reduced number of elective procedures and/or patient visits; while others have experienced limited impact, or have even seen improved cash flows from either increases in census or from government funding.

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•As of October 31, 2020, the Company has entered into deferral agreements with 18 tenants and anticipates entering into an additional agreement with a tenant, in the aggregate representing less than one percent of our annualized rent. Pursuant to these agreements, the tenants are generally required to repay the deferred amounts in equal monthly installments during the third and fourth quarters of 2020. The Company received substantially all of the installments that were due during the third quarter of 2020.

About Community Healthcare Trust Incorporated

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.

Additional information regarding the Company, including this quarter's operations, can be found at www.chct.reit.  Please contact the Company at 615-771-3052 to request a printed copy of this information.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "believes", "expects", "may", "should", "seeks", "approximately", "intends", "plans", "estimates", "anticipates" or other similar words or expressions, including the negative thereof. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Because forward-looking statements relate to future events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Thus, the Company’s actual results and financial condition may differ materially from those indicated in such forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company's common stock, changes in the Company's business strategy, availability, terms and deployment of capital, the Company's ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, changes in the real estate industry in general, interest rates or the general economy, adverse developments related to the healthcare industry, the degree and nature of the Company's competition, the ability to consummate acquisitions under contract, effects on global and national markets as well as businesses resulting from the COVID-19 pandemic, and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, in the Quarterly Report on Form 10-Q for the Quarter Ending March 31, 2020, and the Company's other filings with the Securities and Exchange Commission from time to time. Readers are therefore cautioned not to place undue reliance on the forward-looking statements contained herein which speak only as of the date hereof. The Company intends these forward-looking statements to speak only as of the time of this release and 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.

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COMMUNITY HEALTHCARE TRUST INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands, except per share amounts)

			September 30, 2020						December 31, 2019
ASSETS
Real estate properties:
Land and land improvements			$	80,123					$	68,129
Buildings, improvements, and lease intangibles			586,978						534,503
Personal property			241						220
Total real estate properties			667,342						602,852
Less accumulated depreciation			(95,993)						(77,523)
Total real estate properties, net			571,349						525,329
Cash and cash equivalents			12,158						1,730
Restricted cash			340						293
Other assets, net			31,825						35,179
Total assets			$	615,672					$	562,531
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net			$	179,342					$	194,243
Accounts payable and accrued liabilities			5,800						3,606
Other liabilities			20,909						11,271
Total liabilities			206,051						209,120
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding			—						—
Common stock, $0.01 par value; 450,000,000 shares authorized; 23,407,498 and 21,410,578 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively			234						214
Additional paid-in capital			526,636						447,916
Cumulative net income			31,391						17,554
Accumulated other comprehensive (loss) income			(13,135)						(4,808)
Cumulative dividends			(135,505)						(107,465)
Total stockholders’ equity			409,621						353,411
Total liabilities and stockholders' equity			$	615,672					$	562,531

The Condensed Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

 

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COMMUNITY HEALTHCARE TRUST INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019

(Unaudited; Dollars in thousands, except per share amounts)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
REVENUES
Rental income			$	18,939					$	15,718					$	54,197					$	41,977
Other operating interest			405						541						1,363						2,039
			19,344						16,259						55,560						44,016
EXPENSES
Property operating			3,563						3,327						10,129						9,395
General and administrative			2,211						2,041						6,322						5,602
Depreciation and amortization			6,295						5,774						18,473						16,319
			12,069						11,142						34,924						31,316
OTHER INCOME (EXPENSE)
Loss on sale of real estate			—						—						(313)						—
Interest expense			(2,064)						(2,483)						(6,496)						(6,788)
Interest and other income, net			—						13						10						251
			(2,064)						(2,470)						(6,799)						(6,537)
NET INCOME			$	5,211					$	2,647					$	13,837					$	6,163
NET INCOME PER COMMON SHARE:
Net income per common share – Basic			$	0.22					$	0.12					$	0.59					$	0.28
Net income per common share – Diluted			$	0.22					$	0.12					$	0.59					$	0.28
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-BASIC			21,866						18,833						21,290						18,348
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-DILUTED			21,866						18,833						21,290						18,348

The Condensed Consolidated Statements of Income do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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COMMUNITY HEALTHCARE TRUST INCORPORATED

RECONCILIATION OF FFO and AFFO (1)

(Unaudited; Amounts in thousands, except per share amounts)

			Three Months Ended September 30,
			2020						2019
Net income			$	5,211					$	2,647
Real estate depreciation and amortization			6,387						5,812
Total adjustments			6,387						5,812
Funds From Operations			$	11,598					$	8,459
Straight-line rent			(914)						(603)
Stock-based compensation			1,284						1,007
AFFO			$	11,968					$	8,863
Funds from Operations per Common Share-Diluted			$	0.52					$	0.44
AFFO Per Common Share-Diluted			$	0.53					$	0.46
Weighted Average Common Shares Outstanding-Diluted (2)			22,468						19,315

 

(1)			Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers funds from operations ("FFO") and 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. The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of FFO. FFO and FFO per share are operating performance measures adopted by NAREIT. NAREIT defines FFO as the most commonly accepted and reported measure of a REIT’s operating performance equal to net income (calculated in accordance with GAAP), excluding gains or losses from the sale of certain real estate assets and gains or losses from change in control, plus depreciation and amortization related to real estate, plus 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, and after adjustments for unconsolidated partnerships and joint ventures, as well as other items discussed in NAREIT's Funds From Operations White Paper - 2018 Restatement. 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. 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.
(2)			Diluted weighted average common shares outstanding for FFO are calculated based on the treasury method, rather than the 2-class method used to calculate earnings per share.

 

CONTACT: David H. Dupuy, 615-771-3052

SOURCE: Community Healthcare Trust Incorporated

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Exhibit 99.2

                

			CHCT
			LISTED
			NYSE

                

    

SUPPLEMENTAL INFORMATION 3Q 2020

Community Healthcare Trust						3Q 2020 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, physician offices, specialty centers, acute inpatient behavioral facilities, behavioral specialty facilities, and inpatient rehabilitation facilities 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

                                                        

Company Snapshot			3
Corporate Information			4
Financial Highlights			5
Consolidated Balance Sheets			6
Consolidated Statements of Income			7
Reconciliation of Non-GAAP Measures			8
Weighted Average Shares			10
Executive Compensation			11
Debt Summary			12
Investment Activity			13
Portfolio Diversification			14
Lease Expirations			15
Property Locations			16
Reporting Definitions			20
Disclaimers			23

Community Healthcare Trust						3Q 2020 Supplemental Information

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COMPANY SNAPSHOT

                                                        

			September 30, 2020
Gross real estate investments (in thousands)			$	667,342
Total properties			131
% Leased			89.0		%
Total square feet owned			2,834,173
Weighted Average remaining lease term (years)			7.80
Cash and cash equivalents and restricted cash (in thousands)			$	12,498
Debt to Total Capitalization			26.2		%
Weighted average interest rate per annum on Revolving Line of Credit			n/a
Weighted average interest rate per annum on Term Loans			3.881		%
Equity market cap (in millions)			$	1,094.5
Quarterly dividend paid in the period (per share)			$	0.4225
Quarter end stock price (per share)			$	46.76
Dividend yield			3.61		%
Common shares outstanding			23,407,498

Community Healthcare Trust			Page | 3			3Q 2020 | 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: [email protected]

Website: www.chct.reit

BOARD OF DIRECTORS

Timothy G. Wallace

Alan Gardner

Robert Hensley

Claire Gulmi

R. Lawrence Van Horn

Chairman of the Board

Lead Independent Director

Audit Committee Chair

Compensation Committee Chair

Corporate Governance Committee Chair

EXECUTIVE MANAGEMENT TEAM
Timothy G. Wallace			W. Page Barnes			David H. Dupuy			Leigh Ann Stach
Chief Executive Officer and President			Executive Vice President Chief Operating Officer			Executive Vice President Chief Financial Officer			Executive Vice President Chief Accounting Officer

COVERING ANALYSTS
A. Goldfarb - Piper Sandler			M. Lewis - Truist Securities
S. McGrath - Evercore ISI			R. Stevenson - Janney Capital Markets
B. Maher - B. Riley FBR			N. Crossett - Berenberg Capital Markets
A. Sweitzer - Baird			B. Oxford - D.A. Davidson & Co.
G. Mehta - National Research			K. Bauser - Colliers International Securities
PROFESSIONAL SERVICES
Independent Registered Public Accounting Firm			Transfer Agent
BDO USA, LLP			American Stock Transfer & Trust Company, LLC
501 Commerce Street, Suite 1400			Operations Center
Nashville, TN 37203			6201 15th Avenue
			Brooklyn, NY 11219
			1-800-937-5449

Community Healthcare Trust			Page | 4			3Q 2020 | Supplemental Information

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FINANCIAL HIGHLIGHTS

                                                        

						Three Months Ended
						3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
						(Unaudited and in thousands, except sq. ft. and per share data)
INCOME ITEMS
			Revenues			$	19,344		$	18,280		$	17,936		$	16,833		$	16,259
			NOI			$	15,781		$	15,060		$	14,600		$	14,179		$	12,945
			EBITDAre			$	13,570		$	13,141		$	12,408		$	12,053		$	10,904
			Adjusted EDITDAre			$	14,854		$	14,211		$	13,427		$	13,138		$	11,911
			FFO			$	11,598		$	11,007		$	10,209		$	9,477		$	8,459
			AFFO			$	11,968		$	11,352		$	10,350		$	9,863		$	8,863
Per Diluted Share:
			Net income attributable to common shareholders			$	0.22		$	0.19		$	0.18		$	0.09		$	0.12
			FFO			$	0.52		$	0.51		$	0.48		$	0.47		$	0.44
			AFFO			$	0.53		$	0.52		$	0.49		$	0.49		$	0.46
						Three Months Ended
						3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
ASSETS
			Gross real estate investments			$	667,342		$	664,687		$	641,856		$	602,852		$	566,327
			Total assets			$	615,672		$	612,304		$	596,754		$	562,531		$	533,072
CAPITALIZATION
			Net debt			$	179,342		$	197,309		$	203,276		$	194,243		$	215,460
			Total capitalization			$	684,956		$	674,110		$	654,633		$	625,177		$	588,024
			Net debt/total capitalization			26.2		%	29.3		%	31.1		%	31.1		%	36.6		%

Community Healthcare Trust			Page | 5			3Q 2020 | Supplemental Information

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CONSOLIDATED BALANCE SHEETS

                                                        

			As of
			3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
ASSETS			(Unaudited and in thousands, except per share data)
Real estate properties
Land and land improvements			$	80,123		$	78,999		$	74,680		$	68,129		$	63,015
Buildings, improvements, and lease intangibles			586,978			585,454			566,954			534,503			503,110
Personal property			241			234			222			220			202
Total real estate properties			667,342			664,687			641,856			602,852			566,327
Less accumulated depreciation			(95,993)			(89,698)			(83,582)			(77,523)			(71,617)
Total real estate properties, net			571,349			574,989			558,274			525,329			494,710
Cash and cash equivalents			12,158			4,896			3,326			1,730			1,724
Restricted cash			340			351			282			293			224
Other assets, net			31,825			32,068			34,872			35,179			36,414
Total assets			$	615,672		$	612,304		$	596,754		$	562,531		$	533,072
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net			$	179,342		$	197,309		$	203,276		$	194,243		$	215,460
Accounts payable and accrued liabilities			5,800			5,497			5,297			3,606			4,004
Other liabilities			20,909			22,395			20,406			11,271			12,661
Total liabilities			206,051			225,201			228,979			209,120			232,125
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 50,000,000 shares authorized			—			—			—			—			—
Common stock, $0.01 par value; 450,000,000 shares authorized			234			227			221			214			202
Additional paid-in capital			526,636			500,477			475,824			447,916			391,247
Cumulative net income			31,391			26,180			21,654			17,554			15,341
Accumulated other comprehensive loss			(13,135)			(13,969)			(13,426)			(4,808)			(6,826)
Cumulative dividends			(135,505)			(125,812)			(116,498)			(107,465)			(99,017)
Total stockholders’ equity			409,621			387,103			367,775			353,411			300,947
Total liabilities and stockholders' equity			$	615,672		$	612,304		$	596,754		$	562,531		$	533,072

Community Healthcare Trust			Page | 6			3Q 2020 | Supplemental Information

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CONSOLIDATED STATEMENTS OF INCOME

                                                        

			Three Months Ended
			3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
			(Unaudited and amounts in thousands, except per share data)
REVENUES
Rental income			$	18,939		$	17,830		$	17,428		$	16,292		$	15,718
Other operating interest			405			450			508			541			541
			19,344			18,280			17,936			16,833			16,259
EXPENSES
Property operating			3,563			3,223			3,343			2,840			3,327
General and administrative (1)			2,211			1,919			2,192			2,126			2,041
Depreciation and amortization			6,295			6,119			6,059			5,906			5,774
			12,069			11,261			11,594			10,872			11,142
OTHER INCOME (EXPENSE)
Loss on sale of real estate			—			(313)			—			—			—
Interest expense			(2,064)			(2,183)			(2,249)			(2,513)			(2,483)
Income tax expense			—			—			—			(1,421)			—
Interest and other income, net			—			3			7			186			13
			(2,064)			(2,493)			(2,242)			(3,748)			(2,470)
NET INCOME			$	5,211		$	4,526		$	4,100		$	2,213		$	2,647
NET INCOME PER COMMON SHARE
Net income per common share – Basic			$	0.22		$	0.19		$	0.18		$	0.09		$	0.12
Net income per common share – Diluted			$	0.22		$	0.19		$	0.18		$	0.09		$	0.12
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING			21,866			21,264			20,735			19,686			18,833
DIVIDENDS DECLARED, PER COMMON SHARE, IN THE PERIOD			$	0.4225		$	0.4200		$	0.4175		$	0.4150		$	0.4125
(1) CASH VS. NON-CASH GENERAL AND ADMINISTRATIVE EXPENSES:
Non-cash (stock-based compensation)			58		%	56		%	47		%	51		%	49		%
Cash			42		%	44		%	53		%	49		%	51		%

Community Healthcare Trust			Page | 7			3Q 2020 | Supplemental Information

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RECONCILIATION OF NON-GAAP MEASURES

                                                        

FUNDS FROM OPERATIONS (FFO)

ADJUSTED FUNDS FROM OPERATIONS (AFFO)

						Three Months Ended
						3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
						(Unaudited and amounts in thousands, except per share data)
NET INCOME						$	5,211		$	4,526		$	4,100		$	2,213		$	2,647
			Real estate depreciation and amortization			6,387			6,168			6,109			5,943			5,812
			Income tax expense (benefit)			—			—			—			1,321			—
			Loss (gain) on sale of depreciable real estate			—			313			—			—			—
			Total adjustments			6,387			6,481			6,109			7,264			5,812
FFO						$	11,598		$	11,007		$	10,209		$	9,477		$	8,459
			Straight-line rent			(914)			(725)			(878)			(699)			(603)
			Stock-based compensation			1,284			1,070			1,019			1,085			1,007
AFFO						$	11,968		$	11,352		$	10,350		$	9,863		$	8,863
FFO PER COMMON SHARE						$	0.52		$	0.51		$	0.48		$	0.47		$	0.44
AFFO PER COMMON SHARE						$	0.53		$	0.52		$	0.49		$	0.49		$	0.46
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING						22,468			21,750			21,310			20,220			19,315
PROFORMA AFFO
AFFO						11,968			11,352			10,350			9,863			8,863
			Revenue on Properties Acquired in the period (1)			—			348			838			294			425
			Expense adjustment (1)			—			(46)			(368)			(36)			(222)
PRO FORMA AFFO						$	11,968		$	11,654		$	10,820		$	10,121		$	9,066
(1) Adjustments to reflect acquisitions as if they had occurred on the first day of the applicable period.

Community Healthcare Trust			Page | 8			3Q 2020 | Supplemental Information

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RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

                                                        

NET OPERATING INCOME (NOI)

						Three Months Ended
						3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
						(Unaudited and amounts in thousands, except per share data)
NET OPERATING INCOME
			Net income			$	5,211		$	4,526		$	4,100		$	2,213		$	2,647
			General and administrative			2,211			1,919			2,192			2,126			2,041
			Depreciation and amortization			6,295			6,119			6,059			5,906			5,774
			Loss on sale of depreciable real estate			—			313			—			—			—
			Interest expense			2,064			2,183			2,249			2,513			2,483
			Income tax expense			—			—			—			1,421			—
NOI						$	15,781		$	15,060		$	14,600		$	14,179		$	12,945
EBITDAre and ADJUSTED EBITDAre
EBITDAre
			Net income			$	5,211		$	4,526		$	4,100		$	2,213		$	2,647
			Interest expense			2,064			2,183			2,249			2,513			2,483
			Depreciation and amortization			6,295			6,119			6,059			5,906			5,774
			Income tax expense			—			—			—			1,421			—
			Loss on sale of depreciable real estate			—			313			—			—			—
EBITDAre						$	13,570		$	13,141		$	12,408		$	12,053		$	10,904
			Non-cash deferred compensation expense			1,284			1,070			1,019			1,085			1,007
ADJUSTED EBITDAre						$	14,854		$	14,211		$	13,427		$	13,138		$	11,911
ADJUSTED EDITDAre ANNUALIZED (1)						$	59,416

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

Community Healthcare Trust			Page | 9			3Q 2020 | Supplemental Information

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WEIGHTED AVERAGE SHARES

                                                        

						Three Months Ended
						3Q 2020			2Q 2020			1Q 2020			4Q 2019			3Q 2019
						(Unaudited and amounts in thousands, except per share data)
WEIGHTED AVERAGE COMMON SHARES OUTSANDING
			Weighted average common shares outstanding			22,965			22,286			21,733			20,595			19,698
			Unvested restricted shares			(1,099)			(1,022)			(998)			(910)			(865)
			Weighted average common shares outstanding - EPS			21,866			21,264			20,735			19,685			18,833
			Weighted average common shares outstanding - FFO Basic			21,866			21,264			20,735			19,685			18,833
			Dilutive potential common shares (from below)			602			486			575			535			482
			Weighted average common shares outstanding - FFO Diluted			22,468			21,750			21,310			20,220			19,315
TREASURY SHARE CALCULATION
			Unrecognized deferred compensation-end of period			$	25,595		$	19,904		$	20,159		$	16,570		$	17,655
			Unrecognized deferred compensation-beginning of period			$	19,904		$	20,159		$	16,570		$	17,655		$	14,554
			Average unrecognized deferred compensation			$	22,750		$	20,032		$	18,365		$	17,113		$	16,105
			Average share price per share			$	45.75		$	37.40		$	43.48		$	45.59		$	42.13
			Treasury shares			497			536			423			375			383
			Unvested restricted shares			1,099			1,022			998			910			865
			Treasury shares			(497)			(536)			(423)			(375)			(383)
			Dilutive potential common shares			602			486			575			535			482

Community Healthcare Trust			Page | 10			3Q 2020 | Supplemental Information

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EXECUTIVE COMPENSATION

                                                                            

																		Performance Based Incentive Compensation
Name and Position						Year			Total 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			Total Performance Based Incentive Compensation			Percent of Total
Timothy G. Wallace						2019			$	2,595,964		$	540,000		$	10,800		$	216,000		$	884,164		$	405,000		$	540,000		$	2,045,164		78.8		%
			Chief Executive Officer and President			2018			$	2,247,977		$	458,167		$	—		$	183,267		$	690,209		$	458,167		$	458,167		$	1,789,810		79.6		%
						2017			$	1,592,017		$	376,333		$	—		$	150,533		$	500,651		$	282,250		$	282,250		$	1,215,684		76.4		%
David H. Dupuy (4)						2019			$	1,383,110		$	233,333		$	192,729		$	23,333		$	321,215		$	262,500		$	350,000		$	957,048		69.2		%
			Executive Vice President and Chief Financial Officer			2018			$	—		$	—		$	—		$	—		—			—			—			$	—		—		%
						2017			$	—		$	—		$	—		$	—		—			—			—			$	—		—		%
W. Page Barnes						2019			$	1,579,239		$	328,000		$	8,930		$	131,200		$	537,109		$	246,000		$	328,000		$	1,242,309		78.7		%
			Executive Vice President and Chief Operating Officer			2018			$	1,330,517		$	271,167		$	—		$	108,467		$	408,549		$	271,167		$	271,167		$	1,059,350		79.6		%
						2017			$	906,696		$	214,333		$	—		$	85,723		$	285,140		$	160,750		$	160,750		$	692,363		76.4		%
Leigh Ann Stach						2019			$	1,274,444		$	266,000		$	1,000		$	106,400		$	435,544		$	199,500		$	266,000		$	1,007,444		79.0		%
			Executive Vice President and Chief Accounting Officer			2018			$	1,284,916		$	220,500		$	—		$	188,200		$	435,216		$	220,500		$	220,500		$	1,064,416		82.8		%
						2017			$	740,272		$	175,000		$	—		$	70,000		$	232,772		$	131,250		$	131,250		$	565,272		76.4		%
(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); moving and relocation expenses for Mr. Dupuy; and the value of the grant of 5,000 shares of restricted stock to Mr. Dupuy upon his joining the Company on May 1, 2019.
(3) Alignment of interest stock grants per the Alignment Interest Program which is part of the Company's Incentive Plan.
(4) Mr. Dupuy joined the Company on May 1, 2019.

			CEO Pay Ratios
			CEO and President			Median Employee			Average Employee			Lowest Paid Employee
Cash			$	—		$	102,000		$	59,897		$	50,000
Compensation Taken in Stock			$	2,585,164		$	—		$	249,207		$	1,000
Other Compensation			10,800			3,761			2,111			667
Total Compensation			$	2,595,964		$	105,761		$	311,215		$	51,667
CEO to Employee Ratio						24.55			8.34			50.24

Community Healthcare Trust			Page | 11			3Q 2020 | Supplemental Information

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DEBT SUMMARY, MATURITY SCHEDULE AND SELECT COVENANTS

                                                        

			Principal Balance			Stated Rate			Hedged Rate
			(in thousands)
Revolving credit facility			$	—		—		%
Term loan A-1			50,000			1.56		%	3.60		%
Term loan A-2			50,000			1.76		%	3.93		%
Term loan A-3			75,000			1.96		%	4.03		%
Total Credit Facility			175,000
Secured mortgage loan			5,208			4.98		%	4.98		%
Debt			180,208
Deferred Financing Costs, net			(866)
Debt, net			$	179,342

Select Covenants			Required			Q3 2020
Leverage ratio			≤ 60.0%			25.8		%
Fixed charge coverage ratio			≥ 1.50x			5.4x
Tangible net worth (in thousands)			≥ $388,098			$516,934
Secured indebtedness			≤ 30.0%			0.7		%

Community Healthcare Trust			Page | 12			3Q 2020 | Supplemental Information

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2020 PROPERTY ACQUISITIONS AND ANNUAL INVESTMENTS

                                                        

Property			Market			Property Type			Date Acquired			% Leased at Acquisition			Purchase Price (in thousands)			Square Feet
Baptist Health			San Antonio, TX			MOB			1/27/2020			100.0		%	$	4,003		13,500
San Antonio Head & Neck Surgical Assoc.			San Antonio, TX			MOB			1/27/2020			100.0		%	1,931			6,500
Decatur Hospital Medical Office Building			Decatur, AL			MOB			2/18/2020			93.9		%	5,784			35,943
Sanderling Dialysis Center			Ramona, CA			SC			3/13/2020			100.0		%	4,100			11,300
Parkside Family & Davita Clinics			Cuero, TX			SC			3/18/2020			100.0		%	2,153			15,515
Everest Rehabilitation Center			Rogers, AR			IRF			3/27/2020			100.0		%	19,000			38,817
Land parcel			Oak Lawn, IL			MOB			4/20/2020			—		%	400			—
Sanderling Dialysis Center			Germantown, TN			SC			4/29/2020			100.0		%	3,900			10,600
Hopebridge Autism Center			Westlake, OH			SC			6/5/2020			100.0		%	2,443			15,057
Hopebridge Autism Center			Columbus, IN			SC			6/5/2020			100.0		%	1,813			13,969
Bluewater Orthopedics Center			Niceville, FL			MOB			6/15/2020			100.0		%	2,294			10,250
Forefront Dermatology			Greensburg, PA			MOB			6/16/2020			100.0		%	3,389			15,650
Lemak Medical Office Building			Gardendale, AL			MOB			6/24/2020			100.0		%	2,948			12,956
Lemak Medical Office Building			Prattville, AL			MOB			6/24/2020			100.0		%	4,091			13,319
Land parcel			Jensen Beach, FL			MOB			9/18/2020			—		%	1,050			—
												99.4		%	$	59,299		213,376

Community Healthcare Trust			Page | 13			3Q 2020 | Supplemental Information

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PORTFOLIO DIVERSIFICATION

                                                        

Property Type			Annualized Rent (%)
Medical Office Building (MOB)			33.7		%
Acute Inpatient Behavioral (AIB)			16.7		%
Inpatient Rehabilitation Facilities (IRF)			14.6		%
Physician Clinics (PC)			11.1		%
Specialty Centers (SC)			10.5		%
Surgical Centers and Hospitals (SCH)			7.5		%
Behavioral Specialty Facilities (BSF)			3.6		%
Long-term Acute Care Hospitals (LTACH)			2.3		%
Total			100.0		%

State			Annualized Rent (%)
Texas (TX)			16.2		%
Illinois (IL)			12.5		%
Ohio (OH)			9.4		%
Florida (FL)			6.8		%
West Virginia (WV)			4.9		%
Washington (WA)			4.3		%
Massachusetts (MA)			4.2		%
Kansas (KS)			4.1		%
Other (Less than 4%)			37.6		%
Total			100.0		%

Tenant			Annualized Rent (%)
Everest Rehabilitation (Everest)			10.2		%
US Healthvest (US Healthvest)			7.6		%
Summit Behavioral Healthcare (Summit)			4.9		%
Post Acute Medical (Post Acute)			4.4		%
Worcester Behavioral Hospital (Worcester)			4.2		%
AMITA Health (AMITA)			4.1		%
All Others (Less than 4%)			64.6		%
Total			100.0		%

            

Community Healthcare Trust			Page | 14			3Q 2020 | Supplemental Information

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LEASE EXPIRATIONS

                                                        

						Total Leased Sq. Ft.						Annualized Rent
Year			Number of Leases Expiring			Amount			Percent (%)			Amount ($) (thousands)			Percent (%)
2020			11			80,479			3.1		%	$	1,529		2.4		%
2021			31			180,788			7.0		%	3,861			6.0		%
2022			38			212,763			8.2		%	4,567			7.1		%
2023			49			285,502			11.1		%	5,613			8.7		%
2024			20			129,631			5.0		%	3,030			4.7		%
2025			21			183,376			7.1		%	5,297			8.2		%
2026			16			220,497			8.5		%	4,792			7.5		%
2027			4			12,325			0.5		%	360			0.6		%
2028			7			112,611			4.4		%	2,133			3.3		%
2029			11			163,432			6.3		%	4,761			7.4		%
Thereafter			35			986,099			38.2		%	27,979			43.6		%
Month-to-Month			12			14,745			0.6		%	304			0.5		%
Totals			255			2,582,248			100.0		%	$	64,226		100.0		%

(1) Total portfolio was approximately 89.0% leased in the aggregate at September 30, 2020 with lease expirations ranging from 2020 through 2035.

Community Healthcare Trust			Page | 15			3Q 2020 | Supplemental Information

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PROPERTY LOCATIONS

                                                                            

Approximately 47% 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 Name			Property Type			Area			% of Square Feet			Annualized Rent ($000's)			% of Annualized Rent			Population			MSA/MISA			Rank
Chicago Behavioral Hospital			BF			85,000			3.00%			$	2,056.6		3.33%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Presence Regional Cancer Center			SC			44,888			1.58%			$	1,701.0		2.75%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Morris Cancer Center			SC			18,470			0.65%			$	578.8		0.94%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Skin MD			PC			13,565			0.48%			$	474.1		0.77%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Gurnee Medical Office Building			MOB			22,943			0.81%			$	386.4		0.63%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Future Diagnostics Group			SC			8,876			0.31%			$	375.7		0.61%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Novamed Surgery Center			SCH			31,158			1.10%			$	357.6		0.58%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Joliet Oncology-Hematology Associates			PC			7,905			0.28%			$	348.8		0.56%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Presence			MOB			14,863			0.52%			$	326.7		0.53%			9,458,539			Chicago-Naperville-Elgin, IL-IN-WI			3
Kindred Healthcare			SC			55,646			1.96%			$	2,705.2		4.38%			7,066,141			Houston-The Woodlands-Sugar Land, TX			5
Bayside Medical Center			MOB			50,593			1.79%			$	740.1		1.20%			7,066,141			Houston-The Woodlands-Sugar Land, TX			5
Northwest Surgery Center			SCH			11,200			0.40%			$	466.4		0.76%			7,066,141			Houston-The Woodlands-Sugar Land, TX			5
Haddon Hill Professional Center			MOB			24,567			0.87%			$	501.6		0.81%			6,102,434			Philadelphia-Camden-Wilmington, PA-NJ-DE-MD			8
Mountain View Surgery Center			SCH			13,835			0.49%			$	—		—%			4,948,203			Phoenix-Mesa-Scottsdale, AZ			10
Desert Endoscopy Center			SCH			11,722			0.41%			$	249.7		0.40%			4,948,203			Phoenix-Mesa-Scottsdale, AZ			10
Continuum Wellness Center			PC			8,227			0.29%			$	150.6		0.24%			4,948,203			Phoenix-Mesa-Scottsdale, AZ			10
Berry Surgical Center			SCH			27,217			0.96%			$	580.0		0.94%			4,319,629			Detroit-Warren-Dearborn, MI			14
Associated Surgical Center of Dearborn			SCH			12,400			0.44%			$	381.3		0.62%			4,319,629			Detroit-Warren-Dearborn, MI			14
Smokey Point Behavioral			BF			70,100			2.47%			$	2,651.7		4.29%			3,979,845			Seattle-Tacoma-Bellevue, WA			15
Sanderling Dialysis			SC			11,300			0.40%			$	385.0		0.62%			3,338,330			San Diego-Carlsbad, CA			17
Bay Area Physicians Surgery Center			SCH			18,708			0.66%			$	712.1		1.15%			3,194,831			Tampa-St. Petersburg-Clearwater, FL			18
Liberty Dialysis			SC			8,450			0.30%			$	252.5		0.41%			2,967,239			Denver-Aurora-Lakewood, CO			19
Eyecare Partners			SCH			16,608			0.59%			$	282.3		0.46%			2,803,228			St. Louis, MO-IL			20
Eyecare Partners			PC			6,487			0.23%			$	126.4		0.20%			2,803,228			St. Louis, MO-IL			20
Eyecare Partners			PC			6,311			0.22%			$	45.0		0.07%			2,803,228			St. Louis, MO-IL			20
Eyecare Partners			PC			5,560			0.20%			$	41.2		0.07%			2,803,228			St. Louis, MO-IL			20
Righttime Medical Care			SC			6,236			0.22%			$	292.6		0.47%			2,800,053			Baltimore-Columbia-Towson, MD			21
Bassin Center For Plastic-Surgery-Villages			PC			2,894			0.10%			$	158.0		0.26%			2,608,147			Orlando-Kissimmee-Sanford, FL			23
Medical Village at Wintergarden			MOB			21,648			0.76%			$	550.9		0.89%			2,608,147			Orlando-Kissimmee-Sanford, FL			23
Orthopaedic Associates of Osceola			PC			15,167			0.54%			$	340.4		0.55%			2,608,147			Orlando-Kissimmee-Sanford, FL			23
Bassin Center For Plastic Surgery-Orlando			PC			2,420			0.09%			$	132.1		0.21%			2,608,147			Orlando-Kissimmee-Sanford, FL			23
Kissimmee Physicians Clinic			PC			4,902			0.17%			$	101.0		0.16%			2,608,147			Orlando-Kissimmee-Sanford, FL			23
Baptist Health			MOB			13,500			0.48%			$	368.9		0.60%			2,550,960			San Antonio-New Braunfels, TX			24
San Antonio Head & Neck Surgical Assoc.			MOB			6,500			0.23%			$	177.1		0.29%			2,550,960			San Antonio-New Braunfels, TX			24

Community Healthcare Trust			Page | 16			3Q 2020 | Supplemental Information

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Property Name			Property Type			Area			% of Square Feet			Annualized Rent ($000's)			% of Annualized Rent			Population			MSA/MISA			Rank
Forefront Dermatology Building			MOB			15,650			0.55%			$	313.0		0.51%			2,317,600			Pittsburg, PA			27
Butler Medical Center			MOB			10,116			0.36%			$	265.3		0.43%			2,317,600			Pittsburgh, PA			27
Vascular Access Centers of Southern Nevada			SC			4,800			0.17%			$	—		—%			2,266,715			Las Vegas-Henderson-Paradise, NV			28
Assurance Health System			BF			14,381			0.51%			$	515.4		0.83%			2,221,208			Cincinnati, OH-KY-IN			30
Fresenius Florence Dialysis Center			SC			17,845			0.63%			$	290.8		0.47%			2,221,208			Cincinnati, OH-KY-IN			30
Cavalier Medical & Dialysis Center			MOB			36,986			1.31%			$	210.2		0.34%			2,221,208			Cincinnati, OH-KY-IN			30
Davita Commercial Way			SC			4,980			0.18%			$	106.6		0.17%			2,221,208			Cincinnati, OH-KY-IN			30
Prairie Star Medical Facility I			MOB			24,724			0.87%			$	868.0		1.41%			2,157,990			Kansas City, MO-KS			31
Prairie Star Medical Facility II			MOB			24,840			0.88%			$	95.9		0.16%			2,157,990			Kansas City, MO-KS			31
Sedalia Medical Center			MOB			20,064			0.71%			$	303.7		0.49%			2,122,271			Columbus, OH			32
Hopebridge - Columbus			BOS			13,969			0.49%			$	166.8		0.27%			2,122,271			Columbus, OH			32
Court Street Surgery Center			SCH			7,787			0.27%			$	—		—%			2,122,271			Columbus, OH			32
Kindred Hospital Indianapolis North			LTACH			37,270			1.32%			$	1,439.2		2.33%			2,074,537			Indianapolis-Carmel-Anderson, IN			33
Assurance Health System			BF			13,722			0.48%			$	461.5		0.75%			2,074,537			Indianapolis-Carmel-Anderson, IN			33
Assurance Health, LLC			BF			10,200			0.36%			$	346.1		0.56%			2,074,537			Indianapolis-Carmel-Anderson, IN			33
Rockside Medical Center			MOB			54,986			1.94%			$	1,311.6		2.12%			2,048,449			Cleveland-Elyria, OH			34
Brook Park Medical Building			MOB			18,444			0.65%			$	364.6		0.59%			2,048,449			Cleveland-Elyria, OH			34
Hopebridge - Westlake			BOS			15,057			0.53%			$	220.4		0.36%			2,048,449			Cleveland, OH			34
Virginia Orthopaedic & Spine Specialists			PC			8,445			0.30%			$	147.2		0.24%			1,768,901			Virginia Beach-Norfolk-Newport News, VA-NC			37
Ortho RI - West Bay HQ			MOB			21,252			0.75%			$	563.1		0.91%			1,624,578			Providence-Warwick, RI			38
Sanderling Dialysis			SC			10,133			0.36%			$	513.0		0.83%			1,346,045			Memphis, TN-MS-AR			43
Memphis Center			PC			11,669			0.41%			$	113.0		0.18%			1,346,045			Memphis, TN-MS-AR			43
Glastonbury			MOB			50,519			1.78%			$	860.3		1.39%			1,204,877			Hartford-West Hartford-East Hartford, CT			48
Sterling Medical Center			MOB			28,702			1.01%			$	349.6		0.57%			1,127,983			Buffalo-Cheektowaga-Niagara Falls, NY			49
Gardendale MOB			0			12,956			0.46%			$	272.5		0.44%			1,090,435			Birmingham, AL			50
Worcester Behavioral Hospital			BF			81,972			2.89%			$	2,573.3		4.17%			947,404			Worcester, MA-CT (part)			58
Los Alamos Professional Plaza			MOB			41,797			1.47%			$	399.2		0.65%			868,707			McAllen-Edinburg-Mission, TX			65
Cardiology Associates of Greater Waterbury			PC			16,793			0.59%			$	310.7		0.50%			854,757			New Haven-Milford			67
Columbia Gastroenterology Surgery Center			SCH			17,016			0.60%			$	299.0		0.48%			838,433			Columbia, SC			71
Davita Turner Road			SC			18,125			0.64%			$	376.5		0.61%			807,611			Dayton-Kettering, OH			73
Davita Business Center Court			SC			13,048			0.46%			$	260.7		0.42%			807,611			Dayton-Kettering, OH			73
Davita Springboro Pike			SC			10,510			0.37%			$	214.1		0.35%			807,611			Dayton-Kettering, OH			73
Parkway Professional Plaza			MOB			40,036			1.41%			$	630.1		1.02%			724,777			Lakeland-Winter Haven, FL			81
UH Walden Health Center			PC			11,000			0.39%			$	320.5		0.52%			703,479			Akron, OH			82
Novus Clinic			SCH			14,315			0.51%			$	287.5		0.47%			703,479			Akron, OH			82
Daytona Medical Office			MOB			19,156			0.68%			$	230.5		0.37%			668,365			Deltona-Daytona Beach-Ormond Beach, FL			88
Debary Professional Plaza			MOB			23,019			0.81%			$	126.1		0.20%			668,365			Deltona-Daytona Beach-Ormond Beach, FL			88
UW Health Clinic- Portage			PC			14,000			0.49%			$	306.3		0.50%			664,865			Madison, WI			89

Community Healthcare Trust			Page | 17			3Q 2020 | Supplemental Information

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Property Name			Property Type			Area			% of Square Feet			Annualized Rent ($000's)			% of Annualized Rent			Population			MSA/MISA			Rank
Perrysburg Medical Arts Building			MOB			25,789			0.91%			$	385.1		0.62%			641,816			Toledo, OH			93
St. Vincent Mercy Medical Center, Inc.			MOB			23,368			0.82%			$	301.4		0.49%			641,816			Toledo, OH			93
Cypress Medical Center			MOB			39,746			1.40%			$	825.3		1.34%			640,218			Wichita, KS			94
Family Medicine East			PC			16,581			0.59%			$	410.8		0.67%			640,218			Wichita, KS			94
Grene Vision Center			PC			11,891			0.42%			$	311.8		0.50%			640,218			Wichita, KS			94
Bassin Center For Plastic Surgery-Melbourne			PC			5,228			0.18%			$	285.4		0.46%			601,942			Palm Bay-Melbourne-Titusville, FL			96
Penn State Health - Harrisburg			SC			10,000			0.35%			$	200.0		0.32%			577,941			Harrisburg-Carlisle, PA			98
Penn State Health - Camp Hill			SC			8,400			0.30%			$	168.0		0.27%			577,941			Harrisburg-Carlisle, PA			98
Riverview Medical Center			SCH			26,199			0.92%			$	427.3		0.69%			553,885			Scranton--Wilkes-Barre--Hazleton, PA			101
Eynon Surgery Center			SCH			6,500			0.23%			$	167.3		0.27%			553,885			Scranton--Wilkes-Barre--Hazleton, PA			101
Manteca Medical Group Building			MOB			10,564			0.37%			$	304.2		0.49%			550,660			Modesto, CA			102
Grandview Plaza			PC			20,000			0.71%			$	290.9		0.47%			545,724			Lancaster, PA			104
Pinnacle Health			MOB			10,753			0.38%			$	231.8		0.38%			545,724			Lancaster, PA			104
Everest Rehabilitation Hospital			IRF			38,817			1.37%			$	2,090.0		3.38%			534,904			Fayetteville-Springdale-Rogers, AR-MO			107
Treasure Coast Medical Pavilion			MOB			57,254			2.02%			$	709.5		1.15%			489,297			Port St. Lucie, FL			113
AMG Specialty Hospital - Lafayette			BF			29,062			1.03%			$	—		—%			489,207			Lafayette, LA			114
Everest Rehabilitation Hospital			IRF			38,817			1.37%			$	2,090.0		3.38%			460,303			Killeen-Temple, TX			120
Martin Foot & Ankle Clinic			PC			27,100			0.96%			$	391.1		0.63%			449,058			York-Hanover, PA			121
Affinity Health Center			MOB			47,366			1.67%			$	707.2		1.15%			397,520			Canton-Massillon, OH			136
Prattville Town Center Medical Office Bldg			MOB			13,319			0.47%			$	371.0		0.60%			373,290			Montgomery, AL			145
Bristol Pediatric Associates			MOB			10,975			0.39%			$	231.4		0.37%			307,202			Kingsport-Bristol-Bristol, TN-VA			165
Wellmont Bristol Urgent Care			SC			4,548			0.16%			$	73.9		0.12%			307,202			Kingsport-Bristol-Bristol, TN-VA			165
Everest Rehabilitation Hospital			IRF			38,817			1.37%			$	2,138.4		3.46%			286,657			Longview,TX			172
Bluewater Orthopedics Center			MOB			10,255			0.36%			$	210.2		0.34%			284,809			Crestview-Fort Walton Beach-Destin, FL			173
Londonderry Centre			MOB			19,801			0.70%			$	400.3		0.65%			273,920			Waco, TX			177
Meridian Behavioral Health Systems			BF			132,430			4.67%			$	3,015.0		4.88%			257,074			Charleston, WV			189
Gulf Coast Cancer Centers-Foley			SC			6,146			0.22%			$	162.2		0.26%			223,234			Daphne-Fairhope-Foley, AL			203
Gulf Coast Cancer Centers- Gulf Shores			SC			6,398			0.23%			$	—		—%			223,234			Daphne-Fairhope-Foley, AL			203
Monroe Surgical Hosptial			SCH			58,121			2.05%			$	2,202.5		3.57%			200,261			Monroe, LA			224
Tuscola Professional Building			MOB			25,500			0.90%			$	586.5		0.95%			190,539			Saginaw, MI			228
Fresenius Ft. Valley			SC			4,920			0.17%			$	94.5		0.15%			185,409			Warner Robins, GA			231
Kedplasma			SC			12,870			0.45%			$	272.1		0.44%			169,509			Burlington, NC			251
Decatur Morgan Hospital Medical Office Building			MOB			35,943			1.27%			$	614.1		0.99%			152,603			Decatur, AL			273
Provena Medical Center			MOB			53,653			1.89%			$	500.9		0.81%			109,862			Kankakee, IL			344
Parkside Family & Davita Clinics			MOB			15,515			0.55%			$	216.5		0.35%			99,742			Victoria, TX			357
Fresenius Gallipolis Dialysis Center			SC			15,110			0.53%			$	159.3		0.26%			56,414			Point Pleasant, WV-OH			N/A
Davita Etowah Dialysis Center			SC			4,720			0.17%			$	71.8		0.12%			53,794			Athens, TN			N/A

Community Healthcare Trust			Page | 18			3Q 2020 | Supplemental Information

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Property Name			Property Type			Area			% of Square Feet			Annualized Rent ($000's)			% of Annualized Rent			Population			MSA/MISA			Rank
Fresenius Dialysis Center			SC			17,746			0.63%			$	132.0		0.21%			50,113			Corsicana, TX			N/A
Arkansas Valley Surgery Center			SCH			10,853			0.38%			$	254.3		0.41%			47,839			Cañon City, CO			N/A
Davita Dialysis			SC			12,545			0.44%			$	427.4		0.69%			45,346			Pahrump, NV			N/A
Wellmont Associates Complex			MOB			32,542			1.15%			$	499.4		0.81%			41,364			Big Stone Gap, VA			N/A
Wellmont Norton Urgent Care			SC			5,000			0.18%			$	57.5		0.09%			41,364			Big Stone Gap, VA			N/A
Eyecare Partners			PC			8,421			0.30%			$	122.1		0.20%			37,205			Centralia, IL			N/A
Gulf Coast Cancer Centers-Brewton			SC			3,971			0.14%			$	104.8		0.17%			36,633			Atmore, AL			N/A
Ottumwa Medical Clinic			MOB			75,448			2.66%			$	903.0		1.46%			34,969			Ottumwa, IA			N/A
Sanderling Dialysis Center			SC			4,186			0.15%			$	274.0		0.44%			27,812			Crescent City, CA			N/A
Russellville Medical Plaza			MOB			29,129			1.03%			$	148.4		0.24%			County: 31,362			RURAL - NO CBSA			N/A
Dahlonega Medical Mall			MOB			22,227			0.78%			$	158.9		0.26%			County: 33,610			RURAL - NO CBSA			N/A
Tri Lakes Behavioral			BF			58,400			2.06%			$	513.9		0.83%			County: 34,192			RURAL - NO CBSA			N/A
Batesville Regional Medical Center			MOB			9,263			0.33%			$	46.1		0.07%			County: 34,192			RURAL - NO CBSA			N/A
North Mississippi Health Services			MOB			27,743			0.98%			$	138.0		0.22%			County: 35,252			RURAL - NO CBSA			N/A
North Mississippi Health Services			MOB			18,074			0.64%			$	89.9		0.15%			County: 35,252			RURAL - NO CBSA			N/A
North Mississippi Health Services			MOB			17,629			0.62%			$	87.7		0.14%			County: 35,252			RURAL - NO CBSA			N/A
North Mississippi Health Services			MOB			9,890			0.35%			$	49.2		0.08%			County: 35,252			RURAL - NO CBSA			N/A
Sanderling Dialysis Center			SC			5,217			0.18%			$	252.4		0.41%			County: 13,279			RURAL - NO CBSA			N/A
North Mississippi Health Services			MOB			3,378			0.12%			$	16.8		0.03%			County: 35,252			RURAL - NO CBSA			N/A
Rettig Family Healthcare			PC			12,000			0.42%			$	180.0		0.29%			County: 23,437			RURAL - NO CBSA			N/A
Haleyville Physicians Professional Building			MOB			29,515			1.04%			$	150.4		0.24%			County: 23,629			RURAL - NO CBSA			N/A
Wellmont Lebanon Urgent Care			SC			8,369			0.30%			$	100.4		0.16%			County: 26,586			RURAL - NO CBSA			N/A

Community Healthcare Trust			Page | 19			3Q 2020 | Supplemental Information

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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.

Annualized Rent

Base rent for the current month multiplied by 12.

Behavioral Specialty Facilities (BSF)

Behavioral other 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 EDITDAre

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 EDITDAre of unconsolidated affiliates and consolidated affiliates with non-controlling interest. The Company also presents Adjusted EDITDAre which is EDITDAre before non-cash deferred compensation amortization.

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.

The Company uses the NAREIT definition of FFO. FFO and FFO per share are operating performance measures adopted by NAREIT. NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to "net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." The Company has included 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 deferred compensation and may include 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.

Community Healthcare Trust			Page | 20			3Q 2020 | Supplemental Information

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REPORTING DEFINITIONS (continued)

                                                            

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 density's 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 this amount.

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.

Pro Forma AFFO

Pro forma AFFO adjusts AFFO to show the pro forma impact of the real estate properties acquired in the period as if they had been acquired on the first day of the reporting period.

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.

Community Healthcare Trust			Page | 21			3Q 2020 | Supplemental Information

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REPORTING DEFINITIONS (continued)

                                                            

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.

Community Healthcare Trust			Page | 22			3Q 2020 | Supplemental Information

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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 pro forma financial statements and 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," “pro forma,” “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, 2019, in the Quarterly Report on Form 10-Q for the Quarter Ending March 31, 2020, 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 Proforma AFFO, 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. 

Community Healthcare Trust			Page | 23			3Q 2020 | Supplemental Information