Community Healthcare Trust (NYSE:CHCT) Issues Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Earnings miss: CHCT reported $0.07 EPS vs. a $0.10 consensus (a $0.03 miss) while revenue of $31.52M slightly beat estimates; net margin was 4.21% and return on equity 1.16%, indicating weak profitability.
• Large dividend but questionable sustainability: The company declared a $0.48 quarterly dividend (10.9% yield), yet a payout ratio of 2,728.57% suggests the dividend may not be supported by current earnings.
• Market and analyst context: shares traded at $17.65 after the release (market cap ≈ $504M, P/E ≈ 252), and analysts maintain a consensus "Hold" with a $18.00 target.

Community Healthcare Trust (NYSE:CHCT - Get Free Report) released its quarterly earnings data on Tuesday. The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.03), FiscalAI reports. The business had revenue of $31.52 million during the quarter, compared to the consensus estimate of $31.03 million. Community Healthcare Trust had a net margin of 4.21% and a return on equity of 1.16%.

Community Healthcare Trust Stock Performance

Shares of NYSE CHCT traded up $0.48 during midday trading on Tuesday, hitting $17.65. 265,717 shares of the stock traded hands, compared to its average volume of 249,614. The firm has a 50-day moving average of $16.68 and a two-hundred day moving average of $16.19. The firm has a market capitalization of $504.15 million, a P/E ratio of 252.12 and a beta of 0.73. Community Healthcare Trust has a one year low of $13.23 and a one year high of $18.22.

Community Healthcare Trust Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Monday, May 11th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.9%. The ex-dividend date of this dividend is Monday, May 11th. This is a positive change from Community Healthcare Trust's previous quarterly dividend of $0.48. Community Healthcare Trust's payout ratio is currently 2,728.57%.

Institutional Investors Weigh In On Community Healthcare Trust

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in shares of Community Healthcare Trust by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 2,804,298 shares of the real estate investment trust's stock worth $42,906,000 after purchasing an additional 67,241 shares in the last quarter. Invesco Ltd. increased its stake in Community Healthcare Trust by 38.9% in the 3rd quarter. Invesco Ltd. now owns 1,060,213 shares of the real estate investment trust's stock worth $16,221,000 after buying an additional 297,179 shares in the last quarter. Kennedy Capital Management LLC increased its stake in Community Healthcare Trust by 66.0% in the 3rd quarter. Kennedy Capital Management LLC now owns 806,461 shares of the real estate investment trust's stock worth $12,339,000 after buying an additional 320,546 shares in the last quarter. Focus Partners Wealth increased its stake in Community Healthcare Trust by 0.7% in the 3rd quarter. Focus Partners Wealth now owns 743,324 shares of the real estate investment trust's stock worth $11,373,000 after buying an additional 5,000 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Community Healthcare Trust by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 741,982 shares of the real estate investment trust's stock valued at $12,186,000 after purchasing an additional 14,044 shares in the last quarter. 87.84% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently issued reports on CHCT. Wall Street Zen raised Community Healthcare Trust from a "hold" rating to a "buy" rating in a research report on Saturday, February 21st. Truist Financial lowered their price objective on Community Healthcare Trust from $20.00 to $19.00 and set a "buy" rating on the stock in a research report on Tuesday, March 10th. Evercore set a $17.00 price objective on Community Healthcare Trust in a research report on Thursday, February 19th. Piper Sandler increased their price target on Community Healthcare Trust from $17.00 to $18.00 and gave the company a "neutral" rating in a report on Thursday, February 19th. Finally, Zacks Research cut Community Healthcare Trust from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 26th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $18.00.

About Community Healthcare Trust

Community Healthcare Trust Incorporated NYSE: CHCT is a real estate investment trust that specializes in owning and leasing healthcare-related properties. The company's portfolio is focused primarily on senior housing and care facilities, including skilled nursing centers, assisted living communities, memory care units, independent living apartments and continuing care retirement communities. Through long‐term, triple‐net leases, Community Healthcare Trust seeks stable, predictable cash flows by partnering with experienced operators that manage day-to-day resident care and property operations.

As of the latest reporting, Community Healthcare Trust's holdings span multiple regions across the United States, with properties located in both urban and suburban markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.