Community Healthcare Trust reported second quarter revenue of $31.2 million and net income of $0.06 per share. The company announced a strategic shift, highlighted by a significant dividend cut, to reallocate capital towards acquisitions and portfolio reinvestments. Funds from operations (FFO) were $0.48 per share, while adjusted funds from operations (AFFO) were $0.56 per share.
Key Highlights
- The company reduced its quarterly dividend by 31% to $0.33 per share, lowering its adjusted funds from operations (AFFO) payout ratio to approximately 60%.
- Management plans to reallocate an additional $25 million to $30 million in retained capital over the next two years to fund growth initiatives, including a current $99 million acquisition pipeline.
- The acquisition pipeline is expected to generate yields of 9-10%, and the company is also marketing over $70 million of properties for disposition as part of its capital recycling strategy.