Community Healthcare Trust Incorporated
Community Healthcare Trust Incorporated (CHCT)
Overview
Community Healthcare Trust Incorporated is a Franklin, Tennessee-based, fully-integrated healthcare real estate investment trust organized in Maryland that owns and acquires properties leased to hospitals, doctors, healthcare systems, and other healthcare service providers. As of December 31, 2025, the company's portfolio comprised 198 properties spanning approximately 4.5 million square feet across 36 states, with a gross investment value of roughly $1.2 billion. Trailing-twelve-month revenue is about $124.8 million (up 5.7% year over year), with net income of $17.9 million, and a market capitalization of approximately $389 million, down about 10% over the trailing period — reflecting the broader pressure REITs have faced from higher interest rates on their cost of capital. The company runs lean, with just 35 employees, all based at its corporate headquarters, and is led by CEO/President David H. Dupuy.
What They Do & How They Make Money
Community Healthcare Trust makes money the way any net-lease REIT does: acquiring healthcare real estate and collecting long-term rental income from tenants, with revenue growth driven by acquisitions, rent escalators, and portfolio occupancy. Its differentiated strategy is deliberately targeting off-market or lightly marketed transactions in the $3 million to $30 million range — smaller deals that fall below the radar of large institutional healthcare REITs, letting the company avoid competitive bidding wars and potentially acquire properties at more attractive cap rates. The portfolio carries a weighted average remaining lease term of about 7.0 years and 90.6% occupancy as of year-end 2025.
Portfolio Composition
The REIT's properties span multiple healthcare real estate categories, with exposure diversified as follows: medical office buildings account for about 36% of annualized rent (93 properties), inpatient rehabilitation facilities about 21.2% (10 properties), and acute inpatient behavioral facilities about 12.6% (5 properties), with the remainder spread across specialty centers, physician clinics, and other categories. No single tenant represents more than 10% of annualized rent; the largest tenants are US Healthvest (7.3%) and Lifepoint Health (6.4%), alongside nationally recognized health systems such as HCA, Fresenius Medical Care, and Tenet Healthcare. Geographically, the portfolio is somewhat concentrated in Texas and Florida, which together represent about 26.7% of annualized rent (14.3% and 12.4% respectively).
Competitors
As a healthcare-focused net-lease REIT, Community Healthcare Trust competes against larger, better-capitalized publicly traded healthcare REITs (such as Medical Properties Trust, Healthpeak Properties, and Ventas) as well as private equity real estate funds and local/regional investors, all bidding for similar healthcare-adjacent properties. The company's stated strategy of avoiding competitive bidding by targeting smaller, off-market deals is a direct response to this competition: rather than trying to out-bid larger REITs for marquee hospital or medical-office portfolios, it seeks less contested transactions.
Competitive Position
Community Healthcare Trust's moat is built on a disciplined acquisition niche — smaller, off-market healthcare properties that larger institutional REITs generally ignore — combined with diversified tenant and property-type exposure that reduces single-tenant concentration risk (no tenant above 10% of rent) relative to some peers. Its long-term leases with healthcare providers, whose businesses are typically non-discretionary and less cyclical than many other commercial real estate tenant types, provide relatively stable and predictable cash flows. That said, the company operates with a meaningfully leveraged balance sheet (a 42.9% debt-to-total-capitalization ratio at year-end 2025, with $258 million drawn on its revolving credit facility and $275 million outstanding on term loans), which makes it sensitive to interest-rate movements — a key factor behind the roughly 10% decline in market capitalization over the trailing period even as revenue continued to grow. Geographic concentration in Texas and Florida adds some regional risk. Its long-term success depends on continuing to source attractively priced off-market deals at scale, maintaining high occupancy and tenant diversification, and managing leverage prudently as it grows.