CHCT - Earnings call transcript Q2 2021 | Community Healthcare Trust Incorporated

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Operator

Good day, and welcome to the Community Healthcare Trust 2021 Second Quarter Earnings Release Conference Call. [Operator Instructions].

On the call today, the company will discuss its 2021 second quarter financial results. It will also discuss progress made in various aspects of its business. [Operator Instructions]. was its evening website, release been has earnings on posted www.chct.reit. company's distributed and last also The The company will wants XXXX, risk information information that and to of and emphasize that be as statements on some may discussed uncertainty. contain this that August call today, be forward-looking on may based X, of involve the Actual differ materially such results from in may statements. those set forth

may as these the in company required discussion law. update of SEC risks as release company's its future the as be regarding a you its review statements, of and forward-looking Factors For should undertakes by Risk new developments statements disclosures forward-looking earnings in as to and information, well its otherwise, uncertainties, or whether result no MD&A obligation The filings. except

or the its GAAP earnings are in Call available financial During and two between without purposes. on will its call advised of written reconciliation This recorded approximately for reproduced this this the call discuss posted on Investor company's is archive made be available distributed prior will website non-GAAP An website. the days is not call, is A recorded may measures. of being or the conference Relations and for is call playback that participants the property company. company's XX be otherwise release, which permission. the company

call to go Wallace, Tim over the CEO Healthcare turn to ahead. Please like Trust Community would Incorporated. I Now of

Timothy Wallace

second and conference everyone, for Good morning, our us thank you quarter for joining call. today XXXX

Accounting Officer. and is On the Chief Ann our Leigh with Stach, Dave Chief Dupuy, our Officer; today me call Financial

operations last on with X-K, and and was from acquisition We As filed Form earnings last a from and supplemental our an is night our were announcement our an report quarter released an good process, XX-Q had night. standpoint also standpoint. quarterly data filed and normal report

in ATM have know, place. active program you As we an

net ATM through shares issued yield. X.XX% and During approximate second the $XX.X program per gross sales quarter, the proceeds company received stock company the quarter, average of the at price million $XX.XX its of equity first XXX,XXX an We approximately current of - during an share.

quarter, properties X of feet XX% were running price $X.X the with of million. During leased a anticipated approximately acquired properties These through approximately XX,XXX purchase a with annual approximately to second X.XX% total and for XXXX X.XX%. of returns leases square approximately we

price The company X.X% quarter August has returns X expects acquired through purchase So the close Upon properties X feet is approximately the X.XX%. square currently acquisition, million. expirations $X.X through X.X%. $X.X leased this has and lease was annual XX,XXX million expected property far The approximately an agreements quarter. purchase the properties anticipated return in expected property these for with diligence company third of X, for XXXX an of aggregate totaling of approximately price to aggregate to company and under performing due definitive an and purchase of XXX%

aggregate signed be definitive We we expected agreements to completion also should investment an occupancy and last properties and signed range return purchase sheet on quarter for $XX the zone expected XX.XX%. after X had these till we acquired of up The for of million. to investments sale term discussed

have first and expected into early one signed purchase of sheets to XXXX fourth term Also, through X approximately million. XXXX for as but on $X.X We with XX these quarter other as likely most properties properties an the the close quarter, expect and the XXXX. of we price of

quarter. We the third close or on fourth properties expect these in to

is of investments approximately quarter, signed up new last months. we as that XX next term for clients treats addition, investment. these over be $XX In the we discussed anticipated It made approximately to another properties XX will with million have new

returns anticipated term markets. expect to to sheets under enough we fund properties properties of X% and anticipate availability acquisitions, utilize strategically We on continue We many have opportunistically the to credit and review our our on XX%. facilities equity have to to continue with the out access having to several ATM

$X.XX second per to to was X our IPO. for proud term the of we takes On lease years. common health the declared and raised we I dividend that share. front, have I to at continue stable I annualized remaining up average dividend part providers. leasing for up $X.XXXX more the quarter slightly it we per This encouraged and our be ticked than wanted by relatively to Occupancy slightly share quarter dividend raised believe the quarter say picked equates an on activity care weighted items see since the and care our are cover. activity every of another Our some to we as of

So I the Dave to numbers. off will hand to things cover

David Dupuy

total million have perspective, forma day an we in a second the of to total quarter flat additional quarter at and $XX.X expense of second by increased first year. was over pro the expense Revenue quarter that last $XX.X in quarter-over-quarter in of $X.X Great. quarter second or period total million forma $X.X XXXX, to all a an growth expenses same second million, increased growth. $XX.X revenue XXXX morning, the would operating XX.X% Thanks, of G&A the second everybody. million. line Tim, good second of quarter, the in XXXX the basis, pleased from had representing for acquisitions to POE in X%. of $X.X sequential I'm revenue. is from the are X% with the report grew From XXXX on million representing experiencing to property million if thereby total remained $XX.X the pro quarter. for first On growth occurred quarter revenue million the $XXX,XXX increase in The

quarter share was pleased from $X.XX of refinancing quarter effect quarter second $X.X in increased that we million a to to AFFO, or million second from per year. basis, recent FFO increased XXXX full Adjusted totaled diluted diluted XXXX from straight-line quarter due am basis, I diluted However, share sequentially. XXXX in an year-over-year. FFO in over our XXXX, adjusts increase $X.XX interest funds second increased $XX.X rent from net to increase the the $XX of the loan Meanwhile, quarter share the from X.X% expense for and $X.XX operations, per million, FFO, which the to quarter X.X%. to share stock-based of last representing $X.X second was of the term in $XX.X per period in AFFO XXXX or $X.XX million million of the share quarter the for with second XXXX first from of the quarter a per of quarter $XX.X $XX.X of growth borrowings for per $XX in million report or XX.X% growth to XX.X%. compared same million. of compensation, the per quarter which second funds new XX.X%. of in the XXXX share XX.X% XXXX of or On of growth in This added million diluted representing second On grew or second operations, XXXX

day second second growth million, would have numbers $X.XX million, the Finally, basis. of X.X% if have was AFFO of forma increasing first Operator, quarter perspective, the of a occurred per on forma acquisitions $XX.X a quarter, the XXXX pro sequential question-and-answer increased approximately all AFFO to session. AFFO we of the to I That's on on $XXX,XXX quarter pro basis to from a for ready a share. all first from And are by a forma $XX.X start perspective. pro the representing total

Operator

Instructions]. [Operator

Evercore. with McGrath Sheila from comes question first Our

Sheila McGrath

the programmatic Tim, I interested detail on kind relationship. a if upon you construction the I completion? could was on you that you And serve was then with with us company. CHCT for as now wondering what on Do just makes costs another takeout have how give deals if us could little just give are and attractive of term you sheet these structured. this a working dialysis insight fund company the also, more for

Timothy Wallace

fund for makes financing. particular buy on We'll and I and will relatively what they're Balance of guys. land it to so building the $X featuring be are million either mean can be property construction existing good the or put basically to we are be in of relatively and Dave it. Thanks doing quick - the and is question. the then that such it I typically construction - the either renovation attractive million yes, the terms, that can small, it centers $X Obviously, an or up.

was we okay. completion it tenant So risk like felt and the taking it be getting on The operational. will

them life their to off had sell go of otherwise taking estate there, simpler because basis, is each on the it big to can a to company to a would from for from a and of standpoint. is they'd to time if earlier us. they're it if help they their lot would do and try one that they're them develop X that because area serial faster will of won't they it company then can put out all be than one for guys. And their then in gets have it and banks that a they take goals make on the we is to difference a finance real they years risk. these equity makes on entrepreneurs, and said makes is lot a still We what get what this and their to what with with we We the we up level of the to along want certain deal lot stand-alone have, develop one But let it this clients. until and investments. the a clients that have better is or them one to a year return the we've have that a our own long beginning do looking And do big ads more the our same local of rate internal looking be So grow to a could

win-win a situation for So it's everybody.

Sheila McGrath

existing And just yours. be already this is a of to are clear, guys an tenant - previous these Tim,

Timothy Wallace

Yes.

Sheila McGrath

one is second XQ G&A, your just Okay. run for Great. housekeeping a And G&A on item, on Dave, rate? just good the pretty thoughts half

David Dupuy

a good probably it's run think rate. I

I and it think it's flat. now you've bit a seen little up went

in we level may think some proxy mix kind general, for So between I But expected. And think probably consistency I keeping over the you're bit of again, and at a there. about time. seeing little that is where vary a cash good noncash

Operator

Santos Our Piper next question comes Sandler. Daniel with from

Daniel Santos

average town doctor Tim, rates cap spreads. you've about past small in of XX-year a or how the talked your followed sort

about hitting continue you're look your thinking the isn't if sort that But have to or pretty of internal whether maybe across from seeing if you and a being you consistently, your approach. on So X% caps. yet the impact any on to not stocked and board, their keep threshold. will, comment, the still and views compressed Maybe pricing you're right on sale pipeline calculus able perspective, rates cap long-term probably X at a

Timothy Wallace

changing. list do our a big new about I have we other So like the and number that far, it, And clients the talked developing in fill I not to to now situation pages think that's different the we've with clients was clients, for is focus properties. before. able percentage can way win-win on and much anticipate been of years. with the is our that that X can and just The do market than We acquisitions and develop Dave then last having along don't one on it again, the do we

as able good maintain investing fully doing we're we to anticipate So can. our being as we spread that

Daniel Santos

this the then way And How they? helpful. operators it right picture, probably is thing you're your little How to but here to scared That's doctors saying stay? are What it. closest one sort the do variant? are delta long now. bigger next the a think of Got be might they about

Timothy Wallace

To pre-pandemic people to be bank, more full haven't honest our maybe average levels asset Everybody with our talked is speed to ahead. even you, and about it. on Operations an I are operating management basis. basically

Delta is difference much. and right So the huge in the or that that cases previous. is depth to There's the I things going don't hospitalizations the think and anybody shut thinking slow down now between and a down Delta things

has COVID that still through et that and Scott to But sick in aren't Gotlieb, to previous relatively So quickly. think sick unvaccinated you out here that at it, cetera, with people, with And look if It's going ways burn that vaccinated only population burn quickly. play generally are it will cases, it several it. out. it's people

Operator

The Maher next from Riley. question B. Bryan with comes

Bryan Maher

process look on Can X% after your of at that. the schedule we your couple Two about questions years, for One, me. and when under think lease for expiration rollouts? getting for really the talk you I next and a it's year maybe a little next rent those year little the outlook XX% under properties

Timothy Wallace

who we've the lot mean, renewals. Thanks of I a sure, of lot early properties, actually, And tenants question. had a for request

XXXX. expiring extension XXXX, their a lot of more we're in renewals we're seemed some out multiple because had exactly there they've stuff, mean, requesting week on So in and sure they came for the a discussions a buildings working I but probably we almost now been XXXX, doesn't on properties now. months leases. until still stuff that focused it for decided even XXXX, leasing until I'm that longer. X of that couldn't that lease pandemic, leases all After focus tenants - year until that anything on providers lot them XX And multi-tenant but to roll were on time about is focused they to are there, why it's on have same not be internal working terms where about for the of lock

happening hopeful last feel that we leasing the will on market. in with extremely of comfortable good. months the last existing is space X significant vacant in pickup and very be activity The So leasing year this we're what's the a seeing months, X and now

Bryan Maher

the your you by where And you are? Ohio in be at nearly pipeline, XX% that in portfolio, look to then when Florida. to of opportunities Is states, at the X suspect Great. design? when states at we add Illinois, and more XX% it's Texas and of diversification is mainly to same? your that acquisition going in the Or X do be look X roughly And simply XX%

Timothy Wallace

We Texas of and Texas, of is couple go diversification to a diversification about Texas all MSA. And have are England huge those with state. is people I New have a about but overall states guidelines, by We it. like don't more talk state. guidelines mean, going when

properties mean have a we concentrations is of in that a state. CON surprised some there, in not of concentration couple I'm Illinois large So because in I the is Illinois

very big these we're it. make a with comfortable So properties CON up that of chunk

uncomfortable that. is not health a But care. So with place Florida we're for great

- again, design, the similar not something MSA to design the it's what And that by at the we're I but don't but level. the is I will So by wouldn't future level, state at wouldn't past. very diversification it I be say surprised be, bring know doesn't

Operator

Instructions]. [Operator

question Rob Stevenson with next Janney. Our from comes

Robert Stevenson

days? exposures opportunities you there certain are Tim, in better market? is seeing what the any type big by pipeline? or these asset property Any types And

Timothy Wallace

Well, looking entrepreneur we're marketing to our share and for new share entrepreneur.

purchase signed facilities. sale inpatient agreements just obviously we and So with X rehab

XX, XXX next the we months, inpatient have over $XXX should So rehab. approximately XX - another of million

So in we're something like market and it, we growing a that participating is it. and it's

it behavioral ObamaCare, that turned society accepting behavioral the that that of We've issues is has But reimbursement and and see the more of also well, of that growing. a and accepting have. since we see. more been - the down something behavioral the is reimbursements improved broad is XX%, over last probably improved people We lot category. the behavior a is XX% It something is

growth. So with but We in we those that ASC MOB the haven't a And physicians thought seen worthwhile. like that anticipate we the we lately were obviously of operator, we lot seeing space, right that like space.

David Dupuy

thing dialysis - that to other would talked is with about on what saying, did The side. we I just client we add the the Tim obviously just

see dialysis. to growth continue we that area an that's so And is in

but in areas spending an there's seeing the the lot opportunities so eye across outpatient a of of out and space. matter of care there. We're those also area. facilities a there and And partner and And imaging, some strategically where right with. finding appreciate multiple are opportunities derm the lots to do just sure take in we're that's we're discussions I'm as It's really time the looking of time, broadly board space, everyone period can so

Robert Stevenson

you that been the dividend Okay. of the recently? And would quarter now you've the more below quarter to levels than AFFO then, the XX% payout that pushed force $X.XX you've common How to are dividend. sort now to raise payout minimum a down on REIT close Dave, by you doing

David Dupuy

measured a nowhere - way Yes. on the income. - mean appreciate is yes, net taxable close. that is We're I

let that. And Tim, so dividend question. nowhere I'll hitting the cover close you we're to increasing And

Timothy Wallace

the to Well, but want it's the an maintain do of on kind we're going dividend, level, increased that Board a monitoring discussion can to we that's what make been and we dividend when it. at we're we sure increase

So surprised sometime that it's be I to the up always 'XX wouldn't doesn't obviously board. in if happen, but

Operator

over turn conference session. Tim to question-and-answer our concludes back Wallace This any like for the I closing would remarks. to

Timothy Wallace

this to you Thanks, X forward time another about everyone. look We to spending and appreciate months. the talking us with in your morning

Operator

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

You may now disconnect.

Community Healthcare Trust (CHCT) 4 Aug 212021 Q2 Earnings call transcript