CHCT - Earnings call transcript Q1 2022 | Community Healthcare Trust Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Community Healthcare Trust 2022 First Quarter Earnings Release Conference Call.

On the call today, the company will discuss its 2021 first quarter financial results. It will also discuss progress made in various aspects of its businesses.

Following the remarks, the phone lines will be open for a question-and-answer session. The company’s earnings release was distributed last evening and has also been posted on its website, www.chct.reit. X, emphasize on of based risks this as today, to may information on and wants contain of discussed may be call May uncertainty. company that that the some that information forward-looking The statements and involve XXXX, will be Actual may statements. from forth in those results set materially such differ

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

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

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

Tim Wallace

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

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

night filed data XX-Q and report supplemental last announcement and on also last Form normal filed released night. our As process, X-K, is our earnings were quarterly and our with was an report

undergoing we redevelopment renovations in again with busy are X is and an of have or acquisition when first different Again, standpoint. a the significant or little place quarter them long-term standpoint or that properties tenants slowed redevelopment portions renovations from an significant The operation done. was from

Our continued right we XX% seen leasing around still is and have a occupancy activity. pickup in

see part we activity the by on encouraged healthcare providers. of are the We

have Our while been expenses, control tenant asset to managers satisfaction. busy attempting maintaining

average Our at years. stable lease just term less X relatively weighted than remaining was

and of the two feet XXXX, of of $X.X During an to on X.XX%. after a six signed leased of to were sale through $XXX price approximately approximately square now a returns purchase for investment additional should for acquired million. couple agreements total range acquired quarter, aggregate we The with signed approximately XX,XXX leases expected be expected of million. purchase XX.XX%. for to These up properties annual approximately occupancy in with and first properties properties agreements quarter, investments and X% The return this company has XXX% completion anticipated running these

of the quarter XXXX, expect properties We the one into XXXX these five of close in second through on and and other XXXX. to

with In sheet properties next made XX approximately another addition, is to anticipated agreement we growth update development. on is that and week. firm turn client months. that an private can It these be still we have XX finalized were a to approximately new for Therefore, attention over in last funded and The the investment. million they exciting their this same will hopeful XX equity they the that and new investments term up are

since enough facilities have to of the access credit an we to X% on anticipate proud raised under ATM properties having to common I several share. care I availability continue sheets say quarter our on it per to raised to believe continue to wanted We our I cover. This equates the be our annualized fund acquisitions, to dividend for dividend our every And another utilize we to expect and of that declared term IPO. first We many anticipated equity opportunistically $X.XX we per to markets. On strategically to properties the XX%. and have share. have to our front, of quarter with and review items takes continue dividend returns $X.XX

hand Dave I'll the things to cover numbers. off So to

Dave Dupuy

quarter. pleased in good normal perspective, period from Thanks, million first the the three all acquisitions snow from fluctuations increased an day properties quarter-to-quarter. of X.X%, removal first increase G&A expense several million, expenses the of occurred one, a report from quarter the X.X pro Increases in XX.X an G&A to to from X.X XX.X including at million million decrease and forma primarily expense. of quarter on XXX,XXX XX.X X.X%. morning, of increase fourth to was X.X Revenue of 'XX to growth $X.XX Tim, On of grew everyone. total seasonal quarter-over-quarter XX.X%. ‘XX to that share the expense well increased were the to grew fewer result have first On year. sequentially first diluted the compared to first last basis, pleased by forma for a quarter representing driven this due over in of increased X.X% X.X to to per million that in and quarter basis million first diluted the interest Meanwhile, interest fourth we FFO share XXXX X% or X.X property of increase mentioned, quarter by million two the million experience million I'm million quarter in X.X the XX.X representing growth compensation in in on increased was for pro or of XX.X two capitalized the in of: in XX.X per XXXX the million FFO from XXXX projects additional operations quarter. property quarter construction the property funds that of first revenue was share From the in an from same or to interest expenses first revenue diluted I'm million, which XX.X first deferred operating 'XX taxes; and increases in quarter quarter-over-quarter. The with of first rent the million a POE or decrease with $X.XX an XXXX first total in would the of same growth growth first line representing first total million for the was of or X.X%. decrease a an compensation per X.X% a in period Adjusted or over year. quarter from of a adjusts AFFO straight report the year-over-year. X.X% expense days as previously 'XX the first 'XX, stock XX.X% few Tim in diluted as compared per per of quarter for increased the share million, $X.XX first of AFFO the from from quarter representing XX.X totaled increase or On quarter FFO $X.XX X%. basis, to funds based share 'XX a in the Meanwhile, operations share in quarter 'XX, 'XX XX.X per quarter sequentially. fourth quarter last

Finally, I perspective, start a the AFFO approximately million. share. first for million XX,XXX occurred XX.X all of on perspective. of would session. from increased flat forma X% first 'XX sequential basis Betsy, on pro That's forma to a first the AFFO Q&A pro the of from XX.X day quarter by acquisitions have per all $X.XX ready quarter numbers to a a on fourth have of the total and diluted a we're was representing a decrease if per the And quarter point share basis

Operator

[Operator from Instructions] Goldfarb The Alexander first with question Piper today comes Sandler.

Alexander Goldfarb

guys slowed company, questions. you early you In which environment? the Just years talk same few pretty what's built quarterly little the pipeline, that the about At a positive. Tim, a recently. on of more that had time acquisition healthy going were also up but can a just you've bit the volumes, is presale acquisition --

trading guys on there in of a just available? should sort quarter to and So heading for what slow down? of a volumes off that you Just as of caused function Or quarterly you of is then was it wasn't what to basis, saw pipeline stock forward? sort just the it we expect curious much that the quarter price

Tim Wallace

want pickier. of actually, It the do catching XX-year with the be deal for month good We've that's that weeks, is has bit. think, a pipeline flow. to It's get a combination we've that morning, are up us to last of Alex the tenures thanks with cap the lot rates. some be for because because the couple it the type things etc. as the off breakthrough and pickier it deals, and the flow market Good and rate over difficult for of bit into through cap then in if assets, of the with little brokered deals, that system pipeline And assets think new a seen inflow lower up to couple question. tenure seen actually makes some maybe of the a makes of quarters. bit. Maybe that's us equity deals more little interest and rates, a good seen, is make -- I maybe rises last the little with to a And because brand healthcare X% increases, I over open tends do us less leases, a you cash And deals such type we've private think I chasing

Alexander Goldfarb

to unique you is in of what's tapped portfolios drama Just like And and in of rush then limelight There's industry. the private with that just question or on vogue way view HR the equity going wouldn't is HTA or suddenly with the on to industrial HTA, it sort Maybe you've peer there are? the second MOB a bigger our public something the of your start being comments. portfolios expect back Welltower curious, apartments

Tim Wallace

as took got just that I or HTA you into think that to to read part hours I and to novel anything anymore. the sure I overall. was and read Welltower if were to can not buying F it asset a company difference that, an it I'm found, so yesterday like I an is it's and how And read came of they doesn't forth. difference. prospectus two read and when large ways it ways, of mean kind make in into I mean, interesting make different the study, couple back play Welltower into HR big, a find went an a a

So buy. thing, they is do for was HR. that something but not weren't an they to was see they didn't because the that want the they in HTA, they that was interesting need but that It and to for in buy, And sale thing buy interesting want to thing to sale, were interested interesting. that's interested big,

So I it to don't interesting I it'd know, plays be out. think see how

I think I think overall bunch an don't of type of -- meaning drama, think space. any -- it it's a I for don't has but MOB it's overall in

Operator

Michael question Securities. with from Lewis [Operator next comes Truist Instructions] The

Michael Lewis

Number one, ask two yield I think spreads, three they a wanted quarter. the to looked this on quarters pieces yield. about that? the I announced specifically investment you It the and little to deals, so nine two development like were more

just did do was first about XX And similar think were But I quarter, then think might on to so given the the how there if also a was changing and you it use front? obviously specific you what's happened be anything to deals I your the stock four deals. that development differently wondering, you equity price?

Tim Wallace

deals We to between weighted particular, have of The a average shrinking what cost watch of -- read don't think regular weighted our the is. margins. or cost capital goes as And the in price stock average basis, our very average nothing a in down, know, goes our weighted changes is spread still you But the up. course, into of I can investment capital favorable we you criteria on of and overall do, transactions there's our cost as we what capital. basically

make on levels it at have invest little So a less still we spread. It's these good can just and money. the

would business from we're and And the it doing the years, we said go in than Obviously, we it. the optimize we're as at means spread for not actually, down this to is do price like we we we before to shying based wider. a that price spread. that point, like, be have a try stock So, about that away would to it stock and because upon basically lot concerned more I've when investments price spread higher stock

Michael Lewis

that, your percent company, grown of of ticked G&A the My I revenue second long up love the at look as with the comp has the dated bit. percent few obviously, because years, And over question, wanted I you've when a of scalability to ask as of the little the we about a actually last stock vesting. part G&A

up includes -- talk that past that's nitpick -- in So the mostly but you're you do incentive great as comp I But for that two goals, don't based ability this top that is has or doubled think grow the to maybe executives mean to hitting opportunity your I G&A? what the that. the realized XX% the it's years, about the kind year, you three, scale three comps. Again so of past it's

Tim Wallace

Well, think probably maximum customer. I a yeah, we're close to

quarters of we a the down, the of gave us retirement are to stock went disclosure time in amortize have ago, close us retirement since some But that the supplemental happening is legal age, vesting. us. what's and and rules report data We instead additional between now we to the over the make years, of eight getting

that's the on G&A. So now noncash pinching us of portion

a to continuing the reach and or two. to G&A, next, I year just relatively to of down you If point revenue. cash don't the noncash I of know stable the at would relative And portion kind will look in that been we yeah, maximum it's happen anticipate a think

So off level or go point, that it down. will after

Michael Lewis

you just then your about one, kind I could threat you how view and I what last change we the defensive happens, types. the and that a if things that kind We've of the your and you at to right? of tenants but way like in has -- area dialysis, the and see wanted the that the most all? it does ask And based no that, got bit one of you matter properties squeeze of little doctor. specifically? if doctor, -- about look go lot talked about, Teladoc of at dialysis a this need in So, Do nature to changing talked be that you seemed in-home see see like And to property

Tim Wallace

few still facilities have dialysis you incorporating years some over if space. you last office need Most in-home, have dialysis started the and in-home

the then that, is at-home and also in and we So will for is, some have people do space at-home, see mostly facility have supervise facility the the the it'll what a dialysis designated who dialysis.

see a mean, But in-home. we move is to think into the going long stick to switching lot we I in-facility generally if it's it. the So of speaking, in-facility to decades now going number to going lead be that's a to next be with of getting dialysis over people something somebody's in-home. they're And from time

not need existing dialysis see So we as facilities, of dialysis a a for reduction reduction future it of -- need a basically the but of facilities.

Dave Dupuy

reasons I would Michael part operator home The with, strategy. is, central a one really that only to their of we a really other the like dialysis we they the thing of specifically that projects business, of lot add it's do have their our to development

best some to create with mix that working And of And as be home able to of to clinics market those patients, approach mix. There but payers we think clinic-based directly go always want of on combination to so they're will going actually well dialysis you payers forward. a as mixing candidly, dialysis the their is which, strategically part as they're right strategizing be partnering with capture on how strategy, those.

one we operator we're really growth the reasons that of plans. and the their with working excited And so about liked that's

Operator

from comes question Evercore. McGrath Next Sheila with

Sheila McGrath

more could in Was I might 'XX? or on little a was strategic relationships wondering million backlog you more XXX of about the that the a acquisitions. if this 'XX talk one and increased in phase any how versus visibility bit

Tim Wallace

Butler on closed operable one. an But actually issue. should -- supply I partial an their already because exhaust mean, Ohio chain a facilities isn't yet have fan that actually, open and the But kitchen County, we of under CEO. to issues, and Yes, overzealous inspector due

they bring of actually until [CL] it, in we're we're patients on instead kitchen. a waiting So the have full now seeing just using in patients a food they facility, before they they're get closed

soon one quarter So weather end through chain one and will that at or on remainder Again, lot of close the we in close thqe should least a should possibly 'XX. two. one a relatively and basically more And then four XXXX, of issues. depends three be supply it

Sheila McGrath

stock the has use of to this bit with year pressure other grow. just that a under then little And REITs been equity

use Just bit your leverage, you cost blended little that? capital think your about of how to thoughts more on appetite a and here, your do

Tim Wallace

of is we're little we're XX% to make may a XX bit, stock long-term little for with to may to increase where goal -- the the Well, We at capital it more. below money or we spreads, a while, leveraging the base. go stick not now. but a keeping going our going our we've too been to much stock it XX% even with price, investment of XX can we And with now our where again, is in

stock because on away but yield. is. think investments, know I So is of it's yield the what those current I currently, we're the not X.XX% where shying making from like don't the equity,

So, in X.X, if X, still to we're room invest. investing lot of there a we've got

Dave Dupuy

that thing that. be just We ATM of pick I why be the And we spots is very, we other can add the raise terms very that's Sheila, would to our very capital, like around how in disciplined so strategic, much.

have million $XXX revolver essentially, about available. I or We think million $XXX

So we still to. the how our we markets tap the -- smart our while can leverage equity in really used be keeping profile investors in are have that

having count think I be us options perspective. ATM, access nimble of we to the from So a but capital a lot as on

Operator

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

Tim Wallace

conference Again, in y'all to forward Trust Healthcare the quarter NAREIT. in call, much. interest look a so of for seeing June on we'd we like everybody your thank and York New talking you to to lot Community Thanks continued at in second

Operator

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

disconnect. You may now

Tim Wallace	President and Chief Executive Officer
Dave Dupuy	Executive Vice President and Chief Financial Officer
Tim Meyer	Executive Vice President, Asset Management
Leigh Ann Stach	Chief Accounting Officer
Alexander Goldfarb	Piper Sandler
Michael Lewis	Truist Securities
Sheila McGrath	Evercore

Community Healthcare Trust (CHCT) 4 May 222022 Q1 Earnings call transcript