Key Highlights

  • Rental income climbed about USD 1.4 million, or 4.5%, in the quarter ended September 30, 2026, and 4.1% across nine months, driven by 2025 and 2026 acquisitions.
  • Interest expense increased about USD 0.4 million, or 6.2%, once Interest Rate swaps covering USD 75.0 million of revolver Debt matured on March 29, 2026.
  • Occupancy stood near 90.1%, with 450,000 square feet leased or renewed against 493,000 square feet that expired or was terminated over nine months.
  • Two properties sold after quarter-end produced net proceeds of about USD 31.5 million, and a gain of roughly USD 9.1 million is expected in the fourth quarter.

Acquisitions Lift Rent by 4.5% in the Quarter

Community Healthcare Trust (NYSE:CHCT) released its third-quarter 2026 report on November 3, 2026. As a real estate Investment trust, it holds facilities leased to hospitals, physicians and health systems. Across nine months, rental income grew about USD 3.8 million, or 4.1%, as acquisitions contributed roughly USD 6.2 million and property sales took away about USD 2.1 million. In the quarter alone, rent rose about USD 1.4 million, or 4.5%, with 2025 and 2026 purchases adding about USD 1.7 million and cash collections from a geriatric behavioral tenant contributing USD 0.3 million. Sales subtracted about USD 0.7 million, and a second tenant shifted to cash-basis accounting, costing roughly USD 0.2 million. The 2026 purchase, an inpatient rehabilitation Facility of roughly 37,151 square feet, cost about USD 28.5 million and is fully leased through 2044.

Swaps Expire and the Revolver Pushes Interest Higher

Interest expense climbed about USD 0.4 million, or 6.2%, as the revolving Credit balance expanded and three swaps that had fixed roughly USD 75.0 million of borrowings at a weighted average near 3.8% lapsed in March 2026. Replacement hedges have not been put in place, leaving that debt floating at about 5.6%. Based on simple arithmetic, a 1.8 point difference on USD 75.0 million works out to roughly USD 1.35 million of additional annual interest. The filing observes that the Federal Reserve raised rates during 2026 and that higher rates can weigh on property values. Property operating expenses barely moved, at USD 6.0 million against USD 5.9 million. Partial offsets came from general and administrative expense, which fell 10.0% on lower non-cash stock compensation, and Depreciation and amortization, which dropped 2.1%.

Asset Recycling, the Pipeline and Tenant Exposure

Three properties sold during the nine months for net proceeds of about USD 5.7 million, producing a USD 0.7 million loss, and a USD 0.4 million Impairment was recorded in the quarter. Two further sales after quarter-end raised about USD 31.5 million, earmarked for like-kind exchange purchases and general corporate needs. Four properties sit under purchase agreements worth about USD 99.0 million, with the first closing expected in the fourth quarter of 2026, though completion is not guaranteed. Risks include tenant credit, given two tenants on cash-basis accounting, leasing gaps and refinancing needs. The extract did not provide dividend, funds from operations or peer comparisons.

Where Things Stand

Acquisitions drove the rent gain, while expired swaps and a larger revolver balance drove the interest increase. Community Healthcare Trust (NYSE:CHCT) thus shows modest top-line growth with financing costs squeezing the margin, partly cushioned by lower general and administrative expense. Occupancy near 90.1% and leasing that trailed expirations over nine months point to limited organic momentum. The next markers are the first of four pipeline closings in the fourth quarter, the expected USD 9.1 million gain and the path of floating rates.