Community Healthcare Trust Inc - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 11, 2016

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EX-99.1 - EXHIBIT 99.1 - Community Healthcare Trust Incearningspressrelease2016q2.htm
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Exhibit 99.2











Supplemental Information
Second Quarter 2016

























NYSE: CHCT
www.chct.reit





TABLE OF CONTENTS



































Cautionary Note Regarding Forward-Looking Statements

In addition to the historical information contained within, the matters discussed in this supplemental operating and financial information package may contain forward-looking statements that involve risks and uncertainties. These risks and uncertainties are discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein which speak only as of the date hereof. The Company undertakes no obligation to update forward-looking statements, whether as the result of new information, future developments, or otherwise, except as may be required by law.


Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 2


 CORPORATE INFORMATION

Corporate Headquarters
 
 
 
 
 
Community Healthcare Trust Incorporated
3326 Aspen Grove Drive, Suite 150
Franklin, Tennessee 37067
Phone: 615.771.3052
E-mail: Investorrelations@chct.reit
Website: www.chct.reit
 
 
Board of Directors
 
 
 
 
 
Timothy G. Wallace
Alan Gardner
Robert Hensley
Alfred Lumsdaine
R. Lawrence Van Horn
Chairman of the Board,
Chief Executive Officer
and President
Lead Independent
Director
Audit Committee
Chair
Compensation Committee
Chair
Corporate Governance Committee
Chair
 
 
 
 
 
 
 
 
 
 
Management Team
 
 
 
 
 
Timothy G. Wallace
W. Page Barnes
Steve Harrison
Roland H. Hart
Leigh Ann Stach
Chief Executive Officer
and President
Executive Vice President,
Chief Financial Officer
Managing Director,
Business Development
Vice President,
Asset Management
Vice President, Financial
Reporting and Chief
Accounting Officer
 
 
 
 
 
 
Michael Willman
William R. Davis
James W. Short
 
 
Vice President,
Real Estate
Vice President,
Information Technology
Vice President,
Special Projects
 
 
 
 
 
 
 
 
 
 
 
Covering Analysts
 
 
 
 
 
A. Goldfarb - Sandler O'Neil
 
R. Stevenson - Janney Capital Markets
S. McGrath - Evercore ISI
 
S. Manaker - Oppenheimer
E. Fleming - SunTrust Robinson Humphrey
 
 
 
 
 
 
 
 
 
 
 
 
 
Professional Services
 
 
 
 
 
 Independent Registered Public Accounting Firm
Transfer Agent
BDO USA, LLP
American Stock Transfer & Trust Company, LLC
414 Union Street, Suite 1800
Operations Center
Nashville, Tennessee 37219
6201 15th Avenue
 
 
Brooklyn, NY 11219
 
 
 
1.800.937.5449


Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 3



HISTORICAL FFO AND NORMALIZED FFO (1) (2) 
(dollars in thousands, except per share data)

 
2016
 
2015 (3)
 
Q2
 
Q1
 
Q4
 
Q3
 
Q2
Net income (loss)
$
508

 
$
116

 
$
121

 
$
(67
)
 
$
(1,509
)
Real estate depreciation and amortization
3,330

 
2,813

 
2,415

 
2,211

 
577

Total adjustments
3,330

 
2,813

 
2,415

 
2,211

 
577

Funds from Operations
$
3,838

 
$
2,929

 
$
2,536

 
$
2,144

 
$
(932
)
   Transaction costs
204

 
288

 
243

 
(101
)
 
1,546

   Straight line rent
(138
)
 
(95
)
 
(69
)
 
(50
)
 
(14
)
   Deferred compensation
140

 
121

 
70

 
70

 
26

Normalized Funds From Operations
$
4,044

 
$
3,243

 
$
2,780

 
$
2,063

 
$
626

Funds from Operations per Common Share-Diluted
$
0.32

 
$
0.39

 
$
0.34

 
$
0.29

 
$
(0.26
)
Normalized Funds From Operations Per Common Share-Diluted
$
0.34

 
$
0.43

 
$
0.43

 
$
0.27

 
$
0.18

Weighted Average Common Shares Outstanding-Diluted
12,064,839

 
7,562,644

 
7,511,815

 
7,507,460

 
3,574,392

Weighted Average Common Shares Outstanding-Diluted for Normalized FFO (4)
12,064,839

 
7,562,644

 
7,511,815

 
7,507,460

 
3,563,389


(1
)
Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers funds from operations ("FFO") and normalized FFO to be appropriate measures of operating performance of an equity real estate investment trust ("REIT"). In particular, the Company believes that normalized FFO is useful because it allows investors, analysts and Company management to compare the Company’s operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences caused by unanticipated items and other events.

The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of FFO. FFO and FFO per share are operating performance measures adopted by NAREIT. NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to "net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." The Company has included normalized FFO above which it has defined as FFO excluding certain expenses related to equity offerings, closing costs of properties acquired and mortgages funded, straight-line rent, deferred compensation and other non-cash items. Normalized FFO presented herein may not be comparable to similar measures presented by other real estate companies due to the fact that not all real estate companies use the same definition.

FFO and normalized FFO should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company’s financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and normalized FFO should be examined in conjunction with net income as presented elsewhere herein.

(2
)
There were no revenue-generating operations prior to the Company's initial public offering in May 2015, therefore, there were no funds from operations prior to the second quarter of 2015.
(3
)
Normalized FFO has been restated to to exclude the impact of straight line rent and deferred compensation to conform to the current year presentation.
(4
)
Weighted average common shares outstanding used in calculating Normalized FFO for the three months ended June 30, 2015 includes the dilutive effect of 11,003 shares of restricted common stock that were excluded in calculating the weighted average common shares outstanding for FFO because the effect was anti-dilutive due to the net loss incurred in the period.


Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 4



BALANCE SHEET INFORMATION
(dollars in thousands, except per share data)

 
2016
2015
2014
 
Q2
Q1
Q4
Q3
Q2
Q1
Q4
ASSETS
 
 
 
 
 
 
 
Real estate properties
 
 
 
 
 
 
 
Land and land improvements
$
22,601

$
19,317

$
13,216

$
10,407

$
9,357

$
—

$
—

Buildings, improvements, and lease intangibles
171,407

140,322

119,716

90,721

78,349

—

—

Personal property
81

69

35

—

—

—

—

Total real estate properties
194,089

159,708

132,967

101,128

87,706

—

—

Less accumulated depreciation
(11,350
)
(8,018
)
(5,203
)
(2,788
)
(577
)
—

—

Total real estate properties, net
182,739

151,690

127,764

98,340

87,129

—

—

Cash and cash equivalents
10,920

1,571

2,018

16,053

39,552

2

2

Mortgage note receivable, net
10,872

23,277

10,897

10,862

 
 
 
Other assets, net
3,082

2,704

2,124

1,795

1,139

—

—

Total assets
$
207,613

$
179,242

$
142,803

$
127,050

$
127,820

$
2

$
2

 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Revolving credit facility
$
—

$
55,000

$
17,000

$
—

$
—

$
—

$
—

Accounts payable and accrued liabilities
2,521

1,299

812

1,031

1,098

—

—

Other liabilities
3,625

3,349

2,721

1,060

687

—

—

Total liabilities
6,146

59,648

20,533

2,091

1,785

—

—

 
 
 
 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
 
 
 
 
Preferred stock, $0.01 par value; 50,000,000 shares authorized
—

—

—

—

—

—

—

Common stock, $0.01 par value; 450,000,000 shares authorized
129

77

76

76

76

2

2

Additional paid-in capital
213,912

127,697

127,578

127,538

127,468

—

—

Cumulative net loss
(832
)
(1,340
)
(1,456
)
(1,576
)
(1,509
)
—

—

Cumulative dividends
(11,742
)
(6,840
)
(3,928
)
(1,079
)
—

—

—

Total stockholders’ equity
201,467

119,594

122,270

124,959

126,035

2

2

Total liabilities and stockholders' equity
$
207,613

$
179,242

$
142,803

$
127,050

$
127,820

$
2

$
2



Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 5


STATEMENTS OF OPERATIONS INFORMATION
(dollars in thousands, except per share data)

 
2016
2015
2014
 
Q2
Q1
Q4
Q3
Q2
Q1
Q4
 
 
 
 
 
 
 
 
REVENUES
 
 
 
 
 
 
 
Rental income
$
4,530

$
3,673

$
3,050

$
2,585

$
729

$
—

$
—

Tenant reimbursements
1,105

957

1,202

655

107

—

—

Mortgage interest
561

536

304

—

—

—

—

 
6,196

5,166

4,556

3,240

836

—

—

 
 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
 
Property operating
1,228

1,049

1,123

751

138

—

—

General and administrative
895

806

646

223

1,603

—

—

Depreciation and amortization
3,332

2,815

2,416

2,211

577

—

—

Bad debts
30

—

71

—

—

—

—

 
5,485

4,670

4,256

3,185

2,318

—

—

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
Interest expense
(222
)
(380
)
(183
)
(140
)
(41
)
—

—

Interest and other income, net
19

—

4

18

14

—

—

 
(203
)
(380
)
(179
)
(122
)
(27
)
—

—

NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
$
508

$
116

$
121

$
(67
)
$
(1,509
)
$
—

$
—

 
 
 
 
 
 
 
 
INCOME (LOSS) PER COMMON SHARE
 
 
 
 
 
 
 
Net income (loss) per common share – Basic
$
0.04

$
0.02

$
0.02

$
(0.01
)
$
(0.42
)
$
—

$
—

Net income (loss) per common share – Diluted
$
0.04

$
0.02

$
0.02

$
(0.01
)
$
(0.42
)
$
—

$
—

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC
12,038,381

7,511,183

7,511,183

7,511,183

3,574,392

200,000

200,000

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED
12,064,839

7,562,644

7,511,815

7,511,183

3,574,392

200,000

200,000

DIVIDENDS DECLARED, PER COMMON SHARE, DURING THE PERIOD
$
0.3800

$
0.3775

$
0.3750

$
0.1420

$
—

$
—

$
—



Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 6


PROPERTIES

Property Name
Property Type
Address
City
State
Area
Haleyville Physicians Professional Building
MOB
42030 Hwy 195 East
Haleyville
AL
29,515

Russellville Medical Plaza
MOB
15155 Hwy 43 NE
Russellville
AL
29,129

Gulf Coast Cancer Centers-Brewton
OC
1207 Azalea Place
Brewton
AL
3,971

Gulf Coast Cancer Centers-Foley
OC
1703 North Bunner Street
Foley
AL
6,146

Gulf Coast Cancer Centers- Gulf Shores
OC
253 Professional Lane
Gulf Shores
AL
6,398

Winfield Medical Office Buildings
PC
191 Carraway Dr
Winfield
AL
60,592

Desert Endoscopy Center
ASC
610 E. Baseline Road
Tempe
AZ
13,000

Mountain View Surgery Center
ASC
3131 West Peoria Avenue
Phoenix
AZ
13,835

Continuum Wellness Center
PC
3941 E. Baseline Road
Gilbert
AZ
8,200

Arkansas Valley Surgery Center
ASC
933 Sell Avenue
Canon City
CO
10,165

Liberty Dialysis
DC
4352 Trail Boss Drive
Castle Rock
CO
8,450

Medical Village at Debary
MOB
110 Pond Court
Debary
FL
24,000

Parkway Professional Plaza
MOB
4725 US Hwy 98 S
Lakeland
FL
40,000

Treasure Coast Medical Pavilion
MOB
3498 NW Federal Hwy #C
Jensen Beach
FL
56,457

Medical Village at Wintergarden
MOB
1210 E. Plant Street
Winter Garden
FL
21,648

Bassin Center For Plastic-Surgery-Villages
PC
8575 NE 138th Lane Suites 103-104
Lady Lake
FL
2,894

Bassin Center For Plastic Surgery-Melbourne
PC
1705 Berglund Lane
Viera
FL
5,228

Bassin Center For Plastic Surgery-Orlando
PC
422 Alafaya Trail #32
Orlando
FL
2,420

Fresenius Ft. Valley
DC
135 Avera Drive
Fort Valley
GA
4,920

Dahlonega Medical Mall
MOB
134 Ansley Drive
Dahlonega
GA
20,621

Novamed Surgery Center
ASC
6309 West 95th Street
Oak Lawn
IL
30,455

Chicago Behavioral Hospital
BF
1771 Rand Road
Des Plaines
IL
85,000

Provena Medical Center
MOB
600-680 N. Convent Street
Bourbonnais
IL
54,000

Assurance Health, LLC
BF
2725 Enterprise Drive
Anderson
IN
10,200

Cypress Medical Center
MOB
9300 E. 29th Street North
Wichita
KS
43,945

Prarie Star Medical Facility II
MOB
6850 Hilltop Road
Shawnee
KS
24,840

Family Medicine East
PC
1709 S. Rock Road
Wichita
KS
16,581

Grene Vision Center
PC
655 N. Woodlawn Blvd
Wichita
KS
11,891

Prairie Star Medical Facility I
PC
6815 Hilltop Road
Shawnee
KS
24,557

Fresenius Florence Dialysis Center
DC
7205 Dixie Hwy
Florence
KY
18,283

Cavalier Medical & Dialysis Center
MOB
47 & 51 Cavalier Blvd
Florence
KY
36,362

AMG Specialty Hospital - Lafayette
LTAC
310 Youngsville Highway
Lafayette
LA
29,890

Berry Surgical Center
ASC
28500 Orchard Lake Road
Farmington Hills
MI
27,217

Court Street Surgery Center
ASC
125 South Court Street
Circleville
OH
7,787

Fresenius Gallipolis Dialysis Center
DC
137 Pine Street
Gallipolis
OH
15,110

Brook Park Medical Building
MOB
15900 Snow Road
Brook Park
OH
18,444

Rockside Medical Center
MOB
6701 Rockside Road
Independence
OH
54,611

Eynon Surgery Center
ASC
681 Scranton Carbondale Hwy
Eynon
PA
6,500

Grandview Plaza
PC
802 New Holland Avenue
Lancaster
PA
20,000

Columbia Gastroenterology Surgery Center
ASC
2739 Laurel Street
Columbia
SC
16,969

Davita Etowah Dialysis Center
DC
109 Grady Road
Etowah
TN
4,720

Northwest Surgery Center
ASC
5215 Hollister Street
Houston
TX
11,200

Fresenius Dialysis Center
DC
1321 W. 2nd Avenue
Corsicana
TX
17,699

Bayside Medical Center
MOB
4001 Preston Avenue
Pasadena
TX
51,316

Los Alamos Professional Plaza
MOB
427 E. Duranta Avenue
Alamo
TX
41,797

Londonderry Centre
MOB
7030 New Sanger Avenue
Waco
TX
19,495

Virgina Orthopaedic & Spine Specialists
PC
3300 High Street
Portsmouth
VA
8,445

UW Health Clinic- Portage
PC
2977 County Highway CX
Portage
WI
14,000



Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 7


INVESTMENT ACTIVITY
(dollars in thousands)

2016 INVESTMENT ACTIVITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Location
Property
Type
Acquisition/
Closing Date
Purchase Price/
Mortgage Funding
Square Feet
Aggregate Leased
% at Acquisition
 
 
 
 
 
 
 
 
 
Property Acquisitions:
 
 
 
 
 
 
 
Waco, TX
MOB
1/15/2016
$
2,700

19,495

100.0
%
 
 
Lakeland, FL
MOB
1/21/2016
6,750

40,036

84.1
%
 
 
Oak Lawn, IL
ASC
3/30/2016
6,578

30,455

100.0
%
 
 
Jensen Beach, FL
MOB
3/30/2016
9,400

56,457

100.0
%
 
 
Independence, OH
MOB
4/19/2016
10,350

54,611

82.3
%
 
 
Des Plaines, IL
BF
5/23/2016
20,000

85,000

100.0
%
 
 
Phoenix, AZ
ASC
6/21/2016
3,154

13,835

100.0
%
 
Total / Weighted Average
 
 
$
58,932

299,889

94.6
%
 
 
 
 
 
 
 
 
 
Mortgage Note Fundings:
 
 
 
 
 
 
 
Des Plaines, IL (1)
BF
1/14/2016
$
12,500

85,000

100.0
%
 
Total / Weighted Average
 
 
$
12,500

85,000

100.0
%
 
 
 
 
 
 
 
 
 
 
(1) Mortgage note was repaid upon the acquisition of the property that secured the note on 5/23/16.




Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 8


LEASING INFORMATION


LEASE EXPIRATION SCHEDULE (1) 


 
 
Total Leased Square Footage
Annualized Lease Revenue
Year
Number of
Leases
Expiring
Amount
Percent (%)
Amount
(in thousands)
Percent (%)
Q3 2016
4

33,072

3.4
%
786

4.1
%
Q4 2016
5

23,979

2.5
%
600

3.1
%
2017
15

93,228

9.6
%
2,334

12.2
%
2018
30

161,884

16.6
%
3,239

17.0
%
2019
27

121,942

12.5
%
2,795

14.6
%
2020
17

108,711

11.1
%
1,847

9.7
%
2021
7

58,054

6.0
%
1,239

6.5
%
2022
10

60,526

6.2
%
1,075

5.6
%
2023
5

31,591

3.2
%
573

3.0
%
2024
1

5,390

0.6
%
182

1.0
%
2025
6

29,234

3.0
%
677

3.5
%
Thereafter
14

246,944

25.2
%
3,726

19.6
%
Month-to-Month
2

955

0.1
%
15

0.1
%
Totals
143

975,510

100.0
%
$
19,088

100.0
%

(1) Total portfolio was approximately 93.0% leased in the aggregate at June 30, 2016 with lease expirations ranging from 2016 through 2031.





Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 9


PROPERTY DIVERSIFICATION
(As of June 30, 2016)


Property Type
Number of
Properties

Annualized
Revenue (1)
($ in thousands)
Annualized
Revenue
(%)
Medical Office Building (MOB)
16
$
8,943

44.2
%
Ambulatory Surgery Center (ASC)
9
3,224

15.9
%
Physicians Clinic (PC)
11
3,133

15.5
%
Behavioral Facility (BF) 
2
2,215

11.0
%
Dialysis Clinic (DC)
6
1,152

5.7
%
Long-term Acute Care Center (LTAC) (2)
1
1,060

5.2
%
Oncology Center (OC)
3
508

2.5
%
Total
48
$
20,235

100.0
%
______________________
 
 
 
(1) Annualized revenue for leases was calculated by multiplying base rent for the month of June 2016 by 12 and for the mortgage was calculated based on the principal outstanding at June 30, 2016 in accordance with the mortgage note.
(2) Includes a mortgage investment.
 
 
 














Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 10



PROPERTY DIVERSIFICATION
(continued)
(As of June 30, 2016)



State
Number of
Properties

Annualized
Revenue (1)
($ in thousands)
Annualized
Revenue
(%)
IL
3
$
3,373

16.7
%
FL
7
3,125

15.4
%
KS
5
2,436

12.0
%
TX
5
2,324

11.5
%
OH
4
1,986

9.8
%
AL
6
1,072

5.3
%
LA (2)
1
1,060

5.2
%
AZ
3
837

4.1
%
KY
2
735

3.6
%
PA
2
617

3.1
%
MI
1
613

3.0
%
Other (Less than 3%)
9
2,057

10.3
%
Total
48
$
20,235

100.0
%
_________________
 
 
 
(1) Annualized revenue for leases was calculated by multiplying base rent for the month of June 2016 by 12 and for the mortgage was calculated based on the principal outstanding at June 30, 2016 in accordance with the mortgage note.
(2) Includes a mortgage investment.
 
 
 






Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 11



PROPERTY DIVERSIFICATION
(continued)
(As of June 30, 2016)



Tenant

Annualized
Revenue (1)
($ in thousands)
Annualized
Revenue
(%)
Chicago Behavioral Hospital
$
1,900

9.4
%
AMG Specialty Hospital (2)
1,060

5.2
%
Fresenius
923

4.6
%
HCA Physician Services Group
892

4.4
%
Adventist Health System Sunbelt Healthcare Corporation
655

3.2
%
Tenet Healthcare Corporation
613

3.0
%
Surgery Partners
605

3.0
%
Others (Less than 3%)
13,587

67.2
%
Total
$
20,235

100.0
%
 
 
 
(1) Annualized revenue for leases was calculated by multiplying base rent for the month of June 2016 by 12 and for the mortgage was calculated based on the principal outstanding at June 30, 2016 in accordance with the mortgage note.
(2) Mortgage investment.

            


Community Healthcare Trust / 2Q 2016 Supplemental Information
 
Page 12

Community Healthcare Trust Inc Reports