Community Healthcare Trust Announces Results for the Three Months Ended December 31, 2016

COMMUNITY HEALTHCARE TRUST INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

December 31, 2016

December 31, 2015

ASSETS

Real estate properties:

Land and land improvements

$

29,884

$

13,216

Buildings, improvements, and lease intangibles

222,755

119,716

Personal property

97

35

Total real estate properties

252,736

132,967

Less accumulated depreciation

(18,404)

(5,203)

Total real estate properties, net

234,332

127,764

Cash and cash equivalents

1,568

2,018

Mortgage note receivable, net

10,786

10,897

Other assets, net

4,843

2,124

Total assets

$

251,529

$

142,803

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Revolving credit facility

$

51,000

$

17,000

Accounts payable and accrued liabilities

3,541

812

Other liabilities

2,981

2,721

Total liabilities

57,522

20,533

Commitments and contingencies

Stockholders' Equity

Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding

—

—

Common stock, $0.01 par value; 450,000,000 shares authorized; 12,988,482 and 7,596,940 shares issued and outstanding at December 31, 2016 and 2015, respectively

130

76

Additional paid-in capital

214,323

127,578

Cumulative net income (loss)

1,265

(1,456)

Cumulative dividends

(21,711)

(3,928)

Total stockholders' equity

194,007

122,270

Total liabilities and stockholders' equity

$

251,529

$

142,803

The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

COMMUNITY HEALTHCARE TRUST INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2016 AND 2015

(Unaudited)

(Dollars in thousands, except per share amounts)

Three Months Ended December 31,

Year Ended December 31,

2016

2015

2016

2015

REVENUES

Rental income

$

5,811

$

3,050

$

18,999

$

6,364

Tenant reimbursements

1,314

1,202

4,564

1,964

Mortgage interest

267

304

1,634

304

7,392

4,556

25,197

8,632

EXPENSES

Property operating

1,504

1,123

4,744

2,012

General and administrative

856

646

3,228

2,472

Depreciation and amortization

3,558

2,416

13,201

5,204

Bad debts

52

71

155

71

5,970

4,256

21,328

9,759

OTHER INCOME (EXPENSE)

Interest expense

(391)

(183)

(1,178)

(364)

Interest and other income, net

2

4

30

35

(389)

(179)

(1,148)

(329)

NET INCOME (LOSS) AND COMPREHENSIVE
INCOME (LOSS)

$

1,033

$

121

$

2,721

$

NET INCOME (LOSS) PER COMMON SHARE:

Net income (loss) per common share – Basic

$

0.08

$

0.02

$

0.24

$

(0.31)

Net income (loss) per common share – Diluted

$

0.08

$

0.02

$

0.24

$

(0.31)

WEIGHTED AVERAGE COMMON SHARE
OUTSTANDING-BASIC

12,686,183

7,511,183

11,238,437

4,726,925

WEIGHTED AVERAGE COMMON SHARE
OUTSTANDING-DILUTED

12,759,089

7,511,815

11,319,505

4,726,925

The Consolidated Statements of Comprehensive Income (Loss) do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

COMMUNITY HEALTHCARE TRUST INCORPORATED

RECONCILIATION OF FFO, NORMALIZED FFO, and AFFO ⁽¹⁾

(Dollars in thousands, except per share amounts)

(Unaudited)

Three Months Ended December 31,

2016

2015

Net income

$

1,033

$

121

   Real estate depreciation and amortization

3,554

2,415

   Total adjustments

3,554

2,415

Funds From Operations

$

4,587

$

2,536

   Transaction costs

200

243

Normalized Funds From Operations

$

4,787

$

2,779

   Straight line rent

(201)

(69)

   Deferred compensation

221

70

AFFO

$

4,807

$

2,780

   Funds from Operations per Common Share-Diluted

$

0.36

$

0.34

   Normalized Funds From Operations Per Common Share-Diluted

$

0.38

$

0.37

   AFFO Per Common Share-Diluted

$

0.38

$

0.37

Weighted Average Common Shares Outstanding-Diluted

12,759,089

7,511,815

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"), normalized FFO and adjusted funds from operations ("AFFO") to be appropriate measures of operating performance of an equity real estate investment trust ("REIT").  In particular, the Company believes that normalized FFO and AFFO are useful because they allow 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 and impairments of real estate, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company has included normalized FFO which it has defined as FFO excluding certain expenses related to the initial public offering and closing costs of properties acquired and mortgages funded and has included AFFO which it has defined as normalized FFO excluding straight-line rent and deferred compensation and may include other non-cash items from time to time.  Normalized FFO and AFFO 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 definitions.

FFO, normalized FFO and AFFO 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, normalized FFO and AFFO should be examined in conjunction with net income as presented elsewhere herein.