CHCT - Community Healthcare Trust: A Buying Opportunity After Recent Underperformance

2024-06-05 14:30:25 ET

Summary

• Community Healthcare Trust is a healthcare REIT with 40% exposure to Medical Offices.
• The company has managed to grow occupancy to 92.3% and is recovering from the bankruptcy of GenesisCare.
• After backlash from investors, a new executive compensation plan takes effect in July 2024.
• Debt accounts for 41% of enterprise value, with 80% of debt fixed-rate with limited near-term maturities.
• Community Healthcare Trust trades at a market cap rate of 9% which is quite attractive given operational developments.

Introduction

Community Healthcare Trust ( CHCT ) has underperformed the Vanguard Real Estate Index Fund ETF ( VNQ ) so far in 2024, posting a negative return of 12.5%, more than double the benchmark ETF's drop:

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