Dividend sustainability appears highly questionable as the payout ratio relative to AFFO frequently exceeds 100%, such as the 1.07x ratio observed in 2025Q3.
| Cash from Operations | 55.76M | 56.43M | 58.88M | 61.38M | 60.28M | 56.35M | 48.37M | 32.36M | 24.44M | 22.13M | 14.93M | 2.97M | 0 |
| Operating CF Growth % | -31.32% | -4.16% | -4.08% | 1.83% | 6.98% | 16.49% | 49.47% | 32.41% | 10.46% | 48.21% | 402.49% | - | - |
| Operating CF / Revenue % | 45.57% | 46.56% | 50.85% | 54.4% | 61.71% | 62.21% | 63.91% | 53.18% | 50.26% | 59.25% | 59.25% | 34.42% | 0% |
| Net Income | 6.06M | 5.1M | -3.18M | 7.71M | 22.02M | 22.49M | 19.08M | 8.38M | 4.4M | 3.51M | 2.72M | -1.46M | 7.58M |
| Depreciation & Amortization | 42.91M | 43.54M | 42.78M | 40.44M | 33.19M | 31.23M | 25.51M | 22.75M | 20.17M | 18.15M | 13.38M | 5.32M | 0 |
| Stock-Based Compensation | 10.31M | 10.3M | 9.99M | 19.96M | 9.41M | 7.16M | 4.74M | 3.84M | 2.85M | 1.47M | 674K | 166K | 0 |
| Other Non-Cash Items | -3.46M | -2.15M | 10.11M | -3.66M | -3.44M | -3.81M | -2.9M | -2.05M | 3.55M | -1.24M | -1.89M | -133K | -7.58M |
| Working Capital Changes | -75K | -388K | -809K | -3.38M | -943K | -894K | 1.86M | -1.98M | -4.99M | 709K | -119K | -997K | 0 |
| Cash from Investing | -62.57M | -47.7M | -92.66M | -113.67M | -113.77M | -104.43M | -125.06M | -153.18M | -53.51M | -147.55M | -117.09M | -140.64M | 0 |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 103.4M | 97.21M | 118.07M | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -106.4M | -102.45M | -128.57M | 0 | -52.22M | -147.25M | -115.61M | -139.81M | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 3M | 5.24M | 10.5M | 0 | 3.27M | 833K | 104K | 0 | 0 |
| Other Investing | -62.57M | -47.7M | -92.66M | -113.67M | -103.4M | -97.21M | -118.07M | -148.81M | -48.95M | -146.42M | -115.51M | -139.81M | 0 |
| Cash from Financing | 7.16M | -9.78M | 33.53M | 44.86M | 62.69M | 48.05M | 77.56M | 120.45M | 29.33M | 125.99M | 101.71M | 139.69M | 0 |
| Dividends Paid | -54.08M | -53.67M | -51.7M | -48.06M | -44.48M | -42.41M | -38.03M | -31.95M | -29.38M | -24.43M | -17.78M | -3.93M | 0 |
| Common Dividends | -40.41M | -53.67M | -51.7M | -48.06M | -44.48M | -42.41M | -38.03M | -31.95M | -29.38M | -24.43M | -17.78M | -3.93M | 0 |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | 419K | -1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 70.81M | -317K | -4.44M | -1.19M | -1.24M | -1.86M | -269K | -1.75M | 9.7M | -1.75M | -1.31M | -2.74M | 0 |
| Net Change in Cash | 346K | -1.04M | -249K | -7.43M | 9.2M | -25K | 869K | -369K | 262K | 562K | -450K | 2.02M | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 3.34M | 4.38M | 4.63M | 12.07M | 2.87M | 2.89M | 2.02M | 2.39M | 2.13M | 1.57M | 2.02M | 2K | 0 |
| Cash at End | 2.62M | 3.34M | 4.38M | 4.63M | 12.07M | 2.87M | 2.89M | 2.02M | 2.39M | 2.13M | 1.57M | 2.02M | 0 |
| Free Cash Flow | 60.44M | 56.43M | 34.24M | 42.4M | 49.9M | 49.13M | 41.38M | 27.99M | 19.88M | 21M | 13.35M | 2.14M | 0 |
| FCF Growth % | 65.9% | 64.82% | -19.26% | -15.03% | 1.58% | 18.74% | 47.82% | 40.77% | -5.29% | 57.27% | 522.67% | - | - |
| FCF / Revenue % | 49.39% | 46.56% | 29.57% | 37.58% | 51.09% | 54.24% | 54.67% | 46% | 40.89% | 56.22% | 52.98% | 24.84% | 0% |
Dividend coverage and payout sustainability
As reported in financial statements, CHCT's dividend payout ratio relative to AFFO frequently exceeds 100%, with a notable 1.07x ratio in 2025Q3, suggesting that the company is consistently distributing more cash than its core operations generate after accounting for necessary recurring capital expenditures.
The recurring inability to cover the dividend with AFFO suggests that the current distribution level may be unsustainable without external capital support. Investors should monitor whether management intends to adjust the payout or if they are relying on asset sales to bridge the persistent shortfall in distributable cash.
Based on the provided data, the conversion of GAAP operating cash flow to FFO is highly inconsistent, with FFO/NI ratios swinging from -1.60 in 2024Q2 to 9.06 in 2025Q1, indicating that non-cash items and accounting adjustments significantly distort the company's reported earnings performance.
This extreme variance implies that FFO is not a reliable proxy for cash generation in any single quarter. The disconnect between operating cash flow and FFO suggests that investors should prioritize cash-based metrics over accounting-driven earnings to assess the true health of the business.
According to recent SEC filings, CHCT's recurring capital expenditures, including tenant improvements and leasing commissions, frequently consume a substantial portion of operating cash flow, as evidenced by the $7.2 million in capex recorded during both 2024Q2 and 2024Q3, which directly reduces available distributable cash.
The high level of maintenance capex relative to FFO suggests that the portfolio requires significant ongoing reinvestment to maintain occupancy. This capital intensity limits the company's ability to retain cash for deleveraging or internal growth, forcing a reliance on external financing to fund the dividend.
As indicated by the provided financial data, the persistent gap between GAAP Net Income and FFO, highlighted by the $12.6 million net loss in 2025Q2, demonstrates that heavy non-cash depreciation charges are masking the underlying cash-generating capacity of the healthcare facility portfolio.
While depreciation is a non-cash expense, the magnitude of these charges relative to net income suggests that the company's GAAP bottom line is a poor indicator of operational success. Analysts must continue to strip away these accounting distortions to evaluate whether the underlying assets are truly performing as expected.
Quick answers to the most common questions about buying CHCT stock.
Community Healthcare Trust Incorporated (CHCT) generated $56.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Community Healthcare Trust Incorporated (CHCT) generated $56.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Community Healthcare Trust Incorporated (CHCT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Community Healthcare Trust Incorporated (CHCT) returned $53.7M to shareholders via cash dividends and spent $1.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.