Cash flow sustainability is questionable, as the dividend payout has consistently exceeded adjusted funds from operations, with the dividend-to-AFFO ratio reaching 1.05 in 2026Q2, indicating a growing reliance on external equity to cover distributions.
Community Healthcare Trust Incorporated (CHCT) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | 59.49M | 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 % | 13.26% | -4.16% | -4.08% | 1.83% | 6.98% | 16.49% | 49.47% | 32.41% | 10.46% | 48.21% | 402.49% | - | - |
| Operating CF / Revenue % | 47.78% | 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 | 20.98M | 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 | 43.36M | 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 | 5.96M | 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 | -9.48M | -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 | -1.35M | -388K | -809K | -3.38M | -943K | -894K | 1.86M | -1.98M | -4.99M | 709K | -119K | -997K | 0 |
| Cash from Investing | -65.75M | -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) | -28.51M | 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 | -3.79M | 0 | 0 | 0 | 3M | 5.24M | 10.5M | 0 | 3.27M | 833K | 104K | 0 | 0 |
| Other Investing | -28.53M | -27.17M | -68.02M | -113.67M | -103.4M | -97.21M | -118.07M | -148.81M | -48.95M | -146.42M | -115.51M | -139.81M | 0 |
| Cash from Financing | 4.07M | -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 | -54.44M | -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 | -54.44M | -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 | 1.68M | -1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 43.84M | -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 | -2.19M | -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 | 2.62M | 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 | 2.67M | 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 | 59.25M | 35.91M | 34.24M | 42.4M | 49.9M | 49.13M | 41.38M | 27.99M | 19.88M | 21M | 13.35M | 2.14M | 0 |
| FCF Growth % | 62.52% | 4.87% | -19.26% | -15.03% | 1.58% | 18.74% | 47.82% | 40.77% | -5.29% | 57.27% | 522.67% | - | - |
| FCF / Revenue % | 47.59% | 29.63% | 29.57% | 37.58% | 51.09% | 54.24% | 54.67% | 46% | 40.89% | 56.22% | 52.98% | 24.84% | 0% |
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 $35.9M 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 $20.5M 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.
Key Metrics
Top Statement Risk
Dividend Coverage Reliance on Equity
Metrics are mathematically derived from official filings.
AFFO Coverage Gap Persists
The Dividend/AFFO ratio has exceeded 1.0 in seven of the last ten reported quarters, with the latest at 1.05, indicating that Community Healthcare Trust's dividend payout is not fully supported by adjusted funds from operations, according to the provided cash flow data.
This persistent shortfall implies that the dividend is being maintained through balance sheet strength or external capital rather than recurring property cash flows. The gap warrants monitoring, as a prolonged reliance on non-AFFO sources could strain liquidity and necessitate dilutive financing.
FFO Volatility Masks Cash Flow Stability
FFO has exhibited extreme volatility, including negative values in Q2 2025 and Q2 2024, yet operating cash flow remained consistently positive, highlighting the distortionary effects that FFO aims to isolate, as per recent SEC filings.
The wide swings in FFO relative to operating cash flow suggest that non-cash adjustments, such as impairments or gains on property transactions, heavily influence reported FFO. This volatility complicates the assessment of underlying, recurring cash generation from the portfolio.
Equity Dependency to Bridge Cash Gaps
With share-based compensation averaging $2.6 million per quarter and AFFO frequently trailing dividends, the company appears reliant on equity market access to sustain distributions, as indicated by financial statements.
The steady SBC outflow suggests ongoing dilutionary practices to support operations or dividends, rather than internal cash generation. This structural reliance on external equity funding introduces execution risk if capital market conditions deteriorate.
Net Income Distortion Undermines Metric Reliability
The FFO to Net Income ratio has swung from -1.10 in Q2 2025 to 7.76 in Q3 2025, confirming that GAAP net income is heavily distorted by non-cash items, rendering it an unreliable indicator of operational performance, based on reported figures.
These distortions, far exceeding typical depreciation effects, point to material non-cash charges or gains that obscure underlying profitability. Investors must focus on FFO and AFFO to evaluate the true cash earnings power of the REIT.
Hidden Risks to Cash Flow Sustainability
The persistent AFFO shortfall relative to dividends, combined with reliance on equity funding, suggests that any disruption in capital access or unexpected property-level expenses could threaten dividend sustainability, per the provided data.
The cash flow statement may hide risks such as capitalized maintenance costs or off-balance-sheet obligations from joint ventures, which could exacerbate the coverage gap. Additionally, the volatility in FFO and AFFO indicates potential sensitivity to market conditions or tenant defaults, warranting further investigation into underlying asset quality.