CHCT Q1 2026 Earnings Call Transcript

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Date

Wednesday, May 6, 2026 astatine 10 a.m. ET

Call participants

• Chief Executive Officer — David H. Dupuy

• Chief Financial Officer — William G. Monroe

• Chief Accounting Officer — Leanne Stack

• Senior Vice President, Asset Management — Mark Kearns

Full Conference Call Transcript

David H. Dupuy: Thank you precise much. Good morning, everyone, and convey you for joining america today. For the 2026 archetypal 4th league call. On the telephone with maine contiguous is William G. Monroe, our Chief Financial Officer, Leanne Stack, our Chief Accounting Officer, and Mark Kearns, our Senior Vice President of Asset Management. Our net announcement and supplemental information study were released past nighttime and furnished connected Form 8-Ks on with our quarterly study connected Form 10-Q. In addition, an updated capitalist presumption was posted to our website past night. During the archetypal quarter, the behavioral infirmary operator, a tenant successful six of the company's properties, paid rent of astir $300 thousand, an summation of $100 1000 implicit past quarter.

On 07/17/2025, this tenant signed a missive of intent for the merchantability of the operations of each six of its hospitals to an experienced behavioral wellness attraction relation and is nether exclusivity with that buyer. The purchaser is finalizing ineligible and concern owed diligence and has entered the drafting signifier of the definitive acquisition documents, including caller leases connected the six hospitals owned by the company. We proceed to support frequent, productive connection with the buyer's squad to beforehand the closing process. While the transaction is progressing, we cannot supply circumstantial timing oregon certainty that it volition close. However, we stay committed to providing further updates arsenic the process moves forward.

We had a engaged archetypal 4th from some an operations and a superior recycling position and proceed to beryllium selective from an acquisition standpoint. Our occupancy decreased from 90.6% to 89.8% during the 4th owed to lease terminations. However, our leasing squad is precise engaged with renewals and caller leasing enactment and we expect leased occupancy to turn adjacent quarter. Our weighted mean lease word accrued somewhat from 7.0 to 7.1 years, and our plus absorption squad continues to bash a large occupation serving our tenants portion focusing connected spot operating costs. We person 3 properties that are undergoing redevelopment oregon important renovations with semipermanent tenants successful spot erstwhile the redevelopment oregon renovations are complete.

The largest of these projects, a behavioral healthcare facility, received its certificate of occupancy successful March. Due to wellness attraction licensure requirements, we expect this spot to commence its lease and lend NOI during 2026. During the archetypal quarter, we acquired an inpatient rehabilitation installation aft completion of operation for a acquisition terms of $28.5 million. We entered into a caller lease with a lease expiration successful 2044 and an anticipated yearly instrumentality of astir 9.3%. We besides person signed definitive acquisition and merchantability agreements for 4 properties to beryllium acquired aft completion and occupancy for an aggregate expected concern of $99 million. The expected instrumentality connected these investments should scope from 9.1% to 9.75%.