Community Healthcare Trust: A Buying Opportunity After Recent Underperformance

Ivo Kolchev
1.09K Followers
(9min)

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.
Interior of a medical consulting room

Luis Alvarez

Introduction

Community Healthcare Trust (NYSE: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:

I think this has created a buying opportunity, with

This article was written by

1.09K Followers
I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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