What Community Healthcare Trust, Inc. told the SEC could break it.

Community Healthcare Trust's portfolio spans 36 states but its revenue is geographically concentrated — Texas (16.7%), Illinois (11.0%), Florida (10.0%) and Ohio (10.0%) together produced ~47.7% of consolidated total revenue in 2025 (with Texas + Florida ~26.7% of annualized rent) — so downturns in those states' economies or real-estate/healthcare markets could disproportionately impair its occupancy, rents and results.

“For the year ended December 31, 2025, 47.7 % of our consolidated total revenues was derived from properties located in Texas ( 16.7 %), Illinois ( 11.0 %), Florida ( 10.0 %), and Ohio ( 10.0 %).”

Community Healthcare Trust's expansion depends on access to capital on satisfactory terms — it funds acquisitions through equity (a $300M ATM program) and has $122.5M of properties under definitive purchase agreements (closing 2026-2027) — and its access depends on market conditions and its stock price, over which it has little control; as a REIT distributing most taxable income, it retains little capital, so constrained capital markets could prevent it from making needed investments or meeting obligations.

“If we are unable to obtain needed capital on satisfactory terms or at all, we may not be able to make the investments needed to expand our business or to meet our obligations and commitments as they mature.”

Because its tenants are healthcare providers, Community Healthcare Trust is indirectly exposed to healthcare regulation — the One Big Beautiful Bill Act's (OBBBA) >$900 billion Medicaid funding reductions could lead states to cut provider reimbursement (CBO estimates 7.5-7.8M more uninsured by 2034), pressuring tenants' economics, and tenants are subject to federal/state anti-kickback, self-referral (Stark) and fee-splitting laws; the company must also maintain its REIT qualification and listing-based exemptions.

“In addition, the OBBBA made significant changes to Medicaid, including over $900 billion in Federal funding reductions. Given this significant decrease in Federal Medicaid funding, states may decrease reimbursement to health care providers or eliminate certain benefits.”

Community Healthcare Trust receives substantially all of its revenue from rent under leases of its healthcare properties (portfolio ~90.6% leased, ~7.0-year weighted-average remaining term), and it has no control over the success of its tenants' businesses; the bankruptcy, insolvency or weakened financial position of its tenants — particularly its largest tenants — could materially and adversely affect its operating results and financial condition.

“The bankruptcy, insolvency or weakened financial position of our tenants, and particularly our largest tenants, could materially and adversely affect our operating results and financial condition. We receive substantially all of our revenue from rent payments from tenants under leases of space in our healthcare properties.”