CHCT · CIK 0001631569
What Community Healthcare Trust, Inc. told the SEC could break it.
Community Healthcare Trust draws substantially all of its revenue from rent paid by healthcare-operator tenants, so its fortunes are bound to those tenants' health and where they cluster. Geographically, despite spanning 36 states, its revenue concentrates in four — Texas, Illinois, Florida and Ohio together produced about 47.7% of 2025 revenue. Its tenants are also exposed to healthcare policy: it flags the One Big Beautiful Bill Act's more than $900 billion in Medicaid funding cuts, which could push states to reduce provider reimbursement and strain tenant economics, on top of the ordinary risk of tenant bankruptcy. As a REIT that distributes most of its taxable income, it retains little capital and depends on access to equity markets — a $300 million ATM program and a $122.5 million acquisition pipeline — to fund growth.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- healthcare-property revenue concentrated in Texas, Illinois, Florida and Ohio (~47.7% of 2025 revenue) across 36 statesmedium
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 %).”
Liquidity & debt
- growth depends on capital-market access (ATM up to $300M, $122.5M acquisition pipeline); REIT distribution requirement limits retained capitalmedium
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.”
SEC filing →As of 2026
Regulatory & policy
- healthcare-policy risk to tenants — OBBBA Medicaid cuts (>$900B), anti-kickback/Stark/self-referral laws, and REIT-qualification requirementsmedium
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.”
SEC filing →As of 2026
Other disclosures
- tenant credit risk — substantially all revenue from rent paid by healthcare-operator tenants whose bankruptcy or financial weakness would hit results (portfolio ~90.6% leased)low
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.”
SEC filing →As of 2026
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