Community Healthcare Trust Incorporated (NYSE:CHCT) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 09, 2018 • 10:00 am ET


Community Healthcare Trust Incorporated (NYSE:CHCT) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Welcome to the Community Healthcare Trust 2018 First Quarter Earnings Release Conference Call. On the call today, the Company will discuss its 2018 first quarter financial results. We will also discuss progress made in various aspects of its business. Following the remarks, the phone lines will be open for a question-and-answer session.

The Company's earnings release was distributed last evening and also has been posted on its website, The Company wants to emphasize that some of the information that may be discussed in this call will be based on information as of today, May 9, 2018, and may certain forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the Company disclosures regarding forward-looking statements in its earnings release as well as its risk factors and MD&A in its SEC filings. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

During this call, the Company will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in its earnings release which is posted on its website. Call participants are advised that this conference call is being recorded for playback purposes.

An archive of the call will be made available on the company Investor Relations website for approximately 30 days and is the property of the Company. This call may not be recorded or otherwise reproduced or distributed without the Company's prior written permission.

Now, I'd like to turn the call over to Timothy Wallace, Chairman, Chief Executive Officer and President of Community Healthcare Trust Incorporated.

Timothy Wallace

Good morning. Thank you for joining us today for our 2018 first quarter conference call. With me on the call today is Page Barnes, our Executive Vice President and Chief Financial Officer, and Leigh Ann Stach, our Chief Accounting Officer.

As is our normal process, our earnings announcement and supplemental data report were released last night and filed with an 8-K, and our quarterly report on Form 10-Q was also filed last night.

Once again, we were busy during the quarter. We acquired three properties in three states during the quarter, with a total of approximately 38,000 square feet for a purchase price of approximately $12.7 million. These properties were 100% leased with leases running through 2033 with anticipated annual returns of 9% to 11%.

In addition, in the last few days of 2017, the Company purchased certain promissory notes for $8.75 million and early in the first quarter acquired $2.2 million in promissory notes for a total investment in these notes of approximately $10.95 million. These notes along with the properties previously discussed brought our total investments to almost $24 million.

As it relates to our pipeline, we have two properties with fully negotiated purchase and sale agreements for an aggregate expected investment of $7.3 million. The expected return on these investments should