Community Healthcare Trust (CHCT) completed a $29.7 million sale of an inpatient rehabilitation facility on November 25, 2025, and immediately closed a $28.5 million purchase of a 100 % leased, newly constructed inpatient rehabilitation facility on December 2, 2025. The two transactions were executed as a 1031 tax‑deferred exchange, allowing CHCT to reinvest the sale proceeds at a premium of roughly 140 basis points above the disposition cap rate while keeping its leverage unchanged.
The capital recycling strategy is designed to replace lower‑yielding assets with higher‑yielding ones, thereby improving portfolio returns and reducing concentration risk. By selling a non‑core facility and acquiring a state‑of‑the‑art, fully leased property, CHCT not only boosts its rental income stream but also diversifies its tenant base and geographic footprint. The reinvestment premium of 140 bps reflects a favorable market environment and the company’s ability to secure a higher yield on the new asset.
The new facility expands CHCT’s outpatient healthcare portfolio, adding a modern rehabilitation center that is fully leased to a long‑term tenant. The transaction strengthens the company’s balance sheet: the portfolio remains at approximately $1.2 billion in assets across 200 properties in 36 states, and the company’s debt‑to‑equity ratio is unchanged. The deal also reduces tenant concentration, mitigating risk associated with a single large tenant and enhancing the stability of the company’s cash flow.
CEO David H. Dupuy highlighted that the transaction is a textbook example of CHCT’s capital recycling program, which has already generated $6.1 million in net proceeds from prior dispositions. Dupuy noted that the program’s focus on higher‑yielding, fully leased outpatient facilities aligns with the company’s long‑term strategy to deliver consistent income while maintaining a disciplined capital structure.
The transaction underscores CHCT’s disciplined approach to portfolio management. By executing a rapid sale‑and‑purchase cycle, the company demonstrates its ability to capture market opportunities, improve yield, and preserve leverage—all key factors that support its broader growth objectives in high‑growth healthcare markets.
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