Business Context and Reporting Period
This Form 8-K was filed by Community Healthcare Trust Inc (CHCT) on November 5, 2019. The report discloses the acquisition of two healthcare properties and the presentation of Rule 3-14 financial statements for these assets. The Company is classified as an emerging growth company.
Key Financial Metrics and Acquisitions
The filing details two specific property acquisitions completed in 2019:
- Kindred Rehabilitation Hospital: Acquired on February 22, 2019, from LS Humble Lessor Corporation. The facility is a 55,646 square foot inpatient rehabilitation hospital in Humble, Texas, purchased for approximately $28.5 million.
- Smokey Point Behavioral Center: Acquired on August 6, 2019, from Vest Seattle Realty, LLC. The facility is a 70,100 square foot behavioral hospital in Marysville, Washington, purchased for approximately $27.5 million.
Historical financial statements for the acquired properties are included in Exhibits 99.1 and 99.2. Unaudited pro forma consolidated statements of operations for the nine months ended September 30, 2019, and the year ended December 31, 2018, are provided in Exhibit 99.3.
Material Changes
The primary material change reported is the expansion of the Company's real estate portfolio through the two acquisitions noted above. The filing incorporates historical revenue and direct operating expense data for the acquired properties to assist investors in evaluating the impact of these transactions.
Guidance, Outlook, and Risks
This filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosures associated with property acquisitions. The document focuses strictly on the reporting of the acquisition events and the associated financial data required by Regulation S-X.
Investor Verification Checklist
- Review Exhibit 99.1 for the audited historical financials of Kindred Rehabilitation Hospital for the year ended December 31, 2018.
- Review Exhibit 99.2 for the historical financials of Smokey Point Behavioral Center for the six months ended June 30, 2019, and the year ended December 31, 2018.
- Analyze Exhibit 99.3 to understand the pro forma impact of these acquisitions on the Company's consolidated operations for the nine months ended September 30, 2019.
- Verify the total acquisition cost of $56.0 million ($28.5 million + $27.5 million) against the Company's liquidity and debt capacity in subsequent filings.