10 Worst Performing REITs in 2024

5. Community Healthcare Trust Incorporated (NYSE:CHCT)

Year-to-Date Decline: 34.49% 

Number of Hedge Fund Holders: 12

The healthcare real estate company Community Healthcare Trust Incorporated (NYSE:CHCT) acquires, owns, or finances real estate properties that are leased to hospitals, doctors, healthcare systems, or other healthcare service providers. The REIT is headquartered in Franklin, Tennessee.

The REIT has a well-diversified and stable portfolio by asset type, operator, and industry segment. As of June 30, this portfolio included 198 properties across 35 states totaling approximately 4.46 million square feet. The firm’s growth strategy revolves around acquisitions of non-urban healthcare facilities that have stable revenue growth and long-term cash flows to offer.

The healthcare industry is also presenting Community Healthcare Trust Incorporated (NYSE:CHCT) with strong tailwinds in the form of an aging US population driving healthcare expenditures and procedures that were traditionally performed in acute care hospitals shifting to specialty and outpatient facilities.

For the second quarter, the company reported a net loss of approximately $10.4 million. What impacted the REIT’s performance was a geriatric inpatient behavioral hospital tenant which has encountered problems with patient census and employee staffing thereby impacting the consistency of rent and interest payments to the company.

The REIT’s historical track record is an important fact to consider. Community Healthcare Trust Incorporated (NYSE:CHCT) has successfully delivered 87% total shareholder return and 587% total asset growth since inception.