CHCT Stock Forecast & Price Target

Community Healthcare is supported by multiple fundamental catalysts, including an upgraded 2026E FFO of $2.02, 2027E FFO of $2.05, and 2028E FFO of $2.05, reflecting slightly improved occupancy, $99 million of acquisitions through early 2028, and $70 million of dispositions through next year. Its near-term occupancy target is 220 bps above 2Q26 and could add about $6 million of incremental NOI, while the Assurance transition appears close to completion and should lift rent toward roughly $800K per month from the $370K level in 2Q26. The company also benefits from a 9.6% annual dividend yield, a diversified non-urban healthcare portfolio with mid-9% average investment returns, and management’s use of the dividend cut to preserve free cash flow and reduce reliance on costly external capital.

Community Healthcare is facing a weaker fundamental setup because higher interest rates are increasing financing costs, with a 50 bp rise on its $285 million 2Q26 credit facility balance estimated to add $0.05 per share of interest expense. That pressure is already feeding through to lower profitability expectations, as 2026 FFO was cut to $1.93 per share and 2027 FFO to $1.96 per share, both below consensus, while growth remains constrained by capital availability and a lower-yield acquisition environment. Although management sees value in the portfolio and has potential dispositions of about $70 million, tenant concentration, re-leasing risk, and cap rate pressure could keep growth muted and support a cautious stance.