Monthly Archives: July 2020

Community Healthcare Trust

Ticker: CHCT, Buy below $50.

Community Healthcare Trust is a REIT that focuses on real-estate properties relating to health care.

Why I Would Buy

  1. Insider – Strong insider holding and buying.   
  2. Strong Alignment of Management Interests – Bulk of management and Directors compensation is in restricted stock.
  3. Uncorrelated Businesses: Healthcare REIT — benefits from a recession resistant, long term trend.
  4. Dividend – generous 3.5%+ yield

What Could Go Wrong

  1. Coronavirus related Damage – Pandemic has hit healthcare industry disproportionately, as all non-essential procedures are being deferred.
  2. Dilution – Aggressive issuance of equity to fund expansion.

Disclosure: I am long CHCT, please read additional disclosures here before taking any action based on this post.