Community Healthcare Trust Cuts Quarterly Dividend 31.25%

Community Healthcare Trust Incorporated (NYSE: CHCT) cut its quarterly dividend to $0.33 per share from $0.48, a reduction of 31.25%. The healthcare real estate investment trust’s shares traded ex-dividend on Aug. 19, 2026.

The cut ends 10 consecutive years of dividend growth. At a share price of $14.87, the supplied forward annual yield is 11.85%. The company has a dividend safety score of 67 and a B safety grade.

Community Healthcare Trust said the lower payout is part of a broader capital-allocation shift intended to fund acquisitions, property redevelopment, occupancy gains and operating improvements. The company expects the change to retain additional capital over the next two years, which management plans to combine with proceeds from property sales. Its current priorities include improving occupancy, reinvesting in the portfolio and pursuing properties already under contract, according to the second-quarter results release.

The decision represents a marked change from the REIT’s previous emphasis on regular dividend increases. In its 2026 proxy statement, Community Healthcare Trust highlighted continued dividend growth and portfolio expansion among its prior-year accomplishments, while also acknowledging that its share-price performance had fallen short of expectations. The filing also described an ongoing capital-recycling program designed to fund acquisitions while maintaining moderate leverage.

Chief Executive Dave DuPuis told analysts that no single event triggered the reduction. Instead, management and the board concluded that retaining and redeploying more capital was necessary to restart business growth after an extended period of weak share-price performance, according to the second-quarter earnings-call transcript.

Community Healthcare Trust owns income-producing properties used primarily for outpatient healthcare services across the United States. The company’s portfolio includes medical office buildings and other specialized healthcare facilities, according to its quarterly release.

What it means for income investors

The immediate effect is lower quarterly cash income per share. The reduction also breaks the company’s 10-year dividend-growth record, making future payout decisions dependent on whether retained capital produces the occupancy improvement and earnings growth management is targeting. The 11.85% forward annual yield remains elevated, but yield alone does not establish the durability of future distributions.