CHCT

New Strategic Plan for Renewed Growth

• Rightsized quarterly dividend from 48 cents to 33 cents per share to retain capital for accretive acquisitions and portfolio growth, freeing up $25 to $30 million in capital over the next two years
• The dividend cut combined with the existing capital recycling program accelerates portfolio investment and funds the acquisition pipeline, while maintaining target leverage levels
• Four core strategic priorities: occupancy improvement, portfolio reinvestment, strategic capital recycling, and accelerated acquisition growth

Occupancy Improvement

• Clear path to reach 92% total portfolio occupancy within 18 months, with a 2026 full-year target of 90.5% (a 70 basis point increase year-to-date)
• Year-to-date 2026 new leasing volume has already exceeded full-year 2025 volume, totaling over 100,000 square feet, driven by strong asset market positioning and a broad shortage of quality healthcare real estate
• Full achievement of occupancy and rent growth targets would deliver up to $6 million in net operating income (NOI) upside

Portfolio Reinvestment

• Targeted capital deployment into redevelopment projects with existing high-quality long-term lease tenants, delivering 9% to 12% yield on cost
• Completed the behavioral hospital redevelopment in Lafayette, Louisiana (a joint venture between Ochsner Health and Ocean's Behavioral Health), which commenced lease in early Q3 2026
• Selective speculative suite build-out in high-demand markets to reduce time-to-lease for prospective tenants, accelerating occupancy gains and NOI realization

Strategic Capital Recycling

• Since launching the initiative in 2025, CHCT has sold 7 properties for $38.5 million in net proceeds
• Currently has over $70 million of assets listed for sale; disposition proceeds will fund the high-yield acquisition pipeline while keeping leverage modest
• Exiting lower-quality non-core assets to upgrade overall portfolio credit quality and fund high-conviction opportunities such as the inpatient rehab facility pipeline

Accelerated Acquisition Growth

• Acquisition volume moderated to $64.5 million and $72.1 million over the past two years; the combination of recycling proceeds and dividend-related capital retention has unlocked liquidity to increase acquisition velocity
• Has signed definitive purchase agreements for four to-be-completed properties for an aggregate $99 million investment, with expected returns of 9.1% to 9.75%; closings are scheduled for Q3 2026, Q4 2026, and H2 2027

Key Operational Updates

• The Geriatric Behavioral Hospital operator (leasing 6 CHCT properties) paid $370,000 in Q2 2026 rent, a $70,000 increase over Q1 2026
• The operator has an exclusive letter of intent to sell its operations to an experienced behavioral health operator, which is finalizing due diligence and drafting definitive agreements including new CHCT leases; management expects a signed agreement in Q3 2026 and close by end-2026
• Sold one building in Batesville, Mississippi in May 2026 for $460,000 in net proceeds, realizing a small gain on sale
• Increased investor transparency with new supplemental disclosures: FAD calculation broken out by capex type, portfolio breakdown by ownership type, detailed quarterly leasing activity tracking, lease type breakout, and portfolio annual escalator calculation
• Going forward, the dividend will be reviewed annually (previously reviewed quarterly) targeting a 60% to 65% AFFO payout ratio

• 2026 full-year portfolio occupancy target: 90.5%, with a target of 92% occupancy by the end of 2027
• 2026 full-year acquisition volume guidance of $85 to $90 million, with acquisition activity expected to increase further in 2027 as retained capital compounds
• Retained capital from the dividend cut is expected to total $25 to $30 million over the next two years (up to $15 million annually); on a leverage-neutral 40% debt-to-capital basis, this enables up to $25 million in incremental annual acquisition/reinvestment, generating 6 to 7 cents of incremental AFFO growth per year assuming a 9% to 10% acquisition yield
• Annual redevelopment project volume is expected to remain in the $10 to $15 million range, consistent with the past three years
• Additional opportunistic speculative acquisitions outside the committed pipeline are expected to total $5 to $15 million in Q4 2026, and $20 to $30 million in 2027
• Long-term target acquisition volume is to return to the historical $120 million to $150 million annual range, which the existing corporate platform is already sized to support

As a diversified healthcare REIT, CHCT does not break out separate product segment financials in this call. Aggregate Q2 2026 results are: total revenue of $31.2 million, property operating expenses of $5.9 million, general and administrative expenses of $4.9 million, interest expense of $7.4 million. GAAP Funds From Operations (FFO) totaled $13.2 million, or 48 cents per diluted common share. Adjusted Funds From Operations (AFFO) totaled $15.4 million, or 56 cents per diluted share, which matches the Q1 2026 AFFO per share level.

• Forward-looking statements about the strategic plan, transaction timelines, and growth targets involve inherent uncertainty, and actual results may differ materially from projections
• The planned sale of the six Geriatric Behavioral Hospital properties to a new operator is subject to final regulatory approvals, definitive documentation, and closing conditions; there is no guarantee the transaction will close as currently expected, even though progress has been steady
• Redevelopment projects carry timing risk: unlike completed acquisitions, redevelopments require upfront capital outlay with no immediate return during the construction/lease-up period
• The company's ability to achieve higher acquisition growth depends partly on improved share price performance to enable ATM share issuance, which is not guaranteed

Q: The analyst asks what the occupancy is on the $70 million of assets currently being marketed for sale, and whether selling these properties will increase or decrease overall portfolio occupancy. / A: Management explains that most of the properties for sale are 100% occupied, with only fewer than five empty properties included in the group. The sale of these assets will not meaningfully reduce overall portfolio occupancy after the dispositions are completed.

Q: The analyst asks why management chose to cut the dividend and implement the new strategic plan in Q2 2026, rather than addressing the dividend policy earlier when the company adjusted its stock compensation plan. / A: Management states that after two years of the company's stock price staying stagnant despite strong portfolio performance, the board decided to change course to drive growth. There was no single catalyst, but the company determined retaining capital to reinvest in the business was the best path to increase shareholder value and improve the company's stock performance.

Q: The analyst asks for the specific timeframe for the 92% occupancy target, and whether the company expects to hit that by the end of 2027 or later. / A: Management confirms that 92% occupancy is achievable by the end of 2027, with a small expected delay between lease signing and revenue recognition. The company notes that the portfolio's structural long-term steady state occupancy is between 92% and 93%, so this target represents a natural ceiling for performance after recent large lease expiration years have passed.

Q: The analyst asks how much redevelopment opportunity the company has, and what the risk profile is for speculative suite build-outs. / A: Management explains that redevelopment typically generates higher returns than new acquisitions, but carries timing risk as capital is deployed before any revenue is generated. The company expects to maintain a steady $10 million to $15 million annual pipeline of redevelopment projects, which are generally opportunistic. Speculative suite projects are small, selective, and focused on high-demand markets, with the pilot project completed to date already delivering strong results.