Truist has revised its price target for Community Healthcare Trust Incorporated (CHCT) to $20, upholding its 'Buy' recommendation. This updated outlook stems from Truist's comprehensive analysis of the REIT sector for 2026, which highlights an anticipated enhancement in market foundations. The firm, while noting that valuations remain somewhat elevated, is particularly optimistic about the healthcare and industrial segments within the REIT market.
On January 20, financial institution Truist announced an increase in its price objective for Community Healthcare Trust Incorporated, moving it from $19 to $20. The 'Buy' rating on the stock was sustained. This revision was disclosed within Truist's broader forecast for the REIT industry stretching into 2026. The firm expressed a generally neutral stance on REITs for the forthcoming year, yet observed a gradual strengthening of underlying market conditions. This improvement is attributed to a reduction in new property developments coinciding with consistent demand for premium assets. Despite these positive trends, Truist cautioned that current valuations do not yet present a particularly attractive entry point for investors.
Within the diverse REIT landscape, Truist holds a more favorable view on specific sectors, including healthcare, industrial, strip retail, gaming, and lodging REITs. Conversely, it maintains a neutral posture on manufactured housing, multifamily, self-storage, and triple-net lease properties. The firm expressed greater reservation regarding the prospects of mall and office REITs, advising caution in these areas.
In December, Community Healthcare Trust executed two interconnected transactions structured as a tax-deferred exchange. The company divested an inpatient rehabilitation facility on November 25, 2025, for $29.7 million. This was subsequently followed by the acquisition of a newly constructed and fully leased inpatient rehabilitation facility on December 2, 2025, for $28.5 million. Both transactions were strategically completed under a 1031 exchange framework, illustrating the company's adeptness at managing its portfolio for optimized returns and tax efficiency.
David H. Dupuy, the President and Chief Executive Officer of Community Healthcare Trust, commented on these strategic moves. He stated that the company was enthusiastic about showcasing the inherent value within its asset portfolio as part of a previously announced capital recycling initiative. Dupuy further elaborated that these transactions allowed for the redeployment of sales proceeds at a premium of approximately 140 basis points above the disposition cap rate, crucially without incurring any increase in leverage. Moreover, these actions also contributed to a reduction in the company's concentration with its largest tenant, thereby enhancing portfolio diversification and mitigating risk.
Community Healthcare Trust Incorporated, trading on the NYSE under the ticker CHCT, specializes as a Real Estate Investment Trust with a primary focus on owning properties that generate income. These properties are predominantly linked to outpatient healthcare services and are strategically located across various key markets within the United States. The company's portfolio comprises medical real estate assets that are leased to a diverse array of healthcare entities, including hospitals, individual physicians, comprehensive healthcare systems, and other specialized healthcare service providers. This operational model ensures a consistent stream of rental income derived from essential healthcare infrastructure, underscoring the stability and importance of its investment focus.
Truist has increased its price target for Community Healthcare Trust, reflecting a positive outlook on the company's strategic financial maneuvers and its position within a favored segment of the REIT market. Despite an overall cautious stance on REIT valuations, the firm's specific endorsement of healthcare properties highlights CHCT's potential for growth.