Form 4: Community Healthcare Trust Director Acquires Shares as Part of Board Retainer

Director Cathrine Cotman acquired 6,250 shares of Community Healthcare Trust Inc. as part of her 2025 board retainer, electing to receive shares of restricted stock in lieu of cash.

Summary

• On May 15, 2025, Cathrine Cotman, a director of Community Healthcare Trust Inc. (CHCT), acquired 6,250 shares of common stock.
• The acquisition was part of her 2025 board retainer, for which she elected to receive 100% in the form of restricted stock with a three-year restriction period.
• The company awarded her additional shares of restricted stock, equal to 60% of the value of the board retainer, because she elected to take her board retainer for 2025 in shares of restricted stock in lieu of cash.
• The price of the securities acquired is based on the ten-day average stock price of $16.64.
• Following the transaction, Cotman beneficially owns 33,635 shares of Community Healthcare Trust Inc.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director's decision to take stock in lieu of cash is a positive signal, indicating confidence in the company. The transaction itself is routine and expected.

Positives

• Director's decision to take retainer in stock shows confidence in the company's future.
• Increased share ownership aligns director's interests with those of shareholders.

Future Outlook

NA

Industry Context

This transaction is typical for director compensation in publicly traded companies, where stock-based compensation is used to align the interests of directors with those of shareholders. The election to take the retainer in stock is a positive signal.

Comparison to Industry Standards

• Stock-based compensation for board members is a common practice among publicly traded REITs like Community Healthcare Trust.
• Comparing the percentage of equity compensation to cash compensation with peers such as National Health Investors (NHI) or Healthcare Realty Trust (HR) could provide further context.
• The three-year restriction period is a standard vesting schedule for restricted stock awards.

Stakeholder Impact

• The transaction could have a slightly positive impact on shareholders as it aligns the director's interests with theirs.
• There is no significant impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Community Healthcare Trust, Director, Share Acquisition, Restricted Stock, Board Retainer, CHCT