Community Healthcare Trust Incorporated : 2023 Corporate Sustainability Report

Driving Positive Change

Community Healthcare Trust Incorporated

FY 23 CORPORATE SUSTAINABILITY REPORT

Table of Contents

Introduction

1. About This Report
2. Message From The
   CEO
3. Business Overview

Our Plan

1. ESG Strategy
2. ESG Materiality Assessment
3. ESG Targets

12 Reporting Frameworks

Nurturing a	Governance
Sustainable	Transparency &
Culture	Accountability
14	Corporate Office	29	Ethics & Compliance
15	Environmental	30	Corporate Integrity
	Performance	31	Data & Cybersecurity
16	Climate Risk &
32	Board of Directors
	Resilience
	33	Board ESG Oversight
17	Energy Efficiency
34 Scope of Reporting &
18	Water Efficiency
	Boundaries
19	Waste Diversion
35	GRI Content Index

20 Biodiversity & Sustainable Sites

People &

Communities

1. Our Employees
2. Employee Demographics
3. Employee Benefits & Retention
4. Employee Engagement & Culture
5. Community Engagement
6. Tenant Engagement

About This Report

At Community Healthcare Trust, we believe that our success is intertwined with the well- being of the planet, the prosperity of communities, and the fulfillment of our tenants and employees. As a company committed to responsible and sustainable business practices, we are excited to present our inaugural Corporate Sustainability Report.

While this inaugural report showcases our progress to date, it is also a blueprint for future sustainability endeavors, outlining our goals, strategies, and targets for the years ahead.

Sustainability, for us, is a journey, not a destination. It is a commitment to continually

improve, innovate, and adapt to challenges and opportunities.

We invite you to explore this report and join us on our journey towards a more sustainable

and responsible future.

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C O M M U N I T Y

WHO WE ARE

STRATEGY

ENVIRONMENT

SOCIAL

GOVERNANCE

DISCLOSURES

Message From The CEO

I am pleased to present Community Healthcare Trust Incorporated's inaugural Corporate Sustainability Report. As we embark on our sustainability journey, we are excited to share our commitment and progress toward achieving our environmental, social, and governance (ESG) goals.

At Community Healthcare Trust, being a responsible corporate citizen is at the core of our values. We understand

the critical role that sustainability plays in creating long-term value for our stakeholders, including our investors, tenants, employees, and the communities we serve. Our dedication to sustainability is deeply embedded in our corporate culture, guiding our decision-making processes, and driving us to continuously improve and innovate.

In 2023, we developed a comprehensive ESG plan to optimize data collection, assess risks and opportunities, evaluate performance benchmarks, and establish relevant targets. Our engagement with internal and external stakeholders was a critical aspect of identifying our goals and objectives. We are excited about the foundation we are building that will allow us to effectively measure our progress today and for years to come.

While our journey is not without challenges, we recognize the need for creative and innovative approaches to overcome them. We will encounter challenges related to portfolio data collection, particularly as it relates

to our single-tenant, triple net lease properties. Also, the financial implications of sustainability projects for certain properties with extended payback periods

will result in difficult choices for a small company with limited resources. Despite these hurdles, we are committed to our ESG Strategy and will continue to find inventive approaches to meet or exceed our targets and objectives.

Looking ahead, in 2024, we will implement additional ESG initiatives to further our sustainability goals. We are confident that by addressing challenges directly and implementing effective strategies, we will continue to make positive strides toward our 2030 targets.

I am grateful for the strong relationships and partnerships Community Healthcare Trust has cultivated with its employees, tenants, vendors, and local communities. Together, we are building a future where responsible and sustainable business practices lead the way to a better world.

Sincerely,

David H. Dupuy

President & Chief Executive Officer

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C O M M U N I T Y

WHO WE ARE

STRATEGY

ENVIRONMENT

SOCIAL

GOVERNANCE

DISCLOSURES

A History of Steady

Asset and Dividend

Growth

Community Healthcare Trust Incorporated (NYSE: CHCT) is a publicly traded, self-managed, fully integrated healthcare real estate company. With nearly 9 years of experience owning, acquiring and managing healthcare related real estate assets, CHCT is a knowledgeable and trusted landlord. We grow our portfolio of healthcare properties through acquisitions of non-urban healthcare facilities that provide stable revenue growth and predictable long-term cash flows.

From a $2,000 balance sheet prior to our IPO in 2015, Community Healthcare Trust ended the year 2023 with gross real estate investments of approximately $1.1 billion in 193 properties in 34 states. Management utilizes extensive relationships with healthcare providers, intermediaries, and property owners to source attractive, high-yielding acquisitions. Acquisitions must meet rigorous underwriting requirements, and our portfolio of properties is diversified by geography, industry segment, and tenant.

Our disciplined approach, coupled with a conservative, easy-to- understand debt structure and balance sheet has resulted in steady asset and dividend growth since inception.

As of 12/31/2023

15.5%

YEAR-OVER-YEAR REVENUE

GROWTH

561%

TOTAL ASSET GROWTH

SINCE INCEPTION

34TH

CONSECUTIVE QUARTER OF

DIVIDEND GROWTH

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C O M M U N I T Y

WHO WE ARE

STRATEGY

ENVIRONMENT

SOCIAL

GOVERNANCE

DISCLOSURES

Portfolio OverviewAs of 12/31/2023

Community Healthcare Trust takes pride in delivering innovative and sustainable healthcare real estate solutions. At the heart of our mission lies a robust and diversified portfolio of healthcare-related properties designed to meet the evolving needs of the healthcare industry and our investors.

Our portfolio is a testament to our commitment to providing vital healthcare infrastructure to create value for our shareholders and the non-urban communities we serve while being good stewards of the environment. We currently have properties located in 34 states across the United States.

193	$1.1B		19
NUMBER OF PROPERTIES	ENTERPRISE VALUE	NEW ACQUISITIONS IN 2023
4.3M			91%
TOTAL LEASEABLE AREA	AVERAGE OCCUPANCY
(SQ.FT)

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Our Plan.

C O M M U N I T Y

WHO WE ARE

STRATEGY

ENVIRONMENT

SOCIAL

GOVERNANCE

DISCLOSURES

Our ESG Strategy

At Community Healthcare Trust, we are committed to being responsible corporate citizens and running a company that is built to last. We have woven ESG principles into our actions, decisions and processes. As foundation to our ESG Strategy, we have implemented an Environment Management System (EMS). Our EMS is aligned with ISO 14001 and follows the Plan-Do-Check-Actstages.

Market Assessment (Plan) Identify and research sustainability trends in real estate. In 2023, CHCT expanded its ESG team by hiring Navnit Guckhool as Associate of Sustainability and Financial Reporting in a newly created position.

Action Plan (Plan) An action plan is formulated to identify the most important areas of impact and the relationship with primary stakeholders.

Implementation (Do) Development and implementation are carried out by a cross-department collaboration.

Review (Check & Act) This last stage allows us to modify our action plan in an ongoing process, ensure compliance with applicable legal requirements, and identify and correct nonconformity. A performance assessment is then carried to assess effectiveness of changes implemented.

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C O M M U N I T Y

ESG

Materiality

Assessment

We conducted our first ESG materiality assessment to identify and focus on ESG issues that matter most to our business and our stakeholders.

We identified a list of 20 topics through an analysis of our business priorities, opportunities, and risks. In coordination with our Board of Directors, we narrowed and ranked our list of topics after consulting and receiving feedback from our key internal and external stakeholders. We communicate regularly with our investors, employees, tenants, and local communities through surveys, email, meetings, workshops, and site visits.

Our materiality assessment is in line with the Global Reporting Initiative (GRI) framework and the results are integrated in our overall business strategy. This has allowed us to set specific goals and targets aligned with our material ESG issues.

WHO WE ARE

STRATEGY

ENVIRONMENT

SOCIAL

GOVERNANCE

DISCLOSURES

Methodology

We conducted the materiality assessment using a comprehensive methodology.

Data collection from various sources, including internal records, industry benchmarks, and regulatory requirements. Stakeholder engagement through surveys, interviews, and consultations.

Evaluation criteria that considered both the impact on our organization and the concerns of our stakeholders.

High
		Diversity, Equity &	Corporate Governance
Stakeholders		Inclusion	Ethics & Integrity
		Occupants' Wellbeing
		Employees' Wellbeing
	Community	Climate Risks
	Engagement	GHG Emissions
to		Energy Management	Cybersecurity & Data
	Water Management	Privacy
Importance
		Human & Labor Rights
Waste Management	Green Buildings	Culture & Team
		Engagement
		Employees' Training &
			Development
Low	Degree of Opportunity & Impact	High

Environmental Topics	Social Topics	Governance Topics	9

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WHO WE ARE

STRATEGY

ENVIRONMENT

SOCIAL

GOVERNANCE

DISCLOSURES

ESG Targets

Our Environmental, Social, and Governance targets are aligned with the material ESG issues where we have the greatest opportunity for impact.

Topics

Energy

Water

Climate

Energy Star

Certifications

Health &

Safety

Targets

Achieve a 10% Energy Use reduction on a per square foot basis by 2030 over a 2023 baseline

Achieve a 10% Water Use reduction on a per square foot basis by 2030 over a 2023 baseline

Achieve a 10% reduction in GHG emissions on a per square foot basis by 2030 over a 2023 baseline

Certify 75% of all of our eligible properties by 2030 over a 2023 baseline

Maintain an injury-free workplace

2023 Status

Ongoing

Ongoing

Ongoing

Ongoing

Achieved

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