After buying 29 properties for $87.0 million in cash during the second quarter, Community Healthcare Trust had a quieter Q3, paying $13.1 million for three properties and funding an $11.0 million mortgage. Also in the works, company officials said Friday, are five purchases for $24.8 million and work to turn 18 non-binding term sheets for $29.4 million into done deals.
If those efforts are successful, Community Healthcare Trust will have acquired 55 properties for $154 million. Community Healthcare Trust went public four months ago with agreements to pay $115 million for 35 properties in 18 states. Since the IPO, its shares (Ticker: CHCT) have fallen about 20 percent, taking the company's market cap down to about $120 million.
Citi analysts have launched coverage of various segments of the health care sector, including hospitals. They're not all that upbeat about the hospital space, giving most players a 'hold' rating. Only LifePoint Health merits a 'buy' in their opinion; they see its shares (Ticker: LPNT) climbing to $82 from about $71 today. Overall, the analysts say they are "more tempered" on the hospital industry because of doubts about the continued growth in volumes amid difficult comparisons as well as "unease around potential bad debt creep."
Locally based Avondale Partners analyst Paula Torch has been bullish on LifePoint for a while. In a note Friday, she reiterated her 'outperform' rating and $94 target and says a big part of the company's appeal is its success buying and integrating smaller players.
If the remaining $600M in announced acquisitions closes by the end of 2015, LPNT will have added ~$1.85B in revenue over two years. Given the size, quality, and improved infrastructure, we believe the class of '14 and '15 deals could add over $200M in EBITDA by 2018.
The Environmental Protection Agency has slapped a $775,000 fine and various other penalties on Brentwood-based Tractor Supply after the company last decade imported more than 28,000 all-terrain vehicles and engines fro China that did not meet U.S. emissions standards or were labeled incorrectly. In some cases, the government says, vehicles had incorrect model names or came with engines more powerful than they were labeled as being.
The settlement requires Tractor Supply Company to implement a rigorous corporate compliance plan that requires regular vehicle and engine inspections, emissions and catalyst testing, staff training and reporting for five years. Tractor Supply Company will also mitigate potential adverse environmental effects of equipment already sold to consumers, which is estimated by EPA to be up to 23.5 tons of excess hydrocarbon and nitrogen oxide emissions and 12.2 tons of excess carbon monoxide emissions.
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