CHCT is a net-lease healthcare REIT with 198 properties as of March 31, 2026. Under liquidation-value methodology, the company shows deeply negative equity recovery, consistent with the reported CLV/LLV/OLV of negative $561 million. The primary driver is the asymmetry between haircutted real estate assets and face-value debt obligations. Gross real estate at cost stands at $1.25 billion with accumulated depreciation of $291 million, yielding a net book value of $947 million. Applying a 50-70% recovery haircut to the PP&E-equivalent base produces an estimated liquidation range of $623-$873 million for the real estate portfolio. Against this, total debt at face value is $559 million (revolving credit facility $285 million + A-4 term loan $125 million + A-5 term loan $150 million), all interest-only with maturities from 2028-2030, plus $13 million in other liabilities and $16 million in accounts payable and accrued liabilities. The debt stack alone consumes most or all of the low-end real estate recovery. Other assets ($60 million) include $23.8 million in straight-line rent receivables (zero liquidation value under the lens), $7.4 million in interest rate swap assets (mark-to-market, realizable at termination), $7.8 million in sales-type lessor receivables, and $3.7 million in performing notes and mortgage receivables. Lease intangibles embedded in the real estate cost basis receive a zero recovery haircut per the lens. The geriatric behavioral hospital notes receivable ($17 million term loan plus $2.7 million revolver) were fully reserved via $19.7 million cumulative credit loss reserves in 2024-2025 and carry zero carrying value at March 31, 2026; the revolving facility ($2.7 million max exposure) matures June 30, 2026. An additional $5.8 million unfunded commitment on this facility remains contingent. QoQ from December 31, 2025: total debt increased $27 million (revolver drew $27 million to fund the $28.5 million Pinellas Park IRF acquisition), marginally worsening recovery posture. Portfolio occupancy is 89.8%, down modestly due to lease expirations outpacing new leases in Q1 2026. Ground lease liabilities (operating $0.7 million, finance $3.2 million) are face-value obligations with 32-38 year weighted-average remaining terms that would not extinguish on wind-up. Total unfunded capital commitments of $33.8 million ($29.8 million tenant improvements + $4.0 million capex) represent additional wind-up costs. The filing discusses straight-line rent receivables of $23.8 million and above-market lease intangibles of $1.2 million in MD&A context; both are tagged in XBRL and receive zero recovery under the lens. The matured $75 million interest rate swap on the revolver (March 29, 2026) increases floating-rate exposure on that tranche at approximately 5.3%, modestly increasing go-forward interest burden but not affecting liquidation liability stack.
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