National Healthcare Properties (NHP) Q2 2025 earnings summary

Executive summary

• Internalization of management in late 2024 eliminated related party fees, improved transparency, and was accretive to FFO, supporting preparations for a public listing.

• Portfolio of 175 properties in 30 states as of June 30, 2025, with 7.3 million rentable square feet and occupancy at 91% for OMFs and 83% for SHOPs.

• Strong operational performance in Q2 2025, with robust same-store cash NOI growth in both SHOP and OMF segments.

• Management focused on reducing leverage, increasing disclosure, and disposing of non-core assets.

• Pre-IPO preparations include enhanced investor transparency and REIT-standard reporting.

Financial highlights

• Nareit-defined FFO for Q2 2025 was $5.4 million ($0.19/share), up 35.7% quarter-over-quarter; AFFO was $9.1 million ($0.32/share), up 3.2% quarter-over-quarter.

• Portfolio same-store cash NOI grew 8.5% year-over-year, with SHOP segment leading at 17.3% growth and OMF at 4.4%.

• Portfolio Cash NOI reached $29.1 million in Q2 2025, up from $28.6 million in Q1 2025.

• Net loss attributable to common stockholders was $24.2 million for Q2 2025, a significant improvement from $119.9 million in Q2 2024.

• Recurring CapEx for the quarter totaled $10.6 million, mainly for long-term lease extensions.

Outlook and guidance

• Management expects stable capital expenditures for the remainder of 2025 and sufficient liquidity for at least the next twelve months.

• Momentum in SHOP portfolio expected to continue into Q3, supported by rising occupancy and rates.

• Anticipation of closing the unsecured credit facility in Q4, followed by IPO preparations, subject to market conditions.