National Healthcare Properties (NHP) Q2 2025 earnings summary

Executive summary

• Internalization of management in late 2024 eliminated related party fees, was accretive to FFO, and supported preparations for a public listing, with a focus on disclosure transparency, leverage reduction, and asset quality improvement.

• Portfolio of 175 properties in 30 states as of June 30, 2025, with 91% occupancy in OMFs and 83% in SHOPs, and strong operational performance in both segments.

• Management prioritized reducing corporate leverage through portfolio income growth and preferred equity repurchases.

Financial highlights

• NAREIT-defined FFO for Q2 2025 was $5.4 million ($0.19/share), up $0.05 from prior quarter; AFFO was $9.1 million ($0.32/share), up $0.01 from prior quarter.

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

• Quarterly 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.

• Net debt to annualized adjusted EBITDA improved to 9.3x, reflecting organic earnings growth and leverage reduction.

Outlook and guidance

• Management expects to close on an unsecured credit facility in Q4 2025, followed by IPO preparations including lead bank designation and confidential SEC filing.

• Stable capital expenditures and sufficient liquidity are expected for the remainder of 2025, with future liquidity dependent on inflation, labor costs, and interest rates.

• SHOP portfolio momentum and focus on occupancy and operator performance anticipated to continue.