National Healthcare Properties (NHP) Q3 2024 earnings summary

Executive summary

• Owns 198 healthcare properties totaling 8.6 million rentable square feet across 32 states, with 72% OMF and 28% SHOP.

• Completed internalization and rebranding at the end of September 2024, enhancing operational efficiency and governance, and ending external advisory agreements.

• Effected a one-for-four reverse stock split on September 30, 2024.

• Preparing for a potential public listing, including engagement with BMO for future equity offerings.

• Strategic property dispositions underway to optimize the portfolio and fund internalization costs.

Financial highlights

• Net loss attributable to common stockholders was $44.1 million for Q3 2024, compared to $19.6 million in Q3 2023.

• AFFO increased 26.4% year-over-year to $1.9 million in Q3 2024 from $1.5 million in Q3 2023.

• Same-store cash NOI in SHOP grew by $1.6 million or 23.3% year-over-year to $8.6 million.

• OMF segment contributed $21.7 million in same-store cash NOI and $32.7 million in same-store revenue, up 5.2% year-over-year.

• Total expenses for Q3 2024 were $111.4 million, up $25.0 million year-over-year, driven by impairment charges, internalization-related costs, and higher property expenses.

Outlook and guidance

• Anticipates over $25 million in annualized G&A cost savings post-internalization.

• Preparing for a potential public listing or other liquidity event, including a reverse stock split.

• Ongoing evaluation of portfolio composition to align with investment strategy and optimize asset quality.

• Management expects to meet financial obligations for at least the next twelve months, funding liquidity needs through cash, operations, credit facilities, and property dispositions.