National Healthcare Properties (NHP) Q1 2025 earnings summary

Executive summary

• Entered 2025 with strong momentum after completing internalization in September 2024, transitioning to an internally managed REIT and eliminating recurring asset and property management fees.

• Internalization resulted in estimated $25 million annualized cost savings and full payment of internalization fee by Q1 2025.

• Board continues to consider a potential public listing or other liquidity event, with preparations underway for a new corporate credit facility and future equity offerings.

• High-quality OMF and SHOP portfolios delivered strong same store occupancy and NOI growth, with SHOP segment benefiting from favorable demographics and limited supply.

• Net loss attributable to common stockholders improved to $5.0 million for Q1 2025 from $19.0 million in Q1 2024, driven by gains on property sales and lower operating fees.

Financial highlights

• AFFO per diluted share increased to $0.31 in Q1 2025 from $0.28 in Q4 2024 and $0.05 in Q1 2024, nearly 5x higher year-over-year, driven by SHOP segment performance and cost savings from internalization.

• FFO for Q1 2025 was $4.1 million, up 353% year-over-year; AFFO was $8.8 million, up 483% year-over-year.

• Same-store cash NOI in SHOP segment increased 13.5% quarter-over-quarter and 18% year-over-year; OMF same-store cash NOI declined 2.3% year-over-year.

• RevPOR in SHOP segment grew over 8% since March 2023 and 6% year-over-year to $5,908.

• Revenue from tenants was $86.4 million, down from $88.3 million year-over-year due to property dispositions.

Outlook and guidance

• Management expects continued organic growth in SHOP occupancy and cash NOI, supported by favorable demographic trends and limited new supply.

• Ongoing strategic disposition pipeline with $23.9 million under LOI or contract as of May 8, 2025.

• Sufficient liquidity is anticipated to meet obligations for at least the next twelve months, with funding from cash on hand, operations, property sales, and potential new financings.