National Healthcare Properties, Inc.

What they do

National Healthcare Properties, Inc. is a REIT that acquires, owns and manages a portfolio of healthcare real estate, operating in two segments: senior housing operating properties (SHOP) and outpatient medical facilities (OMF). The SHOP segment uses the RIDEA structure, where the company bears operating risk and upside, while the OMF segment leases properties to healthcare tenants. As of December 31, 2025, the company owned 167 properties across 29 states, including 37 senior housing communities (3,615 units) and 130 outpatient medical facilities (approximately 3.7 million square feet of GLA).

Revenue drivers

• Senior Housing Operating Properties (SHOP) — Generates revenue from resident fees at 37 senior housing communities (assisted living, memory care, independent living), focused on private pay and private insurance, with 3,615 units as of December 31, 2025.
• Outpatient Medical Facilities (OMF) — Leases 130 outpatient medical facilities (approximately 3.7 million square feet of GLA) to healthcare tenants, generating base rent plus tenant reimbursements for operating expenses and certain capital expenditures.

Recent performance

For the fiscal year 2025, revenue was $342.3 million, down from $353.8 million in 2024. Net loss improved to $57.7 million in 2025 from a $190.3 million loss in 2024, and diluted EPS was -$2.51 versus -$7.19. Operating cash flow turned positive to $7.0 million in 2025 from -$79.8 million in 2024. In the first half of 2026, quarterly revenue ranged from $84.5 million to $87.5 million, with cash and equivalents of $245.7 million and total assets of $1.98 billion as of June 30, 2026.

Strategy

Management expects future real estate investments to focus primarily on SHOPs, seeking properties that produce current income. The company internalized its advisory and property management functions in September 2024 to realize synergies and reduce costs. It may also opportunistically dispose of non-core properties. The company executed a reverse stock split in September 2024, consolidating every four shares into one.

Risks

• Dividend suspension — The company has not paid cash distributions on common stock since 2020, and there is no assurance of future dividends.
• Geographic concentration — A high concentration of properties in certain states could expose the company to localized economic or regulatory downturns.
• Tenant rent collection — Inability to collect rent from tenants has adversely impacted results and may continue to do so.
• SHOP operational risk — Under the RIDEA structure, the company bears the risk of declines in operating performance, including rising expenses and competition.

Outlook

Management continues to emphasize SHOP investments as the primary focus going forward. The company recently entered into an amended and restated credit agreement dated August 3, 2026, with a $550 million facility, including a $150 million term loan and a $400 million revolving credit facility, which provides liquidity for future activities. There are no specific forward-looking projections provided in the excerpts.