Nov 4, 2026, 5:14 PM ETReal Estate

National Healthcare Properties — Q3 2026 Earnings Summary

NHPNATIONAL HEALTHCARE PROPERTIES INC

Financial Performance

Net income attributable to common stockholders was $0.24 per basic and diluted share for the quarter ended September 30, 2026.
Nareit defined Funds From Operations (FFO) was $0.13 per diluted share, a 43.5% decrease year-over-year.
Normalized Funds From Operations (Normalized FFO) was $0.19 per diluted share, a 29.6% decrease year-over-year.
Third quarter portfolio Same Store Cash NOI growth was 8.4% year-over-year.
Total debt outstanding was approximately $851.2 million with a weighted average economic interest rate of 5.12% and an average remaining term of 4.9 years.
Net Leverage (Net Debt to Annualized Adjusted EBITDA) improved to 5.5x as of September 30, 2026, down from 8.8x as of September 30, 2025.
Revenue from tenants was $103.1 million for the quarter, compared to $86.0 million in the prior year period.

SHOP Same Store Cash NOI growth guidance for full year 2026 was increased to a midpoint range of 16.5% to 18.5%, up from the previous 15.0% to 18.0% range.
Full year 2026 acquisition guidance was raised to $425 million to $645 million, up from $375 million to $425 million.
Full year 2026 disposition guidance was raised to $1.1 billion, up from $570 million.
General and administrative expense guidance remains $27 million to $28 million, and equity-based compensation guidance remains $6 million to $7 million.
New guidance includes Same Store SHOP Recurring Capital Expenditures of $10 million to $11 million and Total OMF Portfolio Recurring Capital Expenditures of $7 million to $8 million.
The Company expects to fully exit the OMF segment in Q4 2026.

SHOP Segment: Same Store Cash NOI grew 13.6% year-over-year. Same Store average occupancy reached 86.7%, an increase of 2.2% year-over-year. Same Store RevPOR increased 4.0% year-over-year. Same Store Cash NOI Margin was 24.3%, an expansion of 1.5% year-over-year.
OMF Segment: Same Store Cash NOI decreased 0.3% year-over-year. Same Store ending occupancy was 95.6%, an increase of 0.2% year-over-year.
The Company acquired 22 SHOP communities (1,381 units) for $300 million during the quarter, introducing a new operator relationship with Priority Life Care for three communities.
Subsequent to the quarter, the Company acquired one SHOP community (79 units) for $26 million.
Year-to-date, the Company has acquired 25 SHOP communities for approximately $424 million.

The Company has signed purchase and sale agreements for approximately $240 million of SHOP acquisitions with estimated weighted average year-one and year-three cap rates of 7.4% and 8.7%, respectively.
An additional $148 million of SHOP acquisitions are under non-binding letters of intent, totaling $388 million in pipeline comprising 1,385 primarily assisted living and memory care units.
The Company is strategically increasing its SHOP-only portfolio to serve a growing elderly population in the United States.

Pending transactions, including the sale of 56 OMFs subject to a $219 million loan assumption and the sale of 40 additional OMFs, are subject to due diligence, closing conditions, and regulatory approvals, with no assurance they will close on described terms.
Forward-looking statements regarding guidance and business strategy are subject to risks including changes in economic cycles, interest rates, competition, reimbursement changes from third-party payors (Medicare/Medicaid), and regulatory changes.
Actual results may differ materially from projections due to assumptions regarding market conditions, transaction timing, and integration of new acquisitions.

CEO Michael Anderson described 2026 as a "transformational year" focused on achieving a SHOP-only portfolio and an investment-grade balance sheet.
Management highlighted success in strategically increasing same-store SHOP occupancy, closing acquisitions at attractive yields, and significantly reducing secured debt using proceeds from new unsecured term loans and OMF exits.
The tone indicates confidence in entering the fourth quarter with a "stronger platform and clear momentum" to deliver long-term shareholder value.

The Company completed the sale of 30 OMFs for $198 million in September 2026, using proceeds to repay $119 million in secured term loans in full.
The Company redeemed all outstanding shares of its 7.375% Series A and 7.125% Series B preferred stock, expecting to save approximately $11 million in annual preferred dividends.
On October 19, 2026, all Class A common stock converted to common stock on a one-for-one basis, making all shares freely tradable on the Nasdaq Global Market.
The Company amended and restated senior unsecured credit facilities, increasing total lender commitments from $550 million to $1.2 billion and repaying $332 million in Fannie Mae secured debt.
The Company sold one non-core SHOP community in California for $42 million in August 2026 and entered a definitive agreement to sell one non-core SHOP community in Michigan for $9 million in September 2026.
A quarterly dividend of $0.075 per share was declared on October 1, 2026, and paid on October 16, 2026.