National Healthcare Properties — Q3 2026 Earnings Summary

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 grew 8.4% year-over-year.
• Total debt outstanding (net of discounts and unamortized debt issuance costs) 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 improved to 5.5x as of September 30, 2026, down from 8.8x as of September 30, 2025.
• Revenue from tenants for the quarter was $103.1 million, compared to $86.0 million in the prior year period.
• Operating loss before gain on sale of real estate investments was $6.5 million, compared to operating income of $1.7 million in the prior year period.
• Gain on sale of real estate investments was $38.3 million for the quarter.

Guidance and Future Outlook:

• Revised full-year 2026 SHOP Same Store Cash NOI growth guidance to a midpoint range of 16.5% to 18.5%, an increase of 100 basis points from the previous 15.0% to 18.0% range.
• Revised full-year 2026 acquisition guidance to $425 million to $645 million, up from the previous $375 million to $425 million range.
• Revised full-year 2026 disposition guidance to $1.1 billion, up from the previous $570 million.
• Added new full-year 2026 guidance for Same Store SHOP Recurring Capital Expenditures ($10 million to $11 million) and Total OMF Portfolio Recurring Capital Expenditures ($7 million to $8 million).
• OMF Same Store Cash NOI growth guidance was removed from the full-year outlook.
• The Company expects to fully exit the OMF segment in 2026.

Business Segments and Product Lines:

• SHOP Segment: Same Store Cash NOI growth was 13.6% year-over-year. Same Store average occupancy was 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.
• 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, acquired one SHOP community (79 units) for $26 million.
• Year-to-date acquisitions totaled 25 SHOP communities for approximately $424 million.
• Pipeline includes approximately $240 million of signed SHOP acquisitions with estimated weighted average year-one and year-three cap rates of 7.4% and 8.7%, respectively, and an additional $148 million under non-binding letters of intent.

Market and Competitive Landscape:

• The Company is focused on a SHOP-only portfolio and an investment grade balance sheet.
• The Company has signed purchase and sale agreements for approximately $388 million of SHOP acquisitions (including non-binding letters of intent) comprising 1,385 primarily assisted living and memory care units.
• The Company completed the sale of 30 OMFs for approximately $198 million in September 2026, part of a larger $528 million sale of 86 OMFs.
• The remaining 56 OMFs in the initial portfolio are subject to a $219 million loan assumption and expected to close in Q4 2026 for $331 million.
• Entered into a definitive purchase and sale agreement to sell an additional 40 OMFs for approximately $531 million and signed a non-binding letter of intent to sell the remaining four OMFs.

Risks and Challenges:

• Pending transactions are subject to continued purchaser due diligence, closing conditions, regulatory approvals, and the negotiation of definitive agreements for non-binding letters of intent.
• Forward-looking statements involve risks including changes in economic cycles, real estate and healthcare markets, inflation, interest rates, competition, and legislative/regulatory changes.
• Risks include the ability to successfully identify, complete, and integrate new acquisitions, and the ability to retain key personnel.
• Potential risks include reductions in reimbursement from third-party payors (Medicare/Medicaid), environmental hazards, cybersecurity incidents, and the ability to remain qualified as a REIT.

Management Commentary and Tone:

• CEO Michael Anderson described 2026 as a "transformational year" with important milestones toward a SHOP-only portfolio and investment grade balance sheet.
• Management highlighted strategic increases in same-store SHOP occupancy, closing acquisitions at attractive yields, and utilizing proceeds from new unsecured term loans and OMF exit proceeds to significantly reduce secured debt.
• Management stated the Company enters the fourth quarter with a "stronger platform and clear momentum, focused on delivering long-term value for our shareholders."

Other Key Points:

• Amended and restated senior unsecured credit facilities, increasing total lender commitments from $550 million to $1.2 billion, with the revolving facility increasing from $400 million to $750 million and adding a $150 million delayed draw term loan.
• Repaid $332 million outstanding under Fannie Mae secured debt due to mature in November 2026 in connection with the credit facilities recast.
• Repaid in full Secured Term Loan 1 due 2028 and Secured Term Loan 3 due 2031, totaling $119 million, in connection with the sale of 30 OMFs.
• Redeemed all 3,289,061 shares of 7.375% Series A Preferred Stock and all 2,850,427 shares of 7.125% Series B Preferred Stock, expecting to save approximately $11 million in annual preferred dividends.
• All outstanding Class A common stock converted to common stock on a one-for-one basis on October 19, 2026, making all shares freely tradable on the Nasdaq Global Market.
• Declared quarterly dividends of $0.075 per share of common stock in July and October 2026.
• Completed the sale of one non-core SHOP community in California for approximately $42 million in August 2026.
• Entered into a definitive purchase and sale agreement to sell one non-core SHOP community in Michigan for approximately $9 million in September 2026.