National Healthcare Properties: Loss Masks Strong Ops, Senior Housing Soars

NEW YORK, NY – February 20, 2026 – National Healthcare Properties, Inc. (Nasdaq: NHPAP / NHPBP) presented a complex financial picture today, reporting a full-year net loss for 2025 while simultaneously revealing powerful underlying operational growth and significant strategic progress in reshaping its portfolio. The healthcare real estate investment trust (REIT) underscored its performance with a dramatic surge in key profitability metrics and exceptional results from its senior housing division, suggesting a successful turnaround is well underway.

For the full year ending December 31, 2025, the company posted a net loss attributable to common stockholders of $(2.51) per share. However, this headline figure belies the operational story told by the firm's non-GAAP metrics, which are closely watched by investors in the REIT sector. Normalized Funds From Operations (Normalized FFO), a key measure of cash flow, skyrocketed 162.7% to $0.83 per share compared to the prior year. Similarly, Same Store Cash Net Operating Income (NOI) for the entire portfolio grew by a robust 9.0%.

This divergence between the GAAP net loss and strong operational cash flow highlights a year of transition, marked by strategic asset sales and non-cash accounting charges, such as depreciation and impairment charges, which totaled $44.9 million for the year. While these charges weigh on net income, they do not impact the cash generated by the company's properties. In fact, the 2025 net loss of $(71.1) million is a significant improvement over the $(203.5) million loss recorded in 2024, indicating substantial progress in stabilizing the company's bottom line.

Senior Housing Shines as a Strategic Pillar

The undeniable star of NHP's 2025 performance was its Senior Housing Operating Property (SHOP) segment. This division delivered an exceptional 21.8% growth in Same Store Cash NOI for the full year, capping it with a 26.5% year-over-year increase in the fourth quarter. This powerful performance validates the company's strategic focus on the sector and reflects a broader market trend.

“We are very pleased with the exceptional internal growth of our senior housing portfolio,” said Michael Anderson, the company's Chief Executive Officer and President, in the official release. He noted that the fundamentals within the healthcare real estate industry, “especially the senior housing sector, remain robust.”

Market data strongly supports this optimism. Across the United States, the senior housing market is experiencing a period of strength driven by a potent combination of rising demand and constrained supply. Industry-wide occupancy rates have seen consecutive quarterly improvements, climbing to 89.1% in late 2025. This demand is fueled by an aging population, with the first wave of Baby Boomers set to turn 80 in 2026, a key demographic for senior living facilities. Simultaneously, new construction has slowed to its lowest point in over a decade, creating a favorable environment for existing property owners like National Healthcare Properties to increase occupancy and drive rent growth. NHP’s outsized NOI growth suggests its portfolio is particularly well-positioned to capture this market momentum.

Portfolio Overhaul and Balance Sheet Fortification

Beyond the strong operational results, 2025 was a year of deliberate transformation for NHP’s balance sheet. The company executed a significant portfolio optimization strategy, completing $202.5 million in dispositions. These sales involved shedding seven non-core senior housing properties and 18 non-core outpatient medical facilities. The move is part of a broader effort to streamline the portfolio, exit underperforming or non-strategic assets, and focus capital on properties with higher growth potential.

The proceeds from these sales, combined with new financing, were instrumental in strengthening the company's financial foundation. In December, NHP secured a new $550 million credit package, consisting of a $400 million revolving credit facility and a $150 million senior unsecured term loan. This new capital was immediately put to use, paying off a previous $330 million secured term loan that had a nearer maturity date.

This refinancing effort not only extends the company's debt maturity profile to an average of 3.9 years but also increases its financial flexibility. The result of these strategic maneuvers is a clear improvement in the company's leverage. The Net Leverage ratio (Net Debt to Annualized Adjusted EBITDA) improved significantly, dropping to 9.2x as of year-end 2025 from 10.3x at the end of 2024. This reduction in debt burden signals a healthier, more resilient financial structure.

A Contrasted View in Outpatient Medical

In contrast to the explosive growth in senior housing, NHP's Outpatient Medical Facility (OMF) segment showed more modest performance. The OMF portfolio posted Same Store Cash NOI growth of 1.9% for the fourth quarter and 2.9% for the full year. The company's total revenue from tenants saw a slight year-over-year decrease, a direct result of the 18 outpatient facilities sold during the year as part of the disposition strategy.

However, the outlook for the broader medical office building market remains positive. Like senior housing, the sector is benefiting from a slowdown in new construction, which is expected to support vacancy rates and foster steady rent growth in the coming year. As healthcare providers continue to shift services to more cost-effective outpatient settings, well-located medical facilities remain a stable and attractive asset class for real estate investors. As NHP concludes its disposition of non-core assets in this segment, its remaining portfolio is expected to provide steady, reliable income to complement the high-growth potential of its senior housing division.