Michael Anderson, Chief Executive Officer and President, commented, “We are very pleased with the continued strong momentum of our business across-the-board in the third quarter. The exceptional growth of same store cash net operating income within the Senior Housing Operating Property segment and the continued durable performance of the Outpatient Medical Facility segment are laying a solid foundation for our public listing preparation.”
Financial Performance and Other Highlights
- Net loss of $(0.56) per basic and diluted share. Nareit defined Funds from Operations (“FFO”) of $0.23 per diluted share, and Adjusted Funds from Operations (“AFFO”) of $0.36 per diluted share.
- FFO per share increased 21.1% on a quarter-over-quarter basis.
- AFFO per share increased 12.5% on a quarter-over-quarter basis.
- Third quarter portfolio Same Store Cash Net Operating Income (“NOI”) growth was 12.2% year-over-year.
- Senior Housing Operating Property (“SHOP”) segment Same Store Cash NOI growth was 27.2%.
- Outpatient Medical Facility (“OMF”) segment Same Store Cash NOI growth was 4.7%.
- Third quarter disposition totaled $1.8 million, representing the sale of one non-core SHOP.
Operating Update
SHOP Portfolio
- Year-over-year Same Store Cash NOI growth of 27.2%.
- Quarter-over-quarter Same Store Cash NOI growth of 10.3%.
- Same Store average occupancy totaled 83.7%, an increase of 4.0% on a year-over-year basis.
- Same Store revenue increased 12.0% on a year-over-year basis.
- Same Store Cash NOI Margin totaled 21.5%, an expansion of 2.5% on a year-over-year basis.
OMF Portfolio
- Year-over-year Same Store Cash NOI growth of 4.7%.
- Quarter-over-quarter Same Store Cash NOI decreased by 1.6%.
- Same Store ending occupancy totaled 93.5%, a decrease of 0.4% on a year-over-year basis.
Investment Activity
The Company completed the disposition of one non-core SHOP with a contract sales price of $1.8 million during the quarter ended September 30, 2025.
Balance Sheet and Capital
As of September30, 2025, total debt outstanding (net of unamortized debt issuance costs) was $1.0 billion with a weighted average interest rate of 5.1% (when giving effect to interest rate hedges) and an average remaining term of 3.5 years.
Year-to-date through September 2025, the Company has paid down $83.1 million of debt using proceeds from dispositions. In April 2025, the Company fully repaid the $21.7 million Capital One OMF Warehouse Facility.
Net Leverage (Net Debt to Annualized Adjusted EBITDA) totaled 8.9x as of September30, 2025, an improvement of 0.4x relative to June 30, 2025.
Preferred Stock
On September19, 2025, the Board of Directors declared dividends on the Company’s outstanding preferred stock as follows:
- A dividend of $0.4609375 per share on its 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock to holders of record at the close of business on October3, 2025. The dividend was paid on October15, 2025.
- A dividend of $0.4453125 per share on its 7.125% Series B Cumulative Redeemable Perpetual Preferred Stock to holders of record at the close of business on October3, 2025. The dividend was paid on October15, 2025.
During the nine months ended September30, 2025, the Company completed the repurchase of $4.5 million of previously outstanding shares of preferred stock at a weighted average yield of 11.9%, representing a $9.75 discount to face value and reducing leverage by $2.9 million.
Supplemental Information
Additional information regarding these results can be found in the Company’s supplemental financial package that will be available on the Investor Relations section of the Company’s website at nhpreit.com.
About National Healthcare Properties
National Healthcare Properties is a self-managed real estate investment trust focusing on seniors housing and outpatient medical facilities. The Company’s preferred stocks are traded on the Nasdaq Exchange under the tickers “NHPAP” and “NHPBP”. Additional information about the Company can be found on its website at nhpreit.com.
Investor & Media Contact
Email: ir@nhpreit.com
Forward-Looking Statements
This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the Company’s portfolio; the sale of properties; the performance of its operators/tenants and properties; its ability to enter into agreements with new viable tenants for vacant space on favorable terms, or at all; its occupancy rates; its ability to acquire, develop and/or manage properties; its ability to make distributions to shareholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; and its ability to finance and complete, and the effect of, future acquisitions. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The Company’s expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited, the risks and uncertainties described in the section titled Risk Factors of its most recent Annual Report on Form 10-K for the year ended December 31, 2024 and all other filings with the Securities and Exchange Commission. Finally, the Company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.
Financial Statements and Definitions
This press release includes certain non-GAAP financial measures, including FFO, AFFO, Net Debt, EBITDA, Adjusted EBITDA, NOI, Cash NOI and Same Store Cash NOI. While the Company believes that non-GAAP financial measures are helpful in evaluating its operating performance, the use of non-GAAP financial measures in this press release should not be considered in isolation from, or as an alternative for, a measure of financial or operating performance as defined by GAAP. There are inherent limitations associated with the use of each of these supplemental non-GAAP financial measures as an analytical tool. Additionally, the Company’s computation of non-GAAP financial measures may not be comparable to those reported by other REITs. Definitions of these non-GAAP financial measures and reconciliations to their most directly comparable GAAP measures are provided below.
Nareit FFO and AFFO
The Company calculates FFO consistent with the standards established over time by Nareit. Nareit defines FFO as net income or loss (computed in accordance with GAAP), adjusted for (i) real estate-related depreciation and amortization, (ii) impairment charges on depreciable real property, (iii) gains or losses from sales of depreciable real property and (iv) similar adjustments for non-controlling interests and unconsolidated entities.
The Company calculates AFFO by further adjusting FFO to reflect the performance of its portfolio for items it believes are not directly attributable to its operations. The Company’s adjustments to FFO to arrive at AFFO include removing the impacts of (i) acquisition and transaction related costs, (ii) amortization of market-lease intangible assets and liabilities, (iii) adjustments for straight-line rent, (iv) termination fees to related parties, (v) equity-based compensation expense, (vi) depreciation and amortization related to non-real estate related assets, (vii) mark-to-market gains and losses from its non-designated derivatives, (viii) non-cash components of interest expense, (ix) casualty-related charges, (x) gains or losses on extinguishment of debt and (xi) similar adjustments for non-controlling interests and unconsolidated entities.
The Company considers FFO and AFFO to be useful supplemental measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed below, FFO and AFFO can help investors compare its operating performance between periods or as compared to other REITs.
Adjusted EBITDA
The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, excluding acquisition and transaction related costs, termination fees to related parties, interest and other income, amortization of market-lease intangible assets and liabilities and other non-cash items including equity-based compensation, impairment charges, casualty-related charges, gains and losses on sale of real estate investments, gains or losses on extinguishment of debt and gains and losses on derivative investments.
Cash NOI and NOI
The Company defines NOI as total revenues from tenants less property operating costs. The Company defines Cash NOI as NOI excluding net amortization of above/below market lease and lease intangibles and straight-line rent adjustments that are included in GAAP revenue from tenants and property operating and maintenance.
Cash NOI Margin
For the SHOP segment, Cash NOI divided by revenue from tenants excluding net amortization of above/below market lease and lease intangibles.
Net Debt
Total gross debt less cash and cash equivalents.
Net Debt to Annualized Adjusted EBITDA or Net Leverage
Net Debt divided by Annualized Adjusted EBITDA (annualized based on Adjusted EBITDA for the quarter multiplied by four).
Non-Core Properties
Assets that have been deemed not essential to generating future economic benefit or value to the Company’s day-to-day operations and/or are scheduled to be sold.
Occupancy or Leased %
Occupancy for the OMF segment is presented as of the end of the period shown; occupancy for the SHOP segment is presented for the duration of the period shown.
Same Store
The Company defines “same store” as operational properties owned for the full duration of the comparative periods and that are not otherwise excluded. Properties are excluded from same store if they are (i) Non-Core Properties (as defined above), (ii) sold, classified as held for sale, or classified as discontinued operations in accordance with GAAP, (iii) impacted by materially disruptive events, or (iv) undergoing, or intended to undergo, significant redevelopment. Redeveloped properties in the OMF segment will be included in same store once substantial completion of work has occurred for the full period in the periods presented.
| NATIONAL HEALTHCARE PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
| Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Real estate investments, at cost: | |||||||||||||||||||
| Land | $ | 176,510 | $ | 177,999 | $ | 182,662 | $ | 190,082 | $ | 198,124 | |||||||||
| Buildings, fixtures and improvements | 1,795,014 | 1,804,274 | 1,837,150 | 2,012,401 | 2,051,313 | ||||||||||||||
| Acquired intangible assets | 248,061 | 249,941 | 256,440 | 284,447 | 290,408 | ||||||||||||||
| Construction in progress | $ | 2,535 | $ | 4,126 | $ | 9,558 | $ | 7,867 | $ | 3,930 | |||||||||
| Total real estate investments, at cost | 2,222,120 | 2,236,340 | 2,285,810 | 2,494,797 | 2,543,775 | ||||||||||||||
| Less: accumulated depreciation and amortization | (681,847 | ) | (671,070 | ) | (670,907 | ) | (725,831 | ) | (724,985 | ) | |||||||||
| Total real estate investments, net | 1,540,273 | 1,565,270 | 1,614,903 | 1,768,966 | 1,818,790 | ||||||||||||||
| Assets held for sale | 6,215 | 1,725 | — | — | — | ||||||||||||||
| Cash and cash equivalents | 47,059 | 47,123 | 71,383 | 21,652 | 32,858 | ||||||||||||||
| Restricted cash | 55,477 | 56,047 | 55,025 | 52,443 | 52,054 | ||||||||||||||
| Derivative assets, at fair value | 8,415 | 11,208 | 13,281 | 19,206 | 17,177 | ||||||||||||||
| Straight-line rent receivable, net | 21,069 | 20,315 | 19,967 | 22,841 | 23,056 | ||||||||||||||
| Operating lease right-of-use assets | 7,280 | 6,841 | 6,879 | 7,480 | 7,553 | ||||||||||||||
| Prepaid expenses and other assets | 24,972 | 22,591 | 23,721 | 26,316 | 23,706 | ||||||||||||||
| Accounts receivable, net | 10,242 | 9,311 | 8,096 | 5,850 | 5,238 | ||||||||||||||
| Deferred costs, net | 18,055 | 18,465 | 18,630 | 21,269 | 17,238 | ||||||||||||||
| Total assets | 1,739,057 | 1,758,896 | 1,831,885 | 1,946,023 | 1,997,670 | ||||||||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Mortgage notes payable, net | $ | 696,806 | $ | 696,508 | $ | 711,065 | $ | 779,160 | $ | 816,988 | |||||||||
| Fannie Mae Secured Debt | 336,181 | 337,624 | 360,774 | 362,216 | 363,659 | ||||||||||||||
| Market lease intangible liabilities, net | 5,114 | 5,380 | 5,691 | 6,125 | 6,910 | ||||||||||||||
| Derivative liabilities, at fair value | — | — | — | — | — | ||||||||||||||
| Accounts payable and accrued expenses | 46,440 | 46,322 | 54,649 | 89,575 | 84,472 | ||||||||||||||
| Operating lease liabilities | 8,266 | 7,801 | 7,815 | 8,109 | 8,122 | ||||||||||||||
| Deferred rent | 10,230 | 9,347 | 8,275 | 7,217 | 5,717 | ||||||||||||||
| Distributions payable | 3,372 | 3,432 | 3,496 | 3,496 | 3,496 | ||||||||||||||
| Total liabilities | 1,106,409 | 1,106,414 | 1,151,765 | 1,255,898 | 1,289,364 | ||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||
| 7.375% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, 4,740,000 authorized | 38 | 40 | 40 | 40 | 40 | ||||||||||||||
| 7.125% Series B cumulative redeemable perpetual preferred stock, $0.01 par value, 3,680,000 authorized | 35 | 35 | 36 | 36 | 36 | ||||||||||||||
| Common stock, $0.01 par value, 300,000,000 shares authorized | 1,132 | 1,132 | 1,132 | 1,132 | 1,132 | ||||||||||||||
| Additional paid-in capital | 2,530,535 | 2,532,585 | 2,533,737 | 2,533,706 | 2,533,697 | ||||||||||||||
| Accumulated other comprehensive income | 7,560 | 9,441 | 11,646 | 16,640 | 14,301 | ||||||||||||||
| Distributions in excess of accumulated earnings | (1,912,081 | ) | (1,896,200 | ) | (1,872,012 | ) | (1,866,994 | ) | (1,846,558 | ) | |||||||||
| Total stockholders’ equity | 627,219 | 647,033 | 674,579 | 684,560 | 702,648 | ||||||||||||||
| Non-controlling interests | 5,429 | 5,449 | 5,541 | 5,565 | 5,658 | ||||||||||||||
| Total equity | 632,648 | 652,482 | 680,120 | 690,125 | 708,306 | ||||||||||||||
| Total liabilities and equity | $ | 1,739,057 | $ | 1,758,896 | $ | 1,831,885 | $ | 1,946,023 | $ | 1,997,670 | |||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. CONSOLIDATED INCOME STATEMENTS (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||||||||
| Revenue from tenants | $ | 86,026 | $ | 85,332 | $ | 86,443 | $ | 87,738 | $ | 88,940 | |||||||||
| Operating expenses: | |||||||||||||||||||
| Property operating and maintenance | 53,845 | 54,179 | 57,856 | 54,895 | 56,407 | ||||||||||||||
| Impairment charges | 6,641 | 15,212 | 11,899 | 13,383 | 8,829 | ||||||||||||||
| Operating fees to related parties | — | — | — | 22 | 6,391 | ||||||||||||||
| Termination fees to related parties | — | — | — | — | 8,409 | ||||||||||||||
| Acquisition and transaction related | 91 | 497 | 51 | 2,263 | 5,187 | ||||||||||||||
| General and administrative | 5,671 | 5,075 | 4,896 | 5,502 | 5,502 | ||||||||||||||
| Depreciation and amortization | 18,029 | 18,539 | 23,706 | 20,681 | 20,720 | ||||||||||||||
| Total expenses | 84,277 | 93,502 | 98,408 | 96,746 | 111,445 | ||||||||||||||
| Operating loss before gain on sale of real estate investments | 1,749 | (8,170 | ) | (11,965 | ) | (9,008 | ) | (22,505 | ) | ||||||||||
| Gain on sale of real estate investments | 626 | 2,652 | 24,989 | 7,953 | 1,579 | ||||||||||||||
| Operating (loss) income | 2,375 | (5,518 | ) | 13,024 | (1,055 | ) | (20,926 | ) | |||||||||||
| Other income (expense): | |||||||||||||||||||
| Interest expense | (15,060 | ) | (15,836 | ) | (14,529 | ) | (17,305 | ) | (18,007 | ) | |||||||||
| Interest and other income (expense) | 294 | 231 | (15 | ) | (26 | ) | 548 | ||||||||||||
| Gain on extinguishment of debt | — | 257 | — | 392 | — | ||||||||||||||
| Gain (loss) on non-designated derivatives | (77 | ) | 32 | (1 | ) | 1,095 | (2,384 | ) | |||||||||||
| Total other expenses, net | (14,843 | ) | (15,316 | ) | (14,545 | ) | (15,844 | ) | (19,843 | ) | |||||||||
| Loss before income taxes | (12,468 | ) | (20,834 | ) | (1,521 | ) | (16,899 | ) | (40,769 | ) | |||||||||
| Income tax expense (benefit) | (66 | ) | — | 6 | (127 | ) | — | ||||||||||||
| Net loss | (12,534 | ) | (20,834 | ) | (1,515 | ) | (17,026 | ) | (40,769 | ) | |||||||||
| Net loss (income) attributable to non-controlling interests | (21 | ) | 31 | (54 | ) | 38 | 77 | ||||||||||||
| Allocation for preferred stock | (3,326 | ) | (3,386 | ) | (3,450 | ) | (3,449 | ) | (3,450 | ) | |||||||||
| Net loss attributable to common stockholders | (15,881 | ) | (24,189 | ) | (5,019 | ) | (20,437 | ) | (44,142 | ) | |||||||||
| Other comprehensive loss: | |||||||||||||||||||
| Unrealized (loss) gain on designated derivatives | (1,881 | ) | (2,205 | ) | (4,994 | ) | 2,339 | (10,167 | ) | ||||||||||
| Comprehensive loss attributable to common stockholders | $ | (17,762 | ) | $ | (26,394 | ) | $ | (10,013 | ) | $ | (18,098 | ) | $ | (54,309 | ) | ||||
| Weighted-average shares outstanding — Basic and Diluted | 28,296,919 | 28,296,439 | 28,296,439 | 28,296,439 | 28,291,594 | ||||||||||||||
| Net loss per share attributable to common stockholders — Basic and Diluted | $ | (0.56 | ) | $ | (0.85 | ) | $ | (0.18 | ) | $ | (0.72 | ) | $ | (1.56 | ) | ||||
| (1) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | |||||||||||||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (In thousands, except share and per share data) (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | ||||||||||||||||
| OMFs: | ||||||||||||||||||||
| Revenue from tenants | $ | 29,022 | $ | 29,252 | $ | 30,635 | $ | 33,744 | $ | 34,303 | ||||||||||
| Property operating and maintenance | (8,391 | ) | (8,342 | ) | (11,485 | ) | (9,422 | ) | (10,656 | ) | ||||||||||
| OMF segment net operating income | $ | 20,631 | $ | 20,910 | $ | 19,150 | $ | 24,322 | $ | 23,647 | ||||||||||
| SHOPs: | ||||||||||||||||||||
| Revenue from tenants | $ | 57,004 | $ | 56,078 | $ | 55,808 | $ | 53,994 | $ | 54,637 | ||||||||||
| Property operating and maintenance | (45,454 | ) | (45,835 | ) | (46,371 | ) | (45,473 | ) | (45,751 | ) | ||||||||||
| SHOP segment net operating income | $ | 11,550 | $ | 10,243 | $ | 9,437 | $ | 8,521 | $ | 8,886 | ||||||||||
| Net operating income (NOI) | $ | 32,181 | $ | 31,153 | $ | 28,587 | $ | 32,843 | $ | 32,533 | ||||||||||
| Impairment charges | (6,641 | ) | (15,212 | ) | (11,899 | ) | (13,383 | ) | (8,829 | ) | ||||||||||
| Operating fees to related parties | — | — | — | (22 | ) | (6,391 | ) | |||||||||||||
| Termination fees to related parties | — | — | — | — | (8,409 | ) | ||||||||||||||
| Acquisition and transaction related | (91 | ) | (497 | ) | (51 | ) | (2,263 | ) | (5,187 | ) | ||||||||||
| General and administrative | (5,671 | ) | (5,075 | ) | (4,896 | ) | (5,502 | ) | (5,502 | ) | ||||||||||
| Depreciation and amortization | (18,029 | ) | (18,539 | ) | (23,706 | ) | (20,681 | ) | (20,720 | ) | ||||||||||
| Gain on sale of real estate investments | 626 | 2,652 | 24,989 | 7,953 | 1,579 | |||||||||||||||
| Interest expense | (15,060 | ) | (15,836 | ) | (14,529 | ) | (17,305 | ) | (18,007 | ) | ||||||||||
| Interest and other income (expense) | 294 | 231 | (15 | ) | (26 | ) | 548 | |||||||||||||
| Gain (loss) on non-designated derivatives | (77 | ) | 32 | (1 | ) | 1,095 | (2,384 | ) | ||||||||||||
| Gain on extinguishment of debt | — | 257 | — | 392 | — | |||||||||||||||
| Income tax (expense) benefit | (66 | ) | — | 6 | (127 | ) | — | |||||||||||||
| Net loss (income) attributable to non-controlling interests | (21 | ) | 31 | (54 | ) | 38 | 77 | |||||||||||||
| Preferred stock dividends | (3,326 | ) | (3,386 | ) | (3,450 | ) | (3,449 | ) | (3,450 | ) | ||||||||||
| Net loss attributable to common stockholders (in accordance with GAAP) | $ | (15,881 | ) | $ | (24,189 | ) | $ | (5,019 | ) | $ | (20,437 | ) | $ | (44,142 | ) | |||||
| (1) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | ||||||||||||||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||||||||
| Net loss attributable to common stockholders (in accordance with GAAP) | $ | (15,881 | ) | $ | (24,189 | ) | $ | (5,019 | ) | $ | (20,437 | ) | $ | (44,142 | ) | ||||
| Depreciation and amortization on real estate assets | 16,647 | 17,127 | 22,281 | 19,287 | 19,293 | ||||||||||||||
| Impairment charges | 6,641 | 15,212 | 11,899 | 13,383 | 8,829 | ||||||||||||||
| Gain on sale of real estate | (626 | ) | (2,652 | ) | (24,989 | ) | (7,953 | ) | (1,579 | ) | |||||||||
| Adjustments for non-controlling interests | (73 | ) | (146 | ) | (56 | ) | (181 | ) | (64 | ) | |||||||||
| FFO (as defined by NAREIT) attributable to common stockholders | 6,708 | 5,352 | 4,116 | 4,099 | (17,663 | ) | |||||||||||||
| Amortization (accretion) of market lease and other intangibles, net | (174 | ) | (135 | ) | 2,331 | (606 | ) | (134 | ) | ||||||||||
| Straight-line rent adjustments | (753 | ) | (635 | ) | (1,023 | ) | (434 | ) | (458 | ) | |||||||||
| Acquisition and transaction related(1) | 91 | 497 | 51 | 2,263 | 5,187 | ||||||||||||||
| Termination fees to related parties(2) | — | — | — | — | 8,409 | ||||||||||||||
| Equity-based compensation | 1,333 | 570 | — | — | 153 | ||||||||||||||
| Depreciation and amortization on non-real estate assets | 1,382 | 1,411 | 1,425 | 1,394 | 1,427 | ||||||||||||||
| Mark-to-market (gains)/losses from derivatives(3) | 911 | 813 | 931 | 310 | 4,224 | ||||||||||||||
| Non-cash components of interest expense(4) | 761 | 1,481 | 858 | 879 | 880 | ||||||||||||||
| Adjustments for non-controlling interests | (10 | ) | (13 | ) | (19 | ) | — | (91 | ) | ||||||||||
| Gain on extinguishment of debt | — | (257 | ) | — | (392 | ) | — | ||||||||||||
| Casualty-related charges(5) | 115 | 7 | 115 | 412 | 2 | ||||||||||||||
| AFFO | $ | 10,364 | $ | 9,091 | $ | 8,785 | $ | 7,925 | $ | 1,936 | |||||||||
| Percentage increase Q3 2025 vs Q2 2025 | 14.0 | % | |||||||||||||||||
| Percentage increase Q3 2025 vs Q3 2024 | 435.3 | % | |||||||||||||||||
| Recurring Capital Expenditures | $ | 4,452 | $ | 10,571 | $ | 6,658 | $ | 10,570 | $ | 5,917 | |||||||||
| FFO and AFFO Weighted-average shares outstanding — Diluted | 28,549,088 | 28,533,395 | 28,530,465 | 28,530,264 | 28,525,620 | ||||||||||||||
| FFO per common share — Diluted | $ | 0.23 | $ | 0.19 | $ | 0.14 | $ | 0.14 | $ | (0.62 | ) | ||||||||
| AFFO per common share — Diluted | $ | 0.36 | $ | 0.32 | $ | 0.31 | $ | 0.28 | $ | 0.07 | |||||||||
| (1) Includes certain advisory, legal, accounting, information technology, tax and other professional expenses and other non-recurring employee transition expenses that were directly related to the Company’s internalization and the reverse stock split. (2) Represents the closing payments paid in connection with the Company’s internalization. (3) Presented as total gains or losses from the Company’s non-designated derivatives net of cash received. (4) Non-cash components of interest expense include (i) deferred financing cost amortization, (ii) mortgage discount and premium amortization and (iii) amortized gains or losses from terminated hedging instruments. (5) Includes labor, supplies and evacuation expenses from natural disasters not covered by insurance. (6) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | |||||||||||||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Amounts in thousands | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | ||||||||||||||
| Net loss (in accordance with GAAP) | $ | (12,534 | ) | $ | (20,834 | ) | $ | (1,515 | ) | $ | (17,025 | ) | $ | (40,771 | ) | ||||
| Interest expense | 15,060 | 15,836 | 14,529 | 17,305 | 18,007 | ||||||||||||||
| Income tax expense | 66 | — | (6 | ) | 127 | — | |||||||||||||
| Depreciation and amortization | 18,029 | 18,539 | 23,706 | 20,681 | 20,720 | ||||||||||||||
| EBITDA | 20,621 | 13,541 | 36,714 | 21,088 | (2,044 | ) | |||||||||||||
| Acquisition and transaction related | 91 | 497 | 51 | 2,263 | 5,187 | ||||||||||||||
| Termination fees to related parties | — | — | — | — | 8,409 | ||||||||||||||
| Equity-based compensation | 1,333 | 570 | — | — | 153 | ||||||||||||||
| Impairment charges | 6,641 | 15,212 | 11,899 | 13,383 | 8,829 | ||||||||||||||
| (Gain)/loss on sale of real estate investments | (626 | ) | (2,652 | ) | (24,989 | ) | (7,953 | ) | (1,579 | ) | |||||||||
| (Gain)/loss on non-designated derivatives | 77 | (32 | ) | 1 | (1,095 | ) | 2,384 | ||||||||||||
| Gain on extinguishment of debt | — | (257 | ) | — | (392 | ) | — | ||||||||||||
| Amortization (accretion) of market lease and other intangibles, net | (174 | ) | (135 | ) | 2,331 | (606 | ) | (135 | ) | ||||||||||
| Casualty-related charges | 115 | 7 | 115 | 412 | 2 | ||||||||||||||
| Adjusted EBITDA | 28,078 | 26,751 | 26,122 | 27,100 | 21,206 | ||||||||||||||
| Operating fees to related parties | — | — | — | 22 | 6,391 | ||||||||||||||
| General and administrative | 4,338 | 4,505 | 4,896 | 5,502 | 5,349 | ||||||||||||||
| Interest and other income | (294 | ) | (231 | ) | 15 | 25 | (546 | ) | |||||||||||
| Amortization (accretion) of market lease and other intangibles, net | 174 | 135 | (2,331 | ) | 606 | 135 | |||||||||||||
| Casualty-related charges | (115 | ) | (7 | ) | (115 | ) | (412 | ) | (2 | ) | |||||||||
| NOI | 32,181 | 31,153 | 28,587 | 32,843 | 32,533 | ||||||||||||||
| Adjustments for straight-line rent | (753 | ) | (634 | ) | (1,021 | ) | (435 | ) | (458 | ) | |||||||||
| Accretion of market lease and other intangibles, net | (174 | ) | (135 | ) | 2,331 | (605 | ) | (133 | ) | ||||||||||
| Cash NOI | $ | 31,254 | $ | 30,384 | $ | 29,897 | $ | 31,803 | $ | 31,942 | |||||||||
| Dispositions | 299 | 502 | (758 | ) | (3,241 | ) | (3,496 | ) | |||||||||||
| Redevelopment | 85 | 99 | 160 | (196 | ) | (196 | ) | ||||||||||||
| Non-Core Properties | 297 | 158 | 229 | 252 | 220 | ||||||||||||||
| Same-store Cash NOI | $ | 31,935 | $ | 31,143 | $ | 29,528 | $ | 28,618 | $ | 28,470 | |||||||||
| Percentage increase Q3 2025 vs Q2 2025 | 2.5 | % | |||||||||||||||||
| Percentage increase Q3 2025 vs Q3 2024 | 12.2 | % | |||||||||||||||||
| (1) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | |||||||||||||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (In thousands, except share, per share, and property data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||||||||
| OMF segment – revenue from tenants | $ | 29,022 | $ | 29,252 | $ | 30,635 | $ | 33,744 | $ | 34,303 | |||||||||
| OMF segment – property operating and maintenance | (8,391 | ) | (8,342 | ) | (11,485 | ) | (9,422 | ) | (10,656 | ) | |||||||||
| OMF segment NOI | $ | 20,631 | $ | 20,910 | $ | 19,150 | $ | 24,322 | $ | 23,647 | |||||||||
| Straight line rent adjustments | (754 | ) | (634 | ) | (1,021 | ) | (437 | ) | (460 | ) | |||||||||
| Accretion of market lease and other intangibles, net | (164 | ) | (167 | ) | 2,335 | (541 | ) | (131 | ) | ||||||||||
| OMF segment cash NOI | $ | 19,713 | $ | 20,109 | $ | 20,464 | $ | 23,344 | $ | 23,056 | |||||||||
| Dispositions | 36 | (51 | ) | (1,456 | ) | (3,798 | ) | (3,852 | ) | ||||||||||
| Redevelopment | 85 | 99 | 160 | (196 | ) | (196 | ) | ||||||||||||
| Non-Core properties | 94 | 103 | 76 | 50 | 26 | ||||||||||||||
| OMF segment same store cash NOI | $ | 19,928 | $ | 20,260 | $ | 19,244 | $ | 19,400 | $ | 19,034 | |||||||||
| Percentage increase Q3 2025 vs Q2 2025 | (1.6 | )% | |||||||||||||||||
| Percentage increase Q3 2025 vs Q3 2024 | 4.7 | % | |||||||||||||||||
| (1) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | |||||||||||||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (In thousands, except share, per share, and property data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||||||||
| SHOP segment – revenue from tenants | $ | 57,004 | $ | 56,081 | $ | 55,808 | $ | 53,994 | $ | 54,637 | |||||||||
| SHOP segment – property operating and maintenance | (45,454 | ) | (45,836 | ) | (46,371 | ) | (45,472 | ) | (45,751 | ) | |||||||||
| SHOP segment NOI | $ | 11,550 | $ | 10,245 | $ | 9,437 | $ | 8,522 | $ | 8,886 | |||||||||
| Non-cash adjustments | (9 | ) | 30 | (4 | ) | (63 | ) | — | |||||||||||
| SHOP segment cash NOI | $ | 11,541 | $ | 10,275 | $ | 9,433 | $ | 8,459 | $ | 8,886 | |||||||||
| Dispositions | 263 | 553 | 698 | 557 | 356 | ||||||||||||||
| Non-Core properties | 203 | 55 | 153 | 202 | 194 | ||||||||||||||
| SHOP segment same store Cash NOI | $ | 12,007 | $ | 10,883 | $ | 10,284 | $ | 9,218 | $ | 9,436 | |||||||||
| Percentage increase Q3 2025 vs Q2 2025 | 10.3 | % | |||||||||||||||||
| Percentage increase Q3 2025 vs Q3 2024 | 27.2 | % | |||||||||||||||||
| (1) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | |||||||||||||||||||
| NATIONAL HEALTHCARE PROPERTIES, INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (In thousands, except share, per share, and property data) (Unaudited) | |||
| For the three months ended September30, 2025 | |||
| OMF | SHOP | ||
| Total properties as of June30, 2025 | 133 | 42 | |
| Dispositions | — | (1) | |
| Total properties as of September30, 2025 | 133 | 41 | |
| Non-Core properties | (3) | (3) | |
| Redevelopments | (1) | — | |
| Same store properties as of September30, 2025 | 129 | 38 | |
| (1) See the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025, Part I – Note 2 “Summary of Significant Accounting Policies” for additional details on reclassifications. | |||
