National Healthcare Properties, Inc. (NHPAP)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 delivered strong operating momentum: portfolio Same Store Cash NOI growth was 8.5% YoY, with SHOP +17.3% and OMF +4.4% YoY; AFFO/share rose 3.2% QoQ to $0.32 while FFO/share increased 35.7% QoQ to $0.19 .
• GAAP results remained loss-making due to impairments and interest expense: revenue was $85.3M and GAAP net loss was $(20.8)M, or $(0.85) per share .
• Capital actions support deleveraging: $21.4M of non-core dispositions generated a $2.7M gain; YTD debt paydown totaled $83.1M, net leverage improved to 9.3x (down 0.4x QoQ), and $1.8M of preferreds were repurchased at a 12.8% yield (reducing leverage by $1.3M on a Net Debt + Preferred basis) .
• Management highlighted “exceptional same store cash NOI growth” across SHOP and OMF and framed results as a strong backdrop ahead of an eventual public listing—potentially a key stock narrative catalyst if sustained .

What Went Well and What Went Wrong

What Went Well

• SHOP outperformance: Same Store Cash NOI +17.3% YoY and +6.6% QoQ; SHOP Cash NOI rose to $10.275M and Same Store average occupancy reached 82.8% (+5.0 pts YoY), with margin at 19.5% (+0.9 pts YoY) .
• OMF stabilization: Same Store Cash NOI +4.4% YoY and +5.7% QoQ, with segment NOI up sequentially to $21.239M despite sequential revenue declines tied to dispositions .
• Balance sheet progress: $21.4M of non-core asset sales and YTD $83.1M debt repayment (including full repayment of the $21.7M Capital One OMF Warehouse Facility) reduced net leverage to 9.3x and extended the deleveraging narrative .
• Quote: “We are very pleased with our second quarter results, headlined by exceptional same store cash net operating income growth in each of the Senior Housing Operating Property and Outpatient Medical Facility segments…providing a tremendous backdrop for the Company as we prepare for an eventual public listing.” — CEO Michael Anderson .

What Went Wrong

• GAAP loss widened: Net loss was $(20.8)M vs $(1.5)M in Q1, driven by higher impairment charges ($15.2M vs $11.9M in Q1) and higher interest expense ($15.8M vs $14.5M in Q1) .
• Top-line slippage: Revenue declined sequentially to $85.3M (from $86.4M in Q1), reflecting asset sales and non-core dispositions that also reduce NOI base near term .
• OMF occupancy mixed: Same Store ending occupancy was 92.2%, down 0.7% YoY; while NOI stabilizes, occupancy softness remains a watch item .

Financial Results

Consolidated Performance (GAAP and REIT Metrics)

Notes: FFO/AFFO adjust GAAP results primarily for real estate depreciation, impairments, straight-line rent, non-cash interest, and other non-operational items; Adjusted EBITDA removes non-cash and non-recurring items to reflect normalized operating performance .

Segment Breakdown

KPIs and Operating Metrics

QoQ and YoY Change Highlights

Guidance Changes

No formal forward guidance ranges (revenue, margins, OpEx, tax, or segment targets) were provided in Q2 2025 materials. Preferred stock dividends were declared and paid, consistent with prior practice.

Earnings Call Themes & Trends

The Q2 2025 earnings call transcript was not available in our document set; themes are inferred from the press release.

Management Commentary

• Prepared remarks emphasized broad-based operating strength: “Exceptional same store cash net operating income growth in each of the Senior Housing Operating Property and Outpatient Medical Facility segments” .
• Strategic framing: Results “provide a tremendous backdrop for the Company as we prepare for an eventual public listing,” signaling focus on portfolio quality, operating metrics, and balance sheet optics ahead of listing .
• Capital discipline highlighted: $83.1M YTD debt paydown, full repayment of the $21.7M OMF warehouse facility, and selective preferred repurchases at a discount to face value .

Q&A Highlights

The Q2 2025 earnings call transcript was not available; no Q&A themes or clarifications could be extracted from primary sources.

Estimates Context

Consensus data from S&P Global were unavailable for EPS and revenue estimates for Q2 2025; as a result, beat/miss analysis versus Street estimates cannot be determined. Reported actuals: revenue $85.3M and GAAP EPS $(0.85) .

Key Takeaways for Investors

• SHOP is the growth engine: Same Store Cash NOI +17.3% YoY, +6.6% QoQ; occupancy and margin improved materially, supporting near-term AFFO resilience even as GAAP remains pressured by impairments .
• OMF stabilizing: Same Store Cash NOI +4.4% YoY and +5.7% QoQ, with sequential segment NOI improvement despite drag from dispositions—monitor occupancy trajectory and leasing in H2 .
• Deleveraging actions are tangible: $21.4M dispositions and $83.1M YTD debt repayment lowered net leverage to 9.3x (−0.4x QoQ), with preferred repurchases further trimming leverage; continued asset rotation and debt paydown are likely narratives into a listing event .
• Non-GAAP strength vs GAAP pressure: AFFO/share rose to $0.32; Adjusted EBITDA steady at $26.8M; GAAP loss widened on higher impairments and interest—investors should anchor on FFO/AFFO and NOI trends for operational assessment .
• Asset base downsizing: Revenue drift reflects portfolio pruning; the quality uplift thesis hinges on reinvestment discipline and stabilization of occupancy, especially in OMF .
• Dividend visibility on preferreds: Series A ($0.4609375) and Series B ($0.4453125) dividends declared and paid—relevant income considerations for preferred holders and capital-stack optics for a future listing .
• Watch list into Q3/H2: Impairment cadence, interest expense trajectory, OMF occupancy, and additional non-core dispositions will drive GAAP optics; sustaining Same Store Cash NOI growth is the key determinant of valuation narrative ahead of the public listing .