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NH

National Healthcare Properties, Inc. (NHPAP)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered accelerating non-GAAP performance: AFFO per diluted share rose to $0.36 (+12.5% QoQ) and FFO per diluted share increased to $0.23 (+21.1% QoQ), despite a GAAP net loss of $(0.56) per share .
  • Portfolio same-store cash NOI grew 12.2% YoY, driven by a strong Senior Housing Operating Property (SHOP) segment (+27.2% YoY), while Outpatient Medical Facility (OMF) delivered steady 4.7% YoY growth .
  • Balance sheet improved: net leverage declined to 8.9x (Net Debt/Annualized Adjusted EBITDA), down 0.4x vs Q2, aided by $83.1M YTD debt reduction and dispositions; preferred dividends were declared and $4.5M preferred repurchases reduced leverage by $2.9M .
  • Stock reaction catalysts: sustained SHOP momentum, improving leverage, and visible path toward public listing preparation highlighted by management’s confident tone and operational strength .

What Went Well and What Went Wrong

What Went Well

  • SHOP performance: Same-store cash NOI +27.2% YoY and +10.3% QoQ; same-store average occupancy 83.7% (+400 bps YoY); cash NOI margin 21.5% (+250 bps YoY) .
  • AFFO/FFO momentum: AFFO per share $0.36 (+12.5% QoQ) and FFO per share $0.23 (+21.1% QoQ), signaling improved cash generation and normalization of non-GAAP earnings .
  • Deleveraging and capital actions: net leverage to 8.9x (-0.4x QoQ); $83.1M YTD debt paydown; full repayment of $21.7M OMF warehouse facility in April; preferred share repurchases reduced leverage by $2.9M .
  • Quote: “We are very pleased with the continued strong momentum of our business... laying a solid foundation for our public listing preparation.” — Michael Anderson, CEO .

What Went Wrong

  • GAAP loss persisted: Net loss attributable to common stockholders was $(15.9)M; net loss per share $(0.56), reflecting ongoing impairment charges and interest burden .
  • OMF softness QoQ: OMF same-store cash NOI declined 1.6% QoQ and ending occupancy slipped 40 bps YoY to 93.5%, tempering segment contributions near-term .
  • Impairments and expenses: Impairment charges of $6.6M and total operating expenses of $84.3M continue to weigh on GAAP profitability; recurring capex of $4.5M also required to sustain operations .

Financial Results

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue from tenants ($USD Millions)$88.940 $87.738 $86.443 $85.332 $86.026
Net loss per share (GAAP) ($)$(1.56) $(0.72) $(0.18) $(0.85) $(0.56)
FFO per common share — diluted ($)$(0.62) $0.14 $0.14 $0.19 $0.23
AFFO per common share — diluted ($)$0.07 $0.28 $0.31 $0.32 $0.36
Adjusted EBITDA ($USD Millions)$21.206 $27.100 $26.122 $26.751 $28.078

Segment breakdown

Segment MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
OMF revenue from tenants ($USD Millions)$34.303 $33.744 $30.635 $29.252 $29.022
OMF segment NOI ($USD Millions)$23.647 $24.322 $19.150 $20.910 $20.631
SHOP revenue from tenants ($USD Millions)$54.637 $53.994 $55.808 $56.081 $57.004
SHOP segment NOI ($USD Millions)$8.886 $8.521 $9.437 $10.245 $11.550

KPIs (latest quarter unless noted)

KPIQ3 2025
Portfolio same-store cash NOI growth YoY12.2%
SHOP same-store cash NOI growth YoY27.2%
SHOP same-store cash NOI growth QoQ10.3%
SHOP average occupancy (same-store)83.7%
SHOP cash NOI margin (same-store)21.5%
OMF same-store cash NOI growth YoY4.7%
OMF same-store cash NOI growth QoQ(1.6)%
OMF ending occupancy (same-store)93.5%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue, EPS/FFO/AFFO, margins, OpEx, OI&E, tax rate, segment guidanceFY/Q4 2025Not provided Not provided Maintained: No explicit quantitative guidance given
Dividends (Preferred)Q4 2025Series A: $0.4609375; Series B: $0.4453125 (declared Sep 19, paid Oct 15)Same as declaredMaintained

Note: The company emphasized operational momentum and public listing preparation but did not issue explicit numerical guidance ranges this quarter .

Earnings Call Themes & Trends

(Company hosted a webcast and published slides; transcript available via external sources)

TopicQ1 2025 MentionsQ2 2025 MentionsQ3 2025 MentionsTrend
SHOP occupancy and marginEarly recovery; AFFO $0.31; SHOP NOI $9.44M Same-store cash NOI +17.3% YoY; margin 19.5%; occupancy 82.8% Same-store cash NOI +27.2% YoY; margin 21.5%; occupancy 83.7% Strengthening QoQ/YoY
OMF occupancy and same-store NOIOMF NOI $19.15M; steady base Same-store cash NOI +4.4% YoY; ending occupancy 92.2% Same-store cash NOI +4.7% YoY; ending occupancy 93.5%; QoQ −1.6% Stable YoY; slight QoQ softness
Portfolio optimization (dispositions)—$21.4M non-core OMF/SHOP sales; $2.7M gain $1.8M non-core SHOP sale Ongoing pruning
Leverage reductionAdjusted EBITDA $26.1M; groundwork Net leverage 9.3x; −0.4x vs Q1 Net leverage 8.9x; −0.4x vs Q2; $83.1M YTD debt paydown Improving
Public listing preparation—Noted as backdrop Explicitly emphasized by CEO Building toward listing readiness
Regulatory/legal——Standard forward-looking statements; no new regulatory items Neutral

Management Commentary

  • Strategic message: “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.” — Michael Anderson, CEO .
  • Capital discipline: Net leverage improved to 8.9x; $83.1M YTD debt paydown; full repayment of $21.7M OMF warehouse facility; preferred repurchases reduced leverage by $2.9M, supporting balance sheet normalization .
  • Segment focus: SHOP driving upside via occupancy, rate, and margin expansion; OMF remains durable, with modest QoQ variability but consistent YoY growth .

Q&A Highlights

  • The full Q3 2025 webcast replay and slides are available; third-party prepared remarks/transcripts are posted externally. Specific Q&A highlights were not accessible within our document corpus at the time of analysis. Refer to webcast/slides/transcript for detailed Q&A .

Estimates Context

MetricPeriodActualConsensus MeanSurprise
EPS (GAAP) ($)Q3 2025$(0.56) N/A*N/A
Revenue ($USD Millions)Q3 2025$86.026*N/A*N/A

Values marked with * were retrieved from S&P Global. Consensus was unavailable for NHPAP at the time of analysis.

Key Takeaways for Investors

  • SHOP’s strong same-store cash NOI growth (+27.2% YoY) and margin expansion (21.5%) are the primary earnings driver heading into year-end and potential listing-related milestones .
  • AFFO/FFO per share trajectory improved materially in Q3, indicating healthier cash economics even as GAAP results reflect impairments and interest costs .
  • OMF remains stable on a YoY basis, but monitor near-term QoQ softness and occupancy mix given the modest 1.6% QoQ decline in same-store cash NOI .
  • Balance sheet is trending better: net leverage down to 8.9x; sustained debt reduction and preferred actions support equity value creation and listing readiness .
  • Continued dispositions and capital recycling should underpin leverage and fund selective growth, with limited execution risk evidenced by recent gains on sales .
  • Lack of explicit numerical guidance places more focus on quarterly execution signals (NOI growth, occupancy, margins) and capital structure progress .
  • Near-term trading: positive bias tied to SHOP momentum and deleveraging; medium-term thesis hinges on sustaining NOI growth, normalizing GAAP P&L (lower impairments/interest), and delivering on listing preparation narrative .

Additional references: Company press release and non-GAAP reconciliations ; Q2 2025 press release and reconciliations for trend context ; External press release distribution and webcast/transcripts .