CNL Healthcare Properties Reports 7.5% Revenue Growth and Improved Net Loss in Q1 2025

CNL Healthcare Properties, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $95.6 million, a 7.5% increase from $89.1 million in the same period of 2024. The growth was primarily driven by a rise in resident fees and services, which reached $88.8 million, up from $82.3 million year-over-year. Despite the increase in revenues, the company recorded a net loss of $2.6 million, an improvement from a net loss of $5.0 million in the prior year, reflecting a narrowing of losses as operational efficiencies began to take effect.

The company's operating income for the quarter was $8.5 million, compared to $6.3 million in the first quarter of 2024, indicating a positive trend in operational performance. Total operating expenses increased to $87.2 million from $82.8 million, largely due to higher property operating expenses associated with increased occupancy levels. The net loss attributable to common stockholders was $2.6 million, translating to a loss per share of $0.01, an improvement from a loss of $0.03 per share in the previous year.

CNL Healthcare Properties continues to focus on its strategic initiatives, including the management of a diversified portfolio of 70 properties across 26 states, comprising 69 seniors housing communities and one vacant land parcel. The company has been actively managing its debt, repaying approximately $15.8 million in secured indebtedness ahead of its maturity using available funds from its $250 million revolving credit facility. As of March 31, 2025, the company had approximately $80.9 million in liquidity, consisting of $50.9 million in cash and $30 million in undrawn credit.

The company’s operational metrics showed improvements, with increased average occupancy rates contributing to higher revenues and net operating income (NOI), which rose to $27.0 million from $24.4 million year-over-year. CNL Healthcare Properties is also focused on maintaining high occupancy levels and negotiating lease renewals proactively, with 13 leases scheduled to expire in 2025. The company remains committed to exploring strategic alternatives to enhance liquidity and shareholder value, as it continues to navigate the challenges posed by the current economic environment.

Looking ahead, CNL Healthcare Properties anticipates continued revenue growth driven by improved occupancy and rate increases. However, the company acknowledges potential risks associated with market conditions, interest rate fluctuations, and the ongoing recovery from the COVID-19 pandemic. Management remains optimistic about the company's ability to refinance its debt obligations and maintain operational stability while pursuing opportunities for growth in the seniors housing sector.