National Healthcare Properties Reports $71.1 Million Net Loss for Fiscal Year 2025

National Healthcare Properties, Inc. (NHP) reported a net loss of $71.1 million for the fiscal year ending December 31, 2025, a significant improvement compared to a net loss of $203.5 million in 2024. The company's total revenue from tenants decreased by 3.3% to $342.3 million, down from $353.8 million in the previous year. This decline was primarily attributed to a decrease in revenue from outpatient medical facilities (OMFs), which fell by 14.8% to $117.1 million, while revenue from senior housing operating properties (SHOPs) increased by 4.0% to $225.2 million. The overall operating expenses decreased by 24.6% to $366.8 million, largely due to the absence of termination fees related to the internalization of management functions, which had amounted to $106.7 million in 2024.

As of December 31, 2025, NHP owned 167 properties across 29 states, comprising 37 SHOPs with 3,615 units and 130 OMFs with approximately 3.7 million square feet of gross leasable area. The company’s total gross asset value was reported at $2.2 billion. The occupancy rate for the SHOP segment was 85.5%, while the OMF segment achieved a 92.8% occupancy rate. The company also recorded impairment charges of $44.9 million, primarily related to seven SHOP properties and four OMF properties, reflecting a significant increase from the $24.9 million in impairment charges recorded in 2024.

Strategically, NHP completed the internalization of its management functions in September 2024, transitioning from an externally managed structure to an internally managed one. This move is expected to enhance operational efficiency and reduce management costs in the long term. The company also executed a reverse stock split in September 2024, consolidating every four shares into one, which has been reflected in the share data throughout the report.

In terms of financial health, NHP reported total outstanding debt of $1.0 billion as of December 31, 2025, with a total debt leverage ratio of approximately 45.1%. The weighted average interest rate on total gross borrowings was 5.94%. The company has also initiated a preferred stock repurchase program, authorizing up to $50 million for the repurchase of its Series A and Series B preferred stock, with $44.6 million remaining under the program as of year-end.

Looking ahead, NHP's management expressed cautious optimism regarding future performance, emphasizing the importance of improving operations at existing properties and pursuing new acquisitions to enhance cash flow. However, the company acknowledged potential challenges, including rising inflation, labor shortages, and regulatory changes in the healthcare sector, which could impact both operational performance and tenant revenues.