NorthStar Healthcare Income, Inc. reported a net income of $6.9 million for the first quarter of 2025, a significant turnaround from a net loss of $8.0 million in the same period last year. This improvement was driven by a 9.9% increase in total property and other revenues, which rose to $53.6 million, compared to $48.8 million in the prior year. The company saw notable growth in resident fee income, which increased by 9.3% to $13.4 million, and rental income, which grew by 3.6% to $36.8 million. Additionally, other revenue surged to $3.3 million from $0.9 million, reflecting a substantial increase in ancillary services and fees.
In terms of expenses, NorthStar reported a slight decrease of 1.3% in total expenses, which amounted to $58.2 million, down from $58.9 million in the previous year. The company experienced a reduction in interest expenses, which fell by 15.7% to $10.8 million, attributed to lower average mortgage principal balances. General and administrative expenses also decreased by 14.1% to $2.9 million. However, the company recorded an impairment loss of $0.1 million for property damage, a decrease from $0.5 million in the prior year.
Strategically, NorthStar has been active in its investment and operational management. The company completed the sale of four net lease properties in January 2025 for $81 million, generating net proceeds of $1.2 million after repaying outstanding borrowings. Additionally, the company sold the remaining property in the Rochester portfolio for $7 million, yielding net proceeds of $6.6 million. As of March 31, 2025, NorthStar's total assets were reported at $1.06 billion, down from $1.13 billion at the end of 2024, primarily due to the sale of properties and a reduction in mortgage notes payable.
Looking ahead, NorthStar is preparing for a merger with Compound Holdco LLC, which is expected to close in June 2025, pending stockholder approval. Under the terms of the merger agreement, stockholders will receive $3.03 in cash for each share of common stock. The company anticipates that the merger will enhance its operational capabilities and financial position. As of May 5, 2025, NorthStar reported approximately $335.2 million in unrestricted cash, positioning it well to meet its liquidity needs and capitalize on future opportunities.
About NorthStar Healthcare Income, Inc.
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