National Healthcare Properties (NASDAQ:NHP) used its first quarterly earnings call as a public company to highlight strong senior housing operating results, an active acquisition pipeline and a planned shift away from outpatient medical facilities toward senior housing.
Chief Executive Officer Michael Anderson said the company’s April 2026 initial public offering and Nasdaq listing represented “a defining moment” in its history. The IPO raised gross proceeds of approximately $531 million, with proceeds used in part to repay about $186 million of outstanding borrowings on the company’s revolving credit facility.
Senior Housing Segment Drives First-Quarter Growth
The company’s senior housing operating properties, or SHOP segment, delivered what Anderson called “exceptional results” in the first quarter. The portfolio includes 37 SHOP properties with 3,615 units managed by Senior Lifestyle Corporation, Discovery Senior Living and AgeWell Senior Living.
Chief Financial Officer Andrew Babin said first-quarter normalized funds from operations were approximately $7.5 million, or $0.26 per share, roughly double the results from the same period last year. Normalized FFO excluded a $1.5 million, or $0.05 per share, offset to interest expense from non-cash amortization of swap termination gains.
Within the SHOP segment, same-store cash net operating income rose 24% year over year, driven by occupancy recovery, rate growth and operating leverage. Same-store average occupancy reached 83.8% in the quarter, up 280 basis points from the first quarter of 2025.
Babin said occupancy gains were broad-based across care levels, led by assisted living, which improved 490 basis points to 85.1%, and memory care, which rose 630 basis points to 85.1%. Same-store revenue per occupied room increased 4.4% to $6,340, despite concessions offered to new residents in January due to a difficult flu season and winter weather events. Babin said those concessions have “now fully run their course.”
Same-store cash NOI margin in the SHOP segment expanded 270 basis points year over year to 22.1%. Babin said the improvement reflected expense discipline and the operating leverage of the SHOP model as occupancy rises. He also said compensation cost growth continues to moderate and that management is encouraged by labor market conditions across the company’s operator footprint.
Outpatient Medical Facilities Post Organic Growth
The outpatient medical facilities, or OMF, portfolio also grew during the quarter. Anderson said OMF same-store cash NOI increased 5.5% year over year, supported by high-credit tenants and anchor relationships including University of Pittsburgh Medical Center, Advocate Aurora Health, CommonSpirit Health and Trinity Health.
Babin said OMF same-store cash NOI totaled $20.3 million in the quarter, reflecting a 50 basis point year-over-year increase in occupancy to 94%, contractual rent escalators and relatively flat operating expenses following internalized property management. The OMF portfolio had a weighted average lease term of 5.4 years remaining, which Anderson said provides near-term cash flow visibility.
Company Plans Major OMF Sale and Senior Housing Expansion
Management emphasized that National Healthcare Properties is moving to concentrate more heavily in senior housing. In May 2026, the company entered into a definitive purchase and sale agreement to divest 86 outpatient medical facilities for aggregate consideration of approximately $528.2 million. That figure includes about $278 million of secured indebtedness to be defeased or assumed by the buyer.
Anderson said the transaction, if completed, would represent “an intentional reorientation” of capital toward senior housing. He said the planned sale was not due to deterioration in the OMF portfolio, but instead reflected management’s belief that senior housing can generate superior long-term risk-adjusted returns.
The sale remains subject to buyer due diligence, lender consent for loan assumption and other customary closing conditions. In response to a question from Rob Stevenson of Huntington during the call, Anderson said the company currently expects the OMF sale to close in the third quarter.
At the same time, National Healthcare Properties is pursuing several senior housing acquisitions. During the first quarter, the company entered into an agreement to acquire 13 senior living communities for $64 million through a joint venture with Discovery Senior Living, with National Healthcare Properties expected to hold an approximately 98.5% ownership interest. The agreement also includes a right of first refusal and purchase option on an additional 13 senior living communities managed by Discovery.
After quarter-end, the company agreed to acquire an 88-unit assisted living community in Oregon for $26.5 million and a 130-unit assisted living and memory care community in Florida for $35 million. Those deals are expected to close in the second or third quarter of 2026, subject to customary conditions and regulatory approvals. Anderson also said the company has an additional $40.3 million of SHOP transactions under letters of intent, targeting stabilized yields between 8% and 9%.
Guidance Focuses on Portfolio-Level Metrics
For full-year 2026, Babin said the company expects SHOP same-store cash NOI to increase 13% to 16%, to a range of $50.7 million to $52 million. OMF same-store cash NOI is expected to rise 2.5% to 3.5%, to a range of $81.2 million to $82 million.
The company expects to acquire $375 million to $425 million of SHOP properties and dispose of $528 million of OMF properties during the year. General and administrative expenses are expected to total $26 million to $27 million, including $5 million to $6 million of non-cash equity-based compensation. Recurring capital expenditures for the current portfolio are projected at $22 million to $25 million.
Babin said per-share metrics may vary significantly depending on the exact timing of acquisitions and dispositions in the second half of 2026. As a result, the company plans to begin providing per-share and FFO guidance in 2027, when management expects the portfolio and balance sheet to more closely reflect its long-term strategy.
Management Discusses Balance Sheet and Occupancy Outlook
Babin said net debt to annualized pro rata adjusted EBITDA was 8.6 times in the first quarter, down from 9.0 times in the fourth quarter of 2025. Inclusive of the estimated impact of signed acquisitions and dispositions, as well as the IPO, he said first-quarter leverage would have been 0.6 times. He added that future acquisitions will increase the ratio, but management plans to maintain leverage consistent with pursuing an unsecured investment-grade balance sheet.
The company’s only 2026 debt maturity is approximately $333 million of Fannie Mae secured loans. Babin said management expects it could partially refinance the debt at an accretive spread if it chooses to do so. He also said the company is evaluating ways to reduce $182 million of preferred stock outstanding at reasonable premiums to current market pricing.
During the Q&A session, Austin Wurschmidt of KeyBank Capital Markets asked about the implied deceleration in SHOP same-store NOI growth after the strong first quarter. Babin said year-over-year occupancy gains are likely to become more moderate as the portfolio matures and has fewer “low-hanging fruit” opportunities.
Anderson said the company generally views fully occupied senior housing as 93% to 95%, given the unpredictability of move-outs in higher-acuity care. He said 85% occupancy is a key level where margins begin to improve and operators can push rates more aggressively. The company ended the quarter with spot occupancy just above 85%.
Anderson closed the call by saying the first quarter demonstrated the strength of the company’s portfolio and the strategic clarity behind its evolution into a SHOP-led healthcare REIT.
