The healthcare REIT posts strong same-store gains in senior housing while improving leverage and refinancing debt.

February 23, 2026

Healthcare real estate performance can shift quickly. Occupancy moves. Expenses change. Capital markets tighten or open. National Healthcare Properties closed out 2025 focused on execution—leaning into senior housing strength, trimming non-core assets, and reshaping its balance sheet.

Fourth-Quarter Performance

In the fourth quarter, the company reported a net loss of $0.92 per share attributable to common stockholders, compared with a $0.72 loss a year earlier. Funds from operations totaled $0.07 per share, down from $0.14 in the prior-year period. Normalized FFO came in at $0.20 per share, compared with $0.23 last year.

Operating momentum, however, told a more detailed story.

• Same-store cash NOI across the portfolio increased 9.8% year over year.
• The senior housing segment posted 26.5% same-store cash NOI growth.
• The outpatient medical facility segment recorded 1.9% growth.

The performance gap highlights where demand and pricing power are currently strongest within the portfolio.

Full-Year Results Show Improvement

For the full year, results reflected broader progress. Net loss narrowed to $2.51 per share, compared with $7.19 in 2024. FFO improved to $0.64 per share, up from negative $3.83 a year earlier. Normalized FFO rose to $0.83 per share from $0.32.

Same-store cash NOI for the year increased 9.0%, driven by:

• 21.8% growth in senior housing.
• 2.9% growth in outpatient medical facilities.

The company’s senior housing portfolio continues to be the primary engine of internal growth.

Portfolio Repositioning

National Healthcare Properties continued refining its asset base throughout the year.

• Six non-core properties were sold in the fourth quarter for $11.0 million.
• Full-year dispositions totaled $202.5 million, including seven senior housing assets and 18 outpatient facilities.

By year-end, the portfolio stood at 168 properties, down from 174 at the end of the third quarter. The focus remains on concentrating capital in properties expected to generate stronger long-term returns.

Balance Sheet And Capital Moves

In December, the company entered into a new $400 million unsecured revolving credit facility and a $150 million unsecured term loan, both maturing in 2028. Proceeds were used to repay a $330 million secured term loan previously set to mature in 2026.

At year-end:

• Total debt stood at approximately $1.0 billion.
• The weighted average economic interest rate was 5.75%, after the impact of hedging.
• The average remaining debt term was 3.9 years.
• Net leverage improved to 9.2x, down from 10.3x a year earlier.

During 2025, the company also repurchased $8.6 million of preferred stock at a discount, reducing leverage by roughly $3.2 million. Preferred dividends on both Series A and Series B shares were declared in December.

Year-End Position

Total assets declined to $1.71 billion as of December 31, 2025, compared with $1.95 billion a year earlier, reflecting asset sales and portfolio repositioning.

The year’s results show a company narrowing losses, improving operating trends in senior housing, and refinancing debt ahead of maturities. In a sector shaped by demographic demand and capital market conditions, disciplined portfolio management and balance sheet strategy remain central to performance.