Financial Data and Key Metrics Changes - The third quarter normalized FFO per share was $0.45, representing approximately 18% growth over the prior year quarter [3][17] - Normalized FFO increased 55.5% over the prior year quarter to $94.7 million, and normalized FAD increased 50.6% to $93.1 million [17] - The company raised $736 million from an equity issuance, enhancing its financial flexibility [17][19] Business Line Data and Key Metrics Changes - The company closed on $495 million of new investments in the third quarter, bringing the year-to-date total to over $1.6 billion [5][6] - The investment pipeline is approximately $600 million, with about half in U.S. skilled nursing, a third in U.K. care homes, and the remainder in SHOP and strategic loans [13][14] Market Data and Key Metrics Changes - The U.K. acquisition has expanded the company's deal pipeline, now accounting for roughly a third of the total pipeline [7] - The blended stabilized yield on post-quarter-end investments is approximately 8.8% [13] Company Strategy and Development Direction - The company aims to grow by adding two new engines of growth: U.K. care homes and SHOP, alongside its core U.S. skilled nursing facilities [6][7] - The focus is on long-term growth, with a vision for the next decade rather than short-term results [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position going into 2026, highlighting a stronger team, better portfolio, and greater liquidity [9][10] - The management team is optimistic about the growth potential in the U.S. skilled nursing, U.K. care homes, and SHOP sectors [10][72] Other Important Information - The company has maintained low leverage with net debt to EBITDA of 0.43 times and a fixed charge coverage ratio of 11 times as of quarter-end [20] - The company is preparing for a transition in leadership as the CFO will retire at the end of the year [16] Q&A Session Summary Question: Expected yields across SNFs, U.K. care homes, and seniors housing - The expected yield for SNFs is typically around 9%, U.K. care homes around 8.5% or higher, and seniors housing yields are expected to be 7% or higher depending on various factors [24] Question: Plans to minimize duration gap in equity raises - The company is evaluating options on a case-by-case basis and has not found it necessary to pursue forward equity raises yet [26] Question: Investments in seniors housing operating portfolio - Investments began at the end of last year, with plans to add more personnel to support growth in the SHOP segment [30] Question: Comparison of U.K. and U.S. markets - The U.K. market is seeing increased activity and a growing pipeline since the acquisition of CareREIT, with the company remaining competitive [36] Question: Application of data science investments - The data science platform will enhance productivity and decision-making across all departments, particularly benefiting the SHOP business [38] Question: G&A cost growth expectations - G&A costs are expected to stabilize at current levels, with some increases due to team investments and resets in short-term incentives [44][62] Question: Appetite for skilled nursing OPCO or RIDEA investments - The company is open to considering such investments for the right operator and deal, though nothing is currently in the pipeline [48] Question: SHOP deals and operator relationships - The company will approach SHOP deals on a case-by-case basis, aiming to expand relationships with operators regardless of predefined growth paths [52] Question: Coverage levels in the U.K. care home portfolio - The slight decrease in coverage levels is attributed to idiosyncratic factors rather than systemic issues [60] Question: Future growth potential and pipeline expansion - The opportunity set has expanded significantly compared to last year, with a bullish outlook for 2026 [71]

Core Points - The webcast is for the Third Quarter 2025 results of National Healthcare Properties, Inc. [1] - The presentation includes forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 [2] - The company will discuss non-GAAP financial measures and provide reconciliations to GAAP measures on its website [3] Group 1 - The event is being recorded and will be available for replay later [1] - Forward-looking statements are subject to assumptions and risk factors that may lead to actual results differing from projections [2] - Non-GAAP financial measures will be discussed, emphasizing that they should not be viewed in isolation from GAAP results [3] Group 2 - The call is led by the CEO and CFO of the company, indicating a structured approach to the presentation of financial results [4]

Financial Performance & Guidance - The company provides 2025 guidance for Net Income between $0.655 and $0.665 per diluted common share[18] - The company provides 2025 guidance for Normalized AFFO between $1.495 and $1.505 per diluted common share[18] - The midpoint of NAFFO guidance implies a 4% year-over-year growth[19] Portfolio & Operations - As of September 30, 2025, the company has 397 investments and 60 relationships[43] - As of September 30, 2025, the weighted average remaining lease term is 7 years[43] - As of September 30, 2025, Skilled Nursing/Transitional Care represents 48.9% of the asset class concentration[47] - As of September 30, 2025, Senior Housing - Managed represents 25.9% of the asset class concentration[47] - As of September 30, 2025, Behavioral Health represents 13.1% of the asset class concentration[47] Capital Structure & Valuation - As of September 30, 2025, the company's consolidated enterprise value is $6.9 billion[66] - As of September 30, 2025, common equity value represents 65% of the consolidated enterprise value[66] - As of September 30, 2025, secured debt represents 1% of the consolidated enterprise value[66]

Core Insights - National Healthcare Properties, Inc. reported strong financial performance for the third quarter of 2025, highlighting significant growth in cash net operating income across its segments, particularly in Senior Housing Operating Properties [2][6]. Financial Performance and Other Highlights - The Company achieved a net loss of $(0.56) per basic and diluted share, with Nareit defined Funds from Operations (FFO) of $0.23 per diluted share, and Adjusted Funds from Operations (AFFO) of $0.36 per diluted share [6]. - FFO per share increased by 21.1% quarter-over-quarter, while AFFO per share rose by 12.5% [6]. - Same Store Cash Net Operating Income (NOI) grew by 12.2% year-over-year, with the Senior Housing Operating Property segment experiencing a remarkable 27.2% growth [6]. - The Outpatient Medical Facility segment saw a Same Store Cash NOI growth of 4.7% [6]. - The Company completed the sale of one non-core SHOP for $1.8 million during the quarter [3]. Balance Sheet and Capital - As of September 30, 2025, total debt outstanding was $1.0 billion, with a weighted average interest rate of 5.1% and an average remaining term of 3.5 years [4]. - The Company paid down $83.1 million of debt year-to-date through September 2025, utilizing proceeds from property dispositions [4]. - Net Leverage (Net Debt to Annualized Adjusted EBITDA) improved to 8.9x as of September 30, 2025, a reduction of 0.4x compared to June 30, 2025 [5]. Preferred Stock and Dividends - The Board of Directors declared dividends on preferred stock, including $0.4609375 per share on the 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock and $0.4453125 per share on the 7.125% Series B Cumulative Redeemable Perpetual Preferred Stock, both paid on October 15, 2025 [7]. - The Company repurchased $4.5 million of previously outstanding shares of preferred stock at a weighted average yield of 11.9%, reducing leverage by $2.9 million [8].

Core Insights - National Healthcare Properties, Inc. reported strong business momentum in Q3 2025, with significant growth in same-store cash net operating income (NOI) in the Senior Housing Operating Property segment and stable performance in the Outpatient Medical Facility segment [2][4]. Financial Performance and Other Highlights - The company recorded a net loss of $(0.56) per share, with Nareit defined Funds from Operations (FFO) of $0.23 per diluted share and Adjusted Funds from Operations (AFFO) of $0.36 per diluted share [8]. - FFO per share increased by 21.1% quarter-over-quarter, while AFFO per share rose by 12.5% quarter-over-quarter [8]. - Same Store Cash NOI growth was 12.2% year-over-year, with the Senior Housing Operating Property segment achieving a remarkable 27.2% growth [8]. - The Outpatient Medical Facility segment experienced a 4.7% growth in Same Store Cash NOI [8]. - The average occupancy rate for Same Store properties was 83.7%, reflecting a 4.0% increase year-over-year [8]. - Same Store revenue increased by 12.0% year-over-year, and the Same Store Cash NOI Margin expanded by 2.5% year-over-year to 21.5% [8]. Balance Sheet and Capital - As of September 30, 2025, total debt outstanding was $1.0 billion, with a weighted average interest rate of 5.1% and an average remaining term of 3.5 years [5]. - The company paid down $83.1 million of debt year-to-date through September 2025, including the full repayment of a $21.7 million Capital One OMF Warehouse Facility [5]. - Net leverage (Net Debt to Annualized Adjusted EBITDA) improved to 8.9x as of September 30, 2025, a 0.4x improvement from June 30, 2025 [6]. Investment Activity - The company completed the sale of one non-core Senior Housing Operating Property (SHOP) for a contract price of $1.8 million during Q3 2025 [4].

Financial Data and Key Metrics Changes - For Q3 2025, cash NOI was $42.8 million, a 4.9% increase from $40.8 million in Q3 2024, driven by acquisition activity and same-store cash NOI growth of 1.2% [15] - AFFO per share decreased by 0.8% compared to Q3 2024, primarily due to increased interest expense, but increased by 4.2% compared to Q2 2025 [16] - The percentage of reporting obligors increased by 2.4% to 75.8%, with an EBITDA rent coverage ratio of 6.19 times, up from 5.31 times in Q2 2025 [16][17] Business Line Data and Key Metrics Changes - Significant acquisitions included the $16.3 million Southlake portfolio and the $70.5 million Reunion Novus portfolio, totaling approximately $87 million [4][6] - The company successfully renewed 90% of its 2025 lease expirations, with three lease renewals accounting for approximately 58,000 sq ft [11] Market Data and Key Metrics Changes - The company is focused on acquiring healthcare assets in markets with strong and growing demographics, particularly in Texas and Arizona [5][6] - The anticipated cap rate is expected to tighten due to looser central bank monetary policy [10] Company Strategy and Development Direction - The company aims to grow strategically and accretively, focusing on high-performing triple net lease healthcare assets [20] - Expansion opportunities are being pursued to meet the ongoing demand for high-quality healthcare services [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding tenant credit and rent collection, highlighting strong coverage ratios [30] - The company remains focused on maintaining a robust balance sheet and low leverage while exploring acquisition opportunities [18][19] Other Important Information - The board authorized a share repurchase program of up to $75 million over three years, with no shares purchased during the quarter [18] - An at-the-market equity offering sales agreement was established, but no shares have been issued under this program to date [19] Q&A Session Summary Question: Was the CHS termination payment in Q3 or Q4, and how much was it? - The CHS termination payment is expected in Q4, approximately a couple hundred thousand dollars [23] Question: What other factors might impact the income statement in Q4? - Continued decreased carry costs for Stoughton and lower G&A expenses are expected to positively impact the income statement [24][25] Question: How much additional capacity exists for deals without needing to issue equity? - The company estimates around $200 to $220 million capacity to stay within targeted leverage ranges [27] Question: How is the tenant credit watch list evolving? - The watch list is stable, with cautious optimism regarding tenant performance and lease renewals [29] Question: How does the company evaluate development or expansion projects? - Most opportunities arise from tenant requests, with the company monitoring tenant financials and operational performance [48] Question: How does the company view the risk of potential changes in ACA subsidies? - The company believes it is insulated from risks associated with ACA subsidy changes due to its focus on outpatient and lower-cost patient settings [50] Question: Is the company closer to utilizing the ATM program or the buyback program? - The company prefers not to issue equity at current levels due to dilution concerns and is focused on thoughtful capital deployment [51]

Financial Performance - Rental revenue for the three months ended September 30, 2025, was $49421 thousand[9], compared to $46118 thousand for the same period in 2024[9] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $11609 thousand[9], compared to $11935 thousand for the same period in 2024[9] - EBITDAre for the three months ended September 30, 2025, was $39475 thousand[9], compared to $36060 thousand for the same period in 2024[9] - FFO for the three months ended September 30, 2025, was $30976 thousand[9], compared to $30568 thousand for the same period in 2024[9] - Core FFO for the three months ended September 30, 2025, was $31154 thousand[9], compared to $30798 thousand for the same period in 2024[9] - AFFO for the three months ended September 30, 2025, was $31081 thousand[9], compared to $31714 thousand for the same period in 2024[9] Portfolio Metrics - The number of properties as of September 30, 2025, was 140[9] - Rentable square feet as of September 30, 2025, was 5323 thousand[9] - The leased rate as of September 30, 2025, was 991%[9] - Weighted average remaining lease term as of September 30, 2025, was 97 years[9]

Core Insights - Omega Healthcare Investors (OHI) reported a revenue of $311.59 million for the quarter ended September 2025, marking a year-over-year increase of 12.9% and exceeding the Zacks Consensus Estimate of $308.6 million by 0.97% [1] - The company achieved an EPS of $0.79, up from $0.42 a year ago, and surpassed the consensus EPS estimate of $0.77 by 2.6% [1] Revenue Breakdown - Rental income was reported at $260.74 million, slightly below the estimated $262.17 million, but still reflecting a year-over-year increase of 14.5% [4] - Real estate tax and ground lease income reached $3.8 million, exceeding the average estimate of $3.62 million, with a year-over-year change of 2.3% [4] Stock Performance - Over the past month, shares of Omega Healthcare Investors have declined by 6.6%, contrasting with the Zacks S&P 500 composite's increase of 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Medical Properties (MPW) reported revenue of $237.52 million for the quarter ended September 2025, reflecting a year-over-year increase of 5.2% [1] - The earnings per share (EPS) was $0.13, a significant improvement from -$1.34 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $237.84 million, resulting in a revenue surprise of -0.13% [1] - The company experienced an EPS surprise of -18.75%, with the consensus EPS estimate being $0.16 [1] Revenue Breakdown - Interest and other income amounted to $10.17 million, exceeding the two-analyst average estimate of $7 million, representing a year-over-year increase of 4.8% [4] - Straight-line rent revenue was reported at $36.41 million, which was below the average estimate of $37.85 million, indicating a year-over-year decline of 0.5% [4] Stock Performance - Over the past month, shares of Medical Properties have returned -9.7%, contrasting with the Zacks S&P 500 composite's increase of +3.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total revenue increased from $29.6 million in Q3 2024 to $31.1 million in Q3 2025, representing a 4.9% year-over-year growth [10] - Funds from operations (FFO) rose to $13.5 million in Q3 2025, a 5.7% increase compared to $12.8 million in Q3 2024 [13] - Adjusted funds from operations (AFFO) totaled $15.1 million in Q3 2025, a 3.1% increase year-over-year [13] - The AFFO dividend payout ratio remained strong at 85% [13] Business Line Data and Key Metrics Changes - Occupancy decreased from 90.7% to 90.1% during the quarter, but new leases signed in October are expected to increase leased occupancy by 50 to 100 basis points by year-end [5] - Weighted average lease term increased slightly from 6.6 to 6.7 years [6] - One inpatient rehabilitation facility was acquired for $26.5 million, with an anticipated annual return of approximately 9.4% [6] Market Data and Key Metrics Changes - The company is seeing attractive opportunities in the market with cap rates in the 9% to 10% range [17] - The geriatric behavioral hospital operator, a tenant in six properties, paid approximately $200,000 in rent during the quarter, down from approximately $800,000 previously [21] Company Strategy and Development Direction - The company is focused on capital recycling to fund acquisitions without increasing leverage [9][19] - The strategy includes being selective in acquisitions and focusing on high-quality assets with attractive returns [17][31] - The company plans to close on one property in Q4 2025, with additional properties closing throughout 2026 and 2027 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing activity and expects a tailwind for growth in 2026 [28] - There is a cautious approach regarding the acquisition pipeline, with a focus on maintaining modest leverage levels [9][19] - Management is actively pursuing multiple plans to resolve issues with the behavioral health tenant and is motivated to increase rent [24] Other Important Information - The company declared a dividend of $0.4750 per common share for Q3 2025, marking a continuous increase since the IPO [9] - The company expects to close on the sale of an inpatient rehabilitation facility in Q4 with an expected gain of approximately $11.5 million [8] Q&A Session Summary Question: What is the status of the acquisition pipeline? - Management stated they are being highly selective and see attractive opportunities in the market, but are cautious about issuing shares at depressed levels [17] Question: What are the expectations for the behavioral health tenant's rent? - The tenant previously paid approximately $800,000 per quarter but only paid $200,000 in the current quarter [21] Question: When is the acquisition expected to close? - Management hopes to close by year-end but realistically expects it to occur in Q1 2026 [23] Question: What is the likelihood of recovering unpaid rents from the tenant? - Management does not put a high likelihood on recovering unpaid rents but is focused on getting paid more rent in the future [25] Question: How is the company identifying assets for disposal? - The company evaluates tenant concentration, weighted average lease term, and market conditions when identifying assets for disposal [31]