Healthcare REIT stays muted. National Healthcare Properties reported Q4 2025 revenue of $87.7M, bringing full-year 2025 revenue to $345.5M—down 3.3% year-over-year as the healthcare REIT continues navigating property portfolio optimization. Shares ticked up 0.26% to $19.625 in minimal after-hours volume following the announcement, extending a three-month rally that’s lifted the stock 9.7% since mid-November.
Sequential revenue stabilizes. The Q4 result of $87.7M compares to $86.0M in Q3, $85.3M in Q2, and $86.4M in Q1, showing stabilization after the company internalized management in late 2024. CEO Michael Anderson has emphasized that management internalization and corporate deleveraging are positioning NHP for a potential public listing, though the preferred shares already trade on Nasdaq. The company’s operating margin of 9.9% reflects continued pressure from a negative 15.0% profit margin, driven by asset repositioning costs.
Asset base shrinking intentionally. Total assets declined from $1.95B at year-end 2024 to $1.74B by Q3 2025, a 10.6% contraction as management exits underperforming properties. Stockholders’ equity fell from $684.6M to $627.2M over the same period. CFO Scott Lappetito highlighted in the November earnings call that Q3 NAREIT-defined funds from operations reached $6.7M ($0.23 per share), up $0.04 sequentially, while adjusted FFO hit $10.4M ($0.36 per share). These FFO metrics—critical for REIT valuation—suggest operational improvement despite topline headwinds.
The public listing question. Anderson’s repeated references to “preparing NHP for a public listing” create ambiguity given the existing Nasdaq-traded preferred shares. The company’s February 12 press release announcing Q4 results contained no earnings call details or guidance figures, leaving investors without forward visibility. The stock’s 12.9% gain since early January reflects optimism around the restructuring, but the lack of analyst coverage (recommendation: none, price target: none) and consensus estimates signals limited institutional attention.
Valuation reflects uncertainty. With no P/E ratio available due to trailing losses (EPS of -$0.56, -$0.85, and -$0.18 across Q3, Q2, and Q1 2025 respectively), investors are essentially betting on the FFO trajectory and the timing of any strategic transaction. The preferred shares trade near their 50-day average of $19.18 and well above the 200-day of $17.38, suggesting technical momentum despite fundamental murkiness.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.