National Healthcare Properties, Inc. · NASDAQ:NHP
National Healthcare Properties — Q3 2024 Earnings Presentation
29 slides from National Healthcare Properties's earnings presentation, Dec 6, 2024
Slide 1: National Healthcare Properties, Inc. Investor Webcast Presentation
National Healthcare Properties, Inc. Investor Webcast Presentation (December 6, 2024) Third Quarter 2024 1
Slide 2: Q3'24 Company Overview
Q3'24 Company Overview National Healthcare Properties (“NHP”) is a $2.5 billion(1) healthcare REIT with a high-quality portfolio focused on two segments, Outpatient Medical Facilities (“OMF”) and Senior Housing Operating Properties (“SHOP”) • High-quality portfolio featuring 198 properties that are
Slide 3: Corporate Update - Internalization
Corporate Update - Internalization As a direct result of the Internalization, NHP is on track to recognize more than $25 million of annualized cost savings(1) Expected Cost Savings(1) ($mm) Internalization Highlights(1) Elimination of Asset Management Fees $21,832 • Elimination of Asset Management a
Slide 4: Corporate Update - Strategic Disposition Initiative Update
Corporate Update - Strategic Disposition Initiative Update # of Disposition Price Wtd. Avg. Lease Disposition Name Expected Closing Properties Cash Cap Rate(1) ($ mm) Term Remaining Closed (as of 11/29/24) Copper Springs (SHOP) Closed: Q2'24 1 $3.3 N/M N/A Aperion Portfolio (OMF) Closed: Q3'24 7 $50
Slide 5: Corporate Update - Portfolio Key Stats (as of 9/30/24)
Corporate Update - Portfolio Key Stats (as of 9/30/24) Seniors Housing Operating Properties Outpatient Medical Facilities (OMF) (SHOP)(4) 153 Properties 45 Properties 29 States 12 States 4.9 Million Rentable Square Feet 3,919 Available Units 94.0% Same Store Occupancy(1) 4.2% Same Store YoY Occupanc
Slide 6: Corporate Update - Portfolio Composition (as of 9/30/24)
Corporate Update - Portfolio Composition (as of 9/30/24) Same Store Revenue ($mm) Diversification Benefits $60.0 $50.0 $40.0 Powerful secular trend of increasing healthcare utilization that is expected to benefit all healthcare real $30.0 $49.2 $51.5 $52.7 estate asset classes $20.0 $31.1 $31.8 $32.
Slide 7: Corporate Update - Portfolio Performance Highlights
Corporate Update - Portfolio Performance Highlights Same Store OMF WALT (Pro Forma)(1) Same Store SHOP Occupancy(2) 7 79.0% 6 2.2 years 78.0% 1.7% 5 77.0% 4 76.0% 3 6.5 78.2% 75.0% 4.9 4.6 4.3 2 74.0% 76.5% 75.4% 1 74.7% 73.0% 0 72.0% Q3'23 Q2'24 Q3'24 Q3'24 (Pro Q4'23 Q1'24 Q2'24 Q3'24 Forma) Q3'24
Slide 8: Capitalization Highlights
Capitalization Highlights In Q3'24, NHP continued to manage its capital structure to promote financial flexibility by maintaining conservative Net Leverage(1) Debt Capitalization ($mm) Q3'24 Balanced Capital Structure Mortgage Debt Mortgage Notes Payable $828 • NHP has $828.0 million of fixed-rate(2
Slide 9: Diversification
Diversification NHP is focused on deploying capital into select, high-quality OMF and SHOP assets throughout the United States and increasing portfolio Occupancy Portfolio Highlights High-Quality Portfolio • OMF segment that is diversified across 29 states and features long-term net leases to credit
Slide 10: Key Operating Highlights
Key Operating Highlights In Q3'24, NHP meaningfully increased AFFO(1), along with revenue and Cash NOI(1) in the OMF and SHOP segments, respectively Operating Highlights Significant SHOP Segment Cash NOI Improvement(1) • AFFO(1) increased by 26.4% YoY from $1.5 million in Q3’23, to $1.9 million in Q
Slide 11: Experienced Leadership Team
Experienced Leadership Team Michael Anderson Leslie D. Michelson Scott Lappetito Chief Executive Officer and President Non-Executive Chairman, Audit Committee Chair Chief Financial Officer and Treasurer Mr. Anderson has served as the Chief Executive Mr. Michelson has served as the chairman of Privat
Slide 12: Legal Notice
Legal Notice 12 12
Slide 13: Disclaimer
Disclaimer References in this presentation to the “Company,” “we,” “us” and “our” refer to National Healthcare Properties, Inc. (“NHP”) and its consolidated subsidiaries. This presentation contains “forward-looking statements,” as that term is defined under Section 21E of the Securities Exchange Act
Slide 14: Appendix: Financial Definitions
Appendix: Financial Definitions 14 14
Slide 15: Appendix: Financial Definitions
Appendix: Financial Definitions Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including funds from operations (“FFO”), adjusted funds from operations (“AFFO”), Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted Earnings b
Slide 16: Appendix: Financial Definitions
Appendix: Financial Definitions Caution on the Use of Non-GAAP Measures (continued) As a result, we believe that the use of FFO and AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance including relative to our peers and a more infor
Slide 17: Appendix: Financial Definitions
Appendix: Financial Definitions Funds from Operations (continued) The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset dim
Slide 18: Appendix: Financial Definitions
Appendix: Financial Definitions Earnings before Interest, Taxes, Depreciation, and Amortization We believe that EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization is an appropriate measure of our ability to incur and service debt. EBITDA should not be consider
Slide 19: Appendix: Financial Definitions
Appendix: Financial Definitions Cash Net Operating Income Cash Net Operating Income (“Cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI (which is separately defined herein) excluding net amortization of above/below mar
Slide 20: Appendix: Financial Definitions
Appendix: Financial Definitions Annualized Straight-Line Base Rent: Represents the total contractual base rents on a straight-line basis to be received throughout the duration of the lease currently in place expressed as a per annum value. Includes adjustments for non-cash portions of rent. Cash Ren
Slide 21: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 21 21
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended September 30, March 30, December 31, September 30, Amounts in thousands, except per share data 2024 June 30, 2024 2024 2023 2023 OMFs: Revenue from tenants $34,303 $34,671 $34,599 $34,263 $33,657 Property operating and maintenance 10,656 9,727 9,700 10,182
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended September March 30, December 31, September Amounts in thousands, except per share data 30, 2024 June 30, 2024 2024 2023 30, 2023 Net loss attributable to common stockholders (in accordance with GAAP) $ (44,142) $ (119,916) $ (19,000) $ (28,270) $ (19,561)
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Amounts in thousands September 30, 2024 June 30, 2024 March 30, 2024 December 31, 2023 September 30, 2023 Net loss (in accordance with GAAP) $ (40,771) $ (116,918) $ (15,549) $ (24,856) $ (16,124) Interest expense 18,008 17,752 16,383 15,869 15,720 Income
Slide 25: Same Store Property Reconciliation
Same Store Property Reconciliation For the Nine Months Ended 9/30/24 OMF SHOP Total Properties 153 45 Acquisitions 4 — Dispositions 7 3 Non-Core Properties(1) 7 1 Same Store Properties(1) 135 41 (1) See Appendix: Financial Definitions for a full description 25 25
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended $ in thousands September 30, 2024 June 30, 2024 September 30, 2023 OMF Segment - Revenue from tenants $ 54,637 $ 54,145 $ 52,029 OMF Segment - Property operating and maintenance (45,751) (45,279) (44,947) OMF Segment Net Operating Income $ 23,647 $ 24,944
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ in thousands Three Months Ended September 30, 2024 June 30, 2024 September 30, 2023 SHOP Segment - Revenue from tenants 54,637 54,145 52,029 SHOP Segment - Property operating and maintenance (45,751) (45,279) (44,947) SHOP Segment Net Operating Income $ 8,886 $ 8,866 $ 7,0
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended $ in thousands September 30, 2024 June 30, 2024 September 30, 2023 OMF Revenue Total Portfolio $ 34,303 $ 34,671 $ 33,656 Acquisitions (301) (298) — Dispositions (1,372) (1,352) (1,343) Non-Core Properties(1) 35 (1,194) (1,254) Same Store OMF Revenue $ 32,
Slide 29: § For account information, including balances and the status of submitted paperwork, please call
§ For account information, including balances and the status of submitted paperwork, please call us at 1-888-796-2490 § Financial Advisors may view client accounts at www.computershare.com/ advisorportal NHPREIT.com § Shareholders may access their accounts at www.computershare.com/hti 29
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