National Healthcare Properties, Inc.: SHOP-ification Show-Me Story; Initiate EW, $16 PT

Research evidence excerpt

National Healthcare Properties, Inc.: SHOP-ification Show-Me Story; Initiate EW, $16 PT

FoundationM

Executive Summary

Who is NHP? National Healthcare Properties (NASDAQ: NHP) is a self-managed REIT with

two business segments: SHOP and OMF. Substantially all of its business is conducted

through National Healthcare Properties Operating Partnership, L.P. and its subsidiaries,

including taxable REIT subsidiaries that lease SHOP assets under the RIDEA framework.

The company is self-managed. Prior to September 27, 2024, day-to-day functions were

managed externally by Healthcare Trust Advisors, LLC and affiliates. NHP internalized

advisory and property management functions in September 2024, a governance and cost-

structure reset that management positions as an important step toward operating as a

public-market healthcare REIT.

Following its April 2026 IPO, which raised ~$531mn gross proceeds, NHP is well

positioned to first de-lever by using proceeds to pay off debt and pref equity before re-

levering as it executes its SHOP acquisition strategy. The debate is no longer simply

whether NHP has a SHOP story. It is whether a small but fast-growing, private-pay, needs-

based SHOP portfolio can be scaled with enough discipline to earn credit closer to larger

RIDEA senior housing peers, while simultaneously reducing leverage, closing the $528.2

million OMF sale, and managing material operator and tenant concentration.

Portfolio transformation. As of 3/31/2026, the company owns 37 senior housing

communities totaling 3,615 units within its Senior Housing Operating Portfolio (SHOP)

segment and 130 Outpatient Medical Facilities (OMF/MOB) with ~3.7mn Sq. Ft. of GLA.

SHOP currently accounts for ~39% of NOI, but acquisitions and dispositions under