National Healthcare Properties, Inc. (NASDAQ: HLTC)

National Healthcare Properties, Inc. is a real estate investment trust that acquires, owns, and manages healthcare real estate assets focused on senior housing operating properties and outpatient medical facilities in the United States. The company operates in two reportable business segments: senior housing operating properties and outpatient medical facilities, managing its portfolio through an internalized structure following the termination of its third-party advisor agreement in September 2024. It generates revenue primarily from leasing its properties to healthcare providers and operators under long-term agreements.

The company generates revenue by leasing its owned properties to tenants who provide healthcare services, including senior housing operators and outpatient medical facility tenants. Revenue is derived from base rent, expense recoveries, and other lease-related income under triple-net or modified gross lease structures where tenants typically bear operating costs such as utilities, maintenance, and insurance. The senior housing operating properties segment utilizes a RIDEA structure, allowing participation in operating performance while leasing to a taxable REIT subsidiary that contracts with third-party operators. The outpatient medical facilities segment leases space to physicians, diagnostic providers, rehabilitation clinics, and other healthcare service providers.

The company operates through the following segments: Senior Housing Operating Properties and Outpatient Medical Facilities.

• The Senior Housing Operating Properties segment consists of 37 properties with 3,615 units as of December 31, 2025, including assisted living, memory care, and independent living communities. These properties are operated under the RIDEA structure, where the company leases to a taxable REIT subsidiary that contracts with third-party operators to provide assisted living, memory care, and independent living services. Services in this segment are predominantly paid by residents directly or through private insurance, reducing reliance on government reimbursement programs.

• The Outpatient Medical Facilities segment includes 130 properties totaling approximately 3.7 million square feet of gross leasable area as of December 31, 2025. These facilities are leased to tenants providing physicians’ offices, diagnostic imaging centers, rehabilitation clinics, ambulatory surgery centers, pharmacies, and other outpatient services. Many are located on or near hospital campuses, which the company believes enhances occupancy and tenant retention due to referral synergies and shared infrastructure needs.

National Healthcare Properties, Inc. operates in a highly competitive healthcare real estate market, competing with other REITs, private investment funds, institutional investors, and specialty finance companies for property acquisitions and tenants. Its competitive advantages include a focused portfolio in senior housing and outpatient medical facilities, proximity to hospital systems for many outpatient properties, and the operational alignment of its RIDEA structure which allows participation in senior housing operating performance while maintaining REIT compliance. The company faces competition from entities with greater financial resources but differentiates through specialization and long-term tenant relationships in regulated healthcare niches.

The company serves healthcare providers and operators across its portfolio, including senior housing operators managing assisted living and memory care facilities, physicians’ groups, diagnostic service providers, rehabilitation clinics, and outpatient surgery centers. Tenants in the outpatient medical facilities segment include entities offering services such as cardiology, orthopedics, physical therapy, and pharmacy operations. The senior housing segment serves residents through third-party operators who provide assisted living, memory care, and independent living care, with revenue primarily sourced from private pay and insurance rather than government programs.