National Healthcare Properties Q3 2026: SHOP NOI Jumps 13.6%

National Healthcare Properties, Inc. (Nasdaq: NHP) reported third-quarter 2026 results on 4 November 2026, disclosing that same-store cash net operating income for its Senior Housing Operating Portfolio rose 13.6% year over year, while portfolio-wide same-store cash NOI grew 8.4%. The company also raised the midpoint of its full-year 2026 SHOP same-store cash NOI growth guidance to 17.5% from 16.5%, and reported net income attributable to common stockholders of $0.24 per basic and diluted share. Nareit-defined funds from operations came in at $0.13 per diluted share, with normalized FFO at $0.19 per diluted share.

Context — why the SHOP turnaround matters now

The company's own guidance revision tells the story. On 5 August 2026, National Healthcare Properties guided SHOP same-store cash NOI growth to a range of 15.0% to 18.0% for the full year. On 4 November 2026, that range moved to 16.5% to 18.5% — a 100-basis-point increase at the midpoint. The company attributed the revision to SHOP segment outperformance through the current quarter, acquisitions expected to close during the year, and the ongoing disposition of its outpatient medical facility portfolio alongside a non-core SHOP asset.

The operational drivers sit beneath the NOI line. Same-store average occupancy reached 86.7%, up 2.2% year over year, while same-store revenue per occupied room advanced 4.0%. That combination of rising occupancy and rising rate is what pushed same-store cash NOI margin to 24.3%, an expansion of 1.5% year over year.

The contrast with the OMF segment is sharp. OMF same-store cash NOI fell 0.3% year over year, and same-store ending occupancy of 95.6% improved only 0.2%. The company is exiting that segment entirely, which removes a low-growth drag from the consolidated numbers.

What triggered the disclosure now is the convergence of three events the company described: a strategic occupancy increase in the SHOP portfolio, more than $300 million of SHOP acquisitions closed in the quarter, and the first tranche of the OMF exit. Chief Executive Officer and President Michael Anderson called 2026 "a transformational year" for the company in the release.

Data — what the numbers show

The headline earnings figures moved in the opposite direction from operations. FFO per share of $0.13 fell 43.5% year over year, and normalized FFO per share of $0.19 fell 29.6%. Net income attributable to common stockholders was $0.24 per basic and diluted share.

Metric	Q3 2026	Year-over-year change
SHOP same-store cash NOI	—	+13.6%
Portfolio same-store cash NOI	—	+8.4%
SHOP same-store occupancy	86.7%	+2.2%
SHOP same-store RevPOR	—	+4.0%
SHOP same-store cash NOI margin	24.3%	+1.5%
OMF same-store cash NOI	—	-0.3%
OMF same-store ending occupancy	95.6%	+0.2%
FFO per diluted share	$0.13	-43.5%
Normalized FFO per diluted share	$0.19	-29.6%

On the balance sheet, total debt outstanding net of discounts and unamortized issuance costs was approximately $851.2 million as of 30 September 2026, carrying a weighted average economic interest rate of 5.12% after hedges and caps, with an average remaining term of 4.9 years. Net use improved to 5.5x from 8.8x a year earlier — a 3.3x reduction. Cash and cash equivalents stood at $125.1 million against $1.91 billion in total assets.

Analysis — what it means for markets and sectors

The gap between 13.6% operating NOI growth and a 43.5% decline in FFO per share is the central tension in these results. The FFO decline reflects share count, preferred redemptions, and the capital recycling program rather than a deterioration in the underlying senior housing business. Investors tracking the REIT sector will read that split differently depending on whether they weight earnings per share or asset-level cash generation.

The OMF exit is the largest structural change. The company previously announced the sale of 86 OMFs for approximately $528 million, completing the first 30 for roughly $198 million in September 2026 and repaying $119 million of secured term loans in connection with that closing. A further 56 OMFs are subject to a $219 million loan assumption and are expected to close in the fourth quarter for $331 million. The company also signed a definitive agreement to sell 40 additional OMFs for approximately $531 million and a non-binding letter of intent for its remaining four OMFs. If all close, the company expects to fully exit the segment.

The counter-argument is concentration. A SHOP-only portfolio ties the company's cash flow to senior housing occupancy, labor costs, and operator performance across a narrower base. The company has also stated plainly that there can be no assurance pending transactions will close on the terms described, or at all. Guidance ranges depend on transaction timing.

Positioning follows the guidance revision. Investors who bought the SHOP transition thesis have new confirmation from the raised midpoint, while those focused on per-share earnings still face the dilution and redemption drag visible in the FFO line.

Outlook — what to watch next

The fourth quarter carries the bulk of the remaining transaction risk. The 56 OMFs under loan assumption and the additional 40 OMFs under definitive agreement are both slated to close in Q4 2026, alongside the approximately $240 million of signed SHOP acquisitions and roughly $148 million under non-binding letters of intent. Each of those SHOP deals carries estimated weighted average year-one and year-three cap rates of approximately 7.4% and 8.7%.

The company's preferred dividend savings are another item to track. Following the redemptions of all Series A and Series B preferred shares, National Healthcare Properties said it expects to save approximately $11 million in annual preferred dividends — a figure that should show up in per-share metrics through 2027.

Watch the use trajectory. Net leverage of 5.5x is down sharply from 8.8x, and further OMF closings reduce secured debt. Whether that improvement continues depends on acquisition pacing against disposition proceeds.

Frequently Asked Questions

Why did National Healthcare Properties FFO per share fall while NOI grew?

FFO per diluted share fell 43.5% year over year to $0.13, and normalized FFO fell 29.6% to $0.19, even as SHOP same-store cash NOI rose 13.6%. The company's release ties the quarter to preferred stock redemptions, acquisitions, and an OMF disposition program, all of which change the share and capital base. Property-level cash generation and per-share earnings measured different things this quarter.

What is the difference between SHOP and OMF for National Healthcare Properties?

SHOP is the Senior Housing Operating Portfolio, where the company owns senior housing and works with operators. OMF is the Outpatient Medical Facility segment. SHOP same-store cash NOI grew 13.6% year over year in the third quarter, while OMF same-store cash NOI declined 0.3%. The company is exiting OMF entirely and moving toward a SHOP-only portfolio.

What did National Healthcare Properties change in its 2026 guidance?

The company raised SHOP same-store cash NOI growth guidance to 16.5% to 18.5% from 15.0% to 18.0%, a 100-basis-point increase at the midpoint. It also lifted the acquisitions range to $425 million to $645 million from $375 million to $425 million, and raised the dispositions target to $1.1 billion from $570 million. OMF same-store cash NOI growth guidance was withdrawn as the segment is being sold.

Bottom Line

National Healthcare Properties delivered double-digit SHOP operating growth and raised guidance, but the FFO decline shows the capital recycling still weighing on per-share results.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.