National Healthcare Properties is finalizing its transformation into a purely senior housing operation by offloading 40 outpatient medical facilities.
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The REIT announced Monday that it agreed to sell the properties for about $531M. It did not disclose the buyer.
Since the company recently retired the debt on the portfolio, NHP expects to pocket $511M from the deal. The proceeds will be used to repay its revolving credit facility and acquire senior housing assets, according to the announcement.
The deal is expected to close in the fourth quarter.
NHP also signed a nonbinding letter of intent for its final four outpatient medical facilities. The transaction, which is expected to generate $11M in gross proceeds, would finalize NHP’s exit from the sector.
As of June 30, NHP owned 130 outpatient medical facilities spanning 3.7M SF. Its senior housing portfolio consisted of 39 communities totaling roughly 3,600 units.
The company began its pivot earlier this year. In May, it agreed to sell 86 other outpatient facilities for $528M, according to filings with the Securities and Exchange Commission. The first tranche of the deal, which includes 30 properties, closed earlier this month.
The capital from the deals will help fuel NHP’s pipeline of senior housing purchases. So far, it has lined up approximately $244M of acquisitions, comprising 724 primarily assisted living and memory care units, according to Monday’s announcement.
NHP went public in April, raising $462M but missing its initial public offering target. Since then, the REIT’s stock price has risen roughly 25%, including a 1% gain following Monday’s announcement.
The firm previously posted net losses for three consecutive years but is betting on the incoming “silver tsunami” to turn things around, as the first baby boomers turn 80 this year.
“As the population of older adults continues to expand and the need for specialized senior housing and care increases, we believe our focused strategy positions us well to capture the growth from this long-term demographic trend,” NHP CEO and President Michael Anderson said in a statement.
Senior housing was the best-performing asset class in commercial real estate in 2025, generating a 10.6% one-year total return. Investors have piled into the sector as a result, but construction is still at its lowest point since at least 2012. That has allowed owners to raise rents in an already high-cost sector.
As of the end of the second quarter, NHP’s senior housing portfolio was 84% occupied, according to the REIT’s earnings report. The average room brought in $6,391 in revenue per month, up from $6,036 the year prior.
The firm’s outpatient portfolio was 93% occupied, but net operating income fell 2.4% to $20.4M.
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