National Healthcare Properties is finalizing its transformation into a purely senior housing operation by offloading 40 outpatient medical facilities. The REIT announced Monday that it agreed to sell the properties for about $531M, though it did not disclose the buyer. The move matters because it completes a strategic pivot that began earlier this year, shifting capital away from a medical outpatient portfolio that was highly occupied but showing declining net operating income, and toward a senior housing sector that has been the best-performing asset class in commercial real estate in 2025.
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, a transaction expected to generate $11M in gross proceeds and finalize NHP's exit from the sector. As of June 30, NHP owned 130 outpatient medical facilities spanning 3.7M SF, while its senior housing portfolio consisted of 39 communities totaling roughly 3,600 units.
The evidence comes from a single Bisnow report based on company announcements and SEC filings. In May, NHP agreed to sell 86 other outpatient facilities for $528M, according to filings with the Securities and Exchange Commission. The first tranche of that 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 sector implications are significant. Senior housing generated a 10.6% one-year total return in 2025, and investors have piled into the sector as construction remains at its lowest point since at least 2012. That supply constraint has allowed owners to raise rents in an already high-cost sector. NHP's senior housing portfolio was 84% occupied as of the end of the second quarter, with the average room bringing in $6,391 in revenue per month, up from $6,036 the year prior. By contrast, the firm's outpatient portfolio was 93% occupied, but net operating income fell 2.4% to $20.4M. NHP CEO and President Michael Anderson said in a statement that the focused strategy positions the company to capture growth from the long-term demographic trend as the first baby boomers turn 80 this year.
The report leaves several questions unanswered. The buyer of the 40 facilities was not disclosed, and the nonbinding letter of intent for the final four properties has not yet converted into a definitive agreement. The source is a single secondary trade publication, and the analysis relies on company-provided figures rather than independent verification. Investors should watch whether the $244M acquisition pipeline closes as expected, whether the remaining outpatient sales complete on schedule, and whether the senior housing portfolio's occupancy and revenue trends continue to support the strategic pivot.