National Healthcare Properties, Inc.NHP
National Healthcare Properties, Inc. Segments Disclosure
Segment Reporting
The Company has two operating and reportable business segments: SHOP and OMF.
The SHOP segment consists of direct investments in senior housing properties, primarily providing assisted living, independent living and memory care services, which are operated through engaging independent third-party operators. The OMF segment primarily consists of facilities leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses as well as senior housing properties, hospitals, inpatient rehabilitation facilities and skilled nursing facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses. The accounting policies for the segments are the same as those described in the summary of significant accounting policies (see Note 2 — Summary of Significant Accounting Policies). Total assets by reportable business segment is not disclosed as the CODM does not review such information to evaluate business performance and allocate resources.
The Company’s CODM is its Chief Executive Officer. The CODM evaluates performance of the combined properties in each reportable business segment using net operating income (“NOI”), which is defined as total revenues from tenants, less property operating and maintenance expense. The CODM uses NOI to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that NOI is useful as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from consolidated income (loss) before income taxes.
NOI excludes certain components from consolidated income (loss) before income taxes in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently.
Reconciliation to Consolidated Financial Information
Summary information by reportable business segment is presented below (dollars in thousands):
Year ended December 31, 2025 | ||||||||||||||||||||
| SHOP | OMF | Total | ||||||||||||||||||
| Revenue from tenants | $ | 225,221 | $ | 117,058 | $ | 342,279 | ||||||||||||||
| Less: | ||||||||||||||||||||
Compensation related expenses (1) | 107,589 | — | 107,589 | |||||||||||||||||
Other segment expenses (2) | 75,051 | 36,258 | 111,309 | |||||||||||||||||
| Property operating and maintenance | 182,640 | 36,258 | 218,898 | |||||||||||||||||
| NOI | $ | 42,581 | $ | 80,800 | 123,381 | |||||||||||||||
| Impairment charges | (44,914) | |||||||||||||||||||
| Acquisition and transaction related | (516) | |||||||||||||||||||
| General and administrative | (24,190) | |||||||||||||||||||
| Depreciation and amortization | (78,261) | |||||||||||||||||||
Gain on sale of real estate investments | 27,800 | |||||||||||||||||||
| Interest expense | (61,281) | |||||||||||||||||||
| Interest and other income | 272 | |||||||||||||||||||
Loss on non-designated derivatives | (72) | |||||||||||||||||||
| Gain on extinguishment of debt | 257 | |||||||||||||||||||
| Loss before income taxes | (57,524) | |||||||||||||||||||
| Income tax expense | (161) | |||||||||||||||||||
| Net loss | (57,685) | |||||||||||||||||||
| Net loss attributable to non-controlling interests | 64 | |||||||||||||||||||
| Allocation for preferred stock | (13,446) | |||||||||||||||||||
| Net loss attributable to common stockholders | $ | (71,067) | ||||||||||||||||||
__________
(1) For SHOP segment, compensation related expenses include costs incurred for salaries, benefits and other labor related costs.
(2) For SHOP segment, other segment expenses include costs incurred for supplies, management fees and overhead. The expense details for the OMF segment provided to the CODM primarily consist of reimbursable expenses which are largely recoverable from our tenants. As such, the CODM focuses on monitoring NOI to evaluate performance as a significant portion of the property-level operating expenses is recovered from tenants.
Year ended December 31, 2024 | ||||||||||||||||||||
| SHOP | OMF | Total | ||||||||||||||||||
| Revenue from tenants | $ | 216,477 | $ | 137,317 | $ | 353,794 | ||||||||||||||
Less: | ||||||||||||||||||||
Compensation related expenses (1) | 110,389 | — | 110,389 | |||||||||||||||||
Other segment expenses (2) | 71,558 | 39,505 | 111,063 | |||||||||||||||||
| Property operating and maintenance | 181,947 | 39,505 | 221,452 | |||||||||||||||||
| NOI | $ | 34,530 | $ | 97,812 | 132,342 | |||||||||||||||
| Impairment charges | (24,881) | |||||||||||||||||||
| Operating fees to related parties | (19,203) | |||||||||||||||||||
| Termination fees to related parties | (106,650) | |||||||||||||||||||
| Acquisition and transaction related | (7,949) | |||||||||||||||||||
| General and administrative | (22,440) | |||||||||||||||||||
| Depreciation and amortization | (84,067) | |||||||||||||||||||
Gain on sale of real estate investments | 9,307 | |||||||||||||||||||
| Interest expense | (69,447) | |||||||||||||||||||
| Interest and other income | 1,051 | |||||||||||||||||||
Gain on non-designated derivatives | 1,544 | |||||||||||||||||||
| Gain on extinguishment of debt | 392 | |||||||||||||||||||
| Loss before income taxes | (190,001) | |||||||||||||||||||
| Income tax expense | (262) | |||||||||||||||||||
| Net loss | (190,263) | |||||||||||||||||||
| Net loss attributable to non-controlling interests | 567 | |||||||||||||||||||
| Allocation for preferred stock | (13,799) | |||||||||||||||||||
| Net loss attributable to common stockholders | $ | (203,495) | ||||||||||||||||||
__________
(1) For SHOP segment, compensation related expenses include costs incurred for salaries, benefits and other labor related costs.
(2) For SHOP segment, other segment expenses include costs incurred for supplies, management fees and overhead. The expense details for the OMF segment provided to the CODM primarily consist of reimbursable expenses which are largely recoverable from our tenants. As such, the CODM focuses on monitoring NOI to evaluate performance as a significant portion of the property-level operating expenses is recovered from tenants.
Year ended December 31, 2023 | ||||||||||||||||||||
| SHOP | OMF | Total | ||||||||||||||||||
| Revenue from tenants | $ | 210,476 | $ | 135,449 | $ | 345,925 | ||||||||||||||
| Less: Property operating and maintenance | ||||||||||||||||||||
Less: | ||||||||||||||||||||
Compensation related expenses (1) | 109,281 | — | 109,281 | |||||||||||||||||
Other segment expenses (2) | 70,557 | 37,954 | 108,511 | |||||||||||||||||
| Property operating and maintenance | 179,838 | 37,954 | 217,792 | |||||||||||||||||
| NOI | $ | 30,638 | $ | 97,495 | 128,133 | |||||||||||||||
| Impairment charges | (4,676) | |||||||||||||||||||
| Operating fees to related parties | (25,527) | |||||||||||||||||||
| Termination fees to related parties | — | |||||||||||||||||||
| Acquisition and transaction related | (545) | |||||||||||||||||||
| General and administrative | (18,928) | |||||||||||||||||||
| Depreciation and amortization | (82,873) | |||||||||||||||||||
Loss on sale of real estate investments | (322) | |||||||||||||||||||
| Interest expense | (66,078) | |||||||||||||||||||
| Interest and other income | 734 | |||||||||||||||||||
Loss on non-designated derivatives | (1,995) | |||||||||||||||||||
| Loss before income taxes | (72,077) | |||||||||||||||||||
| Income tax expense | (303) | |||||||||||||||||||
| Net loss | (72,380) | |||||||||||||||||||
| Net loss attributable to non-controlling interests | 82 | |||||||||||||||||||
| Allocation for preferred stock | (13,799) | |||||||||||||||||||
| Net loss attributable to common stockholders | $ | (86,097) | ||||||||||||||||||
__________
(1) For SHOP segment, compensation related expenses include costs incurred for salaries, benefits and other labor related costs.
(2) For SHOP segment, other segment expenses include costs incurred for supplies, management fees and overhead. The expense details for the OMF segment provided to the CODM primarily consist of reimbursable expenses which are largely recoverable from our tenants. As such, the CODM focuses on monitoring NOI to evaluate performance as a significant portion of the property-level operating expenses is recovered from tenants.
The following table reconciles capital expenditures paid by reportable business segments, excluding corporate non-real estate expenditures, for the periods presented (in thousands):
Year ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
OMF | $ | 16,495 | $ | 8,967 | $ | 10,467 | ||||||||||||||
SHOP | 12,231 | 12,941 | 14,832 | |||||||||||||||||
| Total capital expenditures | $ | 28,726 | $ | 21,908 | $ | 25,299 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 17, 2023 | |
| 2021 | Mar 18, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Mar 24, 2020 | |
| 2018 | Mar 14, 2019 | |
| 2017 | Mar 20, 2018 | |
| 2016 | Mar 21, 2017 | |
| 2015 | Mar 11, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.