National Healthcare Properties, Inc.NHP
National Healthcare Properties, Inc. Leases Disclosure
Leases
Lessor Accounting
The following table summarizes the Company’s lease income (dollars in thousands). Rental income from the OMF operating leases consists of fixed and variable lease payments. The variable payments primarily represent reimbursements of various property-level operating and maintenance expenses that the Company pays on behalf of its tenants. These amounts exclude SHOP leases which are short-term in nature.
Year ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Fixed income from operating leases | $ | 94,328 | $ | 111,843 | $ | 111,447 | ||||||||||||||
Variable income from operating leases | 22,415 | 25,441 | 24,003 | |||||||||||||||||
The following table presents future base rent payments on a cash basis due to the Company as of December 31, 2025 over the next five years and thereafter (dollars in thousands). These amounts exclude tenant reimbursements and contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items. These amounts also exclude SHOP leases which are short-term in nature.
Future Base Rent Payments | ||||||||
| 2026 | $ | 89,638 | ||||||
| 2027 | 82,049 | |||||||
| 2028 | 71,094 | |||||||
| 2029 | 62,817 | |||||||
| 2030 | 57,680 | |||||||
| Thereafter | 229,283 | |||||||
| $ | 592,561 | |||||||
During the years ended December 31, 2025, 2024 and 2023, the Company recorded reductions in revenue of $0.7 million, $1.5 million and $1.2 million, respectively, related to uncollectible accounts.
As of December 31, 2025, the OMF leases had a weighted average remaining lease term of 5.6 years.
Lessee Accounting
The Company leases land and corporate office spaces. At inception, the Company establishes an operating lease right-of-use asset and operating lease liability, which represented the present value of future minimum lease payments. In determining operating right-of-use assets and lease liabilities for the Company’s operating leases, the Company was required to estimate an appropriate incremental borrowing rate on a fully-collateralized basis for the terms of the leases. Because the terms of the Company’s ground leases are significantly longer than the terms of borrowings available to the Company on a fully-collateralized basis, the Company’s estimate of this rate required significant judgment. Certain operating leases include renewal options to extend the term for one year or more. Renewal options that are not reasonably certain to be exercised are excluded from the operating lease assets and liabilities.
As of December 31, 2025, the Company had eight operating and five direct financing lease agreements. The eight operating leases consist of ground and corporate office leases, which have durations, including assumed renewals, ranging from 2.2 years to 35.8 years, excluding an adjacent parking lot lease with a term of 0.7 years. The Company’s operating leases have a weighted-average remaining lease term, including assumed renewals, of 26.4 years and a weighted-average discount rate of 7.42% as of December 31, 2025. For each of the years ended December 31, 2025, 2024 and 2023, the Company paid cash of $1.0 million,
$0.7 million and $0.7 million, respectively, for amounts included in the measurement of lease liabilities. For each of the years ended December 31, 2025, 2024 and 2023, the Company recorded lease expense of $1.1 million, $0.7 million and $0.8 million, respectively.
The following table presents future minimum lease payments under non-cancelable ground and corporate operating leases as well as direct financing leases included in the Company’s operating lease liability as of December 31, 2025 (dollars in thousands):
| Future Base Rent Payments | ||||||||||||||
| Operating Leases | Direct Financing Leases (1) | |||||||||||||
| 2026 | $ | 971 | $ | 79 | ||||||||||
| 2027 | 941 | 81 | ||||||||||||
| 2028 | 668 | 83 | ||||||||||||
| 2029 | 599 | 85 | ||||||||||||
| 2030 | 602 | 87 | ||||||||||||
| Thereafter | 18,440 | 5,759 | ||||||||||||
| Total minimum lease payments | 22,221 | 6,174 | ||||||||||||
| Less: amounts representing interest | (13,754) | (2,158) | ||||||||||||
| Total present value of minimum lease payments | $ | 8,467 | $ | 4,016 | ||||||||||
__________
(1)The direct financing lease liability is included in on the Company’s consolidated balance sheets. The direct financing lease asset is included as part of building, fixtures and improvements as the land component was not required to be bifurcated.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.