National Healthcare Properties, Inc.

Hello and welcome to the first quarter 2025 webcast for National Healthcare Properties Incorporated. All participants will be in a listen-only mode. Please note, this event is being recorded. Also note that certain statements and assumptions in this webcast presentation which are not historical facts will be forward-looking and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain assumptions and risk factors which could cause the company's actual results to differ materially from the forward-looking statements. The company refers you to its SEC filings included in its most recent form, 10-K, for a detailed discussion of the risk factors that could cause these differences and impacts in its business. During today's call, the company will also discuss certain non-GAAP financial measures. These measures should not be considered in isolation or as a substitution for the financial results prepared in accordance with GAAP. The company has provided reconciliation of these measures to the most directly comparable gap measures as part of its first quarter 2025 investor presentation available on its website at www.nhpreet.com. You may submit questions during today's webcast by typing them in the box on the screen, and a member of the company's investor relations team will follow up upon the conclusion of this presentation. Also, please note that a copy of this presentation and replay of the webcast will be available on the company's website later today. I would now like to turn the call over to Michael Anderson, Chief Executive Officer and President, and Scott Lepopito, Chief Financial Officer. Please go ahead, Michael.

Thank you for joining us today. National Healthcare Properties entered 2025 with strong momentum following a transformative 2024. Successful completion of our internalization in September 2024 marked the beginning of our evolution into an independent, internally managed REIT. With this transition behind us, we are well positioned to capitalize on the outsized long-term growth opportunities available within the healthcare real estate sector. Our first quarter performance reflects this solid foundation with continued growth in adjusted funds from operations, or AFFO, and same-store cash NOI. alongside meaningful progress in reducing our net debt to annual adjusted EBITDA or net leverage. Scott, will you please take us through your quarterly financial performance? Thank you, Michael.

I am happy to report significant growth in our AFFO, increasing 10.7% to $0.31 per share for the first quarter of 2025 from $0.28 per share for the fourth quarter of 2024. This expansion in AFFO was driven by strong growth within our seniors housing operating properties, or SHOP, continuing the positive momentum seen through 2024. Sequential quarter same-store cash NOI for the segment grew by 13.5%, driven by increases in both occupancy and revenue per occupied room, or REVPOR. This earnings increase occurred alongside continued improvement in our net leverage. from 10.4 times last quarter to 9.7 times in the first quarter of 2025. We remain committed to further reducing leverage throughout the year through organic EBITDA growth. As of March 31st, 2025, we owned 181 properties in 30 states. The portfolio consisted of 136 outpatient medical facilities or LMS and 45 shop properties with 3,939 available individual units As mentioned earlier, our shop segment continued to take advantage of favorable demographic trends by growing occupancy and rental rate. On the OMF side, results were influenced by one asset, which was repositioned from a single tenant to multi-tenant within the quarter. As of today, the property has been partially re-let at economics that replaced substantially all of the prior rents, resulting in upside potential when the remaining space is re-let. Micah will speak more about this in a moment. The strong continued occupancy growth, rental rate growth, and effective expense management in our shop segment, coupled with steady results in our OMF segment, drove strong property-level improvements year-over-year and quarter-over-quarter. Taken in conjunction with the considerable savings from eliminating our external advisor expenses last year, these translated into significant improvements in ASFO, which was 10.7% higher quarter-over-quarter and nearly five times higher year-over-year. At the same time, we continued to improve our net leverage, producing a 0.7 times decreased quarter of a quarter driven by continued property level performance improvements, as well as $70 million of first quarter debt pay downs through strategic dispositions at attractive cap rates. After quarter end, we continued executing on this deleveraging strategy and paid off our $21.7 million LMF warehouse facility, saving $1.4 million of annual interest expense. I would now like to turn the call back to Michael.