National Healthcare Properties, Inc.

Hello, everyone. Thank you for joining us and welcome to National Healthcare Properties' first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I would now like to hand the conference over to Michael Ozuna, Director of Investor Relations. Michael, please go ahead.

Welcome to the first quarter 2026 webcast for National Healthcare Properties. All participants will be in listen-only mode. Please note, this event is being recorded. Also note that certain statements and assumptions in this webcast, 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, including 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 will provide a reconciliation of these measures to the most directly comparable GAAP measures as part of its first quarter 2026 earnings supplemental on its website at www.nhpreet.com. A question and answer session will follow the prepared remarks. Also, please note that a replay of the webcast will be available on the company's website later today. I would now like to turn it over to the company's executive management team. Please go ahead, Michael.

Thank you, Michael. Good afternoon, and welcome to National Healthcare Properties' first quarterly earnings call as a publicly traded company. I'm Michael Anderson, Chief Executive Officer of NHP, and I'm joined today by Drew Babin, our Chief Financial Officer, who will speak to our financial results and outlook in greater detail following my remarks. Before reviewing our first quarter of results, I would like to acknowledge what represents a defining moment in the history of this company. In April 2026, NHP completed its initial public offering and listing on NASDAQ under the ticker symbol NHP. The offering raised gross proceeds of approximately $531 million. Proceeds were used to repay approximately $186 million of outstanding borrowings on our revolving credit facility, materially strengthening the balance sheet at the outset of our tenure as a public company. This milestone reflects the culmination of substantial work to build a differentiated healthcare real estate platform, one grounded in institutional quality senior housing and outpatient medical assets, managed in partnership with best-in-class operators and positioned to capitalize on the compelling demographic demand for healthcare in the United States. We are grateful for the confidence extended by our investors and the hard work of the deal team and remain fully committed to executing the strategy that underpins our public market listings. The senior housing operating properties or shop segment delivered exceptional results in the first quarter. I'm pleased to report that the portfolio's momentum is continuing across the occupancy, rate, and margin expansion funds thus far in 2026. Our three operating partners, Senior Lifestyle Corporation, Discovery Senior Living, and Agewell Senior Living, collectively manage our 37 shop properties comprising 3,615 units. Each partner has demonstrated a sustained commitment to resident care quality and operational discipline, and we're proud of the results that they and our differentiated asset management team continue to deliver on behalf of our shareholders. Our OMF portfolio produced solid organic growth of the zone during the quarter at 5.5% year over year, Tenant base remains comprised of high-credit tenants with anchor relationships including University of Pittsburgh Medical Center, Advocate Aurora Healthcare, Common Spirit Health, and Trinity Health, among others. And the 5.4-year weighted average lease term remaining across the portfolio provides meaningful near-term cash flow visibility. Turning to our investment pipeline, NHP has assembled a transactions team with deep relationships across the senior housing landscape. and the first quarter provided further evidence for capacity to source and structure compelling transactions. During the quarter, the company entered into a definitive purchase and sale agreement to acquire a portfolio of 13 senior living communities for $64 million, structured through a joint venture with Discovery Senior Living, in which the company expects to hold an approximately 98.5% ownership interest. This transaction is consistent with our strategy of partnering with established, high-performing operators at scale. Notably, the agreement also includes a right of first refusal and a purchase option on an additional 13 senior living communities managed by Discovery Senior Living, providing the company with a meaningful and defined pathway for continued portfolio growth through this partnership. Subsequent to quarter end, in April and May 2026, the company executed a definitive purchase and sale agreement to acquire an 88-unit assisted living community in Oregon for $26.5 million and the 130-unit assisted living and memory care community in Florida for $35 million. These transactions are expected to close in the second or third quarter of 2026, subject to customary closing conditions and applicable regulatory approvals. We currently have an additional $40.3 million of shop transactions under letters of intent. These transactions target stabilized yields between 8% and 9% and reflect the quality of our origination capabilities and the discipline with which we underwrite investments. Our pipeline of prospective acquisitions remains active and we'll continue to evaluate opportunities against rigorous return thresholds as we allocate capital towards our stated strategic objectives. Notwithstanding the portfolio's continued operational performance, the company has taken this decisive step in its strategic evolution. In May 2026, we entered into a definitive purchase and sale agreement to divest a portfolio of 86 outpatient medical facilities for aggregate consideration of approximately $528.2 million, inclusive of approximately $278 million of security indebtedness to be defused or assumed by the prospective purchaser. This transaction, if consummated, represents an intentional reorientation of the company's capital towards senior housing, the asset class in which we have the strongest convection, the most differentiated operational infrastructure, and we believe the greatest long-term growth opportunity. It is important to emphasize that this disposition is not a reflection of any deterioration in the quality or performance of the OMF portfolio. Rather, it reflects a deliberate strategic decision based on the belief that concentration in senior housing can generate superior long-term risk-adjusted returns for our shareholders. Completion of the transaction remains subject to the purchaser's due diligence, lender consent for loan assumption, and other customary closing conditions as specified in the purchase and sale agreement. We will provide further updates as the process advances. I'll now hand the call over to Drew Babin, our Chief Financial Officer.