National Healthcare Properties Sets New $32.15 NAV
The revised valuation reflects internalization, property sales, and capital markets challenges.
March 28, 2025
National Healthcare Properties has released a new estimated per-share NAV of $32.15 as of December 31, 2024. The company’s board approved the figure on March 26, 2025, following a detailed valuation process led by Kroll, LLC.
This updated NAV comes at the low end of Kroll’s valuation range, which ran from $32.15 to $36.96 per share. It also reflects a reset from last year’s adjusted figure of $52 per share, following a four-for-one reverse stock split in September 2024. A number of developments influenced the new estimate—from market conditions to internal company actions.
Key Factors Behind the Recalculation
One of the major changes was the internalization of management, which closed in September and came with one-time expenses. The company also issued a stock dividend in January 2024 and disposed of several properties during the year. All of these events played a role in recalibrating the NAV.
Kroll’s analysis covered 182 assets and applied different valuation methods depending on asset type and performance. Most assets—155 in total—were evaluated using discounted cash flow modeling, while others were assessed via direct capitalization, expected sale prices, or sales comparisons. Adjustments were made to reflect how individual assets were performing, especially those with shifting or stabilizing cash flows.
Across the portfolio, valuation inputs reflected current market conditions. Weighted average discount rates came in at 8.69% , and capitalization rates averaged 7.32%. The team also reviewed macro assumptions like occupancy trends in senior housing and rent growth in outpatient medical facilities.
Balance Sheet Considerations
On the balance sheet side, the valuation accounts for all key inputs—including mortgage debt, preferred stock, and a promissory note repaid in early 2025. These factors, along with modest changes in share count, helped shape the final per-share NAV. The $32.15 estimate ended up $2.41 below the midpoint of Kroll’s range.
What the NAV Does—and Doesn’t—Show
It’s important to note that this NAV is a point-in-time estimate—not a market price, liquidation value, or forecast of future performance. It also doesn’t reflect enterprise value or apply a liquidity discount. But for shareholders, it provides a grounded view of where the company stands after a year of transition and market pressure.
National Healthcare Properties has worked with Kroll for over a decade to support this process. The valuation was performed in line with industry standards and included market studies, cash flow analysis, and independent appraisals.
Looking Ahead
The company has stated it doesn’t expect to issue additional stock dividends going forward. That means NAV per share will remain more stable—unless market conditions or strategic actions create meaningful changes.
For now, the new NAV provides a clear view into how the company is navigating current challenges—and how its assets are positioned heading into 2025.
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