NHP

National Healthcare Properties is a small healthcare REIT (37 senior-housing SHOPs + 130 outpatient medical facilities) that has lost money every single year on record: net income of -$85.4M, -$79.6M, -$72.4M, -$190M and -$57.7M across FY2021–FY2025. Revenue actually fell -3.3% in FY2025 to $342M and, at $342M, sits below FY2023's $346M — this is a no-growth, shrinking top line, not a temporary dip. GAAP losses are inflated by $78.3M of D&A (normal for a REIT), but the cash picture is the real problem: FY2025 operating cash flow was just $6.95M against a portfolio carrying ~$1.0B of gross debt at a 5.94% weighted-average rate. That OCF barely covers the Series A/B preferred distributions management itself flags as a funding obligation, and no common dividend is being paid.

The balance sheet is stretched and, more importantly, fragile at the front end. Liabilities/equity is 1.85x and the 10-K's 45.1% net-debt-to-gross-asset-value looks moderate only until you read the maturity ladder: the $334.7M Fannie Mae Secured Debt carries a 6.65% rate and a weighted-average remaining term of just 0.8 years — a refinancing that must be cleared in the next several months at rates above the current book yield. Financial flexibility to absorb that is minimal: management discloses only $22.2M of unencumbered real estate ('no assurance as to the amount of liquidity we would be able to generate... if we are able to leverage them at all'), and a $12.5M minimum-cash covenant sits under the $57.6M cash balance. The December 2025 Wells Fargo $400M revolver + $150M term loan and the cash build to $57.6M (+166%) genuinely help near-term liquidity, but they raise the interest bill, not the earnings power.