Senior Housing Transition Underway

Goldman Sachs initiates coverage on National Healthcare Properties (NHP) with a Buy rating and $20 price target, highlighting its strategic transition into a pure-play senior housing REIT.

Key Takeaways

• 1.NHP is transitioning from a mixed portfolio to a pure-play Senior Housing Operating Property (SHOP) portfolio, aiming for 100% SHOP exposure in the coming years.
• 2.The senior housing sector faces historically high absorption and low supply, providing a strong fundamental backdrop for rental and occupancy growth.
• 3.NHP differentiates itself by targeting smaller assets in secondary and tertiary markets, areas with less institutional competition and wider yields.

Table of Contents

• PM Summary
• Company Summary
• Senior Housing Fundamentals
• NHP's Acquisition Opportunities Are Meaningful
• OMF: Strong investor demand lowers execution risk from SHOP transition
• Earnings Growth
• How does NHP compare versus peers?
• Initiating NHP at Buy Establishing a $20 PT
• Appendix
• Disclosure Appendix

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