Thu, May 8, 7:57 PM (14 days ago)
**NorthStar Healthcare Income, Inc. (NHI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total property and other revenues increased by 9.9% to $53.6 million, driven by a 9.3% increase in resident fee income and an 8.9% increase in rental income. - **Profit Margins:** Net income improved significantly to $6.9 million, a $14.9 million increase from a loss of $8.0 million in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $7.3 million, a substantial improvement from $0.9 million in Q1 2024. - **Earnings Changes:** The company recorded a gain of $11.6 million on investments and other activities, partially offset by a $0.1 million impairment loss. **Key Metrics and Trends:** - **Occupancy:** Average occupancy for seniors housing investments improved by 2.5% to 91.1%. - **NOI:** Net Operating Income (NOI) increased by 27.6% to $19.6 million, driven by higher revenues and controlled expenses. - **Capital Expenditures:** Cash used for capital expenditures was $1.5 million, reflecting ongoing investments in property improvements. **Uncertainties and Future Operations:** - **Merger:** The company is pursuing a merger with Compound Holdco LLC, expected to close in June 2025, subject to shareholder approval and other conditions. - **Liquidity:** As of May 5, 2025, the company had approximately $335.2 million in unrestricted cash. - **Market Conditions:** Favorable market conditions include increased occupancy and strong supply-demand fundamentals in the seniors housing sector. **Segment Performance:** - **Operating Investments:** This segment, which includes ILFs, ALFs, and MCFs, saw a 9.3% increase in same-store property revenues and a 26.8% increase in same-store NOI. - **Net Lease Investments:** The company sold all four properties in this segment in January 2025, generating net proceeds of $1.2 million. **Risk Factors:** - **Interest Rate Risk:** The company has exposure to variable-rate interest, which could impact future earnings and cash flows. - **Inflation Risk:** Higher inflation could affect operating margins, although managers have some ability to offset cost increases through rate adjustments. **Ticker:** NHI