Healthcare Trust Inc. has completed the previously announced internalization of management functions, the New York-based real estate investment trust said Monday.
With the transition, the REIT is rebranding as National Healthcare Properties.
The company said it expects to save more than $25 million in general and administrative expenses by internalizing management and said the change aligns with its goal of positioning itself for long-term growth and value creation for its shareholders.
Michael Anderson remains CEO and has been appointed to the board under the internalization. Scott Lappetito remains chief financial officer.
Healthcare Trust formerly received advisory and property management services from affiliates of AR Global.
Monday, Anderson called the internalization and rebranding “a significant milestone that we believe enhances our operational efficiency, further aligns our governance structure with that of our publicly traded peers, and positions us for future growth.”
The newly named National Healthcare Properties has engaged BMO Capital Markets Corp. to help it evaluate a potential public listing of its shares of common stock. The company previously had expressed its intention to list its common stock on a national securities exchange as early as 2025.
“We look forward to working with BMO Capital Markets as we explore the potential for a public listing of our common stock and continue to build a robust portfolio of healthcare properties,” Anderson said.
The former Healthcare Trust saw significant growth in its senior living portfolio in the second quarter heading toward this move toward self-management, according to a second-quarter earnings call with investors in late August.
At that time, company executives reported that net operating income in its senior housing operating portfolio, or SHOP, improved year-over-year by 10.1%, going from $8.1 million in the second quarter of 2023 to $8.9 million in the second quarter of 2024, because of increased rental rates and higher occupancy. Meanwhile, overall occupancy in the SHOP increased by 3.1%, year-over-year, going from 73.3% to 76.4%.
As of the end of August, the REIT’s total portfolio included 207 properties, 26.2% of which were senior housing properties. The company has 45 senior housing properties with a total of 4,069 units across 12 states.
