CNL Healthcare Properties, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the previous fiscal period. Total revenues for Q3 2024 reached approximately $92.8 million, up from $86.2 million in Q3 2023. For the nine months ended September 30, 2024, total revenues increased to $272.8 million from $255.1 million in the same period of 2023. This growth was primarily driven by higher resident fees and services, which rose to $85.9 million in Q3 2024 from $79.5 million in Q3 2023, and $252.2 million for the nine months, compared to $234.9 million in the prior year.

Operating income for Q3 2024 was reported at $8.1 million, significantly higher than $5.0 million in Q3 2023. The nine-month operating income also improved to $24.5 million from $11.9 million in the same period last year. Despite these gains, the company reported a net loss of $(3.2) million for Q3 2024, an improvement from a net loss of $(5.4) million in Q3 2023. For the nine months, the net loss decreased to $(9.5) million from $(16.6) million in the previous year.

The company’s net operating income (NOI) for Q3 2024 was approximately $25.9 million, reflecting a 13.1% increase from $22.9 million in Q3 2023. For the nine months, NOI rose by 15.8% to $78.6 million from $67.8 million. This increase was attributed to higher average occupancy rates and increased rates charged to residents, although it was partially offset by rising operating expenses.

CNL Healthcare Properties continues to manage a diversified portfolio of 70 properties, including 69 seniors housing communities across 26 states. The company has been actively pursuing strategic alternatives since 2017, including the sale of properties, which was completed in 2022. The current market conditions remain challenging due to high interest rates and elevated labor costs, but the company anticipates continued increases in occupancy and resident rates, which are expected to enhance revenue streams.

As of September 30, 2024, the company reported approximately $112.5 million in liquidity, consisting of $50.5 million in cash and $62.0 million in undrawn availability under its revolving credit facility. The company’s debt composition includes 3.5% fixed-rate debt and 65.3% variable-rate debt with current interest rate protection. The management is evaluating the need for additional interest rate protection on its unhedged variable-rate debt.