NorthStar Healthcare Income, Inc. reported significant financial improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company achieved a net income of $124.3 million for Q3 2024, a substantial recovery from a net loss of $11.4 million in Q3 2023. For the nine-month period, net income reached $106.0 million, reversing a loss of $84.4 million in the prior year. This turnaround was largely driven by a gain of $128.6 million from the sale of the Trilogy Investment, which provided net cash proceeds of $254.0 million.

Total revenues for the three months ended September 30, 2024, were $52.6 million, a slight decrease of 1.4% from $53.4 million in Q3 2023. However, resident fee income increased by 5.6% to $12.6 million, and rental income rose by 10.0% to $37.6 million, reflecting improved occupancy and rates at operating investments. For the nine months, total revenues decreased by 1.8% to $151.6 million, with resident fee income increasing by 4.9% to $37.4 million.

Operating expenses also saw a decline, with total expenses for Q3 2024 at $57.8 million, down 10.0% from $64.3 million in Q3 2023. For the nine-month period, total expenses decreased by 22.3% to $177.0 million. Property operating expenses for Q3 2024 were $32.9 million, a decrease of 10.8% from the previous year.

The company’s total assets increased to $1.15 billion as of September 30, 2024, up from $1.06 billion at the end of 2023. Cash and cash equivalents surged to $333.3 million, compared to $85.0 million at the end of 2023. Total liabilities decreased to $914.2 million, down from $927.7 million, while stockholders’ equity rose to $239.4 million from $132.9 million.

Strategically, NorthStar Healthcare has focused on enhancing its portfolio of senior housing properties, which includes independent living, assisted living, and memory care facilities. The company has also internalized its management function, which was completed in October 2022. The recent sale of the Trilogy Investment and an agreement to sell a property in the Rochester portfolio for $31.5 million are part of its strategy to maximize shareholder value.

The company continues to navigate challenges in the market, including tighter credit availability and higher interest rates, but recent interest rate cuts have raised optimism for improved transaction activity in the seniors housing sector.