National Healthcare Properties (NHP) is making "solid" progress on its stated corporate strategy to exit the medical office building, or MOB, business and increase the senior housing operating portfolio, or SHOP, mix, RBC Capital Markets said in a note Thursday.

Noting that the REIT is selling its MOB portfolio quicker than previously expected, RBC said that the move should de-lever the company's balance sheet and cause incremental earnings dilution in the near-term.

The investment firm now expects funds from operations of $0.80 per share in 2026, down $0.02 from prior estimate. For 2027 and 2028, the firm also lowered its FFO per share estimates by $0.07 and $0.05 to $0.84 and $1.05, respectively.

Looking forward, the company is expected to be more aggressive in pursuing accretive acquisitions, which should help drive incremental external growth offsetting the near-term earnings dilution, according to the note.

RBC Capital Markets maintained its sector perform rating and $17 price target.

Price: 15.90, Change: -0.15, Percent Change: -0.90