Core Viewpoint - American Healthcare REIT, Inc. has declared a quarterly distribution of $0.25 per share for the first quarter of 2026, payable on or about April 17, 2026, to shareholders of record as of March 31, 2026 [1]. Group 1: Company Overview - American Healthcare REIT, Inc. is a real estate investment trust that focuses on acquiring, owning, and operating a diversified portfolio of clinical healthcare real estate, primarily targeting senior housing communities, skilled nursing facilities, and outpatient medical buildings in the United States, the United Kingdom, and the Isle of Man [2]. Group 2: Financial Announcements - The company announced its fourth quarter and full year 2025 results and provided guidance for the full year 2026 [3].

Company Overview - American Healthcare REIT (AHR) has seen a significant increase in its stock price, rising 79.6% over the past year and 10.3% year-to-date, with a current dividend yield of 1.92% [1] - AHR went public in February 2024 at $12 per share, with a market capitalization of approximately $1.5 billion and total assets valued at $4.6 billion [1] Market Position - The demand for senior housing is increasing as the baby boomer population ages, while the supply of such housing remains stagnant [1] - AHR's RIDEA structure allows it to participate directly in the operating profits of its properties, which is a higher-risk, higher-reward model compared to traditional REITs [1] Industry Trends - The healthcare sector is experiencing stable growth, and REITs are benefiting from a favorable interest rate environment [1] - Staffing shortages in nursing homes and hospitals are a growing concern, which could further drive demand for AHR's services [1] Future Outlook - AHR is expected to have a strong performance in 2026 as it pays down debt and builds cash reserves, which can be returned to shareholders in the form of dividends [1] - The requirement for REITs to distribute over 90% of their profits to shareholders positions AHR for potential strong yields alongside capital gains [1]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on REITs [1] - He has launched his own equities research firm, Albert Anthony & Company, which operates remotely [1] - The author has a background in political science and certifications in Microsoft Fundamentals, CompTIA Project+, and Risk Management [1] Company Overview - Albert Anthony & Company is a Texas-registered boutique equities research firm managed entirely by the author [1] - The firm provides general market commentary and research based on publicly available data [1] Industry Engagement - The author has participated in numerous business and innovation conferences, trade shows, and panel discussions [1] - He is actively growing his YouTube channel focused on REITs, reflecting his investment interests [1]

Core Insights - Bank of America's US1 list includes top stock picks that provide significant passive income through dividends, appealing to investors seeking reliable income streams, especially those nearing retirement [1][2] Group 1: Bank of America US1 List Overview - The US1 list is curated from Buy-rated, US-listed stocks, aiming for superior long-term investment performance [1] - The list features five stocks with substantial upside potential and reliable dividends, appealing to investors amid a sustained market rally [1] Group 2: Featured Stocks - **America Healthcare REIT (AHR)**: Offers a 1.89% dividend, focusing on clinical healthcare real estate, with a price target of $60 set by Bank of America [1] - **Cigna Group (CI)**: Provides tailored health insurance and employee benefits, yielding 2.08% with a price target of $378 [1] - **Merck (MRK)**: A global healthcare leader with a 2.67% dividend, involved in pharmaceuticals and animal health, with a price target of $132 [2] - **Public Service Enterprise Group (PEG)**: A utility stock yielding 2.98%, operating in New Jersey with a price target of $84 [2] - **Wells Fargo (WFC)**: A financial services company with a 2.06% dividend yield, serving over 70 million customers globally, with a price target of $107 [2]

Company Overview - American Healthcare REIT operates in a favorable segment of the real estate market, specifically in senior housing and long-term care, where supply and demand fundamentals are strong [2] - The company has experienced significant organic earnings growth, which has positively impacted its cost of capital and enabled external growth opportunities [2] Financial Performance - The midpoint of the company's recently released guidance indicates nearly 18% growth in NFFO (Net Funds From Operations) per share, highlighting robust financial performance [2]

Summary of American Healthcare REIT (NYSE:AHR) Conference Call Company Overview - **Company**: American Healthcare REIT (AHR) - **Industry**: Senior housing and long-term care real estate investment trust (REIT) Key Points and Arguments Market Position and Growth - AHR operates in a favorable segment of real estate focused on senior housing and long-term care, with strong supply and demand fundamentals [3][6] - The company projects nearly 18% growth in NFFO (Normalized Funds From Operations) per share, indicating robust organic earnings growth [3][4] - AHR maintains a safe balance sheet with a net debt to EBITDA ratio of 3.4 times, allowing for continued growth [5] Demand Drivers - The aging population is a significant driver, with 10,000 people turning 80 daily, increasing the demand for assisted living and skilled nursing services [6][7] - Less than 1% of the total stock in the sector is currently under construction, suggesting limited new supply and sustained growth potential [7] Trilogy Segment - Trilogy, which constitutes 60% of AHR's portfolio, is a unique integrated campus model combining skilled nursing, assisted living, and independent living, providing a continuum of care [15][22] - Trilogy has a competitive advantage due to its high-quality operations, evidenced by a four-star CMS rating, which attracts partnerships with Medicare Advantage plans [10][11][22] Revenue Growth Strategies - AHR is focused on optimizing the mix of payment sources, shifting towards higher reimbursement sources like Medicare and Medicare Advantage, which has led to over 8.5% growth in that segment [12][13] - The company emphasizes the importance of selecting high-quality operators and has a rigorous process for underwriting new operators, preferring regional operators for their market expertise [30][31] Operational Efficiency - AHR aims to improve operating margins by reducing reliance on agency labor and enhancing employee satisfaction, which is linked to resident care quality [46][51] - The company is exploring AI and technology to improve labor efficiencies and predictive analytics for better care management [49][54] Market Outlook - AHR anticipates a potential shortfall of 576,000 senior housing units by 2030, with a projected development cost of $275 billion, indicating a significant opportunity for growth [35] - The company expects construction to pick up around 2027-2028, as current conditions do not favor new developments [62][63] Regulatory Environment - The current regulatory landscape appears stable, with no immediate concerns regarding funding cuts for skilled nursing, which could threaten the industry [60][61] Additional Important Insights - AHR's focus on assisted living over independent living is strategic, as assisted living is more needs-based and less affected by economic downturns [40][41] - The average length of stay in assisted living is about two years, which supports occupancy rates and revenue generation [56] - AHR's management contract with Trilogy is designed to align incentives closely with performance, enhancing operational efficiency and profitability [24][25] This summary encapsulates the key insights from the conference call, highlighting the company's strategic positioning, growth potential, and operational focus within the senior housing sector.

I N V E S T O R P R E S E N T A T I O N M A R C H 2 0 2 6 EBITDA and Adjusted EBITDA Management uses EBITDA and Adjusted EBITDA to facilitate internal and external comparisons to our historical operating results and in making operating decisions. EBITDA and Adjusted EBITDA are widely used by investors, lenders, credit and equity analysts in the valuation, comparison, and investment recommendations of companies. Additionally, EBITDA and Adjusted EBITDA are utilized by our Board of Directors to evaluate manag ...

Core Insights - American Healthcare REIT (AHR) reported strong financial performance with double-digit same-store NOI growth for the second consecutive year, achieving 11.8% in Q4 and 14.2% for the full year 2025 [3][6][15] - The company is focused on acquisitions and development, investing over $950 million in 2025, primarily in the SHOP segment, and has a dynamic pipeline with more than $230 million in awarded deals [5][12][10] - AHR issued 2026 guidance for NFFO of $1.99 to $2.05 per share and same-store NOI growth of 7% to 11%, indicating continued growth potential [4][17] Financial Performance - AHR's normalized FFO attributable to common stockholders was $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year, reflecting a 22% year-over-year growth [15] - The company improved its debt-to-EBITDA ratio to 3.4x, indicating a stronger balance sheet position [4][17] Operational Highlights - The operating portfolio, including Trilogy and SHOP, now contributes 76.9% of consolidated cash NOI, with Trilogy achieving a same-store NOI increase of 14% in Q4 and 18.4% for 2025 [6][7] - The SHOP segment showed the strongest growth, with same-store NOI up 24.6% in Q4 and 25.2% for 2025, supported by disciplined rate management and rising occupancy [8][10] Leadership and Strategy - Interim CEO Jeff Hanson emphasized continuity in strategy during CEO Danny Prosky's medical leave, with no changes to investment and capital allocation approaches [2][4] - The company continues to focus on higher-acuity assisted living and memory care assets, with a "know the operator first" approach to acquisitions [10][13] Market Conditions - Industry data indicates that new construction and supply growth remain historically low, with deliveries below 1% of existing inventory, while demand is driven by the aging baby boomer population [11][13] - AHR's management noted that many SHOP assets acquired in 2025 will not be included in the same-store pool for 2026, which may affect same-store metrics despite contributing to overall results [18]

Financial Performance - Total revenues for the year ended December 31, 2025, increased to $2,260,123,000, up from $2,070,668,000 in 2024, representing a growth of 9.1%[319] - Resident fees and services revenue for the ISHC segment increased by $144,123,000 in 2025 compared to 2024, driven by higher occupancy and billing rates[320] - The SHOP segment saw an increase of $66,585,000 in resident fees and services revenue for the year ended December 31, 2025, attributed to multiple acquisitions and increased occupancy[321] - For the year ended December 31, 2025, the net income was $70,818,000, compared to a net loss of $35,600,000 in 2024[358] - Normalized FFO attributable to controlling interest for 2025 was $286,489,000, an increase from $184,922,000 in 2024[358] - Net operating income (NOI) for 2025 was $415,160,000, up from $363,536,000 in 2024, reflecting a growth of approximately 14.2%[362] Expenses and Costs - Property operating expenses for the ISHC segment rose to $1,526,933,000 in 2025, representing 86.6% of revenue, compared to 88.3% in 2024[324] - General and administrative expenses increased to $58,735,000 in 2025 from $47,559,000 in 2024, primarily due to higher stock compensation and salaries[326] - Total interest expense decreased to $86,809,000 in 2025 from $126,700,000 in 2024, mainly due to a reduction in debt balances[328] - Interest expense decreased to $85,775,000 in 2025 from $127,730,000 in 2024, indicating improved financial management[362] - Transaction, transition, and restructuring costs amounted to $5,103,000 in 2025, down from $7,141,000 in 2024[358] Impairments and Losses - The company recognized a net loss on dispositions of $2,965,000 for the year ended December 31, 2025, compared to a net gain of $5,213,000 in 2024[329] - Impairment charges for real estate investments totaled $49,935,000 in 2025, an increase from $45,755,000 in 2024[330] - The company experienced an impairment of real estate investments of $49,935,000 in 2025, compared to $45,755,000 in 2024[358] - The loss on dispositions of real estate investments was $2,965,000 in 2025, a recovery from a gain of $5,213,000 in 2024[358] Cash Flow and Financing - Cash flows from operating activities increased to $294,441,000 in 2025, up from $176,087,000 in 2024, primarily due to improved resident occupancy and increased billing rates[341] - Net cash used in investing activities increased by $824,073,000 in 2025, primarily due to cash paid for acquiring senior housing properties[342] - The company transitioned from net cash used in financing activities in 2024 to net cash provided by financing activities of $817,241,000 in 2025[343] - Distributions for the year ended December 31, 2025, totaled $161,893,000, with 68.8% classified as return of capital[344] - The weighted average effective interest rate on outstanding debt was 4.34% per annum as of December 31, 2025[349] Company Structure and Management - The company operated through four reportable segments as of December 31, 2025: ISHC, OM, SHOP, and triple-net leased properties[316] - The company appointed Jeffrey T. Hanson as Interim Chief Executive Officer effective February 3, 2026, following the leave of absence of the previous CEO[363] Assets and Obligations - As of December 31, 2025, the company’s properties were 91.3% leased, with 6.6% of the leased GLA scheduled to expire in 2026[313] - As of December 31, 2025, the company had $12,085,000 of restricted cash for capital expenditures and estimated capital and tenant improvement expenditures of approximately $91,816,000 for 2026[335] - The total contractual obligations as of December 31, 2025, amounted to $2,253,590,000, with fixed-rate debt principal payments of $985,565,000[336] - The company had an aggregate borrowing capacity of $1,200,000,000 under its credit facilities, with $550,000,000 outstanding and $650,000,000 available as of December 31, 2025[339] Equity and Valuation - For the year ended December 31, 2025, the company recognized a gain of $14,580,000 on re-measurement of previously held equity interests, compared to no gain in 2024[331] - The company reported a $23,001,000 reversal of valuation allowances against net deferred tax assets due to increased taxable income from its taxable REIT subsidiaries[332] - The non-cash impact of changes to equity instruments was $14,621,000 in 2025, compared to $9,367,000 in 2024, indicating increased volatility in equity holdings[358]

Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year, representing a 22% year-over-year growth in FFO per share compared to 2024 [22][23] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][22] - The debt to EBITDA improved by nearly a full turn in 2025, indicating a stronger financial position [22][25] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing by 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased by 24.6% in Q4 and 25.2% for the full year compared to the previous year [13] - Occupancy rates for Trilogy reached 90.6% in Q4, up 275 basis points year-over-year, while SHOP also surpassed 90% occupancy [12][13] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16][17] - The investment pipeline remains robust with over $230 million in awarded deals, indicating strong market activity [19][60] Company Strategy and Development Direction - The company maintains a disciplined investment strategy focused on high-quality care and superior health outcomes, with no changes in capital allocation or risk management frameworks [8][21] - The emphasis on high-quality care is expected to drive demand as the aging population grows, positioning the company well for future growth [12][18] - The company is actively pursuing development projects primarily focused on Trilogy expansions, aiming for attractive yields with limited market risk [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][13] - The leadership transition is described as seamless, with no changes in strategy, ensuring continuity in operations and execution [6][8] - The company anticipates that the demand for high-quality care will continue to grow, providing a favorable environment for its operations [12][18] Other Important Information - The company has been actively involved in off-market acquisitions, leveraging strong relationships with operators to secure favorable deals [82] - The revenue management system is being piloted with various operators, aiming to enhance pricing strategies and improve overall performance [50][51] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - The company continues to focus on higher acuity SHOP assets, which provide long-term stability [29][30] Question: Can you provide guidance on SHOP's performance? - The company expects a significant increase in pricing power as occupancy rates rise, with a conviction in future growth [35][36] Question: What are the expectations for Trilogy's occupancy and quality mix? - Trilogy's model allows for various drivers of NOI growth, with a focus on shifting to higher payor sources [39][40] Question: How is the revenue management system being rolled out? - The revenue management system is being tested with select operators, aiming to enhance their performance [50][51] Question: What is the status of the investment pipeline? - The pipeline is dynamic, with a high level of deal activity and a focus on off-market opportunities [60][61]