[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited financial statements for Q2 2025 show total assets at **$4.51 billion**, equity at **$2.46 billion**, and net income attributable to controlling interest at **$9.9 million** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased slightly to **$4.51 billion** from **$4.49 billion** at year-end 2024, primarily due to a rise in cash and cash equivalents, while total liabilities decreased to **$2.04 billion**, leading to total equity growth to **$2.46 billion** | Financial Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Real estate investments, net | $3,346,121 | $3,366,648 | | Cash and cash equivalents | $133,494 | $76,702 | | **Total assets** | **$4,506,650** | **$4,488,057** | | **Liabilities** | | | | Mortgage loans payable, net | $983,510 | $982,071 | | Lines of credit and term loan, net | $549,632 | $688,534 | | **Total liabilities** | **$2,044,006** | **$2,183,895** | | **Equity** | | | | Total stockholders' equity | $2,420,997 | $2,261,231 | | **Total equity** | **$2,462,644** | **$2,303,942** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) For Q2 2025, total revenues increased to **$542.5 million**, driving net income attributable to controlling interest to **$9.9 million**, and for the six-month period, the company reported net income of **$3.1 million** | Metric (in thousands, except EPS) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $542,503 | $504,581 | $1,083,106 | $1,004,114 | | Net income (loss) | $10,079 | $2,926 | $3,239 | $(78) | | Net income (loss) attributable to controlling interest | $9,908 | $1,979 | $3,104 | $(1,913) | | Diluted EPS | $0.06 | $0.01 | $0.02 | $(0.02) | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity grew from **$2.30 billion** at year-end 2024 to **$2.46 billion** by June 30, 2025, primarily due to **$236.3 million** from common stock issuance and **$3.1 million** in net income, partially offset by **$81.3 million** in distributions - For the six months ended June 30, 2025, the company issued 7,028,690 shares of common stock in an offering, raising gross proceeds of **$236.3 million**[18](index=18&type=chunk) - Distributions declared for the first six months of 2025 amounted to **$81.3 million**, or **$0.50 per share**[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$132.1 million** for H1 2025, while net cash used in investing activities rose to **$94.9 million**, and net cash from financing activities decreased to **$9.3 million** | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $132,091 | $53,448 | | Net cash used in investing activities | $(94,862) | $(65,534) | | Net cash provided by financing activities | $9,348 | $18,935 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, real estate transactions, debt structure, and equity offerings, highlighting the ISHC segment as a key contributor - The company operates through four reportable business segments: Integrated Senior Health Campuses (ISHC), Outpatient Medical (OM), Senior Housing Operating Properties (SHOP), and triple-net leased properties[32](index=32&type=chunk) - In the first six months of 2025, the company acquired properties for an aggregate price of **$81.1 million** and disposed of six properties for **$43.4 million**, recognizing a net loss of **$3.0 million**[60](index=60&type=chunk)[61](index=61&type=chunk) - An impairment charge of **$34.4 million** was recognized for six OM buildings in the first half of 2025[62](index=62&type=chunk) - The company terminated its **$400 million** Trilogy Credit Facility on March 3, 2025[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved H1 2025 results to increased occupancy and billing rates, maintaining strong liquidity, and reporting significant year-over-year growth in FFO and Normalized FFO [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Revenue growth in Q2 and H1 2025 was driven by ISHC and SHOP segments due to higher occupancy and acquisitions, partially offset by property dispositions and increased operating expenses, while interest expense decreased - ISHC segment revenue increased by **$30.1 million** in Q2 2025 and **$60.3 million** in H1 2025 year-over-year, driven by higher resident occupancy and billing rates[193](index=193&type=chunk) - SHOP segment revenue increased by **$13.2 million** in Q2 2025 and **$28.0 million** in H1 2025, boosted by acquisitions and organic growth[194](index=194&type=chunk) - Total interest expense decreased in H1 2025 compared to H1 2024, primarily due to debt paydowns using net proceeds from equity offerings[201](index=201&type=chunk) - An aggregate impairment charge of **$34.4 million** was recognized in H1 2025 for six OM buildings[204](index=204&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through cash from operations, equity issuances, and a **$600 million** available credit facility, sufficient to meet future cash requirements - As of June 30, 2025, the company had **$600 million** available for borrowing under its 2024 Credit Facility[211](index=211&type=chunk) - The board has authorized a quarterly distribution of **$0.25 per share**[216](index=216&type=chunk) | Contractual Obligations as of June 30, 2025 (in thousands) | Total (in thousands) | | :--- | :--- | | Principal payments — fixed-rate debt | $1,004,016 | | Interest payments — fixed-rate debt | $452,669 | | Principal payments — variable-rate debt | $550,000 | | Interest payments — variable-rate debt | $48,857 | | Operating lease obligations | $227,111 | | Financing and other obligations | $45,927 | | **Total** | **$2,328,580** | [Funds from Operations (FFO) and Normalized Funds from Operations](index=49&type=section&id=Funds%20from%20Operations%20%28FFO%29%20and%20Normalized%20Funds%20from%20Operations) The company reported significant year-over-year growth in Q2 2025, with NAREIT FFO increasing to **$66.8 million** and Normalized FFO rising to **$68.4 million**, driven by higher net income and adjustments | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $10,079 | $2,926 | $3,239 | $(78) | | NAREIT FFO attributable to controlling interest | $66,796 | $41,746 | $122,677 | $73,044 | | Normalized FFO attributable to controlling interest | $68,377 | $43,740 | $128,119 | $74,838 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on long-term debt, managed through interest rate swaps, resulting in a **4.33%** weighted average effective interest rate and no impact from a hypothetical 0.50% rate increase - The primary market risk is interest rate risk associated with long-term debt[234](index=234&type=chunk)[235](index=235&type=chunk) - As of June 30, 2025, the weighted average effective interest rate on outstanding debt, factoring in interest rate swaps, was **4.33%** per annum[240](index=240&type=chunk) - A **0.50%** increase in market interest rates would have no impact on annualized interest expense as of June 30, 2025, because all variable-rate loan balances have interest rate swap arrangements in place[240](index=240&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[243](index=243&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[244](index=244&type=chunk) [PART II — OTHER INFORMATION](index=54&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material litigation that would significantly adversely affect its financial condition or results of operations - The company is not presently subject to any material litigation[91](index=91&type=chunk)[247](index=247&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) New and updated risk factors include challenges from Artificial Intelligence (AI) use, cybersecurity threats, and potential adverse impacts from federal law changes like the 'One Big Beautiful Bill Act' (OBBBA) - A new risk factor has been identified concerning the use of Artificial Intelligence (AI), which presents challenges such as potential inaccuracies, data privacy risks, and increased sophistication of cybersecurity attacks[249](index=249&type=chunk)[250](index=250&type=chunk) - The newly enacted 'One Big Beautiful Bill Act' (OBBBA) increases the REIT asset test limit for taxable REIT subsidiaries (TRSs) from **20%** to **25%** and includes an estimated **$1 trillion** in cuts to Medicaid spending, which could adversely impact financial performance[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In April 2025, the company repurchased **16,708** shares of Common Stock for **$513,000** to satisfy employee tax withholding obligations related to restricted stock awards - In April 2025, the company acquired **16,708** shares of its Common Stock for **$513,000** to satisfy employee tax withholding requirements on vested restricted stock awards[256](index=256&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[257](index=257&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[258](index=258&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the reporting period[259](index=259&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents and required certifications - The report includes a list of filed exhibits, such as the 2025 Manager Equity Plan and certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[260](index=260&type=chunk)[262](index=262&type=chunk)

Financial Data and Key Metrics Changes - The company reported normalized FFO of $0.42 per fully diluted share, representing a 27% year-over-year increase in NFFO per share compared to Q2 2024 [22] - Net debt to EBITDA improved to 3.7 times at the end of the second quarter, down from 4.5 times on March 31 [10][23] - The company raised its full year 2025 NFFO per share guidance to a range of $1.64 to $1.68, up from a previous range of $1.58 to $1.64 [24] Business Line Data and Key Metrics Changes - Total same store NOI growth for the portfolio was 13.9% year-over-year, with Trilogy showing 18.3% growth and SHOP showing 23% growth [8][12][15] - Average daily rates across all payors in Trilogy grew by 7.8% year-over-year, while RevPOR in SHOP accelerated with a growth of 6.6% compared to the same quarter last year [12][15] - The SHOP segment's same store occupancy was above 87.5% at the end of Q2, with significant move-in activity observed [15][70] Market Data and Key Metrics Changes - Medicare Advantage now accounts for 7.2% of resident days, up from 5.8% a year ago, indicating a shift towards higher reimbursement sources [13][56] - The company anticipates continued favorable operating fundamentals due to high demand and low supply growth in the long-term care market [16] Company Strategy and Development Direction - The company emphasizes a commitment to quality resident care and high-quality health outcomes, believing this focus will drive strong financial results [7] - The acquisition strategy remains focused on high-quality long-term care assets under a RIDEA structure, with over $300 million in awarded deals in the pipeline [10][20] - The company aims to optimize its operating platform capabilities and leverage expertise across operators to enhance performance [15] Management's Comments on Operating Environment and Future Outlook - Management believes the company is in the early stages of a multi-year trend of improving operating metrics, with expectations for rising occupancies and margins [7][16] - The company is optimistic about the outpatient medical portfolio, expecting improvements in occupancy and earnings starting in Q4 [75][78] - Management noted that the demand for long-term care will continue to grow due to demographic trends, particularly as baby boomers age [28] Other Important Information - The company has been awarded the Great Place to Work certification, reflecting its commitment to employee satisfaction and quality care [10] - The company closed approximately $255 million in acquisitions year-to-date, with a robust pipeline of over $300 million in investments expected to close by year-end [19][20] Q&A Session Summary Question: What is the peak occupancy expected for the Trilogy and SHOP portfolios? - Management indicated that they believe mid-90s occupancy is achievable, with a focus on maintaining disciplined pricing strategies [31][32] Question: Can you elaborate on the recent acquisitions and pipeline? - The company is focusing on larger, newer, and higher-quality assets, with a significant portion of the pipeline being SHOP assets [35][36] Question: How will the recent ADR growth impact future performance? - The growth is attributed to an improved quality mix and management's focus on higher-paying contracts, particularly in Medicare Advantage [46][50] Question: What is the outlook for the outpatient medical portfolio? - Management expects a slight drop in occupancy in Q3 but anticipates improvements starting in Q4, with a more optimistic outlook than in previous years [75][78] Question: Is there seasonality in Medicare Advantage contract renewals? - There is no significant seasonality, but annual increases based on CMS rates occur every October [81] Question: How does the company select new operators? - The selection process is thorough, focusing on operators that align with the company's growth strategy and have a proven track record [101][104]

Portfolio Overview - The company's total annualized cash NOI is $437892 thousand, with ISHC contributing 613% ($268592 thousand), OM contributing 170% ($74256 thousand), SHOP contributing 136% ($59760 thousand), Triple-Net Leased Properties contributing 70% ($30632 thousand), and Debt Security Investment contributing 11% ($4652 thousand)[10] - The weighted average lease term for Outpatient Medical (OM) properties is 49 years, and for Triple-Net Leased Properties, it is 133 years[10] Same-Store NOI Performance - Total Same-Store NOI increased by 139% from $86835 thousand in Q2 2024 to $98911 thousand in Q2 2025[11] - Total Year-to-Date Same-Store NOI increased by 145% from $168902 thousand on 6/30/2024 to $193387 thousand on 6/30/2025[11] - SHOP Same-Store NOI increased by 230% in Q2 and 266% YTD[11] Earnings Highlights - NAREIT FFO per share - diluted increased by 281% from $032 in Q2 2024 to $041 in Q2 2025[12] - Normalized FFO per share - diluted increased by 273% from $033 in Q2 2024 to $042 in Q2 2025[12] ISHC Performance - ISHC Same-Store NOI increased by 183% in Q2 and 190% YTD[11, 17] - ISHC average occupancy increased from 867% to 889% in Q2 2025 compared to Q2 2024[17] Outpatient Medical Performance - Outpatient Medical Same-Store NOI increased by 14% in Q2 and 17% YTD[11, 22] - Outpatient Medical ending occupancy decreased slightly from 919% to 917% in Q2 2025 compared to Q2 2024[22] Triple-Net Leased Properties - Triple-Net Leased Properties Same-Store NOI increased by 14% in Q2, remaining flat YTD[11, 31] - Triple-Net Leased Properties average operator occupancy increased slightly from 880% to 889% in Q2 2025 compared to Q2 2024[31] 2025 Guidance - The company projects a FY 2025 Total Portfolio Same-Store NOI Growth of 110% - 140%[49]

Group 1 - Apollo Commercial Finance (ARI) has returned 14.9% year-to-date, outperforming the Finance sector average of 8.5% [4] - The Zacks Rank for Apollo Commercial Finance is 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook [3] - The Zacks Consensus Estimate for ARI's full-year earnings has increased by 2.1% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - Apollo Commercial Finance is part of the REIT and Equity Trust industry, which consists of 33 companies and is currently ranked 181 in the Zacks Industry Rank [6] - The average return for the REIT and Equity Trust industry is 0.6% year-to-date, indicating that ARI is performing significantly better [6] - American Healthcare REIT (AHR), another outperforming stock in the Finance sector, has returned 40.3% year-to-date [4]

[American Healthcare REIT Second Quarter 2025 Results](index=1&type=section&id=American%20Healthcare%20REIT%20Second%20Quarter%202025%20Results) [Key Highlights & Financial Performance](index=1&type=section&id=Key%20Highlights%20%26%20Financial%20Performance) The company reported strong Q2 2025 results with robust NOI growth and improved leverage, leading to increased full-year guidance Key Financial Metrics (Q2 2025) | Metric | Value | Period | | :--- | :--- | :--- | | GAAP Net Income (controlling interest) | $9.9 million | Q2 2025 | | GAAP Net Income per Diluted Share | $0.06 | Q2 2025 | | Normalized FFO (NFFO) per Diluted Share | $0.42 | Q2 2025 | | Total Portfolio Same-Store NOI Growth (YoY) | 13.9% | Q2 2025 | - The company's Net Debt-to-Annualized Adjusted EBITDA ratio improved significantly, decreasing from 4.5x as of March 31, 2025, to **3.7x** as of June 30, 2025[5](index=5&type=chunk) - Year-to-date investment activity has been strong, with the company closing on approximately **$255 million** of new investments[5](index=5&type=chunk) - The company raised significant capital through its at-the-market (ATM) equity offering program, issuing over 5.4 million shares for gross proceeds of approximately **$188.6 million** during the quarter[5](index=5&type=chunk) [Detailed Operating Results](index=3&type=section&id=Detailed%20Operating%20Results) Total portfolio Same-Store NOI grew 13.9% in Q2, driven by exceptional performance in the SHOP and ISHC segments Same-Store NOI Growth by Segment | Segment | Same-Store NOI Growth (Q2 2025 vs Q2 2024) | Same-Store NOI Growth (YTD 2025 vs YTD 2024) | | :--- | :--- | :--- | | ISHC | 18.3% | 19.0% | | Outpatient Medical | 1.4% | 1.7% | | SHOP | 23.0% | 26.6% | | Triple-Net Leased Properties | 1.4% | 0.0% | | **Total Portfolio** | **13.9%** | **14.5%** | - Operational performance was supported by proactive expense management, incremental occupancy gains, and **mid-single-digit Revenue per Occupied Room (RevPOR) growth**[7](index=7&type=chunk) - The SHOP segment saw its highest quarterly move-in volume since before the pandemic, pushing spot Same-Store occupancy **above 87.5%** by the end of the quarter[8](index=8&type=chunk) [Investment & Development Activities](index=3&type=section&id=Investment%20%26%20Development%20Activities) The company actively managed its portfolio through acquisitions, dispositions, and joint venture buyouts while advancing its development pipeline - During Q2 2025, the company acquired a SHOP asset for approximately **$65.0 million** and sold four Non-Core Properties for gross proceeds of approximately **$33.5 million**[10](index=10&type=chunk) - Subsequent to quarter end, the company purchased its partners' **51% outstanding interests** in an unconsolidated joint venture of five campuses for total consideration of approximately **$118.4 million**[9](index=9&type=chunk)[12](index=12&type=chunk) - The company has over **$300 million** of awarded deals in its investments pipeline, which it expects to close by the end of the year[13](index=13&type=chunk) - The total in-process development pipeline is expected to cost approximately **$57.8 million**, of which **$23.8 million** has been spent as of June 30, 2025[14](index=14&type=chunk) [Balance Sheet & Capital Markets](index=5&type=section&id=Balance%20Sheet%20%26%20Capital%20Markets) The company maintained a strong balance sheet with $733.5 million in liquidity and reduced leverage to 3.7x through active capital raising Key Balance Sheet Metrics | Metric | Value (as of June 30, 2025) | | :--- | :--- | | Total Consolidated Indebtedness | $1.55 billion | | Total Liquidity | $733.5 million | | Net-Debt-to-Annualized Adjusted EBITDA | 3.7x | - During Q2 2025, the company issued 5,451,577 shares through its ATM program for gross proceeds of approximately **$188.6 million**[16](index=16&type=chunk) - Subsequent to quarter end, the company settled a forward sales agreement by issuing 3,554,525 shares for net cash proceeds of approximately **$126.0 million**[16](index=16&type=chunk) [Full Year 2025 Guidance](index=5&type=section&id=Full%20Year%202025%20Guidance) The company raised its full-year 2025 guidance for NFFO per share and Same-Store NOI growth due to strong performance Updated Full-Year 2025 Guidance | Metric | Current FY 2025 Range | Prior FY 2025 Range | | :--- | :--- | :--- | | NFFO per diluted share | $1.64 to $1.68 | $1.58 to $1.64 | | Net income per diluted share | $0.33 to $0.37 | $0.29 to $0.35 | | Total Portfolio SS NOI Growth | 11.0% to 14.0% | 9.0% to 13.0% | | ISHC SS NOI Growth | 15.0% to 19.0% | 12.0% to 16.0% | | Outpatient Medical SS NOI Growth | 1.0% to 1.5% | (1.0%) to 1.0% | - The increase in guidance is primarily attributed to strong operating results in the ISHC and SHOP segments, as well as recent accretive capital allocation activity[5](index=5&type=chunk)[18](index=18&type=chunk) [Shareholder Distributions](index=7&type=section&id=Shareholder%20Distributions) The Board of Directors declared a second-quarter 2025 cash distribution of $0.25 per share of common stock - A cash distribution of **$0.25 per share** was declared for the quarter ended June 30, 2025, and paid in July 2025 to stockholders of record as of June 30, 2025[21](index=21&type=chunk) [Financial Statements & Reconciliations](index=12&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents detailed unaudited financial statements and reconciliations of GAAP measures to key non-GAAP metrics [Condensed Consolidated Financial Statements](index=12&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The financial statements show total assets of $4.51 billion and a Q2 net income of $9.9 million, a significant year-over-year increase Condensed Consolidated Balance Sheet | Balance Sheet (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $4,506,650 | $4,488,057 | | Total Liabilities | $2,044,006 | $2,183,895 | | Total Equity | $2,462,644 | $2,303,942 | Condensed Consolidated Income Statement | Income Statement (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $542,503 | $504,581 | | Total Expenses | $496,080 | $472,912 | | Net Income (loss) attributable to controlling interest | $9,908 | $1,979 | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) Detailed reconciliations from GAAP Net Income show Q2 2025 Normalized FFO of $68.4 million and Adjusted EBITDA of $93.1 million FFO Reconciliation (Q2 2025) | FFO Reconciliation (in thousands) | Three Months Ended June 30, 2025 | | :--- | :--- | | Net income (loss) | $10,079 | | Adjustments (Depreciation, Impairment, etc.) | +$56,888 | | NAREIT FFO attributable to controlling interest | $66,796 | | Normalizing Adjustments | +$1,581 | | Normalized FFO attributable to controlling interest | $68,377 | EBITDA Reconciliation (Q2 2025) | EBITDA Reconciliation (in thousands) | Three Months Ended June 30, 2025 | | :--- | :--- | | Net income | $10,079 | | Interest, Taxes, Depreciation & Amortization | +$65,751 | | EBITDA | $75,830 | | Other Adjustments | +$17,267 | | Adjusted EBITDA | $93,097 | [Earnings Guidance Reconciliation](index=25&type=section&id=Earnings%20Guidance%20Reconciliation) The guidance reconciles projected full-year 2025 Net Income per share to Normalized FFO per share - The guidance reconciliation bridges the gap between projected GAAP Net Income (**$0.33-$0.37/share**) and Normalized FFO (**$1.64-$1.68/share**) by accounting for items like depreciation and amortization[64](index=64&type=chunk) [Definitions & Disclosures](index=9&type=section&id=Definitions%20%26%20Disclosures) This section provides legal disclaimers and detailed definitions for non-GAAP financial measures used in the report - The report includes a "Forward-Looking Statements" safe harbor provision, cautioning readers that statements regarding future expectations are subject to risks and uncertainties[26](index=26&type=chunk) - The report provides detailed definitions for key non-GAAP financial measures used, including EBITDA, Adjusted EBITDA, NAREIT FFO, NFFO, and NOI[27](index=27&type=chunk)[66](index=66&type=chunk)[70](index=70&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk)

Core Insights - American Healthcare REIT, Inc. reported strong second quarter results for 2025, leading to an increase in full-year guidance for Same-Store NOI growth and NFFO [1][3][12] Financial Performance - The Company achieved Same-Store NOI growth of 13.9% for Q2 2025 compared to Q2 2024, with significant contributions from the ISHC and SHOP segments, which grew by 18.3% and 23.0% respectively [4][5][6] - Reported GAAP net income attributable to controlling interest was $9.9 million, translating to $0.06 per diluted share for Q2 2025 [6][30] - Normalized Funds from Operations (NFFO) for Q2 2025 was reported at $0.42 per diluted share [6][32] Operational Highlights - The Company has seen a broad-based increase in demand across its operating portfolio, with occupancy rates improving significantly, particularly in independent and assisted living units [5][11] - The total portfolio Same-Store NOI growth guidance for the year ending December 31, 2025, has been increased to a range of 11.0% to 14.0% [6][12] Capital Markets Activity - During Q2 2025, the Company issued 5,451,577 shares of common stock through its ATM program, raising approximately $188.6 million [10][11] - The Company has closed on approximately $255 million of new investments year-to-date 2025 [6][10] Balance Sheet and Liquidity - As of June 30, 2025, the Company reported total consolidated indebtedness of $1.55 billion and total liquidity of approximately $733.5 million [9][28] - The Net Debt-to-Annualized Adjusted EBITDA improved to 3.7x from 4.5x as of March 31, 2025 [6][9] Future Outlook - The Company anticipates continued strong performance in the second half of 2025, driven by ongoing occupancy improvements and effective asset management strategies [5][11] - Full-year guidance for NFFO has been increased to a range of $1.64 to $1.68 per diluted share, reflecting improved expectations for NOI growth [6][12]

Group 1 - American Healthcare REIT, Inc. has been certified as a Great Place to Work® for 2025, reflecting positive employee feedback and an independent analysis [1][2] - 91% of employees at American Healthcare REIT reported that it is a great place to work, which is 34 points higher than the average U.S. company [2] - The certification is a recognition of the company's commitment to providing high-quality care and fostering a culture of purpose, development, and growth for employees [3] Group 2 - Great Place To Work® has over 30 years of research on workplace culture and its certification serves as a global benchmark for outstanding employee experience [4] - More than 10,000 companies across 60 countries apply for the Great Place To Work Certification™ each year [4] Group 3 - 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 in senior housing, skilled nursing facilities, and outpatient medical buildings [5]

Group 1 - The article raises the question of whether the current interest in artificial intelligence (AI) constitutes a bubble, especially considering that many people recognize it as such [1] - It suggests a paradox where the identification of a bubble by a large number of people does not necessarily negate its existence [1] - The discussion hints at the potential for revolutionary new technologies to emerge, even amidst skepticism about their sustainability [1]

Core Viewpoint - American Healthcare REIT (AHR) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - Changes in a company's earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to calculate the fair value of stocks, leading to significant price movements based on their buying or selling actions [4]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating [9][10]. American Healthcare REIT Specifics - American Healthcare REIT is projected to earn $1.63 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for American Healthcare REIT has increased by 2.9%, indicating a positive trend in earnings estimates [8].

Group 1 - American Healthcare REIT (NYSE: AHR) operates as an integrated health service provider, with 71% of its net operating income (NOI) derived from directly controlled properties [1] Group 2 - The company distinguishes itself from traditional healthcare REITs by its dual role in both real estate and health services [1]