Core Insights - American Healthcare REIT, Inc. (NYSE:AHR) is recognized as one of the 14 best up-and-coming dividend stocks to buy [1] - Morgan Stanley has increased its price target for AHR to $55 from $52, maintaining an Overweight rating, indicating growing confidence in the company's performance in the senior housing sector [2] - For Q3 2025, AHR reported a GAAP net income of $55.9 million, or $0.33 per diluted share, with same-store NOI increasing by 16.4% [3] - The company has been active in acquisitions, closing approximately $210.8 million in deals during the quarter and over $575 million year-to-date [3] - AHR has partnered with WellQuest Living and has a development pipeline projected to cost around $177 million [4] - The company raised its full-year 2025 normalized FFO guidance to a range of $1.69 to $1.72 per diluted share, up from a previous range of $1.64 to $1.68, reflecting better-than-expected organic growth [4] - AHR focuses on healthcare real estate, particularly in senior housing, skilled nursing facilities, and outpatient medical properties across the US, UK, and Isle of Man [5]

Core Viewpoint - American Healthcare REIT (AHR) is currently outperforming its peers in the Finance sector, with a year-to-date return of 78.7% compared to the sector average of 15% [4]. Group 1: Company Performance - AHR is part of the Finance group, which consists of 863 companies and holds the 1 position in the Zacks Sector Rank [2]. - AHR has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - The Zacks Consensus Estimate for AHR's full-year earnings has increased by 1.8% over the past quarter, reflecting improved analyst sentiment [3]. Group 2: Comparative Analysis - AHR's year-to-date performance of 78.7% significantly exceeds the average return of 15% for the Finance sector [4]. - Another outperforming stock in the Finance sector is Axis Capital (AXS), which has returned 15.4% year-to-date [4]. - AHR belongs to the REIT and Equity Trust - Other industry, which ranks 95 among 97 companies, with an average gain of 6.7% this year, further highlighting AHR's strong performance [5].

Core Viewpoint - American Healthcare REIT, Inc. announced a public offering of 8,100,000 shares of common stock, expecting gross proceeds of approximately $388.8 million, with the offering set to close on November 24, 2025 [1][2]. Group 1: Offering Details - The offering is underwritten by RBC Capital Markets, which has a 30-day option to purchase an additional 1,215,000 shares [2]. - If the underwriter's option is fully exercised, the total shares offered could increase to 9,315,000 [3][4]. - The company will not receive proceeds from shares sold by the forward purchaser, but expects to contribute net proceeds to its operating partnership for general corporate purposes [5]. Group 2: Forward Sale Agreement - The forward purchaser is expected to borrow and sell the shares to the underwriter, with conditions that may exempt them from borrowing if certain thresholds are not met [3]. - The company intends to physically settle the forward sale agreement within approximately 18 months from the date of the prospectus supplement [4]. Group 3: Company Overview - American Healthcare REIT, Inc. is a real estate investment trust focused on acquiring, owning, and operating a diversified portfolio of clinical healthcare real estate, primarily in senior housing, skilled nursing facilities, and outpatient medical buildings across the U.S., U.K., and Isle of Man [8].

Core Viewpoint - American Healthcare REIT, Inc. has initiated an underwritten public offering of 8,100,000 shares of its common stock, with RBC Capital Markets serving as the underwriter [1] Offering Details - The company plans to enter into a forward sale agreement with RBC Capital Markets for the 8,100,000 shares, with an option for the underwriter to purchase an additional 1,215,000 shares [2] - If the underwriter exercises the option, the total shares could increase to 9,315,000, and an additional forward sale agreement will be established [3] Forward Sale Agreement - The forward purchaser is expected to borrow and sell the shares to the underwriter, but is not obligated to do so if certain conditions are not met [3] - The company will issue shares to the underwriter equal to any shares not delivered by the forward purchaser, reducing the number of shares under the forward sale agreement accordingly [4] Proceeds and Use of Funds - The company will not receive proceeds from the forward purchaser's sale of shares, but expects to contribute any net proceeds from the settlement to its operating partnership for general corporate purposes [5] Regulatory Compliance - All shares will be offered under the company's effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be made available [6]

REIT Sector Performance - The REIT sector experienced a decline of -4.03% in October, resulting in a year-to-date return of -4.69% for the average REIT, significantly underperforming the broader market indices such as NASDAQ (+4.7%), Dow Jones (+2.6%), and S&P 500 (+2.3%) [1] - The Vanguard Real Estate ETF (VNQ) had a less severe decline of -2.45% in October but has outperformed year-to-date with a return of +2.98% [1] - The spread between the 2026 FFO multiples of large cap REITs (16x) and small cap REITs (12.7x) widened, indicating that investors are paying 26% more for each dollar of FFO from large cap REITs compared to small cap REITs [1] Property Type Performance - In October, micro cap REITs led the sector with the smallest average decline of -2.81%, followed by mid caps (-3.11%), large caps (-4.45%), and small caps (-5.05%) [3] - 14 out of 18 property types averaged negative returns in October, with only 22.22% of property types achieving a positive total return [5] - Office properties had the worst performance at -12.74%, while Hotels (+3.82%) and Data Centers (+2.53%) were the best performers [5][6] Year-to-Date Performance - Year-to-date through October 2025, Office properties (-16.87%), Single Family Housing (-14.94%), and Land (-14.91%) have underperformed, while Health Care (+19.74%) has significantly outperformed [7] - The average P/FFO for the REIT sector declined from 14.1x to 13.5x during October, with 22.2% of property types experiencing multiple expansion [8] Individual Securities - Sotherly Hotels (SOHO) saw a significant increase of +165.00% on October 27th due to an acquisition announcement, with shareholders set to receive $2.25/share, a 152.7% premium [10] - Office Properties Income Trust (OPI) faced a dramatic decline of -88.76% ahead of its delisting and subsequently filed for Chapter 11 bankruptcy, with a year-to-date return of -96.15% [11] Dividend Yield - High dividend yields are a key attraction for investors in the REIT sector, with many REITs trading below their NAV, leading to attractive yields despite potential risks [15]

Property Ownership and Operations - As of September 30, 2025, American Healthcare REIT owned and/or operated 315 buildings with a total gross leasable area of approximately 20,132,000 square feet, representing an aggregate contract purchase price of $4,778,477,000[178]. - The company owned 133 ISHC properties with a contract purchase price of $2,245,378,000 and a leased percentage of 90.2%[190]. - The company’s triple-net leased properties totaled 19 buildings with a contract purchase price of $368,665,000, maintaining a 100% leased percentage[190]. - As of September 30, 2025, properties were 89.3% leased, with 4.0% of the leased GLA scheduled to expire during the remainder of 2025[186]. - The company’s operating partnership owned 98.8% of the OP units as of September 30, 2025[177]. Financial Performance - Total revenues for the three months ended September 30, 2025, were $572,937,000, an increase of 9.4% compared to $523,814,000 for the same period in 2024[192]. - Net income for the three months ended September 30, 2025, was $56,639,000, compared to a loss of $3,093,000 for the same period in 2024[230]. - Normalized FFO attributable to controlling interest for the three months ended September 30, 2025, was $75,530,000, up from $47,688,000 in 2024, representing a 58.5% increase[230]. - Net operating income (NOI) for the three months ended September 30, 2025, was $105,815,000, compared to $93,536,000 in 2024, reflecting a 13.1% increase[234]. - Total revenues for the nine months ended September 30, 2025, reached $1,656,043,000, a 8.4% increase from $1,527,928,000 for the same period in 2024[192]. Revenue Sources - Resident fees and services revenue for the ISHC segment increased by $40,093,000 (9.8%) for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to increased occupancy and higher billing rates[193]. - SHOP segment resident fees and services revenue rose by $15,131,000 (22.5%) for the three months ended September 30, 2025, compared to the same period in 2024, driven by acquisitions and increased occupancy[194]. - The company anticipates future revenue growth from increased occupancies and resident fees in its RIDEA properties[188]. Expenses and Costs - Total property operating expenses for the ISHC segment increased by $27,172,000 (7.5%) for the three months ended September 30, 2025, compared to the same period in 2024, mainly due to increased occupancy and acquisitions[197]. - General and administrative expenses for the three months ended September 30, 2025, were $14,108,000, an increase of $2,187,000 (18.3%) compared to $11,921,000 for the same period in 2024[199]. - Depreciation and amortization related to consolidated properties for the three months ended September 30, 2025, was $49,115,000, compared to $44,208,000 in 2024, indicating a rise in property-related expenses[230]. Debt and Financing - The total contractual obligations as of September 30, 2025, amounted to $2,286,762,000, including $991,012,000 in fixed-rate mortgage loans payable and $550,000,000 in variable-rate debt[208]. - The company had $1,150,000,000 available under its 2024 Credit Facility as of September 30, 2025, with $550,000,000 borrowed and $600,000,000 remaining available[210]. - The weighted average effective interest rate on outstanding debt was 4.34% per annum as of September 30, 2025[222]. - Total interest expense decreased to $20,226,000 for the three months ended September 30, 2025, down $19,136,000 (48.6%) from $39,362,000 for the same period in 2024, primarily due to reduced debt balances[200]. Cash Flow - Cash flows from operating activities increased to $239,276,000 for the nine months ended September 30, 2025, compared to $116,578,000 for the same period in 2024, driven by improved occupancy and expense management[213]. - The net cash used in investing activities increased by $288,294,000 for real estate acquisitions and $18,173,000 for developments and capital expenditures for the nine months ended September 30, 2025, compared to the same period in 2024[214]. - The company reported a net cash provided by financing activities of $195,039,000 for the nine months ended September 30, 2025, compared to $5,239,000 for the same period in 2024, primarily due to reduced net payments on lines of credit[215]. Tax and Impairment - The company recognized a change from income tax expense to income tax benefit for the three and nine months ended September 30, 2025, primarily due to the reversal of valuation allowances against net deferred tax assets[205]. - An impairment charge of $3,768,000 was recognized for the three months ended September 30, 2025, related to one OM building[203]. - Impairment of real estate investments for the nine months ended September 30, 2025, totaled $38,133,000, with no impairments recorded in the same period of 2024[230]. Market Conditions - The annual inflation rate in the United States was 3.0% in September 2025, impacting operational costs such as labor, services, energy, and supplies[183]. - The company has implemented higher than average annual rent and care fee increases to offset inflationary pressures on costs[183]. - The increase in operating results was primarily driven by higher resident occupancies and billing rates, despite inflationary pressures on labor and service costs[188]. Distribution and Shareholder Returns - The board authorized a quarterly distribution of $0.25 per share, equating to an annualized distribution rate of $1.00 per share, dependent on various financial factors[216]. - The company is required to distribute a minimum of 90.0% of its REIT taxable income to maintain its REIT status[220].

Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit same-store NOI growth [7] - Normalized funds from operation (NFFO) reached $0.44 per fully diluted share in Q3, reflecting a 22% year-over-year increase [22] - The company increased its full-year 2025 NFFO guidance to a range of $1.69-$1.72 per fully diluted share, implying growth in excess of 20% year-over-year at the midpoint [23] - Net debt to EBITDA improved to 3.5x, representing a 0.2-time improvement from the previous quarter and a 1.6-time improvement from Q3 2024 [25] Business Line Data and Key Metrics Changes - Trilogy's same-store NOI grew 21.7% year-over-year, with occupancy averaging 90.2% in Q3, up more than 270 basis points from last year [12] - Shop segment same-store NOI increased 25.3%, with revPOR up 5.6% year-over-year and NOI margins expanding nearly 300 basis points to 21.5% [14] - Integrated senior health campuses' same-store NOI growth guidance was increased to a range of 17%-20% [23] Market Data and Key Metrics Changes - Medicare Advantage accounted for 7.2% of total resident days at Trilogy during Q3, up from 5.8% a year ago, indicating a shift towards higher reimbursement sources [13] - Construction starts across senior housing remain near historic lows, while demographic growth in the 80+ cohort accelerates, supporting a multi-year runway for further occupancy gains [15] Company Strategy and Development Direction - The company is focused on building durable long-term growth through operating alignment with best-in-class regional operators and disciplined capital allocation [10] - The company has closed over $575 million in acquisitions year-to-date, with a pipeline of awarded deals standing at well over $450 million [9][20] - The inaugural corporate responsibility report was published, reflecting the company's commitment to governance, social, and sustainability priorities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment for long-term care, citing strong demand tailwinds and positive occupancy trends [8] - The company expects to maintain occupancy gains achieved through the busy spring and summer selling season, despite entering a historically slower winter season [12] - Management anticipates continued pricing power, expecting to price at a rate higher than inflation [31] Other Important Information - The company executed $13 million of non-core dispositions, concentrating capital within its operating portfolio [19] - The company is leveraging Trilogy's centralized revenue management system across other operating partners to optimize revenue [16] Q&A Session Summary Question: What is the maximum occupancy upside from 90%? - Management indicated that the maximum upside from 90% to 100% is 10%, with expectations for metrics to continue moving in their favor due to supply-demand fundamentals [29] Question: How competitive is the current market for acquisitions? - Management noted that while there are more assets coming to market, the competition is not overly intense, with many deals being brought through operating partners [32][80] Question: Can you discuss the acquisition strategy regarding independent living versus assisted living? - Management stated that the strategy encompasses all types, focusing on quality buildings that provide good earnings growth, with a preference for newer products [87]

Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit same-store NOI growth [7] - Normalized funds from operation (NFFO) reached $0.44 per fully diluted share in Q3, reflecting a 22% year-over-year increase [22] - The company increased its full-year 2025 NFFO guidance to a range of $1.69-$1.72 per fully diluted share, implying growth in excess of 20% year-over-year at the midpoint [23] - Net debt to EBITDA improved to 3.5 times, representing a 0.2-time improvement from the previous quarter and a 1.6-time improvement from Q3 2024 [25] Business Line Data and Key Metrics Changes - Within the Trilogy segment, same-store NOI grew 21.7% year-over-year, with occupancy averaging 90.2% in Q3, up more than 270 basis points from last year [12] - The shop segment reported same-store NOI growth of 25.3%, with revPOR up 5.6% year-over-year and NOI margins expanding nearly 300 basis points to 21.5% [14] - The integrated senior health campuses segment increased its same-store NOI growth guidance to a range of 17%-20% [23] Market Data and Key Metrics Changes - Medicare Advantage accounted for 7.2% of total resident days at Trilogy during Q3, up from 5.8% a year ago, indicating a shift towards higher reimbursement sources [13] - Construction starts across senior housing remain near historic lows, while demographic growth in the 80-plus cohort accelerates, supporting a multi-year runway for further occupancy gains [15] Company Strategy and Development Direction - The company is focused on building durable long-term growth through operating alignment with best-in-class regional operators and disciplined capital allocation [10] - The company has closed over $575 million in acquisitions year-to-date, with a pipeline of awarded deals standing at well over $450 million [9][20] - The inaugural corporate responsibility report was published, reflecting the company's commitment to governance, social, and sustainability priorities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment for long-term care, citing strong demand tailwinds and the quality of their portfolio [8] - The company expects to maintain occupancy gains achieved through the busy spring and summer selling season, despite entering a historically slower winter season [12] - Management anticipates continued pricing power, expecting to price at a rate higher than inflation [31] Other Important Information - The company executed $13 million of non-core dispositions, concentrating capital within its operating portfolio [19] - The development pipeline consists of projects with a total expected cost of roughly $177 million, with approximately $52 million spent to date [20] Q&A Session Summary Question: What is the maximum occupancy upside from 90%? - Management indicated that the maximum upside from 90% to 100% is 10%, but future occupancy trends will depend on supply-demand fundamentals [29] Question: Can you discuss the competitive environment for acquisitions? - Management noted that while there are more assets coming to market, the competitive landscape remains manageable, with many deals being off-market [33][34] Question: What is the strategy regarding the MOB portfolio? - The company has been divesting MOBs, focusing on growing the RIDEA side of the business, and expects to continue redirecting cash into senior housing [70] Question: How is Trilogy leveraging its revenue management system? - Trilogy is utilizing its revenue management system to optimize operations and is in pilot phases with other operators to extend this tool [53] Question: What is the acquisition strategy moving forward? - The company is targeting a mix of independent living, assisted living, and memory care, focusing on quality buildings that will provide good earnings growth [90]

Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit same-store NOI growth [6][9] - Normalized funds from operation (NFFO) reached $0.44 per fully diluted share, reflecting a 22% year-over-year increase [22] - The company increased its full-year 2025 NFFO guidance to a range of $1.69-$1.72 per fully diluted share, implying growth in excess of 20% year-over-year at the midpoint [23][24] - Net debt to EBITDA improved to 3.5 times, representing a 0.2-time improvement from the previous quarter and a 1.6-time improvement from Q3 2024 [25] Business Line Data and Key Metrics Changes - Trilogy's same-store NOI grew 21.7% year-over-year, with occupancy averaging 90.2% in Q3, up more than 270 basis points from last year [11][12] - The shop segment reported same-store NOI growth of 25.3%, with revPOR up 5.6% year-over-year and NOI margins expanding nearly 300 basis points to 21.5% [13] - Medicare Advantage accounted for 7.2% of total resident days at Trilogy during Q3, an increase from 5.8% a year ago [12] Market Data and Key Metrics Changes - The company closed on over $575 million of acquisitions year-to-date, all within its REIT DEA segments [7][17] - The awarded deal pipeline now stands at over $450 million, expected to close in Q4 2025 and early 2026 [9][19] - Construction starts across senior housing remain near historic lows, while demographic growth in the 80-plus cohort accelerates [14] Company Strategy and Development Direction - The company is focused on building durable long-term growth through operating alignment with best-in-class regional operators and disciplined capital allocation [9][25] - The inaugural corporate responsibility report was published, reflecting the company's governance, social, and sustainability priorities [10] - The company is leveraging Trilogy's centralized revenue management system across other operating partners to optimize revenue [15][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment for long-term care, citing strong demand tailwinds [6][7] - The company expects to maintain occupancy gains achieved through the busier spring and summer selling season, despite entering a historically slower winter season [11][14] - Management anticipates continued pricing power, expecting to price at a rate higher than inflation [30] Other Important Information - The company executed $13 million of non-core dispositions during the quarter, concentrating capital within its operating portfolio [18] - The in-process development pipeline consists of projects with a total expected cost of roughly $177 million, with approximately $52 million spent to date [19] Q&A Session Summary Question: What is the maximum occupancy upside from 90%? - Management indicated that the maximum upside from 90% to 100% is 10%, but future occupancy trends are uncertain due to supply-demand fundamentals [28][29] Question: How competitive is the current market for acquisitions? - Management noted that while there are more assets coming to market, competition is mixed, with both REITs and non-REIT competitors involved [32][33] Question: Can you discuss the acquisition strategy regarding independent living versus assisted living? - The company targets a mix of independent living, assisted living, and memory care, focusing on quality buildings that provide good earnings growth [80][81]

Group 1: Market Overview - As of November 7, 2025, two stocks in the real estate sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] Group 2: Company Performance - American Healthcare REIT Inc (NYSE:AHR) reported better-than-expected quarterly results, with organic growth exceeding historical levels and Same-Store SHOP occupancy above 90% [6] - AHR's stock gained approximately 17% over the past month, reaching a 52-week high of $48.21, with an RSI value of 81.5 [6] - LandBridge Co LLC (NYSE:LB) received an Overweight rating from Wells Fargo, with a revised price target lowered from $93 to $91, and its stock rose about 12% over the past five days, achieving a 52-week high of $87.60 [6]