Group 1 - The population of seniors aged 80 and above in the United States is projected to increase significantly, indicating a growth trend in the senior demographic [1] - The article emphasizes the importance of high-quality dividend growth stocks for generating a safe and growing passive income stream [1] - The focus of the investment strategy is on portfolio income growth rather than total returns, with an ideal holding period described as "lifelong" [1] Group 2 - The author, Austin Rogers, is a REIT specialist with a background in commercial real estate, contributing to the High Yield Landlord investment group [1] - High Yield Landlord is noted as one of the largest real estate investment communities on Seeking Alpha, providing exclusive research and multiple real money portfolios [1]

Summary of American Healthcare REIT (AHR) 2025 Conference Call Company Overview - **Company Name**: American Healthcare REIT (AHR) - **Market Capitalization**: Approximately $6 billion - **Enterprise Value**: Approximately $7 billion - **Portfolio**: About 300 clinical healthcare real estate properties - **Unique Structure**: 70% of the portfolio is managed under RIDEA (Real Estate Investment and Development in Elderly Affairs) rather than leased, allowing AHR to retain bottom line earnings [9][10][12] Industry Dynamics - **Demographic Trends**: The oldest baby boomers will turn 80 next year, leading to a significant increase in demand for senior housing over the next 15 years [11] - **Supply Constraints**: There has been a significant drop in new construction starts for assisted living since 2018, exacerbated by COVID-19, rising construction costs, and increasing interest rates [12] - **NOI Growth**: AHR has experienced double-digit same-store NOI growth over the past two years, with expectations for continued growth due to favorable supply-demand dynamics in the senior housing sector [12][36] Competitive Advantages - **Managed vs. Leased Exposure**: AHR's higher exposure to managed properties (70%) compared to peers (60% or lower) allows for greater earnings retention and growth potential [13][16] - **Operator Relationships**: AHR's primary operator, Trilogy, manages about 60% of AHR's NOI and has a strong track record in integrated senior health campuses [18][20] - **Regional Focus**: AHR emphasizes building relationships with regional operators to enhance performance and accountability [30][32] Financial Performance and Guidance - **2024 Performance**: Strong performance led to optimistic growth expectations for 2025, with guidance indicating Trilogy same-store NOI growth in the low teens (13-14%) and SHOP same-store NOI growth in the low twenties [36][38] - **Earnings Growth**: Revised guidance for 2025 indicates a midpoint of $1.61 per share, up from $1.41, reflecting significant earnings growth and a reduction in leverage from 9x to 4.5x [42][44] - **Acquisition Pipeline**: AHR has a dynamic acquisition pipeline of over $300 million, focusing on managed segments to improve portfolio quality and returns [45][46][52] Risks and Mitigations - **Medicaid and Medicare Concerns**: AHR acknowledges potential risks from changes in Medicaid but believes that Trilogy's higher quality mix (less than 20% of revenue from Medicaid) mitigates these risks [60][64] - **Rate Growth**: Trilogy's ability to optimize resident mix and focus on value-based care positions it well to continue achieving rate growth despite potential regulatory changes [66][68] Key Takeaways - **Strong Demand**: The aging population and limited new supply create a favorable environment for AHR's growth in senior housing [11][12] - **Operational Excellence**: AHR's focus on managed properties and strong operator relationships are key differentiators in the competitive landscape [10][30] - **Positive Financial Outlook**: Continued double-digit growth in NOI and a robust acquisition strategy support a positive financial outlook for AHR [36][38][45]

I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 5 DISCLAIMERS FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation, including statements relating to American Healthcare REIT, Inc.'s (the "Company") expectations regarding its performance, interest expense savings, balance sheet, net income or loss per diluted share, NAREIT FFO per diluted share, NFFO per diluted share, NOI growth, total portfolio Same-Store NOI growth, segment-level Same-Store NOI growth or decline, occupancy, r ...

Company Presentation - American Healthcare REIT, Inc. will present at Nareit's REITweek: 2025 Investor Conference on June 4, 2025, from 11:45 a.m. to 12:15 p.m. Eastern Time [1] - The presentation will feature CEO Danny Prosky, CFO Brian S. Peay, COO Gabe M. Willhite, and VP of Investor Relations and Finance Alan Peterson [1] - A live webcast of the presentation will be available, with a replay accessible for up to 30 days post-conference [1] Company Overview - American Healthcare REIT, Inc. is a real estate investment trust (REIT) that focuses on acquiring, owning, and operating a diversified portfolio of clinical healthcare real estate [2] - The company primarily targets senior housing communities, skilled nursing facilities, and outpatient medical buildings across the United States, the United Kingdom, and the Isle of Man [2]

Real Estate Portfolio - As of March 31, 2025, the company owned and/or operated 312 buildings with a total gross leasable area of approximately 19,031,000 square feet, representing an aggregate contract purchase price of $4,523,782,000[165]. - The integrated senior health campuses segment had a contract purchase price of $2,025,365,000 with an occupancy rate of 88.4% as of March 31, 2025[177]. - The outpatient medical (OM) segment reported a contract purchase price of $1,205,145,000 with an occupancy rate of 87.4%[177]. - As of March 31, 2025, the company’s SHOP and integrated senior health campuses were 87.6% leased, with most leases being for a term of one year or less[174]. - As of March 31, 2025, properties were 89.9% leased, with 10.0% of the leased gross leasable area (GLA) scheduled to expire during the remainder of 2025[173]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $540,603,000, an increase of 8.2% compared to $499,533,000 for the same period in 2024[178]. - Resident fees and services revenue increased by $45,058,000, reaching $497,176,000 for the three months ended March 31, 2025, compared to $452,118,000 in 2024[178]. - Integrated senior health campuses segment saw a revenue increase of $30,242,000, primarily due to higher resident occupancy and increased billing rates[179]. - SHOP segment's revenue rose by $14,816,000, driven by acquisitions of senior housing properties in Washington, Oregon, and Georgia[180]. - For the three months ended March 31, 2025, the net operating income (NOI) was $94,537,000, an increase from $82,177,000 in the same period of 2024, reflecting a growth of 15.5%[222]. Operating Expenses - Total property operating expenses increased to $432,423,000, representing 87.0% of resident fees and services revenue, down from 89.3% in 2024[185]. - The total property operating expenses for integrated senior health campuses increased to $370,647,000, representing 87.5% of resident fees and services revenue for the three months ended March 31, 2025[185]. - The company’s operating expenses are expected to increase in the future due to rising occupancies and pricing of care services provided[175]. Cash Flow and Distributions - Cash flows from operating activities increased due to improved resident occupancy and expense management, resulting in a shift from net cash used to net cash provided by operating activities for the three months ended March 31, 2025, compared to the same period in 2024[199]. - Distributions paid in cash for the three months ended March 31, 2025, totaled $39,548,000, a significant increase from $16,596,000 in the same period of 2024[204]. - Quarterly distributions were authorized at $0.25 per share, equating to an annualized distribution rate of $1.00 per share, dependent on various financial factors[203]. Debt and Interest - As of March 31, 2025, the company had $1,023,241,000 in fixed-rate mortgage loans payable and $643,000,000 outstanding under its line of credit[210]. - The weighted average effective interest rate on outstanding debt was 4.39% per annum as of March 31, 2025[210]. - Interest expense decreased to $23,695,000 for the three months ended March 31, 2025, down from $30,021,000 in 2024, primarily due to reduced debt balances[188]. Impairments and Charges - The company recognized an impairment charge of $21,706,000 for one OM building for the three months ended March 31, 2025[190]. - The company reported depreciation and amortization related to consolidated properties of $41,015,000 for Q1 2025, slightly down from $42,729,000 in Q1 2024[218]. - Impairment of real estate investment for consolidated properties was $21,706,000 in Q1 2025, with no impairment reported in Q1 2024[218]. Future Expectations - The company expects revenues and expenses related to RIDEA properties to increase in the future due to overall increases in occupancies and resident fees[175]. - The company estimates capital and tenant improvement expenditures of approximately $61,066,000 for the remaining nine months of 2025[192]. - Total contractual obligations as of March 31, 2025, amount to $2,484,774,000, including $1,023,241,000 in fixed-rate mortgage loans payable[193].

Financial Data and Key Metrics Changes - The company reported normalized funds from operations (NFFO) of $0.38 per fully diluted share, representing an increase of over 26% compared to Q1 2024 [27] - The net debt to annualized adjusted EBITDA stood at 4.5 times at the end of the quarter [31] - Full year 2025 same store NOI growth targets were raised to a new range of 9% to 13% from a prior range of 7% to 10% [29] Business Line Data and Key Metrics Changes - The company achieved 15.1% same store NOI growth year over year in Q1 2025, driven by strong performance in the Trilogy and SHOP segments [10][14] - Trilogy reported a same store NOI growth of 19.8%, while the SHOP segment saw a growth of 30.7% in Q1 2025 [15] - The Trilogy segment's full year same store NOI growth guidance was revised upward to a range of 12% to 16% from a previous range of 10% to 12% [29] Market Data and Key Metrics Changes - The company noted a sharp uptick in move-ins since the end of Q1, indicating strong demand in the assisted living market [11] - The company experienced strong revenue optimization, leading to an 8.8% year-over-year revenue growth in the SHOP segment [18] Company Strategy and Development Direction - The company is focused on expanding its operating portfolio through strategic partnerships with market leaders and identifying new growth opportunities [12] - The company aims to maintain a hands-on asset management approach to drive strong performance across its operating portfolio [12] - The company is actively selling off non-core, lower growth assets to reallocate capital towards higher growth opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of the senior housing industry, benefiting from favorable long-term fundamentals [11] - The company anticipates strong demand for assisted living care as it moves into the warmer months [11] - Management highlighted the importance of quality care and operational efficiency as key drivers for future success [19] Other Important Information - The company successfully closed several investments, including a $65 million acquisition in the Mid Atlantic region [21] - The company has a pipeline of over $300 million in potential acquisitions, primarily in the operating portfolio segments [22] Q&A Session Summary Question: Can you provide more detail on the expected close and stages of the pipeline? - Management indicated that the pipeline has ramped up quickly, with expected closings mostly in the fourth quarter [35][36] Question: How is the company thinking about its MOB and triple net portfolio? - Management noted a conscious decision to reduce the size of the MOB portfolio, focusing on better risk-adjusted returns in long-term care [40][41] Question: Can you share details on the investment pipeline and deal economics? - The pipeline consists of over $300 million, primarily newer buildings with attractive pricing and yields [48][49] Question: What is the outlook for Trilogy's rates and occupancy? - Management expects inflationary increases in Medicaid rates and a potential for outperformance based on quality measures [62] Question: How is the company addressing the current demand and pricing strategies? - Management highlighted a reduction in concessions and dynamic pricing strategies to capture demand effectively [74][76]

Financial Data and Key Metrics Changes - The company reported normalized funds from operations (NFFO) of $0.38 per fully diluted share, representing an increase of over 26% compared to Q1 2024 [25] - The net debt to annualized adjusted EBITDA stood at 4.5 times at the end of the quarter [11][28] - Full year 2025 same store NOI growth targets were increased to a range of 9% to 13% from a prior range of 7% to 10% [26] Business Line Data and Key Metrics Changes - The company achieved 15.1% same store NOI growth year over year in Q1 2025, driven by the operating portfolio, particularly the Trilogy and SHOP segments [8][12] - Trilogy reported a year-over-year same store NOI growth of 19.8%, while SHOP experienced a growth of 30.7% in Q1 2025 [12] - The Trilogy segment's same store NOI growth guidance was revised upward to a range of 12% to 16% from a previous range of 10% to 12% [27] Market Data and Key Metrics Changes - The company noted a sharp uptick in move-ins since the end of Q1, indicating strong demand in the assisted living market [9][70] - The company is experiencing favorable fundamentals in the senior housing industry, benefiting from a multi-year tailwind [9] Company Strategy and Development Direction - The company is focused on delivering high-quality care and improving health outcomes, which is central to its operational strategy [6][7] - The investments team is actively identifying new growth opportunities and has a pipeline of over $300 million in potential acquisitions [20] - The company is prioritizing partnerships with market leaders and expanding its operator base to enhance growth opportunities [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth across the operating portfolio, particularly as demand for assisted living care increases in warmer months [9] - The company anticipates that the senior housing industry will continue to benefit from favorable demographics and demand trends [9][15] - Management highlighted the importance of quality care and operational efficiency as key drivers for future success [95] Other Important Information - The company successfully closed a lease buyout of a Trilogy campus for approximately $16.1 million and acquired a $65 million SHOP community [19] - The company raised approximately $48 million through its ATM program at an average price of $30.22 per share [25] Q&A Session Summary Question: Can you provide more detail on the investment pipeline and expected close? - Management indicated that the pipeline is robust, with transactions expected to close mostly in the fourth quarter, depending on regulatory approvals [33][34] Question: How is the company thinking about its MOB and triple net portfolio? - The company has been selling off non-core MOB assets, focusing on higher risk-adjusted returns in long-term care [38][41] Question: Can you share details on the investment pipeline's competitiveness and economics? - The pipeline consists of over $300 million, primarily newer buildings, with attractive pricing and yields [46][47] Question: What is the expected impact of tariffs on the business? - Management believes the company is well-positioned to handle potential impacts from tariffs, with a focus on maintaining pricing power [76][79] Question: Can you elaborate on the recent uptick in move-ins and pricing strategies? - The company has seen a significant increase in move-ins, with a focus on reducing concessions and implementing dynamic pricing strategies [70][72] Question: How does Trilogy support SHOP operational efficiency? - Trilogy provides resources such as revenue management and training to regional operators, enhancing overall operational efficiency [95][96]

Portfolio Overview - The company's total annualized cash NOI is $405.128 million, with ISHC contributing $239.768 million (59.2%), OM contributing $81.172 million (20.0%), SHOP contributing $48.364 million (11.9%), Triple-Net Leased Properties contributing $29.900 million (7.4%), and Debt Security Investment contributing $5.924 million (1.5%) [10] - The portfolio consists of 294 properties, including 125 Integrated Senior Health Campuses (ISHC), 81 Outpatient Medical (OM) properties, 69 Senior Housing Operating Properties (SHOP), and 19 Triple-Net Leased Properties [10] Same-Store NOI Performance - Total Same-Store NOI increased by 15.1% from $82.067 million in Q1 2024 to $94.476 million in Q1 2025 [11] - ISHC Same-Store NOI increased by 19.8% from $49.086 million to $58.820 million [11] - SHOP Same-Store NOI increased significantly by 30.7% from $7.867 million to $10.286 million [11] - OM Same-Store NOI increased by 2.0% from $17.870 million to $18.227 million [11] - Triple-Net Leased Properties Same-Store NOI decreased slightly by 1.4% from $7.244 million to $7.143 million [11] Earnings Highlights - NAREIT FFO per share - diluted increased by 16.7% from $0.30 in Q1 2024 to $0.35 in Q1 2025 [12] - Normalized FFO per share - diluted increased by 26.7% from $0.30 in Q1 2024 to $0.38 in Q1 2025 [12] 2025 Guidance - The company projects a FY 2025 Total Portfolio Same-Store NOI Growth between 9.0% and 13.0% [48] - The company anticipates NAREIT FFO per diluted share between $1.49 and $1.55, and Normalized FFO per diluted share between $1.58 and $1.64 for FY 2025 [48]

Core Insights - American Healthcare REIT (AHR) reported revenue of $540.6 million for Q1 2025, marking an 8.2% year-over-year increase and exceeding the Zacks Consensus Estimate of $538.59 million by 0.37% [1] - The company achieved an EPS of $0.38, a significant improvement from -$0.04 a year ago, and surpassed the consensus EPS estimate of $0.37 by 2.70% [1] Revenue Breakdown - Resident fees and services generated $497.18 million, slightly above the average estimate of $495.43 million from two analysts [4] - Real estate revenue was reported at $43.43 million, which fell short of the average estimate of $44.43 million from two analysts [4] Stock Performance - Over the past month, shares of American Healthcare REIT have returned +12.3%, outperforming the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

American Healthcare REIT (AHR) came out with quarterly funds from operations (FFO) of $0.38 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to FFO of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.70%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.40 per share when it actually produced FFO of $0.40, delivering no surprise.Over the last four quar ...