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]

Core Insights - American Healthcare REIT (AHR) is expected to report quarterly earnings of $0.40 per share, reflecting a 21.2% increase year over year [1] - Analysts forecast revenues of $544.78 million, indicating an 8% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the past 30 days, suggesting analysts' reassessment of projections [1] Revenue Estimates - Analysts predict 'Revenues- Resident fees and services' to be $513.45 million, representing a 12.1% year-over-year increase [4] - 'Revenues- Real estate revenue' is estimated at $42.34 million, indicating a 9.1% decline from the previous year [4] Company Performance - Depreciation and amortization is expected to be $41.41 million according to analysts [4] - AHR shares have increased by 12.2% in the past month, outperforming the Zacks S&P 500 composite, which rose by 0.5% [4] - AHR holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near term [4]

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]

Company Performance - American Healthcare REIT (AHR) has returned 33.3% year-to-date, outperforming the Finance sector's average return of 9.8% [4] - The Zacks Consensus Estimate for AHR's full-year earnings has increased by 2.9% over the past quarter, indicating improving analyst sentiment [4] - AHR currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Industry Comparison - AHR belongs to the REIT and Equity Trust - Other industry, which consists of 99 companies and is ranked 156 in the Zacks Industry Rank; this industry has an average gain of 7.1% this year [6] - Apollo Commercial Finance (ARI), another Finance stock, has returned 12.5% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - The REIT and Equity Trust industry, which includes ARI, is ranked 62 and has seen a modest increase of 0.7% this year [7]

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