The REIT and Equity Trust - Other industry benefits from strong demand across asset classes, supported by a resilient economy, technological advancements and demographic shifts. Data center and healthcare REITs are thriving, while office spaces see optimism due to increased leasing activity and demand for premium properties. Industrial and logistics sectors remain strong, fueled by e-commerce growth. Interest rate cuts further boost REITs’ attractiveness by lowering borrowing costs. Amid these, players like ...

Core Insights - The article introduces "The Future Investor with Albert Anthony," a new series of curated research articles on the Seeking Alpha platform aimed at building a diversified portfolio and identifying future performance drivers [1] - Albert Anthony, the author, has covered over 200 stocks since 2023 and has gained over 1.07K followers on the platform [1] - A new book titled "The Future Investor: Growing a Diversified Portfolio (2025 edition)" is in development, indicating a commitment to educating investors [1] Author Background - Albert Anthony has a diverse background, growing up in a Croatian-American family in the New York City/New Jersey area and has worked in various locations including Austin, Texas [1] - He has experience as an information systems analyst, including a position at Charles Schwab, and holds a B.A. in political science from Drew University [1] - The author has completed certification programs from notable institutions such as Microsoft, CompTIA, UVA Darden School of Business, and the Corporate Finance Institute, focusing on capital markets and securities [1] Personal Interests - Albert Anthony manages a small equities portfolio named the Future Investor Fund and actively participates in business and innovation conferences in the US and Croatia [1] - He is involved in media as a Croatian-American personality and has appeared in various film and TV productions in Europe [1] - Since 2024, he has been an active member of the Croatian Association of Economists, further emphasizing his engagement in economic discussions [1]

Core Insights - Chilton Capital Management's REIT Team is led by experienced co-portfolio managers Bruce Garrison and Matt Werner, focusing on publicly traded real estate investment trusts (REITs) and related entities primarily in North America [1] - The REIT Team emphasizes the advantages of public REITs, including liquidity, transparency, and total return characteristics, which enhance diversification across various dimensions [1] - The investment strategy combines real estate industry experience with traditional security analysis methods to make informed investment decisions [1] Company Overview - Chilton Capital Management is an independently owned firm established in 1996, providing investment advisory services to a range of clients including registered investment companies, private clients, family offices, endowments, foundations, retirement plans, and trusts [1] - The REIT Team manages Separately Managed Accounts (SMAs) for high net worth individuals and institutions, and serves as a sub-advisor for the West Loop Realty Fund [1] Investment Strategy - The REIT Team's investment approach focuses on traditional methods of security analysis, including research, critical thought, and analytical depth, which are essential to their investment process [1] - The property types targeted by the REIT Team include apartments, regional malls, shopping centers, lodging, office, industrial, self-storage, data centers/cell towers, and various healthcare-related facilities [1]

Group 1 - Viking Holdings Ltd (VIK) is a passenger transportation company with a Zacks Rank 1, and its current year earnings estimate increased by 3.9% over the last 60 days [1] - Viking Holdings' shares rose by 40.0% in the last three months, outperforming the S&P 500's increase of 9.5%, and it has a Momentum Score of B [1] Group 2 - American Healthcare REIT, Inc. (AHR) is a real estate investment trust with a Zacks Rank 1, and its current year earnings estimate increased by 4.6% over the last 60 days [2] - American Healthcare REIT's shares gained 34.2% over the last three months, also outperforming the S&P 500's increase of 9.5%, and it has a Momentum Score of B [2] Group 3 - Old National Bancorp (ONB) is a bank holding company with a Zacks Rank 1, and its next year earnings estimate increased by 2% over the last 60 days [3] - Old National Bancorp's shares increased by 19.8% in the last three months, again outperforming the S&P 500's advance of 9.5%, and it has a Momentum Score of B [3]

Core Insights - The article discusses the investment landscape in the real estate sector, particularly focusing on the performance and potential of various real estate investment trusts (REITs) and housing-related companies [1][2]. Group 1: Company Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, which provides investment advisory services and focuses on publicly traded securities in the real estate industry [2]. - The commentary emphasizes that the information provided is for educational purposes and does not constitute investment advice [2][3]. Group 2: Industry Insights - The real estate industry is highlighted as having unique risks associated with investments in real estate companies and housing industry companies [2]. - The article notes that past performance of market data does not guarantee future results, indicating the volatile nature of the real estate market [3].

American Healthcare REIT, Inc. (NYSE:AHR) Q3 2024 Results Conference Call November 13, 2024 12:00 PM ET Company Participants Alan Peterson - Vice President of Investor Relations & Finance Danny Prosky - President & Chief Executive Officer Gabe Willhite - Chief Operating Officer Stefan Oh - Chief Investment Officer Brian Peay - Chief Financial Officer Conference Call Participants Joshua Dennerlein - Bank of America Austin Wurschmidt - KeyBanc Capital Markets Michael Carroll - RBC Capital Markets Ronald Kamde ...

[PART I — FINANCIAL INFORMATION](index=2&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(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive loss, statements of equity, and statements of cash flows, along with detailed notes explaining the company's financial position, performance, and accounting policies [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Condensed Consolidated Balance Sheets (in thousands)** | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Total Assets | $4,677,012 | $4,577,933 | | Total Liabilities | $2,419,828 | $3,118,755 | | Total Equity | $2,256,964 | $1,425,335 | - Common Stock outstanding as of September 30, 2024, was **152,873,586 shares**[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) **Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share)** | Metric | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenues and Grant Income | $523,814 | $464,240 | $1,527,928 | $1,384,037 | | Total Expenses | $489,982 | $450,816 | $1,437,627 | $1,338,777 | | Net Loss | $(3,093) | $(6,446) | $(3,171) | $(45,928) | | Basic Net Loss Per Share | $(0.03) | $(0.09) | $(0.05) | $(0.67) | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) **Key Equity Changes (9 Months Ended Sep 30, 2024, in thousands)** | Item | Amount | | :------------------------------------------ | :------- | | Issuance of common stock in offerings | $1,243,192 | | Offering costs — common stock | $(74,498) | | Issuance of common stock from redemption of partnership units | $25,461 | | Purchase of noncontrolling interests | $(162,541) | | Distributions declared | $(104,530) | | Net loss | $(6,039) | - Total stockholders' equity increased from **$1,270,321k** as of December 31, 2023, to **$2,207,491k** as of September 30, 2024[22](index=22&type=chunk)[23](index=23&type=chunk) - **66,274,793 shares** of Class T and Class I common stock were converted into Common Stock during the nine months ended September 30, 2024[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Condensed Consolidated Statements of Cash Flows (9 Months Ended Sep 30, in thousands)** | Cash Flow Activity | 2024 | 2023 | | :----------------- | :--- | :--- | | Net cash provided by operating activities | $116,578 | $72,766 | | Net cash (used in) provided by investing activities | $(95,941) | $20,701 | | Net cash provided by (used in) financing activities | $5,239 | $(123,177) | | Net change in cash, cash equivalents and restricted cash | $25,876 | $(29,710) | | Cash, cash equivalents and restricted cash — End of period | $116,672 | $82,156 | - Proceeds from issuance of common stock in offerings totaled **$1,244,036k** for the nine months ended September 30, 2024[28](index=28&type=chunk) - Purchase of noncontrolling interests amounted to **$(258,442)k** for the nine months ended September 30, 2024[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Description of Business](index=13&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) - American Healthcare REIT, Inc. is a self-managed REIT that acquires, owns, and operates a diversified portfolio of clinical healthcare real estate properties, including outpatient medical buildings, senior housing, and skilled nursing facilities, across the United States, the United Kingdom, and the Isle of Man[35](index=35&type=chunk) **Operating Partnership Ownership** | Date | Ownership Percentage | | :--- | :------------------- | | Sep 30, 2024 | 98.5% | | Dec 31, 2023 | 95.0% | - The company completed two underwritten public offerings in 2024: the February 2024 Offering (**$772,800k** gross proceeds from **64,400,000 shares**) and the September 2024 Offering (**$471,236k** gross proceeds from **20,010,000 shares**), with all shares listed on the NYSE[38](index=38&type=chunk)[41](index=41&type=chunk) - As of September 30, 2024, the company owned and/or operated **324 buildings** and integrated senior health campuses, representing approximately **19,676,000 square feet** of gross leasable area, with an aggregate contract purchase price of **$4.67 billion**[43](index=43&type=chunk) [2. Summary of Significant Accounting Policies](index=14&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) - The company's condensed consolidated financial statements are prepared in conformity with GAAP and include accounts of its operating partnership (**98.5% owned** as of Sep 30, 2024) and controlled subsidiaries[45](index=45&type=chunk)[46](index=46&type=chunk) **Resident Fees and Services Revenue (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $476,834 | $416,206 | | Nine Months Ended Sep 30 | $1,386,965 | $1,235,458 | - Accounts receivable for resident fees and services increased by **$20,064k** from **$148,277k** on January 1, 2024, to **$168,341k** on September 30, 2024[54](index=54&type=chunk) - Properties held for sale decreased from **$3,477k** as of December 31, 2023, to **$0** as of September 30, 2024, following the disposition of one SHOP for **$4,500k**, which resulted in a **$645k** gain on sale[60](index=60&type=chunk) - The company is evaluating the impact of new accounting pronouncements: ASU 2023-07 (Segment Reporting), ASU 2023-09 (Income Taxes), and the SEC's stayed rules on Climate-Related Disclosures[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [3. Real Estate Investments, Net](index=18&type=section&id=Note%203.%20Real%20Estate%20Investments,%20Net) **Real Estate Investments, Net (in thousands)** | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Building, improvements and construction in process | $3,767,879 | $3,604,299 | | Land and improvements | $364,150 | $335,946 | | Furniture, fixtures and equipment | $256,779 | $237,350 | | Less: accumulated depreciation | $(852,865) | $(752,157) | | **Total Real Estate Investments, Net** | **$3,535,943** | **$3,425,438** | **Depreciation Expense (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $37,610 | $36,929 | | Nine Months Ended Sep 30 | $111,611 | $109,967 | - For the nine months ended September 30, 2024, the company incurred **$57,551k** in capital expenditures, including **$18,969k** for the development of one integrated senior health campus and **$11,730k** to expand three existing campuses[67](index=67&type=chunk) - Acquisitions during the nine months ended September 30, 2024, included four land parcels in Michigan for **$5,821k** and three previously leased real estate investments in Kentucky and Ohio for **$45,841k**[68](index=68&type=chunk)[70](index=70&type=chunk) - The company disposed of two OM buildings for **$11,136k**, recognizing an aggregate net gain of **$1,617k** for the nine months ended September 30, 2024, with no impairment of real estate investments recognized in 2024, compared to **$12,510k** in 2023[72](index=72&type=chunk)[73](index=73&type=chunk) [4. Business Combinations](index=20&type=section&id=Note%204.%20Business%20Combinations) - In 2024, the company acquired **14 senior housing properties** in Oregon (Feb 1) and **five** in Washington (Sep 3) by assuming mortgage loans of **$94,461k** and **$36,178k**, respectively, due to borrower defaults[75](index=75&type=chunk)[76](index=76&type=chunk) - In February 2023, the company acquired a **60.0% controlling interest** in Memory Care Partners, LLC for **$900k**, increasing its ownership to **100%** and recognizing a **$726k** gain on re-measurement of its previously held equity interest[77](index=77&type=chunk) **Acquisition Date Fair Values (9 Months Ended Sep 30, 2024, in thousands)** | Asset/Liability | Amount | | :-------------- | :----- | | Building and improvements | $90,531 | | Land | $19,006 | | In-place leases | $17,717 | | Accounts receivable | $343 | | Other assets | $175 | | Mortgage loans payable | $(127,254) | | Accounts payable and accrued liabilities | $(518) | [5. Debt Security Investment, Net](index=21&type=section&id=Note%205.%20Debt%20Security%20Investment,%20Net) - The company holds a commercial mortgage-backed debt security with a **4.24% interest rate**, maturing on August 25, 2025, at an aggregate stated amount of **$93,433k**[81](index=81&type=chunk) **Debt Security Investment, Net (in thousands)** | Date | Carrying Amount | | :--- | :-------------- | | Sep 30, 2024 | $90,144 | | Dec 31, 2023 | $86,935 | **Accretion on Debt Security (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $1,168 | $1,060 | | Nine Months Ended Sep 30 | $3,447 | $3,126 | - No credit loss was recorded for the debt security investment for the three and nine months ended September 30, 2024 and 2023[83](index=83&type=chunk) [6. Identified Intangible Assets and Liabilities](index=21&type=section&id=Note%206.%20Identified%20Intangible%20Assets%20and%20Liabilities) **Identified Intangible Assets and Liabilities, Net (in thousands)** | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Total Identified Intangible Assets, Net | $177,804 | $180,470 | | Total Identified Intangible Liabilities, Net | $5,271 | $6,095 | **Amortization Expense on Identified Intangible Assets (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $6,652 | $15,351 | | Nine Months Ended Sep 30 | $20,793 | $40,133 | - In June 2024, the company wrote off a **$1,831k** customer relationship intangible asset due to the closure of a pharmacy facility[85](index=85&type=chunk) **Weighted Average Remaining Life** | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Identified Intangible Assets | 6.5 years | 7.8 years | | Identified Intangible Liabilities | 6.7 years | 7.2 years | [7. Other Assets, Net](index=23&type=section&id=Note%207.%20Other%20Assets,%20Net) **Other Assets, Net (in thousands)** | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Deferred rent receivables | $50,223 | $47,540 | | Prepaid expenses, deposits, other assets and deferred tax assets, net | $33,037 | $33,204 | | Inventory — finished goods | $20,234 | $19,472 | | Investments in unconsolidated entities | $16,259 | $20,611 | | **Total** | **$144,817** | **$146,141** | - A **$565k** loss on debt extinguishment was recorded in February 2024 due to the partial write-off of unamortized deferred financing costs related to the replacement of the 2022 Credit Facility with the 2024 Credit Facility[90](index=90&type=chunk) [8. Mortgage Loans Payable, Net](index=23&type=section&id=Note%208.%20Mortgage%20Loans%20Payable,%20Net) **Mortgage Loans Payable, Net (in thousands)** | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Total fixed-rate debt | $1,143,148 | $990,325 | | Total variable-rate debt | $164,554 | $335,988 | | **Mortgage loans payable, net** | **$1,282,853** | **$1,302,396** | - The weighted average effective interest rate on mortgage loans payable was **4.28%** as of September 30, 2024, down from **4.72%** as of December 31, 2023[91](index=91&type=chunk) - For the nine months ended September 30, 2024, the company incurred an aggregate loss of **$872k** on the early extinguishment of mortgage loans payable, primarily due to a **$176,145k** payoff in February 2024 using proceeds from the public offering[93](index=93&type=chunk) - Scheduled principal payments for mortgage loans payable for the remaining three months of 2024 are **$33,036k**[94](index=94&type=chunk) [9. Lines of Credit and Term Loan](index=24&type=section&id=Note%209.%20Lines%20of%20Credit%20and%20Term%20Loan) - The company entered into a new **$1.15 billion** 2024 Credit Facility on February 14, 2024, replacing the 2022 Credit Facility, consisting of a **$600 million** revolving credit facility (matures Feb 14, 2028) and a **$550 million** term loan facility (matures Jan 19, 2027)[98](index=98&type=chunk)[99](index=99&type=chunk) - As of September 30, 2024, borrowings outstanding under the 2024 Credit Facility totaled **$596,500k**, with a weighted average interest rate of **6.39%** per annum[103](index=103&type=chunk) - The Trilogy Credit Facility has an aggregate maximum principal amount of **$400 million** and matures on June 5, 2025, with borrowings outstanding as of September 30, 2024, of **$32k** at a weighted average interest rate of **7.95%** per annum[104](index=104&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [10. Derivative Financial Instruments](index=26&type=section&id=Note%2010.%20Derivative%20Financial%20Instruments) - The company uses interest rate swaps to manage interest rate risk on variable-rate debt, which are not designated as hedges[108](index=108&type=chunk)[109](index=109&type=chunk) - As of September 30, 2024, the aggregate fair value of derivative financial instruments was a net liability of **$(3,088)k**[109](index=109&type=chunk) **Net (Loss) Gain in Fair Value of Derivative Financial Instruments (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $(8,967) | $3,402 | | Nine Months Ended Sep 30 | $(2,162) | $8,200 | - One interest rate swap with a notional amount of **$200 million** was terminated on September 20, 2024, resulting in a **$415k** termination fee[109](index=109&type=chunk) [11. Commitments and Contingencies](index=26&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) - The company is not currently subject to any material litigation or environmental liabilities that would have a material adverse effect on its consolidated financial position, results of operations, or cash flows[111](index=111&type=chunk)[112](index=112&type=chunk) [12. Redeemable Noncontrolling Interests](index=27&type=section&id=Note%2012.%20Redeemable%20Noncontrolling%20Interests) **Redeemable Noncontrolling Interests (in thousands)** | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | | Beginning balance | $33,843 | $81,598 | | Reclassification to equity | $(15,303) | $0 | | Redemption of redeemable noncontrolling interests | $(10,771) | $(15,954) | | Ending balance | $220 | $59,961 | - The decrease in redeemable noncontrolling interests in 2024 was primarily due to reclassification to noncontrolling interests in total equity following the February 2024 Offering and the redemption of Trilogy equity interests[114](index=114&type=chunk)[115](index=115&type=chunk) [13. Equity](index=28&type=section&id=Note%2013.%20Equity) - The company is authorized to issue **1 billion shares** of common stock (**$0.01** par value), including **700 million shares** of Common Stock, **200 million shares** of Class T common stock, and **100 million shares** of Class I common stock[120](index=120&type=chunk) - In 2024, the company issued **64.4 million shares** of Common Stock for **$772,800k** gross proceeds in February and **20.01 million shares** for **$471,236k** gross proceeds in September, with all Class T and Class I common stock converting to listed Common Stock on August 5, 2024[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - The Distribution Reinvestment Plan (DRIP) and share repurchase plan were suspended in November 2022[124](index=124&type=chunk)[125](index=125&type=chunk) - The company purchased NHI's **24.0% minority membership interest** in Trilogy REIT Holdings for **$258 million** in September 2024, resulting in **100% ownership** of Trilogy REIT Holdings and indirectly **100%** of Trilogy[128](index=128&type=chunk) **Stock Compensation Expense (AHR Incentive Plan, in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $2,630 | $1,558 | | Nine Months Ended Sep 30 | $7,309 | $4,173 | [14. Fair Value Measurements](index=31&type=section&id=Note%2014.%20Fair%20Value%20Measurements) - As of September 30, 2024, derivative financial instruments (interest rate swaps) were measured at a fair value of **$(3,088)k** (liability) and classified as Level 2 in the fair value hierarchy[140](index=140&type=chunk)[145](index=145&type=chunk) **Financial Instruments Disclosed at Fair Value (Sep 30, 2024, in thousands)** | Instrument | Carrying Amount | Fair Value | | :--------- | :-------------- | :--------- | | Debt security investment | $90,144 | $93,246 | | Mortgage loans payable | $1,282,853 | $1,166,413 | | Lines of credit and term loan | $591,490 | $596,903 | - The valuations of debt security investment, mortgage loans payable, and lines of credit and term loan are classified in Level 2 of the fair value hierarchy[149](index=149&type=chunk) [15. Income Taxes](index=33&type=section&id=Note%2015.%20Income%20Taxes) - As a REIT, the company is generally not subject to U.S. federal income tax on taxable income distributed to stockholders, while its taxable REIT subsidiaries (TRS) are subject to corporate tax rates[151](index=151&type=chunk) - The company did not have any tax benefits or liabilities for uncertain tax positions as of September 30, 2024, and December 31, 2023[154](index=154&type=chunk) - A valuation allowance fully reserves the net deferred tax assets due to historical losses and inherent uncertainty of future income[155](index=155&type=chunk) [16. Leases](index=34&type=section&id=Note%2016.%20Leases) **Lessor - Operating Lease Revenues (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $45,168 | $45,582 | | Nine Months Ended Sep 30 | $136,382 | $137,101 | - As of September 30, 2024, total undiscounted cash flows for future minimum base rents under operating leases for properties wholly owned by the company amounted to **$1.03 billion**[158](index=158&type=chunk) **Lessee - Operating Lease Cost (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $9,060 | $11,049 | | Nine Months Ended Sep 30 | $29,212 | $34,445 | - As of September 30, 2024, the weighted average remaining lease term for operating leases was **12.1 years**, with a weighted average discount rate of **5.85%**[163](index=163&type=chunk) - Total undiscounted operating lease payments as of September 30, 2024, were **$270.66 million**[166](index=166&type=chunk) [17. Segment Reporting](index=36&type=section&id=Note%2017.%20Segment%20Reporting) - The company operates through four reportable business segments: integrated senior health campuses, outpatient medical (OM), senior housing operating properties (SHOP), and triple-net leased properties[168](index=168&type=chunk) **Segment Net Operating Income (NOI, in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $93,536 | $75,063 | | Nine Months Ended Sep 30 | $264,407 | $222,317 | **Total Assets by Reportable Segment (Sep 30, 2024, in thousands)** | Segment | Amount | | :-------------------------- | :------- | | Integrated senior health campuses | $2,224,315 | | OM | $1,197,920 | | SHOP | $745,858 | | Triple-net leased properties | $497,291 | **Revenues and Grant Income by Geographic Region (9 Months Ended Sep 30, in thousands)** | Region | 2024 | 2023 | | :----- | :--- | :--- | | United States | $1,522,902 | $1,380,542 | | International | $5,026 | $3,495 | [18. Concentration of Credit Risk](index=41&type=section&id=Note%2018.%20Concentration%20of%20Credit%20Risk) - Properties in Indiana, Ohio, and Kentucky accounted for **28.7%**, **12.5%**, and **12.3%**, respectively, of the total consolidated property portfolio's annualized base rent or annualized NOI as of September 30, 2024, indicating a geographic concentration of risk[186](index=186&type=chunk) - As of September 30, 2024, the integrated senior health campuses, OM, SHOP, and triple-net leased properties segments accounted for **55.8%**, **23.4%**, **11.3%**, and **9.5%**, respectively, of the total consolidated property portfolio's annualized base rent or annualized NOI[187](index=187&type=chunk) [19. Earnings Per Share](index=42&type=section&id=Note%2019.%20Earnings%20Per%20Share) - For the three months ended September 30, 2024, **2,933,361 limited OP units**, **1,092,886 nonvested RSAs**, **341,098 nonvested TBUs**, and **309,254 nonvested PBUs** were excluded from diluted EPS computation as they were anti-dilutive[190](index=190&type=chunk)[191](index=191&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis provides insights into the company's financial condition and results of operations, highlighting key drivers such as increased resident occupancies and billing rates, strategic acquisitions, and the impact of inflation, also covering critical accounting estimates, recent acquisitions and dispositions, and factors influencing future performance [Overview and Background](index=44&type=section&id=Overview%20and%20Background) - American Healthcare REIT, Inc. is a self-managed REIT that acquires, owns, and operates a diversified portfolio of clinical healthcare real estate properties, focusing on outpatient medical buildings, senior housing, and skilled nursing facilities across the United States, the United Kingdom, and the Isle of Man[198](index=198&type=chunk) - The company operates its integrated senior health campuses and senior housing operating properties (SHOP) using a REIT Investment Diversification and Empowerment Act of 2007 (RIDEA) structure[198](index=198&type=chunk) [Operating Partnership](index=44&type=section&id=Operating%20Partnership) - The company conducts substantially all operations through its operating partnership, where its ownership increased from **95.0%** as of December 31, 2023, to **98.5%** as of September 30, 2024[199](index=199&type=chunk) - Platform Healthcare Investor T-II, LLC redeemed all of its operating partnership units (OP units) for **1,216,571 shares** of Common Stock on August 19, 2024[199](index=199&type=chunk) [Public Offerings and Listing](index=44&type=section&id=Public%20Offerings%20and%20Listing) - The company closed two underwritten public offerings in 2024: the February 2024 Offering (**64.4 million shares**, **$772,800k** gross proceeds) and the September 2024 Offering (**20.01 million shares**, **$471,236k** gross proceeds), with shares listed on the NYSE[201](index=201&type=chunk)[203](index=203&type=chunk) - On August 5, 2024, all Class T common stock and Class I common stock automatically converted into listed Common Stock[202](index=202&type=chunk) [Our Real Estate Investments Portfolio](index=45&type=section&id=Our%20Real%20Estate%20Investments%20Portfolio) - As of September 30, 2024, the company owned and/or operated **324 buildings** and integrated senior health campuses, representing approximately **19,676,000 square feet** of gross leasable area, with an aggregate contract purchase price of **$4.67 billion**[205](index=205&type=chunk) - The portfolio also included a real estate-related debt investment purchased for **$60.43 million** as of September 30, 2024[205](index=205&type=chunk) [Factors Which May Influence Results of Operations](index=45&type=section&id=Factors%20Which%20May%20Influence%20Results%20of%20Operations) - Inflation has increased the cost of labor, services, energy, and supplies, impacting the profitability of integrated senior health campuses and SHOP[210](index=210&type=chunk) - The company mitigates inflation through higher annual rent and care fee increases for existing residents in RIDEA properties and through negotiated rental increases (**2-3%** per year) and expense reimbursements in non-RIDEA tenant leases[210](index=210&type=chunk)[211](index=211&type=chunk) - Inflation has also led to an increase in the cost of variable-rate debt due to rising interest rates[213](index=213&type=chunk) [Scheduled Lease Expirations](index=46&type=section&id=Scheduled%20Lease%20Expirations) - As of September 30, 2024, non-RIDEA properties were **91.0% leased** with a weighted average lease term of **6.5 years**, and **2.8%** of leased GLA is scheduled to expire during the remainder of 2024[214](index=214&type=chunk) - Combined SHOP and integrated senior health campuses were **87.8% leased** as of September 30, 2024, with most resident leases having a term of one year or less[215](index=215&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) [Revenues and Grant Income](index=47&type=section&id=Revenues%20and%20Grant%20Income) **Total Revenues and Grant Income (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $523,814 | $464,240 | | Nine Months Ended Sep 30 | $1,527,928 | $1,384,037 | - Resident fees and services revenue for integrated senior health campuses increased by **$99,605k** for the nine months ended September 30, 2024, primarily due to increased resident occupancy, higher billing rates, and expansion of ancillary business units[223](index=223&type=chunk) - SHOP resident fees and services revenue increased by **$51,902k** for the nine months ended September 30, 2024, driven by acquisitions and the transition of properties to a RIDEA structure[224](index=224&type=chunk) - Grant income was **$0** for both the three and nine months ended September 30, 2024, compared to **$1,064k** and **$7,445k**, respectively, in 2023[222](index=222&type=chunk)[228](index=228&type=chunk) [Property Operating Expenses and Rental Expenses](index=48&type=section&id=Property%20Operating%20Expenses%20and%20Rental%20Expenses) **Total Property Operating Expenses (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $417,128 | $374,603 | | Nine Months Ended Sep 30 | $1,223,321 | $1,117,298 | - Integrated senior health campuses' property operating expenses increased due to higher resident occupancy and a **$22,789k** increase in labor costs and other operating expenses within Trilogy's ancillary business unit for the nine months ended September 30, 2024[230](index=230&type=chunk) - SHOP property operating expenses increased by **$27,588k** due to acquisitions and **$13,350k** from property transitions to a RIDEA structure for the nine months ended September 30, 2024[232](index=232&type=chunk) - Rental expenses for the OM segment decreased for both periods in 2024, primarily due to dispositions of OM buildings[233](index=233&type=chunk) [Business Acquisition Expenses](index=49&type=section&id=Business%20Acquisition%20Expenses) **Business Acquisition Expenses (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $3,537 | $1,024 | | Nine Months Ended Sep 30 | $6,334 | $2,244 | - The increase in 2024 was primarily due to **$4,926k** in aggregate acquisition costs for RIDEA properties within the SHOP segment[234](index=234&type=chunk) [Depreciation and Amortization](index=49&type=section&id=Depreciation%20and%20Amortization) **Depreciation and Amortization (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $44,246 | $49,273 | | Nine Months Ended Sep 30 | $132,277 | $138,644 | - The decrease in 2024 was primarily due to the full amortization of **$6,635k** of in-place leases related to property transitions to a RIDEA structure in 2023[236](index=236&type=chunk) [Interest Expense](index=50&type=section&id=Interest%20Expense) **Total Interest Expense (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $39,362 | $38,603 | | Nine Months Ended Sep 30 | $99,591 | $113,806 | - The decrease in interest expense for the nine months ended September 30, 2024, was primarily due to debt paydowns of **$176.15 million** (mortgage loans) and **$545.01 million** (lines of credit) from the February 2024 Offering proceeds, and **$194 million** (lines of credit) from the September 2024 Offering proceeds[238](index=238&type=chunk) - This decrease was partially offset by a **$10,362k** change from a gain to a loss in the fair value of derivative financial instruments[238](index=238&type=chunk) [Gain or Loss on Dispositions of Real Estate Investments](index=50&type=section&id=Gain%20or%20Loss%20on%20Dispositions%20of%20Real%20Estate%20Investments) - For the nine months ended September 30, 2024, the company recognized an aggregate net gain of **$2,257k** on dispositions of real estate investments, primarily from the sale of two OM buildings and one SHOP[239](index=239&type=chunk) - For the nine months ended September 30, 2023, the company recognized a larger aggregate net gain of **$29,777k** from the sale of six SHOP and 14 OM buildings[240](index=240&type=chunk) [Impairment of Real Estate Investments](index=50&type=section&id=Impairment%20of%20Real%20Estate%20Investments) - No impairment charges on real estate investments were recognized for the three and nine months ended September 30, 2024, compared to an aggregate impairment charge of **$12,510k** in the corresponding periods of 2023[241](index=241&type=chunk) [Gain on Re-measurement of Previously Held Equity Interest](index=51&type=section&id=Gain%20on%20Re-measurement%20of%20Previously%20Held%20Equity%20Interest) - No gain on re-measurement of previously held equity interest was recognized for the three and nine months ended September 30, 2024, while a **$726k** gain was recognized for the nine months ended September 30, 2023, related to the acquisition of Memory Care Partners, LLC[243](index=243&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) [Material Cash Requirements](index=51&type=section&id=Material%20Cash%20Requirements) - As of September 30, 2024, the company had **$16,297k** of restricted cash in loan impounds and reserve accounts to fund capital expenditures[245](index=245&type=chunk) - Estimated unspent discretionary expenditures for capital and tenant improvements for the remaining three months of 2024 are approximately **$14,686k**[245](index=245&type=chunk) [Contractual Obligations](index=51&type=section&id=Contractual%20Obligations) **Contractual Obligations as of September 30, 2024 (in thousands)** | Obligation Type | 2024 (Remaining) | 2025-2026 | 2027-2028 | Thereafter | Total | | :------------------------------------------ | :--------------- | :-------- | :-------- | :--------- | :---------- | | Principal payments — fixed-rate debt | $33,036 | $298,228 | $196,677 | $615,207 | $1,143,148 | | Interest payments — fixed-rate debt | $10,525 | $70,572 | $53,024 | $346,809 | $480,930 | | Principal payments — variable-rate debt | $0 | $164,586 | $596,500 | $0 | $761,086 | | Interest payments — variable-rate debt | $13,084 | $82,588 | $5,051 | $0 | $100,723 | | Ground and other lease obligations | $8,055 | $62,314 | $63,895 | $136,396 | $270,660 | | Financing obligations and other obligations | $1,494 | $10,984 | $9,856 | $31,833 | $54,167 | | **Total** | **$66,194** | **$689,272** | **$925,003** | **$1,130,245** | **$2,810,714** | [Credit Facilities](index=52&type=section&id=Credit%20Facilities) - As of September 30, 2024, the company's aggregate borrowing capacity under the 2024 Credit Facility and Trilogy Credit Facility was **$1.55 billion**[251](index=251&type=chunk) - Aggregate borrowings outstanding under these facilities were **$596.53 million**, leaving **$953.47 million** available as of September 30, 2024[251](index=251&type=chunk) [Cash Flows](index=52&type=section&id=Cash%20Flows) **Cash Flows (9 Months Ended Sep 30, in thousands)** | Cash Flow Activity | 2024 | 2023 | | :----------------- | :--- | :--- | | Net cash provided by operating activities | $116,578 | $72,766 | | Net cash (used in) provided by investing activities | $(95,941) | $20,701 | | Net cash provided by (used in) financing activities | $5,239 | $(123,177) | | Cash, cash equivalents and restricted cash — End of period | $116,672 | $82,156 | - The increase in operating cash flows in 2024 was driven by improved operating performance of real estate investments and a decrease in interest paid due to debt paydowns from public offering proceeds[253](index=253&type=chunk) - The shift in investing activities to net cash used was primarily due to a **$153,332k** decrease in proceeds from dispositions of real estate investments[254](index=254&type=chunk) - Financing activities shifted to net cash provided, primarily due to **$1.24 billion** in gross proceeds from common stock offerings, partially offset by **$761.59 million** in net payments on credit lines and mortgage loans, and **$258 million** paid to purchase noncontrolling interest in Trilogy REIT Holdings LLC[255](index=255&type=chunk) [Distributions](index=53&type=section&id=Distributions) - The board has authorized a quarterly distribution of **$0.25 per share** (**$1.00 annualized**) to common stockholders since the first quarter of 2023, paid in cash[257](index=257&type=chunk) - The Distribution Reinvestment Plan (DRIP) was suspended on November 14, 2022[256](index=256&type=chunk) **Distributions Paid in Cash (9 Months Ended Sep 30, in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Distributions paid in cash | $82,591 | $59,685 | | Sources from cash flows from operations | 100% | 100% | [REIT Requirements](index=54&type=section&id=REIT%20Requirements) - To maintain REIT qualification, the company must distribute a minimum of **90.0%** of its REIT taxable income to stockholders[261](index=261&type=chunk) - The company may use secured and unsecured debt financing or proceeds from property sales to meet distribution requirements if there is a shortfall in net cash available[261](index=261&type=chunk) [Debt Service Requirements](index=54&type=section&id=Debt%20Service%20Requirements) - As of September 30, 2024, the company had **$1.31 billion** in mortgage loans payable and **$596.53 million** outstanding under its lines of credit and term loan[263](index=263&type=chunk) - The weighted average effective interest rate on the company's outstanding debt, factoring in interest rate swaps, was **4.72%** per annum as of September 30, 2024[263](index=263&type=chunk) - The company was in compliance with all financial and non-financial covenants on its mortgage loans payable and credit facilities as of September 30, 2024[264](index=264&type=chunk) [Funds from Operations and Normalized Funds from Operations](index=54&type=section&id=Funds%20from%20Operations%20and%20Normalized%20Funds%20from%20Operations) - Funds from Operations (FFO) and Normalized FFO are non-GAAP financial measures used by management and investors to evaluate the operating performance of a REIT[265](index=265&type=chunk)[268](index=268&type=chunk) **NAREIT FFO Attributable to Controlling Interest (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $35,640 | $17,810 | | Nine Months Ended Sep 30 | $108,684 | $57,075 | **Normalized FFO Attributable to Controlling Interest (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $47,688 | $23,173 | | Nine Months Ended Sep 30 | $122,526 | $67,549 | [Net Operating Income](index=56&type=section&id=Net%20Operating%20Income) - Net Operating Income (NOI), a non-GAAP financial measure, increased significantly for both the three and nine months ended September 30, 2024, reflecting improved operating performance of the property portfolio[272](index=272&type=chunk)[274](index=274&type=chunk) **Net Operating Income (in thousands)** | Period | 2024 | 2023 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | $93,536 | $75,063 | | Nine Months Ended Sep 30 | $264,407 | $222,317 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk, and the strategies employed to manage it, detailing the impact of interest rate changes on debt and derivative financial instruments [Interest Rate Risk](index=56&type=section&id=Interest%20Rate%20Risk) - The company's primary market risk is interest rate risk, managed through derivative financial instruments like interest rate swaps, which are not designated as hedges[277](index=277&type=chunk)[278](index=278&type=chunk) - As of September 30, 2024, the interest rate swaps were recorded as other liabilities at an aggregate fair value of **$(3,088)k**[278](index=278&type=chunk) - A **0.50%** increase in market interest rates would increase the company's overall annualized interest expense on variable-rate mortgage loans and lines of credit by **$1,070k**, or **1.2%** of total annualized interest expense[282](index=282&type=chunk) [Debt Security Investment, Net](index=57&type=section&id=Debt%20Security%20Investment,%20Net) - As of September 30, 2024, the net carrying value of the debt security investment was **$90,144k**, with an effective interest rate of **4.24%** per annum[280](index=280&type=chunk) - The company expects to hold its debt security investment to maturity, and fluctuations in interest rates are not anticipated to have a significant impact on operations[280](index=280&type=chunk) [Mortgage Loans Payable, Net and Lines of Credit and Term Loan](index=57&type=section&id=Mortgage%20Loans%20Payable,%20Net%20and%20Lines%20of%20Credit%20and%20Term%20Loan) - As of September 30, 2024, mortgage loans payable totaled **$1.31 billion**, and **$596.53 million** was outstanding under lines of credit and term loan[281](index=281&type=chunk) - The weighted average effective interest rate on the company's outstanding debt, factoring in interest rate swaps, was **4.72%** per annum as of September 30, 2024[282](index=282&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2024, with no material changes in internal control over financial reporting occurring during the fiscal quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2024[286](index=286&type=chunk) - There were no material changes in internal control over financial reporting during the fiscal quarter ended September 30, 2024[287](index=287&type=chunk) [PART II — OTHER INFORMATION](index=59&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material litigation or threatened legal proceedings that would have a material adverse effect on its financial position, results of operations, or cash flows - The company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against it[289](index=289&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors include magnified effects of negative conditions due to high concentrations of properties in specific geographic areas (Indiana, Ohio, Kentucky) and potential increases in operating costs and regulatory penalties from new federal minimum staffing requirements for skilled nursing facilities - Properties located in Indiana, Ohio, and Kentucky accounted for approximately **28.7%**, **12.5%**, and **12.3%**, respectively, of the total property portfolio's annualized base rent or annualized NOI as of September 30, 2024, creating geographic concentration risk[291](index=291&type=chunk) - New federal nursing home staffing rules, finalized in April 2024, may increase operating costs for skilled nursing tenants and operators, and non-compliance could lead to financial penalties or reputational harm[293](index=293&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On August 19, 2024, Platform Healthcare Investor T-II, LLC redeemed its OP units in exchange for 1.22 million shares of the company's Common Stock, which was an unregistered sale exempt from registration under Section 4(a)(2) of the Securities Act of 1933 - Platform Healthcare Investor T-II, LLC redeemed all of its OP units for **1.22 million shares** of Common Stock on August 19, 2024[294](index=294&type=chunk) - The issuance of these shares was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended[294](index=294&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[294](index=294&type=chunk) [Item 4. Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are not applicable to the registrant[294](index=294&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) During the reporting period, none of the company's directors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - None of the company's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the period covered by this report[295](index=295&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists all exhibits included or incorporated by reference in the Quarterly Report on Form 10-Q for the period ended September 30, 2024, including organizational documents, agreements, and certifications - Exhibits include Fourth Articles of Amendment and Restatement, Articles of Amendment (Reverse Stock Split, Par Value Decrease, Common Stock Reclassification, Subtitle 8 Opt-Out), Amended and Restated Bylaws, a Waiver and Agreement, CEO/CFO Certifications (302 and 906), and Inline XBRL documents[297](index=297&type=chunk) [Signatures](index=61&type=section&id=Signatures) The report is officially signed by Danny Prosky, Chief Executive Officer, President and Director, and Brian S. Peay, Chief Financial Officer, on November 13, 2024, confirming its submission - The report was signed by Danny Prosky (Chief Executive Officer, President and Director) and Brian S. Peay (Chief Financial Officer) on November 13, 2024[300](index=300&type=chunk)

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) [Third Quarter 2024 Performance Highlights](index=1&type=section&id=Third%20Quarter%202024%20Performance%20Highlights) American Healthcare REIT reported a GAAP net loss and positive NFFO for Q3 2024, with total portfolio Same-Store NOI growing 17.0% from strong SHOP and ISHC performance Q3 2024 Key Financial Performance | Metric | Value | | :------------------------------------------------------------------ | :---------------- | | GAAP Net Loss | $(3.1) million | | GAAP Net Loss Attributable to Common Stockholders (per diluted share) | $(0.03) | | Normalized FFO Attributable to Common Stockholders (per diluted share) | $0.36 | | Total Portfolio Same-Store NOI Growth (YoY) | 17.0% | | SHOP Same-Store NOI Growth (YoY) | 61.8% | | ISHC Same-Store NOI Growth (YoY) | 22.6% | [Full Year 2024 Guidance Update](index=1&type=section&id=Full%20Year%202024%20Guidance%20Update) The company increased its full-year 2024 guidance for total portfolio Same-Store NOI growth and NFFO per diluted share, reflecting improved performance and strategic transactions Revised Full Year 2024 Guidance | Metric | Prior Guidance Range | Revised Guidance Range | | :-------------------------------------- | :------------------- | :--------------------- | | Total Portfolio Same-Store NOI Growth | 12.0% to 14.0% | 15.0% to 17.0% | | NFFO per Diluted Share | $1.23 to $1.27 | $1.40 to $1.43 | [Strategic and Capital Activities](index=1&type=section&id=Strategic%20and%20Capital%20Activities) American Healthcare REIT completed a follow-on equity offering, acquired the remaining minority interest in Trilogy Holdings, and improved its Net-Debt-to-Annualized Adjusted EBITDA ratio - Completed a follow-on equity offering for approximately **20.0 million shares**, raising gross proceeds of approximately **$471.2 million**[5](index=5&type=chunk) - Acquired its joint venture partner's remaining **24% minority membership interest** in Trilogy REIT Holdings, becoming Trilogy's sole owner for approximately **$258.0 million cash**[6](index=6&type=chunk) - Acquired a senior housing portfolio in Washington for approximately **$36.2 million** of assumed debt, plus closing costs[4](index=4&type=chunk) Leverage Improvement | Metric | As of June 30, 2024 | As of September 30, 2024 | | :-------------------------------------- | :------------------ | :----------------------- | | Net-Debt-to-Annualized Adjusted EBITDA | 5.9x | 5.1x | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed confidence in the Trilogy acquisition and continued growth in the ISHC and SHOP segments, attributing improved guidance to strategic actions and property performance - CEO Danny Prosky: Expects to expand ISHC segment as sole owner of Trilogy and pursue external growth in SHOP segment, seeing best risk-adjusted returns in healthcare real estate there[8](index=8&type=chunk) - COO Gabe Willhite: Notes strong property performance in ISHC and SHOP, climbing occupancy, and mid-single-digit Same-Store RevPOR growth in SHOP[10](index=10&type=chunk) - CFO Brian Peay: Attributes increased NFFO and Same-Store NOI guidance to accretive Trilogy purchase, equity offering proceeds used for debt paydown, and improved property performance, leading to better liquidity and lower leverage[19](index=19&type=chunk) [Financial Performance and Outlook](index=3&type=section&id=Financial%20Performance%20and%20Outlook) [Third Quarter and Year-to-Date 2024 Results](index=3&type=section&id=Third%20Quarter%20and%20Year-to-Date%202024%20Results) The company demonstrated robust Same-Store NOI growth across its portfolio for Q3 and year-to-date 2024, primarily driven by strong ISHC and SHOP segment performance Same-Store NOI Growth by Segment (Q3 2024 vs. Q3 2023) | Segment | NOI Growth | | :------------------------- | :--------- | | ISHC | 22.6% | | Outpatient Medical | 0.1% | | SHOP | 61.8% | | Triple-Net Leased Properties | 3.0% | | Total Portfolio | 17.0% | Same-Store NOI Growth by Segment (Nine Months Ended Sep 30, 2024 vs. 2023) | Segment | NOI Growth | | :------------------------- | :--------- | | ISHC | 22.2% | | Outpatient Medical | 0.2% | | SHOP | 48.0% | | Triple-Net Leased Properties | 3.4% | | Total Portfolio | 15.9% | - Property performance in ISHC and SHOP segments remains strong, with occupancy continuing to climb and mid-single-digit Same-Store RevPOR growth realized within the SHOP segment[10](index=10&type=chunk) [Full Year 2024 Guidance](index=3&type=section&id=Full%20Year%202024%20Guidance) The company has increased its full-year 2024 guidance for key financial metrics, including NAREIT FFO per share, NFFO per share, and total portfolio Same-Store NOI growth, reflecting an improved outlook Revised Full Year 2024 Guidance Ranges | Metric | Midpoint | Revised FY 2024 Range | Prior FY 2024 Range | | :-------------------------------------- | :------- | :-------------------- | :------------------ | | NAREIT FFO per share | $1.30 | $1.28 to $1.31 | $1.17 to $1.22 | | NFFO per share | $1.42 | $1.40 to $1.43 | $1.23 to $1.27 | | Total Portfolio SS NOI Growth | 16.0% | 15.0% to 17.0% | 12.0% to 14.0% | | Segment-Level SS NOI Growth / (Decline):| | | | | ISHC | 22.0% | 21.0% to 23.0% | 18.0% to 20.0% | | Outpatient Medical | (0.3)% | (0.5)% to 0.0% | (0.5)% to 0.0% | | SHOP | 52.5% | 51.5% to 53.5% | 45.0% to 50.0% | | Triple-Net Leased Properties | 3.0% | 2.0% to 4.0% | 1.0% to 3.0% | [Non-GAAP Measures Disclosure](index=4&type=section&id=Non-GAAP%20Measures%20Disclosure) The company's 2024 guidance includes Non-GAAP financial measures, with forward-looking GAAP reconciliations not provided due to the unpredictability of non-recurring items - Guidance for 2024 includes Non-GAAP financial measures such as NAREIT FFO, NFFO, and Same-Store NOI growth[12](index=12&type=chunk) - Reconciliation of forward-looking Non-GAAP financial measures to comparable GAAP measures cannot be provided without unreasonable effort due to the inability to predict non-recurring and infrequent items[12](index=12&type=chunk) [Business Operations and Capital Management](index=5&type=section&id=Business%20Operations%20and%20Capital%20Management) [Transactional Activity](index=5&type=section&id=Transactional%20Activity) American Healthcare REIT completed strategic acquisitions, including a senior housing portfolio and the remaining interest in Trilogy Holdings, while continuing its disposition strategy - Acquired a senior housing portfolio in Washington (**242 units** across five properties) for approximately **$36.2 million** of assumed debt, with operations transitioned to existing regional operators[13](index=13&type=chunk) - Acquired the remaining **24% minority membership interest** in Trilogy Holdings for approximately **$258 million cash**, becoming the sole owner of Trilogy[14](index=14&type=chunk) - Subsequent to quarter end, acquired a SHOP asset in the Atlanta MSA (**90 units**) for approximately **$7.5 million**[15](index=15&type=chunk) - Subsequent to quarter end, sold one Outpatient Medical building for approximately **$19.4 million**. Year-to-date sales of Non-Core Properties totaled approximately **$35.0 million**[16](index=16&type=chunk) [Capital Markets and Balance Sheet Activity](index=5&type=section&id=Capital%20Markets%20and%20Balance%20Sheet%20Activity) The company's total indebtedness as of September 30, 2024, was $1.90 billion, with total liquidity of $1.07 billion, following a follow-on equity offering that reduced debt and improved leverage Balance Sheet Snapshot (as of September 30, 2024) | Metric | Value | | :----------------- | :---------------- | | Total Indebtedness | $1.90 billion | | Total Liquidity | $1.07 billion | | Net-Debt-to-Annualized Adjusted EBITDA | 5.1x | - Completed an offering for approximately **20.0 million shares** of common stock, raising gross proceeds of approximately **$471.2 million**[18](index=18&type=chunk) - Net proceeds from the equity offering were used to acquire the Trilogy minority interest and pay down approximately **$194.0 million** on the Company's lines of credit, improving liquidity and decreasing leverage[18](index=18&type=chunk)[19](index=19&type=chunk) [Distributions](index=7&type=section&id=Distributions) The Board of Directors declared a cash distribution of $0.25 per share of common stock for Q3 2024, paid on October 18, 2024 - Declared a cash distribution of **$0.25 per share** of common stock for Q3 2024, paid on October 18, 2024[20](index=20&type=chunk) [Corporate Information & Investor Resources](index=7&type=section&id=Corporate%20Information%20%26%20Investor%20Resources) [Supplemental Information & Conference Call](index=7&type=section&id=Supplemental%20Information%20%26%20Conference%20Call) Supplemental financial information for Q3 2024 is available online, and a webcast and conference call were held to discuss results and recent events - Supplemental information regarding portfolio, financial position, and results of operations for Q3 2024 is available on the Investor Relations section of the Company's website[21](index=21&type=chunk) - A webcast and conference call were scheduled for November 13, 2024, at 1:00 p.m. Eastern Time to review Q3 2024 results[22](index=22&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to known and unknown risks and uncertainties, and readers are cautioned against undue reliance - Statements regarding interest expense savings, balance sheet, per share metrics (net income/loss, FFO, NFFO), Same-Store NOI growth, occupancy, revenue growth, margin expansion, asset transactions, and plans for Trilogy are considered forward-looking[24](index=24&type=chunk) - Forward-looking statements are based on current expectations and involve known and unknown risks and uncertainties that could cause actual results to differ materially[24](index=24&type=chunk) [About American Healthcare REIT, Inc.](index=11&type=section&id=About%20American%20Healthcare%20REIT%2C%20Inc.) American Healthcare REIT, Inc. is a self-managed REIT that acquires, owns, and operates a diversified portfolio of clinical healthcare real estate properties across multiple geographies - American Healthcare REIT is a self-managed REIT that acquires, owns, and operates a diversified portfolio of clinical healthcare real estate properties[31](index=31&type=chunk) - Primary focus areas include senior housing, skilled nursing facilities, outpatient medical buildings, and other healthcare-related facilities[31](index=31&type=chunk) - Properties are located in the United States, the United Kingdom, and the Isle of Man[31](index=31&type=chunk) [Non-GAAP Financial Measures - Definitions](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Definitions) [Overview of Non-GAAP Measures](index=8&type=section&id=Overview%20of%20Non-GAAP%20Measures) The company uses various Non-GAAP financial measures to supplement GAAP results, aiding in evaluating operating performance and peer comparisons by excluding non-operating or non-recurring items - Non-GAAP financial measures are used as supplemental measures of operating performance and for comparisons between periods and to other REITs[25](index=25&type=chunk) - These measures exclude differences caused by unanticipated and/or incalculable items[25](index=25&type=chunk) [EBITDA and Adjusted EBITDA Definitions](index=9&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Definitions) EBITDA and Adjusted EBITDA are Non-GAAP measures used for internal and external comparisons, excluding specific non-cash or non-recurring items to clarify core operating performance, but are not GAAP alternatives - EBITDA is defined as earnings before interest, taxes, depreciation, and amortization[26](index=26&type=chunk)[50](index=50&type=chunk) - Adjusted EBITDA excludes items such as gain/loss from unconsolidated entities, non-cash stock-based compensation, business acquisition expenses, and changes in fair value of derivative financial instruments[50](index=50&type=chunk) - Neither EBITDA nor Adjusted EBITDA represents net income (loss) or cash flow from operating activities as determined by GAAP and should not be considered alternatives to profitability or liquidity[26](index=26&type=chunk) [Funds from Operations (FFO) and Normalized FFO (NFFO) Definitions](index=9&type=section&id=Funds%20from%20Operations%20(FFO)%20and%20Normalized%20FFO%20(NFFO)%20Definitions) FFO and NFFO are supplemental Non-GAAP measures that adjust GAAP net income for real estate-related non-cash items, providing insight into operating performance but not replacing GAAP net income or cash flows - NAREIT FFO is defined as GAAP net income (loss) excluding gains/losses from sales of certain real estate assets, consolidation gains, impairment write-downs, plus real estate-related depreciation and amortization, with adjustments for unconsolidated entities[50](index=50&type=chunk) - Normalized FFO (NFFO) further adjusts FFO for expensed acquisition fees, changes in deferred rent, non-cash impact of equity instruments, and other non-cash or non-recurring income/expense items[50](index=50&type=chunk)[51](index=51&type=chunk) - FFO and NFFO should not be construed as more relevant or accurate than GAAP net income (loss) for operating performance or GAAP cash flows from operations for liquidity[27](index=27&type=chunk) [Net Operating Income (NOI) Definitions](index=9&type=section&id=Net%20Operating%20Income%20(NOI)%20Definitions) NOI, Cash NOI, Pro-Rata Cash NOI, and Same-Store NOI are supplemental measures reflecting property operating performance by excluding non-operational items, with Same-Store NOI focusing on consistent property populations - NOI is defined as GAAP net income (loss) generated from properties before general and administrative expenses, business acquisition expenses, depreciation and amortization, interest expense, and other non-operating income/expense items[50](index=50&type=chunk) - Cash NOI excludes non-cash items like straight-line rent and amortization of lease intangibles, and third-party facility rent payments[50](index=50&type=chunk) - Same-Store NOI is Cash NOI for properties owned or consolidated for the full year in both comparison years, excluding properties sold, held for sale, or impacted by disruptive events or major renovations/transitions[51](index=51&type=chunk) - NOI and related measures are not equivalent to GAAP net income (loss) and should not be considered alternatives to operating performance or liquidity indicators[30](index=30&type=chunk) [Other Key Definitions](index=25&type=section&id=Other%20Key%20Definitions) The report defines various industry-specific and company-specific terms to ensure clarity, covering property types, financial structures, and asset classifications - ISHC (Integrated senior health campuses) include independent living, assisted living, memory care, skilled nursing, and ancillary businesses, predominantly utilizing a RIDEA structure[50](index=50&type=chunk) - RIDEA structure allows the company to lease properties to a wholly-owned taxable REIT subsidiary (TRS), which contracts an eligible independent contractor (EIK) to operate them, allowing the TRS to retain after-tax profit from operations[51](index=51&type=chunk) - Non-Core Properties are assets deemed not essential to future economic benefit or value, and/or are projected to be sold[50](index=50&type=chunk) - Net Debt is total long-term debt (excluding operating lease liabilities) less cash, cash equivalents, and restricted cash related to debt[50](index=50&type=chunk) [Condensed Consolidated Financial Statements](index=12&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets slightly increased to $4.68 billion, while total liabilities significantly decreased to $2.42 billion, leading to a substantial rise in total equity to $2.26 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :-------------------------------------- | :----------- | :----------- | | Total Assets | $4,677,012 | $4,577,933 | | Real Estate Investments, net | $3,535,943 | $3,425,438 | | Cash and Cash Equivalents | $67,850 | $43,445 | | Total Liabilities | $2,419,828 | $3,118,755 | | Lines of Credit and Term Loan, net | $595,970 | $1,223,967 | | Total Equity | $2,256,964 | $1,425,335 | | Additional Paid-in Capital | $3,594,917 | $2,548,307 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q3 2024, the company reported a net loss of $(3.09) million, an improvement from the prior year, driven by increased revenues from resident fees and services, despite other financial impacts Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :------------------------------------------------------------------ | :------------------------------ | :------------------------------ | | Total Revenues and Grant Income | $523,814 | $464,240 | | Resident Fees and Services | $476,834 | $416,206 | | Total Expenses | $489,982 | $450,816 | | Interest Expense | $(30,395) | $(42,005) | | (Loss) Gain in Fair Value of Derivative Financial Instruments | $(8,967) | $3,402 | | (Loss) Gain on Dispositions of Real Estate Investments, net | $(4) | $31,981 | | Net Loss | $(3,093) | $(6,446) | | Net Loss Attributable to Controlling Interest (per diluted share) | $(0.03) | $(0.09) | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | | Total Revenues and Grant Income | $1,527,928 | $1,384,037 | | Resident Fees and Services | $1,386,965 | $1,235,458 | | Total Expenses | $1,437,627 | $1,338,777 | | Interest Expense | $(97,429) | $(122,006) | | (Loss) Gain in Fair Value of Derivative Financial Instruments | $(2,162) | $8,200 | | (Loss) Gain on Dispositions of Real Estate Investments, net | $2,257 | $29,777 | | Net Loss | $(3,171) | $(45,928) |\ | Net Loss Attributable to Controlling Interest (per diluted share) | $(0.05) | $(0.67) | [Non-GAAP Financial Reconciliations](index=16&type=section&id=Non-GAAP%20Financial%20Reconciliations) [FFO and Normalized FFO Reconciliation](index=16&type=section&id=FFO%20and%20Normalized%20FFO%20Reconciliation) The reconciliation shows positive NAREIT FFO and NFFO despite a GAAP net loss, reflecting adjustments for non-cash items, with NFFO per diluted share increasing to $0.36 for Q3 2024 FFO and NFFO Reconciliation Highlights (in thousands, except per share) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :------------------------------------------------------------------ | :------------------------------ | :------------------------------ | | Net Loss | $(3,093) | $(6,446) | | Depreciation and Amortization related to real estate | $44,208 | $49,235 | | NAREIT FFO attributable to controlling interest | $35,640 | $17,810 | | Normalized FFO attributable to controlling interest | $47,688 | $23,173 | | NAREIT FFO per common share attributable to controlling interest – diluted | $0.27 | $0.27 | | Normalized FFO per common share attributable to controlling interest – diluted | $0.36 | $0.35 | FFO and NFFO Reconciliation Highlights (in thousands, except per share) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- |\ | Net Loss | $(3,171) | $(45,928) | | Depreciation and Amortization related to real estate | $132,163 | $138,530 | | NAREIT FFO attributable to controlling interest | $108,684 | $57,075 | | Normalized FFO attributable to controlling interest | $122,526 | $67,549 | | NAREIT FFO per common share attributable to controlling interest – diluted | $0.88 | $0.86 | | Normalized FFO per common share attributable to controlling interest – diluted | $1.00 | $1.02 | [Adjusted EBITDA Reconciliation](index=17&type=section&id=Adjusted%20EBITDA%20Reconciliation) For Q3 2024, the company's Adjusted EBITDA was $87.01 million, derived from a GAAP net loss after adding back interest, taxes, depreciation, amortization, and other non-cash or non-recurring items Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Sep 30, 2024 | | :------------------------------------------------------------------ | :------------------------------ | | Net Loss | $(3,093) | | Interest expense | $30,395 | | Income tax expense | $263 | | Depreciation and amortization | $44,742 | | EBITDA | $72,307 | | Loss from unconsolidated entities | $2,123 | | Non-cash stock-based compensation expense | $2,630 | | Business acquisition expenses | $3,537 | | Loss in fair value of derivative financial instruments | $8,967 | | Adjusted EBITDA | $87,013 | [NOI and Cash NOI Reconciliation](index=18&type=section&id=NOI%20and%20Cash%20NOI%20Reconciliation) The company's Net Operating Income (NOI) for Q3 2024 was $93.54 million, increasing to Cash NOI of $100.53 million after adjustments, reflecting improved property performance year-over-year NOI and Cash NOI Reconciliation (in thousands) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :------------------------------------------------------------------ | :------------------------------ | :------------------------------ | | Net Loss | $(3,093) | $(6,446) | | General and administrative | $11,921 | $11,342 | | Depreciation and amortization | $44,246 | $49,273 | | Interest expense | $30,395 | $42,005 | | Net Operating Income (NOI) | $93,536 | $75,063 | | Total NOI (excluding Grant Income) | $93,536 | $73,999 | | Cash NOI | $100,528 | $84,829 | NOI and Cash NOI Reconciliation (in thousands) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | | Net Loss | $(3,171) | $(45,928) | | General and administrative | $35,495 | $36,169 | | Depreciation and amortization | $132,277 | $138,644 | | Interest expense | $97,429 | $122,006 | | Net Operating Income (NOI) | $264,407 | $222,317 | | Total NOI (excluding Grant Income) | $264,407 | $214,872 | | Cash NOI | $286,476 | $251,745 | [Same-Store NOI Reconciliation](index=19&type=section&id=Same-Store%20NOI%20Reconciliation) The company reported strong Same-Store NOI growth across all segments for Q3 2024 and year-to-date, with SHOP and ISHC segments showing particularly high growth rates, contributing to a 17.0% total portfolio increase Same-Store NOI by Segment (in thousands) | Segment | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :------------------------- | :------------------------------ | :------------------------------ | | ISHC Same-Store NOI | $48,454 | $39,530 | | Outpatient Medical Same-Store NOI | $20,183 | $20,167 | | SHOP Same-Store NOI | $9,113 | $5,632 | | Triple-Net Leased Properties Same-Store NOI | $9,453 | $9,174 | | Total Same-Store NOI | $87,203 | $74,503 | Same-Store NOI by Segment (in thousands) | Segment | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------- | :----------------------------- | :----------------------------- | | ISHC Same-Store NOI | $140,042 | $114,582 | | Outpatient Medical Same-Store NOI | $60,366 | $60,220 | | SHOP Same-Store NOI | $25,700 | $17,365 | | Triple-Net Leased Properties Same-Store NOI | $28,026 | $27,103 | | Total Same-Store NOI | $254,134 | $219,270 | [Same-Store Revenue Reconciliation](index=22&type=section&id=Same-Store%20Revenue%20Reconciliation) Total Same-Store revenue for Q3 2024 increased to $358.16 million, primarily driven by improved operational performance in the ISHC and SHOP segments Same-Store Revenue by Segment (in thousands) | Segment | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :------------------------- | :------------------------------ | :------------------------------ | | ISHC Same-Store revenue | $272,169 | $254,733 | | Outpatient Medical Same-Store revenue | $32,149 | $32,428 | | SHOP Same-Store revenue | $43,996 | $38,905 | | Triple-Net Leased Properties Same-Store revenue | $9,844 | $9,671 | | Total Same-Store revenue | $358,158 | $335,737 | Same-Store Revenue by Segment (in thousands) | Segment | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------- | :----------------------------- | :----------------------------- | | ISHC Same-Store revenue | $809,426 | $754,026 | | Outpatient Medical Same-Store revenue | $96,475 | $96,193 | | SHOP Same-Store revenue | $129,517 | $115,771 | | Triple-Net Leased Properties Same-Store revenue | $29,493 | $28,603 | | Total Same-Store revenue | $1,064,911 | $994,593 | [Earnings Guidance Reconciliation](index=24&type=section&id=Earnings%20Guidance%20Reconciliation) The earnings guidance reconciliation for full year 2024 shows increased ranges for NAREIT FFO and Normalized FFO per common share, and for Total Portfolio Same-Store NOI growth, reflecting an improved outlook Full Year 2024 Earnings Guidance Reconciliation (in millions, except per share) | Metric | Revised Full Year 2024 Guidance (Low) | Revised Full Year 2024 Guidance (High) | Previous Full Year 2024 Guidance (Low) | Previous Full Year 2024 Guidance (High) | | :------------------------------------------------------------------ | :------------------------------------ | :------------------------------------- | :------------------------------------- | :-------------------------------------- | | Net (loss) income attributable to common stockholders | $7.84 | $11.76 | $(8.80) | $(3.05) | | NAREIT FFO attributable to common stockholders | $166.24 | $170.16 | $147.30 | $151.30 | | Normalized FFO attributable to common stockholders | $182.44 | $186.36 | $154.20 | $158.20 | | Net income (loss) per common share – diluted | $0.06 | $0.09 | $(0.07) | $(0.02) | | NAREIT FFO per common share – diluted | $1.28 | $1.31 | $1.17 | $1.22 | | Normalized FFO per common share – diluted | $1.40 | $1.43 | $1.23 | $1.27 | | Total Portfolio Same-Store NOI growth | 15.0% | 17.0% | 12.0% | 14.0% |

Core Insights - American Healthcare REIT, Inc. reported a GAAP net loss of $(3.1) million for Q3 2024, with a loss attributable to common stockholders of $(0.03) per diluted share [2] - The company achieved a Normalized Funds from Operations (NFFO) of $0.36 per diluted share for the same period [2] - Total portfolio Same-Store Net Operating Income (NOI) grew by 17.0% compared to Q3 2023, driven by significant growth in senior housing operating properties [2][3] - The company has revised its total portfolio Same-Store NOI growth guidance for 2024 from 12.0%-14.0% to 15.0%-17.0% [2] - Recent acquisitions include a senior housing portfolio in Washington for approximately $36.2 million and the remaining 24% interest in Trilogy Holdings for about $258 million [2][6] Financial Performance - The company reported total revenues of $523.8 million for Q3 2024, an increase from $464.2 million in Q3 2023 [20] - Property operating expenses totaled $417.1 million, compared to $374.6 million in the prior year [20] - The company’s total indebtedness stood at $1.90 billion as of September 30, 2024, with a Net-Debt-to-Annualized Adjusted EBITDA ratio of 5.1x [7] Guidance and Outlook - NFFO guidance for the year ending December 31, 2024, has been increased to a range of $1.40 to $1.43 per share, up from $1.23 to $1.27 [2][5] - The company expects to continue expanding its Integrated Senior Health Campuses (ISHC) segment and pursue external growth within its Senior Housing Operating Properties (SHOP) segment [2] Capital Markets Activity - A follow-on equity offering raised approximately $471.2 million, with net proceeds used for acquisitions and debt repayment [7] - The company has improved its liquidity position, with approximately $1.07 billion in total liquidity as of September 30, 2024 [7] Distributions - The Board of Directors declared a cash distribution of $0.25 per share for Q3 2024, paid on October 18, 2024 [8]

Core Viewpoint - American Healthcare REIT, Inc. (AHR) is expected to report third-quarter 2024 results on Nov. 12, with anticipated year-over-year revenue growth but a potential decline in normalized funds from operations (FFO) per share [1][8]. Financial Performance - In the last reported quarter, AHR delivered a normalized FFO per share of 33 cents, exceeding the Zacks Consensus Estimate by 13.8%, with year-over-year growth in total portfolio same-store net operating income (NOI) [2][3]. - The Zacks Consensus Estimate for third-quarter resident fees and services is $463.3 million, up from $416.2 million in the prior year, while total revenues are projected at $512.9 million, indicating a 10.5% increase [7]. - The estimate for third-quarter real estate revenues is $46.9 million, reflecting a slight decrease from $47 million reported in the previous year [8]. Market Dynamics - AHR's portfolio includes clinical healthcare real estate properties, focusing on medical office buildings, senior housing, skilled nursing facilities, and hospitals, which likely experienced healthy demand in the third quarter [3]. - The integrated senior health campuses segment is expected to perform well, enhancing care access for residents [4]. - The senior housing operating portfolio (SHOP) is anticipated to benefit from an aging U.S. population and increased healthcare expenditure, contributing to high occupancy rates [5]. Challenges - High interest expenses are expected to negatively impact AHR's performance during the third quarter [6]. - The Zacks Consensus Estimate for normalized FFO per share has remained unchanged at 32 cents, indicating an 8.6% decrease from the previous year's figure [8][10]. Comparative Performance - Other healthcare REITs, such as Ventas, Inc. and Healthpeak Properties, Inc., reported positive results, with Ventas achieving a normalized FFO per share of 80 cents, a 6.7% increase year-over-year, and Healthpeak reporting 45 cents, beating estimates by a penny [11][12].