Operating Expenses - Total property operating expenses for integrated senior health campuses increased to 328.361 million (90.8%) in Q1 2023, driven by higher occupancy and increased labor costs[204] - SHOP segment property operating expenses rose to 41.785 million (89.2%) in Q1 2023[204] - Total rental expenses decreased to 15.195 million (34.9%) in Q1 2023, with OM segment expenses at 638,000 (4.8%)[204] - General and administrative expenses decreased by 11.828 million in Q1 2024, primarily due to a 1.903 million in Q1 2024, mainly due to the full amortization of 6.4 million due to the acquisition of 14 senior housing properties in February 2024[205] - Depreciation and amortization expenses decreased to 44,670,000 in Q1 2023, primarily due to lower amortization of intangible assets[209] - Rental expenses for the OM segment decreased in Q1 2024 compared to Q1 2023, primarily due to the disposition of OM buildings since March 31, 2023[206] Revenue Growth - Total revenues for the three months ended March 31, 2024, were 452.2 million for the same period in 2023[199] - Resident fees and services revenue increased by 12.1 million, driven by acquisitions and transitioning properties to a RIDEA structure[201] - Real estate revenue for the triple-net leased properties segment increased by 31.4 million in Q1 2024, primarily due to increased resident occupancy and higher billing rates[200] - SHOP segment revenue increased by 7.2 million in Q1 2024, largely due to transitioning SNFs to a RIDEA structure[202] Financial Performance and Metrics - Net loss for Q1 2024 improved to (27.6) million in Q1 2023, driven by increased resident occupancies and higher billing rates[242] - NAREIT FFO attributable to controlling interest increased to 11.7 million in Q1 2023, reflecting stronger operational performance[242] - Normalized FFO attributable to controlling interest rose to 20.2 million in Q1 2023, supported by higher resident fees and services revenue[242] - FFO, a non-GAAP measure, excludes gains/losses from real estate sales, impairments, and includes depreciation and amortization related to real estate, providing insights into operational performance[238] - NAREIT FFO attributable to controlling interest increased to 11,691,000 in Q1 2023[242] - Normalized FFO attributable to controlling interest rose to 20,229,000 in Q1 2023[242] - Weighted average common shares outstanding increased to 104,295,142 in Q1 2024 from 66,026,173 in Q1 2023[242] - Net loss per common share improved to (0.39) in Q1 2023[242] - NAREIT FFO per common share increased to 0.18 in Q1 2023[242] - Normalized FFO per common share remained stable at 0.31 in Q1 2023[242] Capital and Financing Activities - The company issued 64.4 million shares of Common Stock in February 2024, raising 17.1 million of restricted cash in loan impounds and reserve accounts to fund capital expenditures as of March 31, 2024[217] - The company's aggregate borrowing capacity under its credit facilities was 760 million outstanding and 124,531,000, compared to 5,954,000, compared to net cash provided by operating activities of 28,096,000 in Q1 2024 compared to Q1 2023, primarily due to reduced real estate acquisitions and increased proceeds from dispositions[224] - Net cash provided by financing activities in Q1 2024 was 772,800,000 in gross proceeds from the 2024 Offering, partially offset by increased debt repayments[225] - Quarterly distributions paid in Q1 2024 were 26,492,000 in Q1 2023[229] - Total interest expense decreased to 39,206,000 in Q1 2023, driven by reduced debt balances and a gain in fair value of derivative financial instruments[212] - The company paid off 545,010,000 of variable-rate lines of credit in February 2024[212] - Net cash provided by financing activities for Q1 2024 was 772,800,000 in gross offering proceeds from the issuance of Common Stock, partially offset by 16,596,000, sourced entirely from proceeds from borrowings, compared to 0.25 per share since Q1 2023, equating to an annualized distribution rate of 11,328,000 in Q1 2024 compared to Q1 2023, driven by reduced cash paid for real estate investments and increased proceeds from dispositions[224] - The company's REIT qualification requires distributing at least 90.0% of REIT taxable income, with a safe harbor allowing distributions in cash and stock, provided the cash component is at least 20.0%[232] - FFO (Funds from Operations) for Q1 2024 was 11,691,000 (44.1%) in Q1 2023[229] Real Estate and Property Operations - The company operates through four reportable business segments: integrated senior health campuses, outpatient medical (OM), triple-net leased properties, and SHOP, with no changes to historical results despite the segment name change from MOBs to OM[175] - As of March 31, 2024, the company owned 97.4% of the operating partnership units, up from 95.0% as of December 31, 2023[179] - The company has approximately 112 employees and operates clinical healthcare properties in the U.S., the U.K., and the Isle of Man, utilizing the RIDEA structure for senior housing and integrated senior health campuses[178] - As of March 31, 2024, the company's properties were 91.0% leased, with 6.5% of the leased GLA scheduled to expire during the remainder of 2024[192] - The combined SHOP and integrated senior health campuses were 85.5% leased as of March 31, 2024, with most resident leases being for a term of one year or less[193] - Properties were 91.0% leased as of March 31, 2024, with 6.5% of leased GLA scheduled to expire in 2024[192] - Combined SHOP and integrated senior health campuses were 85.5% leased as of March 31, 2024, with most resident leases being for one year or less[193] - Estimated unspent discretionary expenditures for capital and tenant improvements for the remaining nine months of 2024 are 2,994,182,000, including principal and interest payments on fixed and variable-rate debt, ground and other lease obligations, and financing obligations[218] - The company's aggregate borrowing capacity under the 2024 Credit Facility and the Trilogy Credit Facility is 760,000,000 outstanding and 2,263,000 on dispositions of real estate investments in Q1 2024 from the sale of two OM buildings and one SHOP[213] - The company maintains compliance with all financial and non-financial covenants related to its mortgage loans payable and lines of credit as of March 31, 2024[236] Inflation and Economic Impact - Inflation in the U.S. reached 3.5% in March 2024, impacting labor, services, energy, and supply costs, leading to higher rent and care fee increases for existing residents in 2023 and 2024[189]
American Healthcare REIT(AHR) - 2024 Q1 - Quarterly Report