American Healthcare REIT(US:AHR)2024-08-09 17:58Financial Performance - For the three months ended June 30, 2024, total revenues and grant income increased to $504,581,000, up from $467,571,000 in the same period of 2023, representing an increase of 7.2%[185]. - Integrated senior health campuses generated resident fees and services revenue of $393,774,000 for the three months ended June 30, 2024, compared to $362,856,000 in 2023, reflecting an increase of 8.5%[185]. - The SHOP segment saw an increase in resident fees and services revenue by $16,473,000 for the three months ended June 30, 2024, primarily due to the acquisition of 14 senior housing properties in February 2024[187]. - The company reported net cash used in investing activities of $(65,534,000) for the six months ended June 30, 2024, compared to net cash provided of $9,687,000 for the same period in 2023[209]. - The net income for the three months ended June 30, 2024, was $2,926,000, compared to a net loss of $11,867,000 for the same period in 2023[225]. - Funds from operations (FFO) attributable to controlling interest for the six months ended June 30, 2024, was $49,594,000, a 91.1% increase from $39,265,000 for the same period in 2023[215]. - The normalized FFO attributable to controlling interest for the six months ended June 30, 2024, was $74,838,000, up from $44,376,000 in the same period of 2023[225]. - Net operating income (NOI) for the three months ended June 30, 2024, was $88,694,000, an increase of 10.5% compared to $80,369,000 for the same period in 2023[228]. Property and Leasing Information - As of June 30, 2024, the company owned and/or operated 318 buildings with a total gross leasable area of approximately 19,455,000 square feet, representing an aggregate contract purchase price of $4,612,670,000[170]. - As of June 30, 2024, the company's properties were 91.3% leased, with 4.2% of the leased gross leasable area scheduled to expire during the remainder of 2024[178]. - The total weighted average leased percentage across all property types was 91.3% as of June 30, 2024, slightly down from 92.5% in 2023[183]. - The remaining weighted average lease term for properties, excluding SHOP and integrated senior health campuses, was 6.6 years as of June 30, 2024[178]. - The total contractual obligations as of June 30, 2024, amounted to $2,964,187,000, including principal and interest payments on fixed and variable-rate debt[203]. Business Segments - 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[180]. - The company has modified its evaluation of business operations, resulting in a change in segment reporting to better reflect its operational structure[160]. - The total number of integrated senior health campuses increased to 126 in 2024 from 123 in 2023, with an aggregate purchase price contract of $2,012,932,000[183]. - Integrated senior health campuses reported property operating expenses of $348,466,000 for Q2 2024, representing 88.5% of revenue, compared to $328,696,000 and 89.0% in Q2 2023[190]. - The SHOP segment's total resident fees and services revenue for the six months ended June 30, 2024, reached $123,235,000, up from $94,626,000 in 2023, marking a 30.2% increase[185]. Costs and Expenses - The company has experienced increased costs due to inflation, leading to higher than average annual rent and care fee increases for existing residents in 2023 and 2024[176]. - Total property operating expenses for integrated senior health campuses increased to $348,466,000 for the three months ended June 30, 2024, compared to $328,696,000 in 2023, an increase of 6.0%[190]. - The company experienced an increase in costs due to inflation, impacting variable-rate debt and overall operating expenses[177]. - Total property operating expenses for the company increased to $402,564,000 in Q2 2024, or 87.9% of revenue, from $372,549,000 and 89.3% in Q2 2023[190]. - Interest expense decreased to $30,208,000 in Q2 2024 from $35,997,000 in Q2 2023, primarily due to a reduction in debt balances[195]. Capital and Financing - The company issued 64,400,000 shares of Common Stock in February 2024, raising a total of $772,800,000 in gross offering proceeds[168]. - Aggregate borrowings outstanding under credit facilities were $784,500,000 as of June 30, 2024, with $765,500,000 available on such facilities[205]. - The company had $1,253,419,000 in outstanding fixed-rate and variable-rate mortgage loans payable as of June 30, 2024, with a weighted average effective interest rate of 4.86% per annum[219]. - The company has an aggregate borrowing capacity of $1,550,000,000 under its credit facilities, with $784,500,000 outstanding as of June 30, 2024[205]. - The company anticipates that its liquidity sources will be sufficient to meet cash requirements for the next 12 months[200]. Shareholder Distributions - Distributions paid in cash increased to $49,594,000 for the six months ended June 30, 2024, compared to $43,086,000 for the same period in 2023[213]. - The company expects to continue quarterly distributions of $0.25 per share, equating to an annualized rate of $1.00 per share, dependent on financial conditions[212]. - The board suspended the DRIP offering on November 14, 2022, and current participants will receive cash distributions instead[211]. - The company is required to distribute a minimum of 90% of its REIT taxable income to maintain its REIT status[217].