Company Overview - American Healthcare REIT is a midsized but growing diversified healthcare REIT that focuses on investments in senior health campuses, particularly through its significant investment in Trilogy, which constitutes more than half of its Net Operating Income (NOI) [3]. Leadership and Structure - The leadership team includes Danny Prosky as President and CEO, Brian Peay as Chief Financial Officer, and Alan Peterson as VP of Investor Relations [2]. IPO and Market Position - The company went public approximately 1.5 years ago, with Bank of America (BofA) leading the Initial Public Offering (IPO) [2].

Summary of American Healthcare REIT Conference Call Company Overview - **Company**: American Healthcare REIT (NYSE:AHR) - **Type**: Mid-sized diversified healthcare REIT - **Key Investment**: Trilogy Health Services, which constitutes over 50% of the company's Net Operating Income (NOI) [2][3] Industry Insights - **Operating Environment**: The current operating environment for REITs is described as the best seen in 33 years, with significant organic earnings growth due to supply-demand imbalances in long-term care [3][4] - **Demand Growth**: The demand for long-term care is expected to grow significantly over the next 15 years, driven by the aging baby boomer population [4] - **Supply Constraints**: New construction starts in the healthcare sector have been low, leading to a multi-year period where demand will outstrip supply [4] Financial Performance - **Occupancy Rates**: As of the end of Q2, spot occupancy was approximately 87.5%, with strong growth observed in July and August [7][9] - **Revenue Per Occupied Room (REVPOR)**: There has been a focus on increasing REVPOR, which has shown significant growth, while occupancy rates have also improved [21][22] - **Medicare Advantage Growth**: The percentage of Medicare Advantage resident stays has increased to 7.2%, with expectations for continued growth as insurers push rates up due to demand for access to Trilogy facilities [13][14] Strategic Initiatives - **Dynamic Pricing**: The company is implementing dynamic pricing strategies across its portfolio, moving away from fixed rate sheets to more flexible pricing based on occupancy levels [30][31] - **Employee Retention**: Trilogy has a lower employee turnover rate (40-45%) compared to the industry average (80-100%), which is attributed to better employee satisfaction and career development opportunities [38][40][51] - **Acquisition Pipeline**: The company has over $350 million in its acquisition pipeline, focusing on high-quality assets that will provide organic earnings growth [58][60] Challenges and Risks - **Labor Shortages**: Labor remains a significant challenge in the industry, although the situation has improved recently. The company emphasizes the importance of being an attractive employer to retain staff [45][46] - **Regulatory Changes**: The company is monitoring potential changes in Medicaid reimbursement rates and the impact of lawsuits related to value-based payments in states like Ohio [77][78] Future Outlook - **Earnings Growth**: The company expects strong organic earnings growth over the next few years, even without new acquisitions, due to the performance of existing facilities [67] - **Market Conditions**: The current market conditions are favorable, with demand growth outpacing supply growth, which is expected to continue driving performance [64] Additional Notes - **AI Initiatives**: The company plans to increase spending on AI initiatives in the coming year [83] - **Same-Store NOI**: Expectations for same-store NOI in the sector are positive, with predictions for it to be higher next year [85][86]

Core Viewpoint - Omega Healthcare Investors (OHI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Outlook - The Zacks rating upgrade reflects an improved earnings outlook for Omega Healthcare Investors, which is expected to positively impact its stock price [3][5]. - For the fiscal year ending December 2025, Omega Healthcare Investors is projected to earn $3.04 per share, unchanged from the previous year, with a 0.2% increase in the Zacks Consensus Estimate over the past three months [8]. Impact of Earnings Estimates - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4][6]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with a historical average annual return of +25% for Zacks Rank 1 stocks since 1988 [7]. Stock Ranking and Performance - The upgrade to Zacks Rank 2 places Omega Healthcare Investors in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Medical Properties Trust (MPW) focuses on acquiring and developing net-leased healthcare facilities, including hospitals and urgent care centers [1] - Rising healthcare spending and an aging population are expected to drive demand for MPW's services [2][3] - The company employs a disciplined capital-recycling strategy to enhance its financial position [5] Demand Drivers - The senior citizen population is projected to increase, leading to higher national healthcare expenditures, particularly from this demographic [3] - Long-term leases with annual rent escalations based on the Consumer Price Index provide stability [4] Financial Position - As of August 5, 2025, MPW had approximately $1.2 billion in liquidity, with no debt maturities due in the next twelve months [7] - The company has engaged in asset sales and investments, including a $48 million sale of three facilities and a CHF 50 million investment in a joint venture [6] Risks - Operator concentration risk is significant, with major tenants like Circle Health and Lifepoint Behavioral Health contributing a substantial portion of total revenues [8] - Potential tenant bankruptcies could adversely affect MPW's financial health, with a noted negative five-year annualized dividend growth rate of 25.81% [9] Market Performance - MPW's shares have declined by 5.2% over the past three months, contrasting with a 2.8% growth in the industry [10] - The company maintains a diversified portfolio of healthcare facilities under long-term leases, which supports its growth plans despite existing risks [11]

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

Financial Data and Key Metrics Changes - The company reported normalized FFO per share of $0.37 and normalized AFFO per share of $0.38, representing a 6% improvement over the same period in 2024 [20][22] - Total normalized FFO and normalized AFFO for the quarter were $89.2 million and $91.6 million respectively, reflecting strong sequential growth from increased NOI [20][22] - The net debt to adjusted EBITDA ratio was five times as of June 30, 2025, a decrease of 0.19 times from March 31, 2025 [24][26] Business Line Data and Key Metrics Changes - The managed senior housing portfolio contributed nearly 21% of total annualized cash NOI, with cash NOI for the quarter growing 17.1% year over year in the same store portfolio [14][18] - Cash rental income from the triple net portfolio increased by $2.3 million from the first quarter, driven by a $1.4 million increase in percentage rents [20][21] - The occupancy rate in the same store portfolio was 86% compared to 84.6% in 2024, with cash NOI growth expected to be in the low to mid-teens for the same store managed senior housing portfolio [16][24] Market Data and Key Metrics Changes - The average Medicaid rate increase is expected to be around 3.5%, with the top five skilled nursing tenants averaging just above 5% [9][12] - The Medicare market saw an upward revision from 2.8% to 3.2%, which is considered unusual but positive for the company [9][12] - The Canadian portfolio's RevPAR increased by 6.8% year over year, with occupancy above 90% for over five quarters [17][18] Company Strategy and Development Direction - The company aims to increase its SHOP (Senior Housing Operating Portfolio) from 20% to 30% by 2026, requiring approximately $1 billion in investments [11][12] - The focus is on acquiring well-performing newer senior housing communities that cater to the baby boomer generation, as the supply-demand equation remains constrained [15][18] - The company is not interested in building a loan book or engaging in complex joint venture structures, preferring straightforward traditional deals [36][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment pipeline, targeting $4.5 billion in investments for the year, with a strong deal flow expected to continue [11][70] - The company noted that the operational recovery in skilled nursing and senior housing has allowed for robust pricing, despite some challenges in the market [46][92] - Management remains optimistic about future occupancy and NOI growth, anticipating improvements as the transition from the holiday portfolio stabilizes [65][66] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a payout of 79% of the second quarter normalized AFFO per share [27][28] - The company has ample liquidity of approximately $1.2 billion, consisting of unrestricted cash and available borrowings [27][26] Q&A Session Summary Question: Investment guidance and pipeline - Management indicated confidence in reaching the $400 million to $500 million investment range for the year, depending on timing [30][31] Question: Same store SHOP NOI growth - Management noted that the same store SHOP NOI growth is running at the high end of expectations, with hopes for upside [38][40] Question: Skilled nursing opportunities - Management clarified that while pricing is not an issue, the focus is on finding quality assets in the right markets [32][34] Question: Holiday transition impact - Management explained that the transition of holiday assets has had an impact on occupancy and NOI, but they expect improvements moving forward [44][65] Question: Labor market conditions - Management reported wage increases of around 4% across both skilled nursing and senior housing portfolios, with no significant labor market issues identified [96][99] Question: Operator selection criteria - Management emphasized the importance of understanding operators' outcomes and their willingness to grow as key selection criteria for new operators [103][104]

Core Insights - LTC Properties reported significantly higher diluted Core FFO per share and revenue for Q2 2025, driven by portfolio reinvestment and expansion under the RIDEA structure [1][6] - The company converted 13 properties from triple-net leases to its SHOP segment, enhancing operational income and overall performance [5][10] - Management raised guidance for FY2025, reflecting confidence in portfolio growth and contributions from recent investments [12][13] Financial Performance - Diluted Core FFO per share reached $0.68, exceeding the analyst forecast of $0.45, while revenue was $60.2 million, surpassing expectations by $20.48 million [1][2] - Year-over-year revenue growth was 20.2%, with Core FFO per share slightly increasing by 1.5% [2][6] - Diluted EPS declined to $0.32, a 27.3% decrease from the previous year [2] Business Strategy - LTC Properties focuses on diversifying its portfolio by adding various real estate assets and financing structures, with a shift towards direct operation of senior housing properties [3][4] - The company aims to capture more upside from property performance while managing operational volatility and regulatory risks [4][10] - The strategy includes increasing the number of properties managed directly, which has implications for operational complexity and expenses [7][10] Operational Highlights - The conversion of 13 properties added 832 units with a book value of $174.8 million, generating $2.5 million in net operating income [5][6] - General and administrative expenses rose nearly 25% year-over-year, reflecting increased operational complexity [7] - Interest expenses decreased to $8.01 million due to debt repayment and lower borrowing costs [8] Future Outlook - Management raised guidance for GAAP net income per share to a range of $3.45 to $3.48 and Core FFO per share to $2.67 to $2.71 for FY2025 [12][13] - The company projects SHOP segment net operating income between $10.4 million and $15.6 million for the full year [12] - Ongoing efforts to diversify operator and geographic bases are emphasized, alongside monitoring operator financial health and regulatory changes [13]

Core Insights - Healthpeak Properties, Inc. reported second-quarter 2025 funds from operations (FFO) as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate and up from 45 cents in the prior-year quarter [1][7] - The company generated revenues of $694.3 million, slightly missing the Zacks Consensus Estimate of $694.6 million and showing a slight year-over-year decline [2] - Total merger-combined same-store cash (adjusted) net operating income (NOI) grew by 3.5% year-over-year, with notable growth in outpatient medical (3.9%), lab segments (1.5%), and CCRC segment (8.6%) [3][7] Financial Performance - Healthpeak executed new and renewal leases totaling 503,000 square feet in the lab portfolio with an 87% retention rate and positive 6% cash-releasing spreads on renewals, while the outpatient medical portfolio had 1 million square feet of new and renewal leases with an 85% retention rate [4][7] - Interest expenses increased slightly year-over-year to $75.1 million [4] - The company exited the second quarter with cash and cash equivalents of $89.4 million, up from $70.6 million as of March 31, 2025, and had a net debt to adjusted EBITDAre ratio of 5.2X as of June 30, 2025 [5] Future Outlook - Healthpeak reaffirmed its guidance for 2025, expecting FFO as adjusted per share to be between $1.81 and $1.87, with the Zacks Consensus Estimate currently at $1.85 per share [6] - The company anticipates total merger-combined same-store cash (adjusted) NOI growth in the range of 3-4% [6] - Healthpeak currently holds a Zacks Rank 4 (Sell) [6] Industry Context - Upcoming earnings releases for other healthcare REITs, such as Welltower, Inc. and Ventas, Inc., are scheduled for July 28 and July 30, respectively, with Welltower's FFO per share estimated at $1.22 (16.2% year-over-year increase) and Ventas' at 85 cents (6.3% rise year-over-year) [8][9]

Core Insights - Ventas (VTR) shares have increased by 11.6% over the past six months, outperforming the industry growth of 6% [1][8] - The company is positioned to benefit from its diverse healthcare real estate portfolio, particularly in the U.S. and U.K., driven by an aging population and increased healthcare spending by seniors [1][4] Company Performance - The senior housing operating portfolio (SHOP) is expected to see significant growth, with same-store cash NOI projected to increase between 11% and 16% by 2025 [4] - The outpatient medical portfolio is anticipated to benefit from favorable trends in outpatient visits, with the population aged 65 and above making three times more visits to doctors than the general population [5] Growth Opportunities - Ventas is making accretive investments to enhance its research portfolio, which is crucial for healthcare services and life-saving research [6] - The company has a liquidity position of $3.6 billion, bolstered by an expanded unsecured credit facility, which supports its growth initiatives [9] Market Trends - The increasing senior citizen population and low new supply in Ventas' markets present a compelling multiyear growth opportunity for the company [4] - The company expects its outpatient medical and research (OM&R) portfolio's same-store cash NOI to grow by 2-3% in 2025 [5]

Core Insights - Medical Properties Trust (MPW) shares have increased by 14% over the past six months, outperforming the industry growth of 9.8% [1][9] - The company focuses on acquiring and developing net-leased healthcare facilities, including hospitals and urgent care facilities [1] Industry Trends - The senior citizens' population is projected to rise, leading to increased national healthcare expenditures, particularly from this demographic [2] - The healthcare sector is relatively insulated from macroeconomic challenges, providing stability amid market volatility [3] Company Operations - MPW leases facilities to healthcare operating companies with initial lease terms of at least 15 years, most including five-year renewal options [4] - Over 99% of leases have annual rent escalations tied to the Consumer Price Index [4] Financial Position - Strategic asset sales have provided MPW with capital for reinvestment; in Q1 2025, the company sold facilities for approximately $20 million, realizing a gain of $8.1 million [5] - As of May 7, 2025, MPW has approximately $1.3 billion in liquidity and no debt maturities due in the next twelve months, enhancing its financial flexibility [6] Future Outlook - Given the favorable demographic trends and strong financial position, the positive stock trend for MPW is expected to continue in the near term [7]