American Healthcare REIT(US:AHR)2024-11-13 22:17Financial Data and Key Metrics Changes - The company reported NFFO of $0.36 per diluted share for Q3 2024, reflecting strong operational results and successful transactions, including the acquisition of the remaining 24% interest in Trilogy [32] - The total portfolio 2024 same-store NOI growth guidance has been increased to 15% to 17%, up 300 basis points at the midpoint from previous guidance [33] - The 2024 NFFO per fully diluted share guidance has been raised to a range of $1.40 to $1.43, a significant increase from the previous range of $1.23 to $1.27 [35] Business Line Data and Key Metrics Changes - The integrated senior health campuses segment is expected to achieve 21% to 23% same-store NOI growth, up from 18% to 20% [34] - The SHOP segment is projected to see same-store NOI growth of 51.5% to 53.5%, an increase from the prior range of 45% to 50% [34] - The Triple-Net Leased properties segment's same-store NOI growth guidance has been updated to 2% to 4%, up from 1% to 3% [34] Market Data and Key Metrics Changes - The total portfolio same-store NOI grew by 17% year-over-year in Q3 2024 [17] - The Trilogy segment achieved 22.6% year-over-year same-store NOI growth in Q3 2024 [18] - The SHOP segment experienced 61.8% year-over-year same-store NOI growth in Q3 2024 [20] Company Strategy and Development Direction - The company completed the acquisition of Trilogy to optimize capital allocation and pursue development of purpose-built facilities [9] - The focus remains on growing the managed portfolio segments, particularly through partnerships with trusted regional operators [26][56] - The company aims to leverage Trilogy's operational efficiencies to enhance performance across its portfolio [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for long-term care continuing to grow, which should support RevPOR growth outpacing ExPOR growth [22] - The company is optimistic about external growth opportunities, particularly in the SHOP segment, and plans to avoid competitive bidding wars [56][58] - Management highlighted the importance of employee retention and training programs to meet increasing demand in the healthcare sector [65] Other Important Information - The company has closed over $650 million in investments year-to-date, including the Trilogy acquisition and SHOP acquisitions [13] - The company disposed of an Outpatient Medical building for approximately $19.4 million after the quarter-end [31] - The company is continuously assessing noncore assets for sale to improve its portfolio [73] Q&A Session Summary Question: Can you provide more color on the Trilogy platform and its unique aspects? - Trilogy has proven to be one of the best management teams, and the company plans to leverage their platform to support other regional operators [40] Question: What is the nature of the insurance benefit mentioned? - The insurance benefit primarily comes from miscellaneous other income, including insurance proceeds from property losses [43] Question: How impactful is the occupancy mix between senior housing and skilled nursing on the bottom line? - The company aims to maximize NOI rather than just occupancy, focusing on a higher mix of Medicare and private pay [46][49] Question: How does the company view operating expenses in light of potential inflation? - The company expects RevPOR growth to continue exceeding ExPOR growth, which should help manage expenses effectively [60][62] Question: What is the current labor environment and its impact on operations? - Employee retention has returned to pre-COVID levels, but attracting and retaining employees remains a significant challenge [63][65] Question: What are the company's thoughts on external growth and operator relationships? - The company is focused on improving its portfolio through strategic acquisitions and is not solely relying on noncore sales to fund growth [73][78]