American Healthcare REIT(US:AHR)2026-02-27 19:02Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year, representing a 22% year-over-year growth in FFO per share compared to 2024 [22][23] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][22] - The debt to EBITDA improved by nearly a full turn in 2025, indicating a stronger financial position [22][25] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing by 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased by 24.6% in Q4 and 25.2% for the full year compared to the previous year [13] - Occupancy rates for Trilogy reached 90.6% in Q4, up 275 basis points year-over-year, while SHOP also surpassed 90% occupancy [12][13] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16][17] - The investment pipeline remains robust with over $230 million in awarded deals, indicating strong market activity [19][60] Company Strategy and Development Direction - The company maintains a disciplined investment strategy focused on high-quality care and superior health outcomes, with no changes in capital allocation or risk management frameworks [8][21] - The emphasis on high-quality care is expected to drive demand as the aging population grows, positioning the company well for future growth [12][18] - The company is actively pursuing development projects primarily focused on Trilogy expansions, aiming for attractive yields with limited market risk [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][13] - The leadership transition is described as seamless, with no changes in strategy, ensuring continuity in operations and execution [6][8] - The company anticipates that the demand for high-quality care will continue to grow, providing a favorable environment for its operations [12][18] Other Important Information - The company has been actively involved in off-market acquisitions, leveraging strong relationships with operators to secure favorable deals [82] - The revenue management system is being piloted with various operators, aiming to enhance pricing strategies and improve overall performance [50][51] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - The company continues to focus on higher acuity SHOP assets, which provide long-term stability [29][30] Question: Can you provide guidance on SHOP's performance? - The company expects a significant increase in pricing power as occupancy rates rise, with a conviction in future growth [35][36] Question: What are the expectations for Trilogy's occupancy and quality mix? - Trilogy's model allows for various drivers of NOI growth, with a focus on shifting to higher payor sources [39][40] Question: How is the revenue management system being rolled out? - The revenue management system is being tested with select operators, aiming to enhance their performance [50][51] Question: What is the status of the investment pipeline? - The pipeline is dynamic, with a high level of deal activity and a focus on off-market opportunities [60][61]