American Healthcare REIT(US:AHR)2026-02-27 19:02Financial Data and Key Metrics Changes - The company reported normalized funds from operation (NFFO) 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 NFFO per share [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, with a net debt to EBITDA ratio of 3.4x [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 2025, with occupancy surpassing 90% [13][14] - Trilogy's occupancy reached 90.6% in Q4, up 275 basis points year-over-year, supported by improved quality mix and Medicare penetration [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 and continued deal activity expected in 2026 [19][60] Company Strategy and Development Direction - The company maintains a disciplined healthcare investment strategy focused on high-quality care and superior health outcomes, with no changes in capital allocation or risk management frameworks [8][21] - The company is prioritizing expansions in Trilogy and campus growth initiatives, aiming for attractive incremental yields with limited market risk [21] - The focus remains on relationship-driven sourcing and disciplined underwriting to ensure long-term cash flow durability and growth [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing tailwinds [12][13] - The company anticipates continued demand for high-quality operators in the aging population sector, with expectations of sustained growth in the coming years [12][18] - Management highlighted the importance of maintaining operational momentum and capital availability to capitalize on growth opportunities [25][26] Other Important Information - The company has successfully accelerated several previously announced pipeline deals, closing approximately $665 million in new acquisitions in Q4 2025 [19] - The management team emphasized the importance of high-quality care and outcomes, which have contributed to strong financial performance [15][18] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - Management noted a focus on higher acuity SHOP assets, indicating confidence in long-term stability in that asset class [29] Question: Can you provide insights on SHOP guidance and occupancy? - Management acknowledged a significant occupancy increase in SHOP but indicated that future growth may not match previous years' rates [35] Question: What is the outlook for Trilogy's occupancy and quality mix? - Management highlighted the unique model of Trilogy and the importance of shifting to higher payor sources to drive NOI growth [39] Question: How does the revenue management system rollout progress? - Management confirmed that the revenue management system is being piloted with select operators, aiming to enhance overall portfolio performance [50] Question: What is the status of the investment pipeline and expected yields? - Management indicated that current acquisitions are stabilizing in the high 5% to low 6% range, with a focus on higher quality properties [67]