American Healthcare REIT (AHR) Q3 2024 earnings summary

Executive summary

• Achieved transformational growth in Q3 2024, highlighted by the acquisition of the remaining 24% minority interest in Trilogy for $258 million, making Trilogy a wholly owned subsidiary.

• Portfolio consists of 324 properties across four main segments: ISHC, Outpatient Medical, SHOP, and Triple-Net Leased, with 86.9%–100% occupancy rates as of Q3 2024.

• Completed major equity offerings in 2024, raising over $1.24 billion in gross proceeds, including $471.2 million in a follow-on equity offering, used to fund acquisitions and pay down debt.

• Strong operational execution led to significant NOI growth, especially in managed segments (Trilogy/ISHC and SHOP), positioning the company for sustainable future growth.

• Portfolio expanded through acquisitions of senior housing properties and land for future development, while also disposing of select assets.

Financial highlights

• Q3 2024 revenues were $523.8 million, up from $464.2 million in Q3 2023; nine-month revenues reached $1.53 billion.

• NAREIT FFO attributable to controlling interest was $35.6 million for Q3 2024; normalized FFO was $47.7 million; NAREIT FFO per share: $0.27; NFFO per share: $0.36.

• Adjusted EBITDA for Q3 2024 was $87.0 million; net loss attributable to controlling interest was $4.1 million.

• Q3 2024 Cash NOI: $100.5 million, up from $84.8 million in Q3 2023.

• Year-to-date closed over $650 million in investments, including Trilogy buyout, lease buyouts, and SHOP acquisitions.

Outlook and guidance

• Increased 2024 same-store NOI growth guidance to 15%–17% and NFFO per diluted share guidance to $1.40–$1.43.

• FY 2024 NAREIT FFO guidance: $1.28–$1.31 per share.

• Segment guidance: ISHC 21%–23% NOI growth, SHOP 51.5%–53.5%, Triple-Net 2%–4%, Outpatient Medical (0.5)%–0.0%.

• Management expects continued inflationary pressures on labor and operating costs, but aims to offset these through higher rent and care fee increases.

• Quarterly cash distributions of $0.25 per share are expected to continue, subject to board approval and available funds.