American Healthcare REIT ("AHR") Announces Second Quarter 2025 Results; Increases Full Year 2025 Guidance
IRVINE, Calif., Aug. 7, 2025 /PRNewswire/ -- American Healthcare REIT, Inc. (the "Company," "we," "our," "management," or "us") (NYSE:AHR) announced today its second quarter 2025 results and is increasing full year 2025 guidance.
Key Highlights:
Reported GAAP net income attributable to controlling interest of $9.9 million and GAAP net income attributable to common stockholders of $0.06 per diluted share for the three months ended June 30, 2025.
Reported Normalized Funds from Operations attributable to common stockholders ("NFFO") of $0.42 per diluted share for the three months ended June 30, 2025.
Achieved total portfolio Same-Store Net Operating Income ("NOI") growth of 13.9% for the three months ended June 30, 2025, compared to the same period in 2024.
Achieved 23.0% and 18.3% Same-Store NOI growth during the three months ended June 30, 2025, from its senior housing operating properties ("SHOP") and integrated senior health campuses ("ISHC"), respectively, compared to the same period in 2024.
During the three months ended June 30, 2025, the Company acquired a new SHOP asset for approximately $65.0 million. Year-to-date 2025, the Company has closed on approximately $255 million of new investments.
During the three months ended June 30, 2025, the Company issued 5,451,577 shares of common stock through its at-the-market equity offering program ("ATM program") for gross proceeds of approximately $188.6 million. Additionally, the Company entered into a forward sales agreement to sell 3,554,525 shares of common stock through its ATM program, which the Company settled subsequent to quarter end for net proceeds of approximately $126.0 million.
Increasing total portfolio Same-Store NOI growth guidance for the year ending December 31, 2025, by 150 basis points at the midpoint from a range of 9.0% to 13.0% to a revised range of 11.0% to 14.0%, primarily due to strong operating results in its ISHC and SHOP segments during the three months ended June 30, 2025.
Increasing NFFO guidance for the year ending December 31, 2025, by $0.05 at the midpoint from a range of $1.58 to $1.64 to a revised range of $1.64 to $1.68, due to increased expectations for full year 2025 NOI growth for its Same-Store portfolio and recent accretive capital allocation activity.
Reported a 0.8x improvement to Net Debt-to-Annualized Adjusted EBITDA from 4.5x as of March 31, 2025 to 3.7x as of June 30, 2025.
Awarded the Great Place To Work® Certification™ for 2025, based on direct feedback from employees and an independent analysis conducted by Great Place To Work®, the global authority on workplace culture.
"Fundamentals in the long-term care industry remain solid, as evidenced by our strong growth in the second quarter and year to date. This has prompted an increase in our Same-Store NOI growth and NFFO guidance for the full year 2025," said Danny Prosky, the Company's President and Chief Executive Officer. "We are also supplementing our robust organic growth with strategic external investments that we believe will be accretive to our future earnings. We've executed all of this, while still improving our financial position and capacity as highlighted by our Net Debt-to-Annualized Adjusted EBITDA of below 4.0x. As a company, our core mission is providing and facilitating high-quality care and outcomes for residents, and I'm proud that we are advancing that mission by adding more quality assets to our portfolio with best-in-class regional operating partners."
Second Quarter 2025 and Year-To Date 2025 Results
The Company's Same-Store NOI growth results for the three and six months ended June 30, 2025 are detailed below. Same-Store NOI growth results from its operating portfolio, comprised of ISHC and SHOP segments, led the Company's growth in the second quarter of 2025, compared to the same period in 2024, supported by proactive expense management, incremental occupancy gains, and mid-single-digit RevPOR growth.
Three Months Ended June 30, 2025 Relative to Three Months Ended June 30, 2024
Segment
Same-Store NOI Growth
ISHC
18.3 %
Outpatient Medical
1.4 %
SHOP
23.0 %
Triple-Net Leased Properties
1.4 %
Total Portfolio
13.9 %
Six Months Ended June 30, 2025 Relative to Six Months Ended June 30, 2024
Segment
Same-Store NOI Growth
ISHC
19.0 %
Outpatient Medical
1.7 %
SHOP
26.6 %
Triple-Net Leased Properties
0.0 %
Total Portfolio
14.5 %
"Demand in the first quarter was primarily driven by the winter and flu season, which increased the need for post-acute care skilled nursing care within our ISHC segment, whereas independent and assisted living units saw more move-out activity in the first quarter," said Gabe Willhite, the Company's Chief Operating Officer. "As the second quarter progressed, we observed demand become more broad-based for our operating portfolio, as ISHC continued to show steady occupancy gains, with stronger relative demand for independent living and assisted living units. Our SHOP segment saw a similar rise in demand, exhibiting consistent occupancy improvements throughout the quarter driven by the most move-ins we have realized in any quarter since prior to the onset of the pandemic, ultimately leading to spot Same-Store occupancy north of 87.5% by quarter end. Looking ahead, we anticipate higher move-in activity to continue through the busier summer selling season across our operating portfolio, which we believe will further increase occupancy. We believe this occupancy trend, coupled with our hands-on asset management approach and revenue management strategies, will provide for solid results in the second half of the year where we expect to continue achieving strong growth within our operating portfolio."
Transactional Activity
During the three months ended June 30, 2025, the Company:
Completed a previously announced acquisition of a SHOP asset for approximately $65.0 million. Operations at the property were transitioned to Heritage Senior Living, one of the Company's existing regional operators in a RIDEA structure.
Sold four Non-Core Properties for gross proceeds of approximately $33.5 million, including three previously announced dispositions for gross proceeds of $29 million.
Subsequent to quarter end, the Company:
Purchased its partners' 51% outstanding interests in an unconsolidated joint venture including five pre-stabilized campuses. The recently developed campuses contain 704 beds and will continue to be operated by Trilogy Management Services ("TMS"). Four of the campuses are not yet stabilized and opened within the last year. Total consideration for the acquisition of its partners' 51% interests, including the extinguishment of all partnership level debt, was approximately $118.4 million.
Completed the acquisition of two new SHOP assets for approximately $33.5 million. One of the properties is managed by one of the Company's existing regional operating partners, Compass Senior Living, which managed the asset for the previous owner. Upon acquisition of the other property, the Company installed Great Lakes Management, to operate the building establishing a new regional operator relationship.
Acquired four new long-term care assets within the Company's ISHC property segment for approximately $65.3 million. These properties were operated by TMS prior to the Company's acquisition, and will continue to be operated by TMS.
Completed a lease buyout within its ISHC segment for approximately $7.7 million.
Sold one Non-Core Property for approximately $1.8 million.
Following the Company's completed transaction activity during the three months ended June 30, 2025, and subsequent to quarter end, the Company has over $300 million of awarded deals within its investments pipeline, which include existing and newly awarded deals since the Company's First Quarter 2025 Earnings Release. The Company expects to close the remaining pipeline by the end of the year, but it cannot guarantee, or provide certainty regarding timing on, the closings. Therefore, the Company is not including any additional transaction activity, including the awarded deals in its investments pipeline, beyond the transactions disclosed as completed in this section within its increased full-year 2025 guidance.
Development Activity
The Company did not start any new development projects during the three months ended June 30, 2025. The Company's total in-process development pipeline is expected to cost approximately $57.8 million, of which $23.8 million has been spent as of June 30, 2025.
Capital Markets and Balance Sheet Activity
As of June 30, 2025, the Company's total consolidated indebtedness was $1.55 billion, and it had approximately $733.5 million of total liquidity, comprised of cash and undrawn capacity on its line of credit. The Company's Net-Debt-to-Annualized Adjusted EBITDA as of June 30, 2025, was 3.7x.
During the three months ended June 30, 2025, the Company issued 5,451,577 shares of common stock through its ATM program for gross proceeds of approximately $188.6 million, at an average price of $34.60 per share. Additionally, during the three months ended June 30, 2025, the Company entered into a forward sales agreement to sell 3,554,525 shares of common stock through its ATM program. Subsequent to quarter end, the Company settled the entire forward sales agreement by issuing the shares for net cash proceeds of approximately $126.0 million. Also subsequent to quarter end, the Company issued an additional 432,367 shares of common stock for gross proceeds of approximately $15.7 million through its ATM program, at an average price of $36.25 per share.
"I'm pleased with our ability to deliver exceptional NFFO per share growth all while continuing to de-lever the balance sheet - our strong earnings growth and strategic equity issuances utilizing the ATM program have helped us create capacity for future investment activity." said Brian Peay, the Company's Chief Financial Officer. "Our strong operating performance achieved by our impressive operating partners is driving an increase in our full-year 2025 total portfolio Same-Store NOI growth and NFFO per share guidance."
Full Year 2025 Guidance
The Company is increasing guidance for the year ending December 31, 2025 to reflect its improved outlook on operations, capital markets activity and capital allocation activity executed during the second quarter of 2025, as well as activity completed subsequent to quarter end. Guidance does not assume additional transaction or capital markets activity beyond the items previously disclosed or items disclosed in this earnings release. Updated guidance ranges are detailed in the table on the next page:
Full Year 2025 Guidance
Metric
Midpoint
Current FY 2025 Range
Prior FY 2025 Range
Net income per diluted share
$0.35
$0.33 to $0.37
$0.29 to $0.35
NAREIT FFO per diluted share
$1.59
$1.57 to $1.61
$1.49 to $1.55
NFFO per diluted share
$1.66
$1.64 to $1.68
$1.58 to $1.64
Total Portfolio SS NOI Growth
12.5 %
11.0% to 14.0%
9.0% to 13.0%
Segment-Level SS NOI Growth / (Decline):
ISHC
17.0 %
15.0% to 19.0%
12.0% to 16.0%
Outpatient Medical
1.3 %
1.0% to 1.5%
(1.0%) to 1.0%
SHOP
22.0 %
20.0% to 24.0%
20.0% to 24.0%
Triple-Net Leased Properties
(0.5 %)
(0.8%) to (0.3%)
(1.5%) to (0.5%)
Certain of the assumptions underlying the Company's 2025 guidance can be found within the Non-GAAP reconciliations in this earnings release and in the appendix of the Company's Second Quarter 2025 Supplemental Financial Information ("Supplemental"). A reconciliation of net income (loss) calculated in accordance with GAAP to NAREIT FFO and NFFO can be found within the Non-GAAP reconciliations in this earnings release. Non-GAAP financial measures and other terms, as used in this earnings release, are also defined and further explained in the Supplemental. The Company is unable to provide, without unreasonable effort, guidance for the most comparable GAAP financial measures of total revenues and property operating and maintenance expenses. Additionally, a reconciliation of the forward-looking Non-GAAP financial measures of Same-Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net gain or loss on sale of real estate assets, stock-based compensation, casualty loss, non-Same-Store revenue and non-Same-Store operating expenses. These items are uncertain, depend on various factors and could have a material impact on the Company's GAAP results for the guidance period.
Distributions
As previously announced, the Company's Board of Directors declared a cash distribution for the quarter ended June 30, 2025 of $0.25 per share of its common stock. The second quarter distribution was paid in cash on or about July 18, 2025, to stockholders of record as of June 30, 2025.
Supplemental Information
The Company has disclosed supplemental information regarding its portfolio, financial position and results of operations as of, and for the three and six months ended June 30, 2025, and certain other information, which is available on the Investor Relations section of the Company's website at https://ir.americanhealthcarereit.com.
Conference Call and Webcast Information
The Company will host a webcast and conference call at 1:00 p.m. Eastern Time on August 8, 2025. During the conference call, Company executives will review second quarter 2025 results, discuss recent events and conduct a question-and-answer period.
To join via webcast, investors may use the following link: https://events.q4inc.com/attendee/185284343.
To join the live telephone conference call, please dial one of the following numbers at least five minutes prior to the start time:
North America - Toll-Free: (800) 715-9871International Toll: +1 (646) 307-1963Conference ID: 2930459
A digital replay of the call will be available on the Investor Relations section of the Company's website at https://ir.americanhealthcarereit.com shortly after the conclusion of the call.
Forward-Looking Statements
Certain statements contained in this press release, including statements relating to the Company's expectations regarding its performance, interest expense savings, balance sheet, net income or loss per diluted share, NAREIT FFO per diluted share, NFFO per diluted share, total portfolio Same-Store NOI growth, segment-level Same-Store NOI growth or decline, occupancy, NOI growth, revenue growth, margin expansion, purchases and sales of assets, development plans, and plans for Trilogy may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "can," "expect," "intend," "anticipate," "estimate," "believe," "continue," "possible," "initiatives," "focus," "seek," "objective," "goal," "strategy," "plan," "potential," "potentially," "preparing," "projected," "future," "long-term," "once," "should," "could," "would," "might," "uncertainty" or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, and beliefs of, and assumptions made by, the Company's management and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied therein, including, without limitation, changing macroeconomic conditions, domestic legal and fiscal policies, and geopolitical conditions and other risks disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 28, 2025, and other periodic reports filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.
Non-GAAP Financial Measures
The Company's reported results are presented in accordance with GAAP. The Company also discloses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Net Debt-to-Annualized Adjusted EBITDA, NAREIT FFO, NFFO, NOI and Same-Store NOI. The Company believes these non-GAAP financial measures are useful supplemental measures of its operating performance and used by investors and analysts to compare the operating performance of the Company between periods and to other REITs or companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items. Definitions of the non-GAAP financial measures used herein and reconciliations to the most directly comparable financial measure calculated in accordance with GAAP can be found at the end of this earnings release. See below and "Definitions" for further information regarding the Company's non-GAAP financial measures.
EBITDA and Adjusted EBITDA
Management uses earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to facilitate internal and external comparisons to our historical operating results and in making operating decisions. EBITDA and Adjusted EBITDA are widely used by investors, lenders, credit and equity analysts in the valuation, comparison, and investment recommendations of companies. Additionally, EBITDA and Adjusted EBITDA are utilized by our Board of Directors to evaluate management. Neither EBITDA nor Adjusted EBITDA represents net income (loss) or cash flows provided by operating activities as determined in accordance with GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the EBITDA and Adjusted EBITDA may not be comparable to similarly entitled items reported by other REITs or other companies. In addition, management uses Net Debt-to-Annualized Adjusted EBITDA as a measure of our ability to service our debt.
NAREIT Funds from Operations (FFO) and Normalized Funds from Operations (NFFO)
We believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization and impairments, provides a further understanding of our operating performance to investors, industry analysts and our management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and interest costs, which may not be immediately apparent from net income (loss) as determined in accordance with GAAP. However, FFO and NFFO should not be construed to be (i) more relevant or accurate than the current GAAP methodology in calculating net income (loss) as an indicator of our operating performance, (ii) more relevant or accurate than GAAP cash flows from operations as an indicator of our liquidity or (iii) indicative of funds available to fund our cash needs, including our ability to make distributions to our stockholders. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the Non-GAAP FFO and NFFO measures and the adjustments to GAAP in calculating FFO and NFFO. Presentation of this information is intended to provide useful information to investors, industry analysts and management as they compare the operating performance metrics used by the REIT industry, although it should be noted that some REITs may use different methods of calculating funds from operations and normalized funds from operations, so comparisons with such REITs may not be meaningful.
Net Operating Income
We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are appropriate supplemental performance measures to reflect the performance of our operating assets because NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI exclude certain items that are not associated with the operations of the properties. We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are widely accepted measures of comparative operating performance in the real estate community and are useful to investors in understanding the profitability and operating performance of our property portfolio. However, our use of the terms NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing these amounts.
NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are not equivalent to our net income (loss) as determined under GAAP and may not be a useful measure in measuring operational income or cash flows. Furthermore, NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should not be considered as alternatives to net income (loss) as an indication of our operating performance or as an alternative to cash flows from operations as an indication of our liquidity. NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should not be construed to be more relevant or accurate than the GAAP methodology in calculating net income (loss). NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should be reviewed in conjunction with other measurements as an indication of our performance.
About American Healthcare REIT, Inc.
American Healthcare REIT, Inc. (NYSE:AHR) is a real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate, focusing primarily on senior housing communities, skilled nursing facilities, and outpatient medical buildings across the United States, and in the United Kingdom and the Isle of Man.
AMERICAN HEALTHCARE REIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2025 and December 31, 2024
(In thousands, except share and per share amounts) (Unaudited)
June 30,
2025
December 31,
2024
ASSETS
Real estate investments, net
$ 3,346,121
$ 3,366,648
Debt security investment, net
91,849
91,264
Cash and cash equivalents
133,494
76,702
Restricted cash
36,497
46,599
Accounts and other receivables, net
224,072
211,104
Identified intangible assets, net
155,886
161,473
Goodwill
234,942
234,942
Operating lease right-of-use assets, net
147,893
163,987
Other assets, net
135,896
135,338
Total assets
$ 4,506,650
$ 4,488,057
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgage loans payable, net
$ 983,510
$ 982,071
Lines of credit and term loan, net
549,632
688,534
Accounts payable and accrued liabilities
273,702
258,324
Identified intangible liabilities, net
2,618
3,001
Financing obligations
34,364
34,870
Operating lease liabilities
148,215
165,239
Security deposits, prepaid rent and other liabilities
51,965
51,856
Total liabilities
2,044,006
2,183,895
Commitments and contingencies
Redeemable noncontrolling interests
—
220
Equity:
Stockholders' equity:
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding
—
—
Common Stock, $0.01 par value per share; 700,000,000 shares authorized; 164,578,233 and 157,446,697 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively
1,638
1,564
Additional paid-in capital
3,957,653
3,720,268
Accumulated deficit
(1,536,301)
(1,458,089)
Accumulated other comprehensive loss
(1,993)
(2,512)
Total stockholders' equity
2,420,997
2,261,231
Noncontrolling interests
41,647
42,711
Total equity
2,462,644
2,303,942
Total liabilities, redeemable noncontrolling interests and equity
$ 4,506,650
$ 4,488,057
AMERICAN HEALTHCARE REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three and Six Months Ended June 30, 2025 and 2024
(In thousands, except share and per share amounts) (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenues:
Resident fees and services
$ 501,285
$ 458,013
$ 998,461
$ 910,131
Real estate revenue
41,218
46,568
84,645
93,983
Total revenues
542,503
504,581
1,083,106
1,004,114
Expenses:
Property operating expenses
426,285
402,564
858,708
806,193
Rental expenses
12,990
13,323
26,633
27,050
General and administrative
14,943
11,746
28,098
23,574
Business acquisition expenses
(79)
15
1,758
2,797
Depreciation and amortization
41,941
45,264
83,055
88,031
Total expenses
496,080
472,912
998,252
947,645
Other income (expense):
Interest expense:
Interest expense, net
(22,632)
(30,596)
(45,577)
(67,034)
(Loss) gain in fair value of derivative financial instruments
(629)
388
(1,379)
6,805
(Loss) gain on dispositions of real estate investments, net
(2,676)
(2)
(3,035)
2,261
Impairment of real estate investments
(12,659)
—
(34,365)
—
Loss from unconsolidated entities
(1,238)
(1,035)
(3,086)
(2,240)
Foreign currency gain (loss)
2,742
82
4,158
(344)
Other income, net
1,480
3,106
3,005
4,969
Total net other expense
(35,612)
(28,057)
(80,279)
(55,583)
Income before income taxes
10,811
3,612
4,575
