Summary of AHR Q3 2025 Earnings Call

1Key Financial Results and Metrics:

Same-Store NOI Growth: Achieved 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit growth.

Normalized FFO: Reported at $0.44 per fully diluted share, reflecting a 22% year-over-year increase.

Net Debt to EBITDA: Improved to 3.5x, a 0.2x decrease from the previous quarter and a 1.6x improvement year-over-year.

Acquisitions: Closed approximately $211 million in Q3, with year-to-date acquisitions exceeding $575 million.

2Strategic Updates and Business Highlights:

Portfolio Performance: Strong growth driven by RIDEA structured segments, particularly Trilogy and SHOP, with Trilogy's same-store NOI growing 21.7% and SHOP's 25.3%.

Occupancy Rates: Trilogy and SHOP same-store occupancies exceeded 90%, with positive trends expected to continue despite seasonal fluctuations.

Corporate Responsibility: Published inaugural corporate responsibility report, emphasizing governance, social, and sustainability priorities.

New Partnerships: Expanded operator relationships with WellQuest Living and Great Lakes Management to enhance geographic diversification and operational quality.

3Forward Guidance and Outlook:

NFFO Guidance: Increased to a range of $1.69 to $1.72 per fully diluted share, implying over 20% growth year-over-year at the midpoint.

Same-Store NOI Growth Guidance: Raised to 13% to 15% from 11% to 14%, with specific segments like Integrated Senior Health campuses and SHOP showing strong growth expectations.

Pipeline: Over $450 million in awarded deals expected to close by the end of 2025 or early 2026, indicating a robust growth trajectory.

4Bad News, Challenges, or Points of Concern:

Seasonality Effects: Anticipated seasonal downturns in occupancy and revenue, particularly in the skilled nursing segment during winter months.

Medicare Reimbursement Rates: Expected slower growth in Medicare rates compared to previous years, which could impact revenue.

Competitive Landscape: Increased competition for acquisitions, with some large private equity players entering the market, potentially affecting pricing dynamics.

5Notable Q&A Insights:

Occupancy Growth Potential: CEO Danny Prosky noted that while maximum occupancy could reach 100%, future growth will depend on ongoing supply-demand fundamentals.

External Growth Competition: The competitive environment remains stable, with AHR primarily competing with non-REIT entities and benefiting from operator relationships that provide access to off-market deals.

Trilogy's Revenue Management: The integration of Trilogy's revenue management system is still in pilot phases, with expectations for significant benefits in the future as it is rolled out to other operators.

Operator Collaboration: AHR emphasizes collaboration with operators to identify best practices and enhance operational performance, with a focus on leveraging successful strategies across the portfolio. Overall, AHR's Q3 2025 results reflect strong operational performance and strategic growth initiatives, with a cautious outlook on potential seasonal impacts and competitive pressures in the senior housing market.