AHR — American Healthcare REIT, Inc.

Summary of American Healthcare REIT (AHR) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Normalized Funds from Operations (NFFO): $0.46 per diluted share for Q4 2025; $1.72 per diluted share for the full year, representing a 22% year-over-year growth.
• Same-Store Net Operating Income (NOI):
  • Q4 2025: 11.8% growth.
  • Full Year 2025: 14.2% growth.
• Debt Metrics: Improved debt-to-EBITDA ratio by nearly one full turn to 3.4x.
• Occupancy Rates:
  • Trilogy segment: 90.6% in Q4, up 275 basis points year-over-year.
  • SHOP segment: 90.6% occupancy, up approximately 290 basis points year-over-year.

2. Strategic Updates and Business Highlights

• Leadership Update: Jeff Hanson is serving as Interim CEO while Danny Prosky is on medical leave but remains engaged with the business.
• Investment Activity: Closed over $950 million in new investments in 2025, with a focus on the SHOP segment.
• Portfolio Composition: 76.9% of consolidated cash NOI is derived from the Trilogy and SHOP segments.
• Revenue Management: AHR is piloting dynamic revenue management tools with operators to optimize pricing strategies and enhance NOI growth.
• Development Pipeline: Focused on expanding Trilogy campuses and enhancing existing facilities to drive future cash flow.

3. Forward Guidance and Outlook

• 2026 NFFO Guidance: Expected to be between $1.99 and $2.05 per diluted share, indicating continued double-digit growth.
• Same-Store NOI Growth Guidance for 2026:
  • Trilogy: 8% to 12%.
  • SHOP: 15% to 19%.
  • Outpatient Medical: 0% to 2%.
  • Triple-Net Leased Properties: 2% to 3%.
• Anticipated continued demand for high-quality care, driven by the aging population and favorable market dynamics.

4. Bad News, Challenges, or Points of Concern

• Occupancy Growth Deceleration: While occupancy levels are high, future growth may not match the significant increases seen in 2025, leading to cautious expectations for 2026.
• Competitive Pressures: Increased competition for SHOP assets from other REITs and private equity, although AHR's off-market acquisition strategy may mitigate some risks.
• Market Sensitivity: The company remains exposed to fluctuations in government reimbursement rates and potential pressures on Medicare and Medicaid reimbursements.

5. Notable Q&A Insights

• Acquisition Environment: AHR is focusing on higher acuity SHOP assets and leveraging relationships with operators to source off-market deals.
• Revenue Management System: The rollout of Trilogy's revenue management tools is still in early stages, with expectations for improved performance as it expands to other operators.
• Occupancy and Pricing Power: The company is optimistic about maintaining high occupancy rates, which will enhance pricing power, although there are uncertainties regarding the pace of future occupancy gains.
• Trilogy's Transition: The transition of certain hospitals from surgical to community care may lead to revenue volatility, but the tenant's commitment and investment in the property are seen as positive indicators.

Overall, AHR reported strong financial performance in 2025, driven by effective asset management and strategic investments, while maintaining a cautious outlook for 2026 amid competitive pressures and potential market fluctuations.