AHR — American Healthcare REIT, Inc.

Summary of AHR Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Normalized Funds from Operations (NFFO): $0.50 per diluted share, a 31.6% increase from $0.38 in Q1 2025.
• Same-Store NOI Growth: 12.1% for the total portfolio, marking the ninth consecutive quarter of double-digit growth.
• Trilogy Segment Performance: Same-store NOI growth of 14.5% with occupancy averaging 91.2%.
• SHOP Segment Performance: Same-store NOI increased by 19.7% with occupancy averaging 88.6%.
• Balance Sheet Improvement: Net debt to annualized EBITDA improved to 3.0x from 3.4x at the end of 2025.
• Increased Full-Year Guidance: NFFO per share guidance raised to $2.30 to $2.09, reflecting a 20% growth over 2025.

2. Strategic Updates and Business Highlights:

• Leadership Update: Interim CEO Jeffrey Hanson provided updates on CEO Danny Prosky’s health and ongoing engagement with the company.
• Investment Activity: Closed $249.2 million in new acquisitions in Q1, primarily within the SHOP segment, with a pipeline of over $650 million in awarded deals.
• Development Pipeline: Approximately $173.9 million in expected costs for ongoing projects, mainly expansions of Trilogy campuses.
• Focus on Quality Care: AHR continues to prioritize high-quality care and outcomes, leveraging strong operator relationships to drive performance.

3. Forward Guidance and Outlook:

• Same-Store NOI Growth Guidance: Increased to 9% to 12% for the full year, with segment-specific guidance of 11% to 15% for Trilogy and 15% to 19% for SHOP.
• Confidence in Sustained Growth: Management expressed optimism about continued double-digit NOI growth driven by strong demand and constrained supply in the long-term care sector.

4. Bad News, Challenges, or Points of Concern:

• Occupancy and Rate Growth Risks: While occupancy levels are high, there are concerns about the deceleration of Medicare reimbursement rates and potential impacts on revenue growth.
• Competitive Pressures: Increased competition in the senior housing market may lead to cap-rate compression and challenges in maintaining pricing power.
• Operational Risks: The reliance on Medicare Advantage contracts and the potential for changing reimbursement rates could pose risks to future revenue growth.

5. Notable Q&A Insights:

• Guidance on SHOP Segment: Management chose not to raise SHOP guidance despite strong performance, indicating a cautious approach based on early-year seasonality and the need for sustained performance.
• Capital Sourcing Strategy: Emphasis on retaining earnings through a favorable dividend policy and utilizing an ATM program for opportunistic capital raises.
• Development Strategy: Focus on collaborative development with Trilogy, emphasizing the importance of regional presence and the challenges of acquiring new licenses in certain states.
• Expense Management: Trilogy's recent success in managing expenses was highlighted as a key factor in margin expansion, with no one-time impacts affecting Q1 results.

Overall, AHR reported strong financial results and maintained a positive outlook, although it acknowledged potential challenges related to competitive pressures and reimbursement rate dynamics.