Summary of American Healthcare REIT (AHR) Q2 2026 Earnings Call

1Key Financial Results and Metrics

Normalized FFO: $0.54 per diluted share, up 28.6% from $0.42 in Q2 2025.

Year-to-Date NFFO: $1.05 per diluted share, a 31.3% increase year-over-year.

Same-Store NOI Growth: 13.2% year-over-year; 12.7% for the first half of 2026.

Net Debt to EBITDA: Improved to 2.5x, down from 3x in Q1 2026.

Acquisitions: Closed over $1.4 billion in deals year-to-date, with an additional $800 million in the pipeline.

2Strategic Updates and Business Highlights

Leadership Transition: Jeff Hanson returned as CEO, emphasizing continuity in strategy and management.

Acquisition Strategy: Focus on high-quality, institutional-grade assets in desirable markets, with a disciplined underwriting approach.

Trilogy Performance: Same-store NOI growth of 16.1% year-over-year, with strong occupancy rates and expense management.

SHOP Portfolio: Same-store NOI increased by 20.5% year-over-year, with a focus on enhancing operator partnerships and leveraging Trilogy's operational expertise.

Expansion Plans: Continued investment in development projects, with a pipeline of new campuses and expansions in existing properties.

3Forward Guidance and Outlook

Revised Full-Year NFFO Guidance: Increased to $2.15 - $2.19 per diluted share, up from $2.03 - $2.09.

Same-Store NOI Growth Guidance: Raised to 11% - 13%, up from 9% - 12%.

Segment-Level Guidance: Integrated senior health campuses guidance increased to 13% - 16%, and SHOP to 18% - 21%.

4Bad News, Challenges, or Points of Concern

Occupancy Fluctuations: Some seasonal declines in occupancy were noted, particularly in skilled nursing, which may impact revenue stability.

Expense Management: While controllable costs decreased, there are concerns about potential seasonal increases in utility costs as colder months approach.

Market Competition: Increased deal flow and competition for high-quality assets may pressure pricing and returns in the future.

5Notable Q&A Insights

Expense Management: Gabe Willhite highlighted effective expense control measures at Trilogy, attributing the deceleration in controllable costs to focused management efforts.

Operator Partnerships: The importance of selecting high-quality operators was emphasized, with most new partnerships stemming from established relationships.

Acquisition Strategy: Stefan Oh noted that the increase in deal flow is driven by cap rate compression and improved operator performance, with a significant portion of acquisitions coming from off-market opportunities.

Development Potential: Willhite discussed the potential for expansion projects at Trilogy, indicating a robust pipeline for future growth.

Long-Term Leadership: Jeff Hanson clarified that his role as CEO is mission-driven rather than indefinite, with a focus on preparing the next generation of leadership. Overall, AHR reported strong financial performance and strategic positioning in the senior housing market, while also navigating challenges related to occupancy and market competition. The leadership transition appears to be smooth, with a clear focus on growth and operational excellence.