American Healthcare REIT (AHR) Q3 2024 earnings summary

Executive summary

• Achieved a transformational Q3 2024 with strong operational and financial performance, highlighted by the full buyout of Trilogy for $258 million, major acquisitions in SHOP and ISHC, and a portfolio of 324 properties across four main segments with occupancy rates between 85% and 100%.

• Completed two major public equity offerings in 2024, raising over $1.24 billion, including $471.2 million in a follow-on offering, with proceeds used to fund acquisitions, repay debt, and acquire noncontrolling interests.

• Portfolio positioned for sustainable growth, with robust demand in senior housing and care, and a focus on leveraging Trilogy's best practices across the platform.

• Portfolio expanded through acquisitions of senior housing properties and land for future development, while also disposing of select assets.

• Net loss attributable to controlling interest was $4.1 million for Q3 2024, with normalized FFO per share at $0.36.

Financial highlights

• Q3 2024 revenues were $523.8 million, up from $464.2 million in Q3 2023; NAREIT FFO attributable to controlling interest was $35.6 million, normalized FFO was $47.7 million, and NFFO per diluted share was $0.36.

• Adjusted EBITDA for Q3 2024 was $87.0 million; net loss was $3.1 million.

• Q3 2024 Cash NOI was $100.5 million, up from $84.8 million in Q3 2023; total portfolio Same-Store NOI grew 17% year-over-year, led by SHOP (61.8%) and ISHC (22.6%).

• Cash flows from operations for the nine months ended September 30, 2024 were $116.6 million, up from $72.8 million in the prior year period.

• Declared a $0.25 per share cash distribution for Q3 2024.

Outlook and guidance

• Increased full-year 2024 NFFO guidance to $1.40–$1.43 per share and NAREIT FFO per share guidance to $1.28–$1.31.

• Raised total portfolio Same-Store NOI growth guidance to 15.0%–17.0% for 2024; ISHC: 21.0%–23.0%, SHOP: 51.5%–53.5%, Outpatient Medical: (0.5)%–0.0%, Triple-Net: 2.0%–4.0%.

• Management expects continued inflationary pressures on labor and operating costs, but aims to offset these through higher rent and care fee increases.

• Quarterly cash distributions of $0.25 per share are expected to continue, subject to board approval and available funds.