American Healthcare REIT ( AHR ) Earnings Call

fool.com · Feb 27, 2026 · Collected from GDELT

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Image source: The Motley Fool. DATEFeb. 27, 2026CALL PARTICIPANTSChairman and Interim CEO & President — Jeff HansonChief Operating Officer — Gabriel M. WillhiteChief Investment Officer — Stefan K. OhChief Financial Officer — Brian S. PeayOperator — [Operator (name not provided), included for opening/closing and Q&A facilitation]Need a quote from a Motley Fool analyst? Email [email protected]TAKEAWAYSTotal Portfolio Same-Store NOI Growth -- 11.8% for the fourth quarter; 14.2% for 2025, marking the second consecutive year of double-digit growth.Operating Portfolio Mix -- Integrated senior health campuses (Trilogy) and SHOP segments now generate 76.9% of consolidated cash NOI, with margin expansion of 130 basis points in Trilogy and 280 basis points in SHOP during 2025.Trilogy Segment Metrics -- Same-store NOI up 18.4% for 2025; Q4 same-store occupancy reached 90.6%, rising 275 basis points; quality mix penetration rose 220 basis points both by resident days and by revenue.SHOP Segment Metrics -- Same-store NOI increased 25.2% for 2025; Q4 same-store occupancy averaged 90.6%, up approximately 290 basis points over the prior year.Segment Revenue Management -- Dynamic revenue management tools piloted within SHOP and Trilogy are expected to enable sustained above-average NOI growth in coming years.2025 New Investments -- Over $950 million deployed in new acquisitions, chiefly in SHOP, positioning it as the portfolio's second largest segment by cash NOI.2026 Acquisitions -- Closed $117.5 million in SHOP acquisitions to date, with over $230 million of awarded deals in the pipeline, none of which are included in initial 2026 guidance.Development Pipeline -- Ongoing focus on Trilogy campus expansions designed to deliver attractive yields and faster cash flow recycling with mitigated market risk.Normalized FFO (NFFO) -- $0.46 per diluted share reported for the quarter; $1.72 per diluted share for 2025, representing 22% year-over-year growth.2026 NFFO Guidance -- $1.99 to $2.05 per diluted share, reflecting projected double-digit growth, and incorporates only the $117.5 million of 2026 closed acquisitions.2026 Same-Store NOI Guidance -- 7%-11% total growth, with segment details: Trilogy (8%-12%), SHOP (15%-19%), outpatient medical (0%-2%), triple-net leased (2%-3%).Capital Structure -- Net debt to EBITDA improved to 3.4x at year-end, excluding $287 million of unsettled forward agreements from ATM and November 2025 equity offering.Acquisition Yields -- Most newly acquired assets were priced in the high-5% to low-6% cap rate range, with stabilization expectations around the 7% level.Portfolio Supply Dynamics -- New supply remains under 1% of existing inventory; management expects muted competitive pressure and rapid absorption due to increasing demand.Leadership and Strategy -- Interim CEO Jeff Hanson affirmed, "There is no change in strategy. Our investment and capital allocation strategy, risk management framework, balance sheet posture, and long-term value orientation remain unchanged."SUMMARYAmerican Healthcare REIT (AHR 1.69%) leadership confirmed organizational and strategic continuity following its CEO’s medical leave, indicating no changes to current management direction. Management signaled continued capital deployment into SHOP and Trilogy assets, underscored by robust acquisition volumes and a strong investment pipeline. Dynamic revenue management and ongoing development initiatives offer levers for future performance as demonstrated by segment-specific guidance for 2026. Portfolio positioning reflects a concentration in high-occupancy, high-acuity care assets with an emphasis on off-market opportunities and demographic-driven demand absorption. Capital markets activity in late 2025 and early 2026 provides ample liquidity and flexibility to pursue emerging investment opportunities in a competitive landscape.The company’s improved debt metrics, with a 3.4x net debt to EBITDA ratio excluding unsettled equity from recent offerings, suggest increased financial flexibility for 2026 opportunities.Management attributed significant quality mix improvement in the Trilogy segment to more favorable Medicare and Medicare Advantage penetration, which enhanced both revenue and margin profile.Leadership disclosed, "Same-store NOI growth in SHOP grew 50% in 2024, 25% in 2025, and now the midpoint of our guidance range is 17%," highlighting anticipated deceleration while remaining above industry averages.Piloting of proprietary real-time, unit-level pricing tools is credited with enabling stronger operator performance and is being tested for broader adoption within the SHOP portfolio.Approximately half the company’s 2025 acquisitions were off-market, sourced through deep operator relationships, providing a relative advantage in deal flow and pricing.INDUSTRY GLOSSARYSHOP: Senior Housing Operating Portfolio, representing directly operated senior living assets within the REIT.Trilogy: Integrated senior health campuses, a key AHR segment with a blend of skilled nursing, assisted living, independent living, and memory care services.LTIP: Long-Term Incentive Plan; in this context, an equity-based management incentive tied to AHR stock performance, aligning operator and shareholder interests.RevPOR: Revenue per Occupied Room, a key performance metric in healthcare real estate.Quality Mix: The share of resident days or revenue derived from higher-paying sources such as Medicare, Medicare Advantage, or private pay, versus Medicaid or lower-rate sources.Full Conference Call TranscriptJeff Hanson, Chairman and Interim CEO and President; Gabriel M. Willhite, Chief Operating Officer; Stefan K. Oh, Chief Investment Officer; and Brian S. Peay, Chief Financial Officer. On today's call, Jeff, Gabriel, Stefan, and Brian will provide high-level commentary discussing our operational results, financial position, our 2026 guidance, and other recent news relating to American Healthcare REIT, Inc. Following these remarks, we will conduct a question and answer session. Please be advised that this call will include forward-looking statements. All statements made during this call, other than statements of historical fact, are forward-looking statements and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those projected in these statements.Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results, financial condition, and prospects. All forward-looking statements speak only as of today, 02/27/2026, or such other dates as may otherwise be specified. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During the call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating the company's operating performance.These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable measures calculated in accordance with GAAP are included in our earnings release, supplemental information package, and our filings with the SEC. You can find these documents, as well as an audio webcast replay of this conference call, on the Investor Relations section of our website at www.americanhealthcarereit.com. With that, I will turn the call over to our Chairman and Interim CEO and President, Jeff Hanson.Jeff Hanson: Well, thanks, Alan, and greetings to those of you joining us today. Before the team dives into our results, I want to start by addressing the leadership update that we shared earlier this month. As you know, I have stepped into the role of interim CEO while Danny is on a medical leave of absence. I am pleased to share that he is at home recovering well and is in good spirits. In fact, he remains engaged. He and I speak regularly each week on the business front, and he is participating in all of our board meetings virtually while he is on the mend at home.He intends to return in the relative near term, but it is too early to have timing visibility at this point. By the way, we appreciate the many well wishes sent from our partners and stakeholders. We passed them along to the Prosky family, and for that, he is grateful. So thank you. Those of you who do not know me well, I served as Chairman since the company's formation and previously led AHR's predecessor companies as both Chairman and CEO.I am one of the three cofounders of the companies, and I led this platform for roughly 16 of the past 20 years alongside both Danny and Matt Streiff, Matt, of course, being our third founding partner and a current board member. Together, we built this platform over the past two decades with a clear vision to create a disciplined healthcare company focused on providing and facilitating high-quality care and superior health outcomes. Our team here continues to reinforce this internally and externally, as this vision is actually what drives our performance and long-term value creation. And this foundation remains firmly in place today.Along the way, Dan, Matt, and I have built the executive management team that you know so well today. The rest of the board and I have tremendous confidence in our team's ability to continue to do what they have done exceedingly well over the past decade, which is to drive the growth and the performance of this REIT. I want to be very clear at the outset. This is a seamless continuation of the strategy and execution you have grown to expect from this team. My role as interim CEO is one of continuity, support, and advisory. There is no change in strategy.Our investment and capital allocation strategy, risk management framework, balance