AHR

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 1:00 p.m. ET Vice President of Investor Relations and Finance - Alan Peterson Chairman and Chief Executive Officer - Jeff Hanson President and Chief Operating Officer - Gabe Willhite Chief Investment Officer - Stefan Oh Chief Financial Officer - Brian Peay Director - Danny Prosky Operator: Hello, everyone. Thank you for joining us, and welcome to the American Healthcare REIT's Second Quarter 2026 Earnings Conference Call. I will now hand the conference over to Alan Peterson, Vice President of Investor Relations and Finance. Alan, please go ahead. Alan Peterson Good morning. Thank you for joining us for American Healthcare REIT's Second Quarter 2026 Earnings Conference Call. With me today are Chairman and Chief Executive Officer, Jeff Hanson; President and Chief Operating Officer, Gabe Willhite; Chief Investment Officer, Stefan Oh; and Chief Financial Officer, Brian Peay. We are also joined this morning by Danny Prosky, a member of our Board of Directors and the company's former President and Chief Executive Officer, who will share some personal reflections later in this call. On today's call, Jeff, Gabe, Stefan and Brian will provide high-level commentary discussing our operational results, financial position, our increased 2026 guidance and other recent news relating to American Healthcare REIT. Following these remarks and Danny's contributions, 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 that 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. I 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, August 7, 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'll turn the call over to AHR's Chairman and Chief Executive Officer, Jeff Hanson. Jeffrey Hanson: Thanks, Alan, and good morning, everyone. As most of you know, 2 weeks ago, we announced that Danny Prosky elected to retire after a medical leave of absence that began in early February. Fortunately, he's had a truly remarkable recovery and he continues to serve as a deeply engaged director and as a valued adviser to the management team. And as Alan just mentioned, he's actually with us today to share some thoughts prior to Q&A. As many of you are aware, Danny [indiscernible] and I built this platform beginning 21 years ago, and I led the CEO for 16 of those years before Danny succeeded me about 4.5 years ago. Because this is very familiar territory since my return to this role almost exactly 6 months ago, I've been leading since day 1 alongside our team with the discipline, ambition and intensity you'd expect of AHR given the enviable market position with which we've been entrusted and we take that trust very seriously by the way. The theme of this quarter is the durability of the competitive advantages that our management team is deploying, to drive calculated growth as we work hard to scale, a powerful and a differentiated platform to generate even greater value for shareholders. Q2 was another exceptionally strong quarter. While some investors are simply being carried by the sector's tailwinds, our achievements across core metrics illustrate our position of strength in the marketplace. For example, double-digit same-store NOI growth for the tenth consecutive quarter, industry-leading NFFO per share growth with a material increase in full year guidance while continuing to delever, which, of course, is highlighted by net debt to EBITDA of only 2.5x, exceptionally strong acquisition execution with over $1.4 billion in closed deals year-to-date with an additional more than $800 million locked up and in the pipeline, all expected to close prior to year-end. By the way, none of which is reflected in our revised earnings guidance. And of course, efficient capital formation and accretive deployment into some of the highest-quality senior housing product located in some of the most desirable infill markets in the country at scale with compelling risk-adjusted returns at a very attractive spread to our cost of capital. And rather than isolated data points, by the way, these results represent the output of a strategy that we forged together over the course of many years and a team that continues to execute at the highest level and with excellence. And although we're very proud by the way of what we've accomplished to date, we remain strictly focused on ensuring that the best version of this company is still ahead of us. A word on pace because our volume is up meaningfully this year, and we'd rather address that directly than have it inferred. Our underwriting discipline has not changed. What has changed is the depth and the quality of the opportunity set in front of us. As our standing with operators has continued to strengthen materially and as our balance sheet has become an even stronger foundation for seizing opportunities, more of the right opportunities are simply reaching us first. And that's enabled us to be more selective not less. Given the recent leadership announcement, I want to be clear about how I will personally continue to lead this exceptional organization. The mission, the strategy and the discipline that's driven our results does not change. And they don't change for a simple reason because Danny and I, in conjunction with the management team that you all know so well, built our strategy and our operating ethos together over the past decade. Now with that said, we will never rest on even recent accomplishments because the only scoreboard we focus on is forward-looking and calibrated to the results that we're posting for our core constituents from our valued investors to residents and our communities all across the country. My focus, among other things, is in 2 core areas: number one, rapidly scaling this platform to deliver the outsized growth that we're being valued to deliver and to do so in a disciplined and responsible manner, while simultaneously positioning this platform to seize the generational investment opportunity before us in the senior housing sector today. So number one is rapid scaling to drive outsized growth. Number two, strengthening an extremely talented leadership team that Danny and I and our broader Board has long since viewed as the future of the company for the next decade and beyond. That means deepening our operating capabilities and adding some of the best talent in the country in important roles across the org chart, while continuing to drive robust internal and intelligent external growth at significant scale. As we previously announced, Gabe Willhite has been elevated to President while also retaining his COO role. And he and I are working together to deepen the leadership at every level of the organization, while Stefan and Brian continue to drive our investments and finance capabilities with the same discipline that you've come to rely on. I'd also like to acknowledge one of AHR's valued independent directors, Scott Estes, who, as many of you know, served for 12 years as Welltower's CFO. He was appointed lead independent director last month because AHR is committed to best practices in corporate governance, and Scott's combination of judgment and experience has continued to prove invaluable throughout a service on our Board. All of the efforts that we're discussing today are quite frankly, in service of a simple and enduring vision to position AHR as the most sought after capital partner for the best senior housing operators in America, while simultaneously delivering the highest quality care and superior health outcomes for our nation's valued elders. The demographic tailwind behind long-term care, as you all know, is powerful and still in early stages and supply remains profoundly constrained. But that tailwind essentially is available to every investor in the sector. What sets us apart is what we've built underneath it. Many of our key people are former operators, and that's by design. Then there's Trilogy. These advantages give us a finger on the pulse of this business each and every day, and real-time insight into what's actually working across thousands of units. It also means we sit across the table from our partners as people who lived in the operating world not just in the capital markets. Operators know the difference, and they choose accordingly. Ad development capabilities and bed licenses in a sector where both are valuable and rare, you have advantages that continue to compound. Cost of capital determines as we all know, what you can offer to pay, but it doesn't determine what you get shown or what you get done. Anyone can be the highest bidder. AHR is strengthening our position as the industry's partner of choice, and we intend to keep widening that gap. With that, I'll turn it over to the team. Gabe? Gabriel Willhite: Thanks, Jeff. Before I get into the quarter, let me thank Jeff and the Board for the confidence they've shown in me. I've been in this company and its predecessors for more than a decade in serving as the President and COO of this remarkable company, it's a genuine privilege that compels a sense of enormous stewardship and responsibility. And beyond that, what excites me now the most is how HR is positioned to capitalize on one of the most significant generational investment opportunities that we've seen really in any real estate asset class. The differentiated platform we've built in the way that we're rapidly scaling it positions us to maximize the opportunity before us in senior housing in America. With that, the second quarter put numbers behind the growth and the opportunity we're describing. Total portfolio same-store NOI grew 13.2% year-over-year and 12.7% for the first 6 months. GIST as important, it grew 4.9% sequentially off a first quarter that was already a high watermark. Our operating portfolio led again and it led the way we wanted to. Occupancy held bucking the usual first half seasonality and rate was managed with discipline, all while expense growth was effectively controlled. This resulted in strong margin expansion and NOI growth. Getting into the segments, Trilogy continues to exceed our already high expectations. Same-store NOI grew 16.1% year-over-year and 5.4% sequentially, while same-store occupancy averaged 90.7%, up 180 basis points from a year ago. While occupancy stepped down about 50 basis points from the first quarter, we view that as typical seasonality. Just as we've seen in past years with Trilogy, a slight pullback in skilled nursing occupancy this quarter was offset by strength in Trilogy's senior housing setting. This dynamic has the potential to be a powerful driver of growth through the summer selling season and through the remainder of the year. Even though skilled nursing occupancy came down 70 basis points sequentially, senior housing occupancy held at 91.9% and flat with the first quarter and 200 basis points ahead of last year. Those residents stay with us considerably longer. So starting with a higher occupancy through the busiest selling season of the year, is the result we care most about. Importantly, we more than offset the seasonal step down in occupancy by executing effectively on the expense line. Same-store operating expenses were down 0.9% sequentially with controllable costs down 4.6%. And as a result, Trilogy set a new post-pandemic high watermark for same-store NOI margin, which reached 21.1%. That's a full 100 basis points of expansion sequentially. Quality mix reached 75.5% of resident days, a continuation of trends we expect to see from Trilogy. The improvement in quality mix demonstrates the effectiveness of our strategy of leaning into quality, which is being recognized by the more selective payer sources. As I mentioned before, our SHOP strategy of partnering and supporting the best operators continues to be highly successful. SHOP grew same-store NOI 20.5% year-over-year, occupancy continues to grow year-over-year, and we're widening the spread between RevPAR and ExPOR, which led to same-store NOI margin expanding 242 basis points to 22.3% year-over-year. These strong results are evident in our sequential results as well. Same-store NOI grew 9.9% from the first quarter as RevPAR rose 1.4%, while ExPOR actually came down 0.8% and propelling margin expansion. Our operating partners are truly an impressive group. Through our partnership with them, we're able to tap into strong operating leverage, which only compounds as occupancy clients. You can expect us to continue to focus on our existing and ever-evolving best-in-class asset management practices with our best-in-class operating partners to drive results. We've demonstrated time and time again through our operating results that's the difference maker. Underneath both segments since the same discipline, quality of care first, collaborative accountability with every partner. We set clear performance and care expectations with each regional operator. We measure them continuously, and we put the platform to work where it adds value for our partners. The revenue management playbook we built alongside Trilogy is now in the hands of a subset of our SHOP operators with interest for more, and our asset management team is on the ground and engaged in our communities. Our partners who hold the same value and the standards as HR become the inevitable recipients of greater capital allocation. That is how we will continue to grow and to maximize value creation for our shareholders as we do it. One last point because it bears directly on how we scale. Every community we acquire has to land with an operator who meets our standard on day 1, and the platform has to be ready to absorb the expansion the day we close. So we're investing ahead of the growth rather than behind it. We're adding depth in asset management, clinical oversight and underwriting, and we're extending the revenue management, analytics and reporting tools we built alongside Trilogy to more of our operating partners. So that a partner who joins HR actually gains capability on day 1 that would otherwise take years to build alone. As always, thanks to our regional operating partners and our asset management team for another quarter of industry-leading results. With that, I'll turn it over to Stefan. Stefan K. Oh: Thanks, Gabe. I'm proud to report that, as Jeff mentioned earlier, for the year-to-date, we've closed on over $1.4 billion of new acquisitions and investments. During the second quarter, we closed approximately $126.9 million of new SHOP investments, all representing expansion with existing operators. That included 4 communities in Georgia and South Carolina for approximately $86.4 million, which deepens our Southeast presence with an existing regional partner and 1 community in Minnesota for approximately $40.5 million with another existing partner. We also sold 3 noncore properties for approximately $22.3 million, continuing our ongoing process of opportunistically pruning assets that no longer earn a place in our portfolio. This allows us to redirect capital into higher quality and more strategic assets. After the end of the quarter, the acquisition pace picked up considerably. We acquired 10 additional shop communities for approximately $1 billion which brings our investment volume to over $1.4 billion this year. That activity also welcomed new regional operators onto the platform. One of them opened up the Northeast for us at scale, a region we had targeted for some time and one we were excited to enter with the right partner. The other meaningfully deepens our exposure in the Southeast, where we already have real momentum and can supplement our exposure with another best-in-class operator. I have said this before, but I want to note again that who we choose to work with is the most important component of our investment process. Our operating partners were carefully selected and in almost every case came out of our network. The relationships were built well ahead of the opportunity. However, being familiar and never substituted for diligence, every one of them was underwritten to the same rigorous standard we apply to anyone we consider adding to the platform. And we waited patiently for the right assets in the right markets before formalizing these strategic partnerships. Also after the quarter end, we funded an $86.2 million loan on 7 properties with options to acquire them. The properties are operated by a partner we have an existing relationship with, and we have a defined path to near-term ownership of these communities at an attractive return. As for our investment pipeline, it currently stands at over $800 million. That includes newly awarded deals as well as deals disclosed as awarded in our first quarter release that have not yet closed. We expect to close most, if not all, before the end of the year, but none of this volume is reflected in our guidance. Let me be candid about how we are approaching this market. We pursue growth with measured conviction, strategic and disciplined always putting quality and accretive growth potential above all else. Operator quality and market position are always the first filter, and this is nonnegotiable for HR. From there, we underwrite care outcomes, market fundamentals, the physical plant, the service lines, the asset can efficiently support and the risk-adjusted return. We do not drive growth for growth's sake. We are actively allocating capital not because we've relaxed our approach, but because meaningful opportunities met our acquisition criteria. Scale in the right markets with the right partners compounds, and the deep industry relationships we built over the past 20 years continue to generate compelling opportunities, many of which never reached the broader market. With that, I will turn it over to Brian. Brian Peay: Thanks, Stefan. We reported normalized FFO of $0.54 per diluted share for the second quarter, up 28.6% from the $0.42 in the same quarter last year. Year-to-date, NFFO is $1.05 per diluted share, 31.3% ahead of the prior year. Those results were achieved, first, by the organic growth embedded in the portfolio and second, from accretion from the acquisitions we have closed over the past 4 quarters, which are now contributing a full period of earnings, both of which combined to be an approximate 31% year-over-year increase in cash NOI. Those results, together with better visibility into the second half of the year, support a further increase to our full year 2026 guidance. We are raising full year NFFO per diluted share guidance to a range of $2.15 to $2.19, up from our prior range of $2.03 to $2.09. At the midpoint, that represents roughly 26% NFFO per diluted share growth over 2025. We are also raising total portfolio same-store NOI growth guidance to a range of 11% to 13%, up from 9% to 12%. At the segment level, we're moving both operating segments higher. Integrated senior health campuses has increased to a range of 13% to 16% from 11% to 15% and SHOP improved to a range of 18% to 21% from 15% to 19%. Outpatient medical was changed to flat to up 1% and triple net leased properties are unchanged at an increase of 2% to 3% year-over-year. As always, this guidance reflects only the transactions and capital markets activity completed through today. It does not include any awarded deals still in the pipeline that Stefan described. Turning to the balance sheet. Net debt to EBITDA improved to 2.5x for the second quarter, which is 0.5 turn better than the 3x we reported in the first quarter of 2026 and 1.2 turns better than Q2 of 2025. Between our May follow-on offering and our ATM program, we raised approximately $1.5 billion of equity capital in Q2 '26 and subsequent to quarter end. As a result, and as of today, we have unsettled forward sale agreements totaling approximately $631 million in proceeds upon full settlement. The forward proceeds that remain unsettled are a powerful funding source for the pipeline that Stefan described, along with cash on hand and the full availability on our $800 million revolving credit facility. Our capital markets discipline has given rise to strong offensive capability, positioning us to pursue our most attractive acquisition and development opportunities from a position of financial strength. I want to remind everyone that our cheapest source of equity comes from the significant amount of retained earnings generated each quarter, which is a product of the company's dividend policy. Beyond that, we will continue to raise capital from nonstrategic asset sales and could potentially raise equity capital through our ATM, so long as it is attractively priced and would result in an accretive use of funds. Utilizing this strategy, we have been able to close $1.4 billion of acquisitions this year, while also creating future funding capacity by improving and reducing leverage metrics, all while expecting to grow NFFO per share by more than 25% from 2025 to 2026. That backdrop sets the stage for us to continue to play offense from here. And with that, I'd like to turn it back to Jeff. Jeffrey Hanson: Thanks, Brian. Before we open the call to questions, I'd like to share a brief sentiment before turning it over to Danny to share a few of his thoughts. Danny and I have been business partners for more than 20 years, and he's had an absolutely incredible 35-year career in health care real estate that's been marked by excellence at virtually every turn. His profound leadership has shaped this company in indelible ways and his DNA is infused throughout every part of the organization, from our strategy, to our culture, to several of the operating relationships that define who we are today. Fortunately, he continues to serve as a valued Board member and trusted advisers. So thankfully, he's not going anywhere. With that said, I didn't want this quarter to pass without all of you hearing from him directly. Danny, it's all yours. Danny Prosky: Thank you, Jeff. Good morning, everyone. I want to thank the team for giving me a few minutes on today's call. As you know, we completed our leadership transition last month, and I've since retired from my role as CEO. The business is in excellent hands. So I'm not here to talk about the quarterly results. I'm here simply to share a few personal reflections and to say thank you. As many of you know, this past February, I suffered a serious health event. For unknown reasons, my heart stop beating following my usual morning run. Although I was recovering rapidly and had anticipated returning to the CEO seat prior to our Q1 earnings call in early May. My recovery began to plateau. This ultimately resulted in a heart transplant that was thankfully very successful. Since then, my recovery has been exceptional, and I truly have a new lease on life. Such a profound experience gives 1 perspective. And it gave me the reason to think hard about what I want the next chapter of my life to look like, particularly after what my family has been through this year. After a great deal of reflection in many conversations with my wife, I concluded that the right decision was to step back from day-to-day demands of the Chief Executive role. I'm fortunate that AHR's depth gives me the flexibility to prioritize my family at this stage of my life. This company is strong, the strategy is delivering industry-leading results and the senior leadership team is exceptional. During my recovery and it's no surprise to me, Jeff and our broader team haven't lost a step. In fact, they've accelerated over the past 6 months, which makes it easier for me to prioritize my family while dedicating professional energy to my role as an engaged director and adviser to the leadership team that I care so much about. If you'll permit me a moment of broader reflection, I've spent 35 years working in the health care REIT space and has been the privilege of my professional life. I was fortunate to help build this company from the ground up to invest in communities that care for people during some of the most important seasons of their lives and to work alongside operating partners who share our commitment to quality care and outcomes. What I'm most proud of isn't any single performance metric. It's the people, the culture and the purpose that define AHR. And when a company is built upon the right foundation, these attributes endure long after any one leader steps out of an operating role. To our team members across the organization, thank you. You are the reason this company is so successful. To our regional operating partners, thank you for your trust in AHR and your partnership and our shared mission. To our Board and our shareholders, thank you for your confidence over the years. And Jeff, thank you. Matt and I couldn't have asked for a better business partner or a better team to carry this forward. I'm passionate about my continued involvement and I'm extremely optimistic about the future. With that, and with tremendous anticipation for what lies ahead, I'll turn the call back to the team. Thank you all. Jeff? Jeffrey Hanson: Thanks, Danny. Beautifully said, and we're grateful that we'll continue to benefit from your wisdom and your counsel for many years to come. Operator, we'd like to open the line for questions. Operator: Your first question is from Michael Stroyeck with Green Street. Michael Stroyeck: Congrats Danny on a spectacular recovery. That's great news. Maybe one question on expenses and Trilogy what drove the deceleration in controllable costs within that business? Is that sub-2% growth rate just transitory in nature due to some elevated year-over-year comps? Or do you view that as more sustainable in the near term? Gabriel Willhite: I'll take that, Michael. It's Gabe. So at the beginning of the year and really, this started last year, the Trilogy team made it a big focus -- the focus on expenses, and they've done a terrific job of managing that through the first and second quarter of 2026. That team has shown time and time again that if they focus on something they can really outperform what the expectations will be. So I would never count them out on outperformance on that front. There are a couple of things that are seasonal in nature on the expense side that you should take into account, though, between Q2 and Q3, they're highly concentrated in the Midwest. So utility seasonality can be a component of it as you enter into the colder months, and more utilization of air conditioning and climate control, that sort of thing. But I think overall, what we're seeing there is really great execution on expense management, especially -- and it's not just coming from 1 area. It's coming from multiple different components of their business. Michael Stroyeck: Makes sense. Maybe sticking with Trilogy and your SHOP portfolio. You talked about applying the Trilogy operating platform to SHOP. Can you provide any sort of quantification in terms of the NOI upside opportunity there in terms of bringing that to your in-place operators? Gabriel Willhite: Really hard to parse out exactly the dollars attached to that type of value and I'll zoom out first. So our approach to operator support is really a multimodal approach. One, you've got to have capital and help them reinvest in the properties and scale their businesses. Two, you need to support them with data and analytics, and we're working on enhancing that real time every day. here. Three, we've got the Trilogy platform, which can provide support in a multitude of ways. We've talked a lot about revenue management. We also can on a private label basis, support operators in sales marketing, employee experience, and we're expanding that and really leaning into how Trilogy's CapEx capabilities and development capabilities can support other operators as well. We also support and host innovation forums for our operators. Right now, we've got 11 different operators that participate in those calls on different areas, sales and marketing, plant operations, resident experience, risk management, key areas where sharing best practices can really move the needle. And finally, I would be remiss if I didn't mention our asset management team, which is primarily former operators and really run as a high-end consulting business for senior housing operators in the space. So you take all of that together, and now you've got a platform where when you come on as an operator to AHR platform, the idea is that you're going to be better off than if you were doing it without us. And to get back to your question, a long way of saying, I can't tell you exactly what dollars are attached to that. I can tell you, 16% NOI growth at Trilogy for their mix and the defensiveness of the mix in their business is very strong, over 20% NOI growth on a same-store basis in SHOP, which is the tenth straight quarter of either 20% or near 20% same-store NOI growth is really strong and a lot of that is because of the platform value. Operator: Your next question is from Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Best wishes to Danny as well. Look, I think my first 1 is just sticking with Trilogy for a second, clearly, the performance has been pretty impressive over the past 2, 3, 4, 5 years as you guys sort of think about going forward and optimizing further. Is there -- where is the biggest opportunity? Is it on the revenue side? Is it on the expense side? Is it just getting more beds in. Just how do you guys think about over the next sort of 3 to 5? Like what's the biggest opportunity for the business now? Gabriel Willhite: Yes, Ron, I'll take that one again. It's Gabe. Thanks for the question. It's a mix. It's great to think about that. I think there's still a lot of occupancy growth that can happen at Trilogy, which is going to be an important part of the story. I think they're ahead of the game in the space on revenue management. And as we get to more and more of our portfolio being functionally full, you can see the revenue management becoming a bigger and bigger piece to outperformance. So getting out in front of that and building a proprietary software system that they operate, they're using for their entire portfolio today is a key component of it. I think that is still in early stages and continue to improve. That also flows through on the skilled nursing side to the mix of payer sources in the skilled nursing side. As you get to higher occupancy and as you get more sophisticated about revenue management, it unlocks what I think is probably the most overlooked component of our entire portfolio, which is the ability to grow revenue on the skilled nursing side on a per bed basis. If you look at our Med Advantage rate growth at Trilogy, it was 8.4% on a same-store basis year-over-year. That's probably higher than what people thought was achievable and that's because they're optimizing the mix, they're optimizing for the plans that they partner with. They want to partner with people that are willing to pay them for the level of care that they provide because it costs more to provide that level of care. So they're optimizing their partnerships and continue to push. I think all of that is critical. But that's just on the same-store basis. Trilogy's development capabilities can't be overlooked either. We've got a strong development pipeline there. We've got 5 campuses, new campuses that are in construction today. And we also have the ability to expand existing campuses in kind of a modular way that derisks the proposition and creates more runway for growth as they optimize their operations throughout their entire portfolio. Ronald Kamdem: Great. And then my follow-up, if I could switch to acquisitions for a second. Obviously, pretty impressive volumes so far. I guess, 1 of the comments you made earlier is that you are seeing more product coming to you guys. And I'm just curious if you could provide a little bit more color what's driving that? Is it debt fund? Is it relationships? Just can we get a sense of like what's driving more product to you all to be able to sort of close at the same underwriting as you were previously? Stefan K. Oh: This is Stefan. Yes, I would -- I think you can easily say that this year has been a very active year. We are seeing a lot of deal flow compared to even last year, where we started to see a pretty strong uptick -- and this year has just been very heavy. We've seen a lot of groups that are coming out basically attracted, I think, by some of the cap rate compression that we saw at the beginning of the year combined with operator performance that has increased value in their assets as well. So I'd say that's pretty much the big driver. I mean you're just seeing a lot more folks who are finding the opportunity now to come out and bring opportunities to the market. Secondarily, though, I would say -- as we have grown our operator relationships, we are certainly able to see more off-market deals coming to us directly. As we have had about half of our deals come through to us on an off-market basis. And I think, as you know, we've grown our operator base a little bit over the past couple of years, and that continues to just drive more off-market opportunities to us as well. So I think it's really those 2 things that are driving it. And fortunately, a lot of those deals that we're seeing are deals that have fit into our box. We are being very disciplined in how we are underwriting those deals just as we always have. So combined with the fact that there's a lot of deals that are out there and the fact that -- we just have to find some -- a lot of opportunities that fit us. I think that's a big part of why you're seeing our acquisition volume grow as much as it did. Operator: Your next question comes from Seth Bergey with Citi. Seth Bergey: Glad to hear that you're making a good recovery, Danny and best washes. I guess just maybe sticking with acquisitions. You talked -- some of your deals that closed this quarter both new operating partners. So could you just talk a little bit about more of how you go through that process of deciding to kind of onboard a new operator partner and -- is it based off of geographically where they operate? And just a little bit more about kind of how you think about that? Gabriel Willhite: Well, yes, first of all, I'd say most of our operator relationships are coming from prior relationships that we've had with these operators. So that gives us a lot of ability to see not just from an initial due diligence standpoint how they operate, but also having a long-term relationship with them and seeing over history over time, how they have operated in their communities. Obviously, we're very selective in how we choose our operators. So combine the fact that we're looking for those operators that are going to provide the highest level of care, that can provide the highest level of hospitality to the residents and an employee experience with the fact that there are certain markets that we are targeting geographically, that's kind of what drives us to where we are going to bring in a new operator business. And obviously, it's not just a matter of identifying the operator and the geography we want to be in, but it also has it's also a matter of what opportunities are available to us in those geographies? Are they going to be a fit for our portfolio and for the operator that we're partnering with. Seth Bergey: That's helpful. And then maybe just on the development kind of guidance. It looks like that ticked up a little bit. Is that -- should we think about that as additional kind of developments with Trilogy or is another opportunity and kind of return expectations there? Jeffrey Hanson: It's really executing on the plan we've talked about for a long time, Seth, that Trilogy with their developments. The opportunity set there is fairly deep. Trilogy's development capabilities have been evolving over a multi-decade process, and they're actually doing GC work on some of the developments now. So we can see a path to maybe even outperformance to our standards on what the returns will look like there. They're always optimizing for cost and value engineering the buildings, including with this new GC project. So we like that. We really like the villa projects that are expansions that we focus on where the demand dictates that it's already there, so you can pre-lease those properties, presell them, and there is very little operational drag that comes along with them. But I think at this moment in time, we're going to continue to do what we said, which is 3 to 5 new campuses opening a year at Trilogy with expansion projects surrounding those as well, and they're largely filling and performing to the underwriting expectations that we had. Operator: Your next question is from Austin Wurschmidt with KeyBanc Capital Markets. Austin Wurschmidt: Danny, yes, great to hear from you and that you're doing well. Just I want to wish you good health and all the best moving forward. The team has highlighted that it's been a banner year of investments. Gabe, you highlighted the generational opportunity ahead of you. I mean has there been any further discussion or change in your view around selling more even all of your outpatient medical portfolio to accelerate the growth in the senior housing? Jeffrey Hanson: Yes, Austin, Jeff Hanson here. So look, I mean, yes, the focus and the energy and the capital of the company is squarely focused on the generational opportunity in both SHOP and Trilogy and expanding. So as you've heard Brian and others say before, we're well aware of the embedded value in the OM platform. And as I think you know, we've already sold 1/3 of the buildings the attributable NOI has gone from mid-30s down to where it is today, sub 13%, which is going to sub-10 quickly, and that's by design. We're always looking at alternatives and ways to drive long-term shareholder value. So we've been selling. We understand there's value there, and we're going to continue, of course. Austin Wurschmidt: I appreciate the thoughts. And then I just want to touch on SHOP a bit. I mean can you talk a little bit about the demand funnel and trends you're seeing in the July and August given maybe some of the softer early seasonal acceleration from the first quarter into the second quarter. Just curious how that looks moving forward? Gabriel Willhite: Yes. One thing to point out before I answer that question directly is that we have a little bit of a different acuity mix than most of the peers. We're more focused on the needs-based part of senior housing, which is assisted living and memory care and about 80% of our SHOP bets fall within that assisted living memory care component of the business as opposed to the independent living part of the business, which is more discretionary. As a result, you're dealing with higher acuity residents. And part of having higher acuity residents means that there's a little bit more seasonality in the occupancy because of involuntary move-outs that come through the winter season. It's just a part of the business. So we see a bit of a dip typically in Q1 that ramps into Q2. And we're seeing the selling season now in July actually looking pretty strong. And we -- we're ahead of where we were in Q2, ahead of where we started last year at this time, and that provides more pricing power as well. So I think with those -- coming off of a higher occupancy number in July, having sequential growth that's strong and still feels good, opens up new doors for revenue management, we're going to be focused on that as well. Operator: Your next question is from Michael Carroll with RBC. Michael Carroll: It's good hearing from you too, Danny. Great career. Just switching over to Jeff. I wanted to touch base with you just given that you've been taking on as the permanent CEO. Like what are the key initiatives that you're kind of identified that you kind of want to implement by -- since you kind of take over this role? Jeffrey Hanson: Yes. And look, because Danny and I founded the platform together beginning 21 years ago, it's not just with the leadership announcement a couple of weeks ago. I hit this seat in the first week of February, unexpectedly, of course, at Mac7 with the team that I built with Danny over the last decade plus. And it's all about scaling for -- as I said in my prepared remarks, to be able to post the growth that we're being valued to post, while doing so with discipline and responsibility. So there's already been a plan in place, and we're executing it in an accelerated fashion because we view really 2006 and 2007 is an inflection point in the overall arc and growth trajectory of the company. So number one is acquisition velocity. There are really 4 core areas: Number one, acquisition velocity while maintaining very high standards from assets to market to operator quality to underwriting rigor, right; then very critical, and we've been working on this for the past 6 months, haven't made announcements yet, but we will very shortly in terms of onboarding industry-leading talent across the entire org chart. And this is all in the support of rapidly scaling SHOP from the Investments division at 3 levels to the SHOP portfolio and asset management division at 2 or 3 levels and also technology. I'd say number three, is tapping further into Trilogy to drive even more innovation across our broader portfolio of operating partners. And the fourth would be aggressive expansion of relationships and footprint with existing operators. There are other platform initiatives that we've been working on. Those are the 4 primary -- and I would just say that the overarching theme, if you will, is measured aggression. And because this is the time to do it with, again, a generational opportunity before us, and you're going to see a rapid acceleration of HRs, velocity and execution in order to capitalize on the setup that's before us. Gabriel Willhite: And Mike, it's Gabe. I want to add just a little bit to that. AHR was uniquely situated to handle this situation because Danny and Jeff ran the company together before. Jeff was the former CEO, had served as CEO for 16 of the last 21 years, had been very involved as the Chairman of the Board. So when he stepped in, in a time of need, he was able to hit the ground running. And Jeff has unique gifts as a leader. Danny has unique gifts as a leader. What Jeff brings is a level of intensity and a track record for growth and scaling that's really incredible and fueling an acceleration of the platform enhancements we've been talking about. So we -- I think he was underselling exactly how fast we're moving and how hard he is charging. We're making really good progress, and we feel really good about where we're going to end up this year. Michael Carroll: That's good to hear. And I guess circling back to Jeff, I know since you have been the CEO step down. I mean how long do you want to be the permanent CEO? I mean you kind of looking at these initiatives and kind of once you get them up and running and kind of making good progress. I mean is that at a point in time where you're wanting to step back down? Or how should we think about that? Or is this more of an indefinite type move? Jeffrey Hanson: Listen, yes, I'm glad you asked that, thank you. I retired 4.5 years ago for a particular set of reasons. Those reasons haven't changed. But ultimately, I was part of an emergency succession plan that's been in place for the last decade that Danny and I have been working on with a very sophisticated Board. And ultimately, the way you should view this CEO ship isn't the typical into perpetuity CEO ship. Now we've got a sophisticated Board that's not establishing arbitrary time lines because that would be inappropriate. But you should view my CEO ship as mission and job driven. And the beauty is, again, there's been a decades-long succession plan that began with hiring present company, Gabe, Brian, and much of the rest of the team at the C-suite and even below the C-suite, some of whom you know, some of whom you don't know as again, a long-range succession plan that we're in the later stages. So I'm here to do a job with this team attached to my hip, and we're going to do it very quickly. We're going to do it very effectively. And will it be measured in a period of months or a few quarters? No, but you shouldn't expect it to be measured in years either. And I'll tell you, look, the beauty is, I don't need the money. I don't need the job, but I love this company. Danny and I built it from the ground up together. So nobody comes to this role at this particular inflection point, time and opportunity with this platform with more intensity and higher agency than someone who built it. And Matt, Dan and I put our balance sheets up to establish our predecessor companies. So there's a high degree of agency. And the way I'm going to value -- the way I'm going to measure my success in what we do over the next 12 to 18 months is how rapidly the next generation of leadership takes this company forward and post growth that Danny and I never thought possible in the seats, right? That's how we're going to measure my success in the out years. Operator: Your next question is from Farrell Granath with Bank of America. Farrell Granath: Great to hear from you, Danny, congrats on your successful career and good luck with your retirement. So my first question is really about Trilogy. And I know you already -- you kind of touched on this, but is it possible to quantify the remaining potential for the expansion of your current portfolio? Gabriel Willhite: That's a good question for expansion projects on the 150 assets at Trilogy currently operates. I can't tell you the exact number. I can tell you that we are -- there are more opportunities than people probably understand. We look at -- we have currently, I believe, about 30 properties communities at Trilogy that have excess land that we own today or have a direct path to ownership of where we can expand the villa projects. If we do 5 or 6 villa projects a year, that's a multiyear runway for villa expansions. I think that's the way to think about it. And that's just what we control today and not the other communities where we would go out and have to source land to do it. The expansions that we're working on, though are -- go well beyond villa projects, as you know, Farrell, where we can add wings that typically requires less land. So there's probably a significant opportunity set there from a physical barrier perspective. And we also add memory care -- stand-alone memory care villages that are called the legacy village that are about 40-unit memory care communities that are next to the Trilogy main campus and those show up in our expansion project list on the development list as well. So a long way of saying, I can't tell you exactly the number of communities that we have, but I feel comfortable that we have at least 5 years plus of opportunities that we control today at the current pace. Farrell Granath: Good to hear. And my other question is you did touch on this slightly, but just to dig a little bit deeper on your underlying assumptions, especially with the repass guidance? And maybe I'll narrow in on the shock same-store NOI growth, especially the levers of RevPAR and occupancy. What are some of those underlying assumptions that you kind of baked in, even if it's just directionally kind of keeping things more stable or taking into consideration the potential of the seasonality with the peak leasing season? Jeffrey Hanson: You're asking about the assumptions baked into the guide for the rest of the RevPAR... Jeffrey Hanson: Occupancy -- I mean we don't separately disclose that. One or 2 of our peers may actually talk about that. We have we have multiple scenarios whereby we are growing occupancy faster and we're not pushing on rate as much. And frankly, across the portfolio, it's not entirely homogenous. It's not as though every single campus that we own is 89% occupied. We've got some that are lower occupied, some that are higher occupied. We're pushing rate more on the more highly occupied ones. Expense controls is always appropriate. That's universal. We're always trying to make sure that they're pushing on that. Generally speaking, I think the more highly occupied buildings we're pushing on rate I think you're -- we would expect to see rate increases in the -- somewhere between 4% and 6% range. Control expenses on the lower occupied buildings. Again, we're not pushing rate. We may even be giving small move-in specials, but that's a really small piece of the portfolio. And there, it's grow occupancy. And I think that's -- again, it's not one set of circumstances. It's very specific to the building and the submarket. Operator: Your next question is from Michael Goldsmith with UBS. Michael Goldsmith: And Dan, great to hear from you. I'm glad to hear you're doing well and wishing you continued good help and all the best. Can you talk about the senior housing acquisitions and the returns they are delivering today relative to maybe the last prior years. We know there's a lot of capital flowing into the space and have seen some operating concussions, but then you've also mentioned several times that the recent acquisitions are performing ahead of underwriting. Just trying to reconcile those 2 competing dynamics and how that results in the returns that you're seeing? Stefan K. Oh: Yes, this is Stefan. So I guess one thing I want to point out just from the very beginning is that what we're buying now is high-quality institutional-grade assets that are in infill markets or dense suburban areas. So I think -- newer assets as well. So I think the one thing you could take away from this is that despite the fact that we are buying even higher quality assets today than maybe we had been a year ago, our underwriting is not changing. And our yields are actually not changing much either. I mean we're coming in at initial yields of, I'd say, mid-5s to low 6s. We continue to reach stabilization of 7 or above. And I think you could easily say that there was some -- obviously some cap rate compression that happened at the tail end of last year, at the beginning of this year. But it just really hasn't -- it hasn't really continued to accelerate the way it had 6 months ago. I think we are starting to -- we have seen that, that has stayed fairly consistent. And part of that is, again, a lot of off-market deals that we're seeing where we are getting first buy to the apple. But I also think that just on an industry basis, people are continuing to stay fairly disciplined at this pricing level. Obviously, there will be times where there will be the one-off deal that gets sold at an extremely low cap rate. But a lot of times that might be strategic. But I would say we've been able to hold firm in our yields, and I think the assets we're buying are really, really good. Jeffrey Hanson: Yes, Michael, this is Jeff. I'll expand a little bit. Stefan and I were actually talking about this fairly late last night here in the office. And we didn't really start to see cap rate compression and upward lift in pricing until around the third quarter last year. And we saw a fair -- a pretty decent amount of cap rate compression third, fourth quarter definitely into the first quarter -- part of the first quarter this year. But over the last several months, it's been pretty static, which is surprising, and we're grateful for that, quite frankly. And I want to underscore the commentary that Stefan mentions as it relates to quality because the vast majority of what we're buying ar in core infill markets with very strong barriers to entry. Almost all of them are first ranked suburbs and gateway markets. Many of the submarkets, not all, but the majority of the submarkets, both of what we've closed year-to-date and what we have locked up and in the pipeline expected to close by the end of the year. These submarkets require land assemblage. -- there isn't developable land available. So you got to assemble land, there are challenging entitlement processes. And many of these submarkets represent 5- to 8-year concept of delivery, if you can actually assemble the land and get through the entitlement process. And we're still taking these deals down in the mid- to upper 5s to low 6s. -- with real first year yield stabilizing, as Stefan said, to 7 and above. And more than half of what we have in the pipeline plus year-to-date closed is actually value-add and profile, and the balance is stable at what we call stabilized. But Stefan, you mentioned last night that the average occupancy of the value add is 82%. So in the low 80s. And even what we call stabilized are actually average occupancy in the early -- in the low 90s, still representing operating leverage and pricing power. So we're really pleased with what we've closed year-to-date and what we've got closing. Stefan K. Oh: And I think it's important to keep in mind, where are we competing? I think the first and foremost, we don't need to buy $5 billion to $20 billion of acquisitions this year to meaningfully move the needle on our earnings, which is super helpful. We've been blessed with a cost of capital that while it's not the greatest in the sector, it's better than a lot. So we're not necessarily competing with other folks that are -- that may require a higher going yield that's invariably going to wind up being more flat than what we're buying. And then when you slice that again by saying, look, we're doing 50% of the deals are off market. Now we're suddenly diminishing the amount of times that we're competing solely on price. Jeffrey Hanson: And one last thing on acquisitions. Importantly, it hasn't been asked yet, but the average age of the $2.2 billion that we've referenced, the $1.4 million closed year-to-date, the $800 million in the pipeline is average 2019 vintage. And even after a year has gone by, our average shop asset age has dropped from 29 years to 21, 8 years in that -- so it's significant improvement in a very rapid period of time. Operator: Your next question is from Juan Sanabria with BMO Capital Markets. Robin Hadeland: This is Robin Hadeland sitting in for Juan. Happy to hear that Danny is doing well. I wanted to touch on some of your of where assets are trading relative to replacement costs and if your view of replacement cost includes a developer profit or margin? Stefan K. Oh: Yes, this is Stefan. I would say, generally speaking, we're still able to buy below replacement cost. And considering where construction pricing has gone considering the high cost today that we're seeing in the construction of high-end senior housing communities. It's -- we'll still be able to buy below what it would cost for someone else to build that. But I think you also need to consider the fact that, like Jeff mentioned, it's not just the actual cost of building. It's what's the time line it would take to build that what are all the approvals that you need? How do you acquire that land. So I think you put all of that together what we're able to do by buying today at something that's below replacement cost is really beneficial for us. And I think we're very pleased with what we're able to acquire because of it. Robin Hadeland: And as a follow-up, curious if you have any update on the Memory Care Center of Excellence. And if you started building out any initiatives yet? Gabriel Willhite: Yes. Thank you for asking about that. So if the our Trilogy partner is working on the Memory Care Center for Excellence. It's one of the things that I think will be the mark [indiscernible] tenure as CEO of Trilogy. It's something that highlights what we believe deeply about operating in this space that we should continue to innovate, continue to get better, invest in any way we can to help make the experience for the seniors that are in our buildings better. It's something that we hope to in the future, not only be utilized the Trilogy, but throughout our platform. And not only just our shop operators, but hopefully to be a standard for everyone in the industry to hold themselves to. It's still in early stages, and I think we'll be an exceptional thing to be a part of. I'm excited that they're working on, and I appreciate that question. Operator: Your next question is from Rich Hightower with Barclays. Rich Hightower: All the best to Danny and his family as well. Just one for me. But going back to some of the commentary on really accelerating the growth of the platform overall. I think you measured aggression and increasing velocity where some of the phrases used, but help us understand maybe how that flows through to G&A or capital needs? And is it measured in the millions, the tens of millions? Just how should we think about some of the cost of that build-out as you grow that way? Jeffrey Hanson: Yes. Look, I think you saw -- if you looked at our guidance, I think you saw that there was an uptick in our G&A slightly. The vast majority of that uptick is, frankly, it's stock compensation, and that's tied to the fact that the price of the stock has gone up. Beyond that, there are some additional spend on the G&A side. We've talked about the platform. We've talked about some serious talent that we're adding to the equation. The reality is the G&A is going to grow at a much, much slower rate then our NOI is growing, I think from like 31% NOI growth from last year to this year, which is pretty great. And I can tell you our G&A is not going to grow by 31%. But the idea here is to build out the platform to carry the company into the next level of growth beyond where we are today, investing in people, investing in the platform, investing in technology to be able to continue to make real-time decisions. All those things are going to be critically important for allowing us to continue to grow the company and scale. Operator: There are no further questions at this time. I will now turn the call back to Jeff Hanson, Chairman and CEO, for closing remarks. Jeffrey Hanson: Yes. Thank you, everybody. Have a great afternoon and a wonderful weekend. We appreciate the continued support and confidence. Thank you. Operator: This concludes today's call. Thank you so much for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. American Healthcare REIT (AHR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Normalized FFO (NFFO) per Diluted Share: $0.54 for Q2 2026, up 28.6% from $0.42 in Q2 2025; year-to-date NFFO is $1.05, up 31.3% year over year. Full-Year 2026 NFFO Guidance: Raised to $2.15-$2.19 per diluted share, up from prior range of $2.03-$2.09, representing roughly 26% growth over 2025 at the midpoint. Total Portfolio Same-Store NOI Growth: 13.2% year over year in Q2 2026 and 12.7% for the first six months; full-year guidance raised to 11%-13% from 9%-12%. Trilogy Same-Store NOI Growth: 16.1% year over year and 5.4% sequentially; same-store occupancy averaged 90.7%, up 180 basis points from a year ago. SHOP Same-Store NOI Growth: 20.5% year over year; same-store NOI margin expanded 242 basis points to 22.3% year over year. Cash NOI Growth: Approximately 31% year over year increase, driven by organic growth and accretion from acquisitions. Net Debt to EBITDA: Improved to 2.5 times in Q2 2026, down from 3 times in Q1 2026 and 1.2 turns better than Q2 2025. Acquisition Volume: Closed over $1.4 billion year-to-date, including approximately $126.9 million of new SHOP investments in Q2 and $1 billion in 10 additional SHOP communities after quarter end. Investment Pipeline: Over $800 million expected to close before year-end, not reflected in guidance. Equity Capital Raised: Approximately $1.5 billion raised in Q2 2026 and subsequent to quarter end via follow-on offering and ATM program; unsettled forward sale agreements total approximately $631 million. Asset Sales: Sold three noncore properties for approximately $22.3 million in Q2. Warning! GuruFocus has detected 8 Warning Sign with AHR. Is AHR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Delivered double-digit same-store NOI growth for the tenth consecutive quarter, with total portfolio same-store NOI up 13.2% year-over-year in Q2 2026. Raised full-year 2026 NFFO per share guidance to $2.15-$2.19, representing approximately 26% growth over 2025, driven by strong operational performance and accretive acquisitions. Closed over $1.4 billion in acquisitions year-to-date, with an additional $800 million in the pipeline, all expected to close by year-end and not yet reflected in guidance. Strengthened the balance sheet, reducing net debt to EBITDA to 2.5x, down from 3.0x in Q1 2026, while maintaining full availability on its $800 million revolving credit facility. Trilogy and SHOP segments delivered exceptional results, with Trilogy same-store NOI up 16.1% and SHOP up 20.5% year-over-year, driven by margin expansion and occupancy growth. Trilogy same-store occupancy stepped down about 50 basis points sequentially in Q2, reflecting typical seasonality, which could temper growth in the near term. Skilled nursing occupancy within Trilogy declined 70 basis points sequentially, partially offset by strength in senior housing but indicating some softness in that segment. The company faces potential expense pressures from seasonal utility costs in the Midwest, which could impact margins in Q3. G&A expenses are expected to increase due to stock compensation tied to the higher stock price and investments in platform talent, which could pressure earnings growth. The company's aggressive acquisition pace may raise integration risks, as it onboards new operators and expands into new regions like the Northeast, requiring careful execution to maintain performance standards. Q: What drove the deceleration in controllable costs within Trilogy, and is the sub-2% growth rate sustainable or transitory? A: Gabriel Willhite, President and COO, stated that the Trilogy team made expense management a major focus starting last year and has executed exceptionally well through the first half of 2026. While there are seasonal factors to consider, such as utility costs in the Midwest between Q2 and Q3, the strong performance is driven by effective execution across multiple components of the business, not just one area. Q: Can you quantify the NOI upside opportunity from applying the Trilogy operating platform to the SHOP portfolio? A: Gabriel Willhite, President and COO, explained that it is difficult to attach exact dollar figures to the platform's value, but highlighted a multimodal approach to operator support. This includes capital for reinvestment, data and analytics, Trilogy's support in revenue management, sales/marketing, and employee experience, as well as innovation forums with 11 operators. He pointed to the strong results16% NOI growth at Trilogy and over 20% same-store NOI growth in SHOP for the tenth straight quarteras evidence of the platform's effectiveness. Q: What is the biggest opportunity for Trilogy over the next three to five yearsrevenue, expenses, or adding beds? A: Gabriel Willhite, President and COO, cited a mix of factors. He emphasized continued occupancy growth, the increasing importance of their proprietary revenue management software as the portfolio fills up, and the ability to grow revenue per bed on the skilled nursing side through payer mix optimization. He noted Medicare Advantage rate growth of 8.4% year-over-year. Additionally, Trilogy's development capabilities, including five new campuses under construction and modular expansions of existing campuses, provide a strong growth runway. Q: What is driving the significant increase in acquisition volume, and are you seeing more product come to you? A: Stefan Oh, Chief Investment Officer, attributed the increase to a combination of factors. He noted a general uptick in deal flow from groups attracted by cap rate compression and improved operator performance, as well as a growing number of off-market deals coming directly to AHR due to strengthened operator relationships. He emphasized that the company remains disciplined in its underwriting and that the increased volume reflects more opportunities that fit their criteria, not a relaxation of standards. Q: How do you approach onboarding new operator partners, and what is the decision-making process? A: Stefan Oh, Chief Investment Officer, explained that most new operator relationships stem from long-standing prior relationships, which provides deep insight into their operational history. The selection process is highly selective, focusing on operators who provide the highest level of care, hospitality, and employee experience. The decision to onboard a new operator is also driven by geographic targets and the availability of suitable opportunities in those markets that fit both the portfolio and the operator's strengths. Q: Has there been any change in your view around selling more or all of the outpatient medical portfolio to accelerate growth in senior housing? A: Jeffrey Hanson, Chairman and CEO, confirmed that the company's focus and capital are squarely on the generational opportunity in SHOP and Trilogy. He noted that AHR has already sold one-third of its outpatient medical buildings, reducing its attributable NOI from the mid-30s to sub-13%, with a path to sub-10% quickly. He stated that the company is always evaluating alternatives to drive shareholder value and will continue to sell these assets. Q: What are the key initiatives you plan to implement as the permanent CEO, and how long do you intend to stay in the role? A: Jeffrey Hanson, Chairman and CEO, outlined four core areas of focus: 1) acquisition velocity while maintaining high standards, 2) onboarding industry-leading talent across the organization, 3) tapping into Trilogy to drive innovation across the broader portfolio, and 4) aggressive expansion of relationships with existing operators. He described his tenure as "mission and job driven," not a typical perpetual CEO role, and stated that success will be measured by how rapidly the next generation of leadership takes the company forward. He indicated the timeframe should not be measured in months or a few quarters, but also not in years. Q: Can you quantify the remaining potential for expansion of the current Trilogy portfolio? A: Gabriel Willhite, President and COO, stated that there are more opportunities than people understand. He noted that Trilogy currently has about 30 communities with excess land owned or with a direct path to ownership, which could support villa expansions. At a pace of 5-6 villa projects per year, this represents a multiyear runway. He also mentioned opportunities to add wings to existing buildings and stand-alone memory care villages, concluding that there are at least five years plus of controlled opportunities at the current pace. Q: What are the underlying assumptions for the raised SHOP same-store NOI growth guidance, particularly regarding RevPAR and occupancy? A: Gabriel Willhite, President and COO, explained that the portfolio is not homogenous. For higher-occupied buildings, the strategy is to push on rate, with expected rate increases between 4% and 6%. For lower-occupied buildings, the focus is on growing occupancy, potentially with small move-in specials. Expense control is a universal focus. He emphasized that the approach is very specific to each building and submarket. Q: What returns are the recent senior housing acquisitions delivering relative to prior years, given the capital flowing into the space? A: Stefan Oh, Chief Investment Officer, stated that despite buying higher-quality assets, underwriting and yields have not changed, with initial yields in the mid-5s to low 6s and stabilized yields of 7% or above. Jeffrey Hanson, Chairman and CEO, added that cap rate compression seen in late 2025 and early 2026 has stabilized over the last several months. He highlighted that the assets are in core infill markets with high barriers to entry, and more than half of the pipeline is value-add with an average occupancy of 82%, while the stabilized assets average in the low 90s, still offering operating leverage. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in American Healthcare REIT, Inc.? Here are five stocks we like better. Normalized FFO rose 28.6% year over year to $0.54 per share in Q2, prompting American Healthcare REIT to raise its 2026 guidance to $2.15–$2.19 per share, implying roughly 26% growth at the midpoint. Portfolio performance strengthened, with same-store NOI up 13.2%; particularly strong growth came from Trilogy’s integrated senior health campuses and SHOP properties. The company also raised its full-year same-store NOI outlook to 11%–13%. American Healthcare REIT has completed more than $1.4 billion in acquisitions and investments year to date, including roughly $1 billion of SHOP communities acquired after quarter-end. Despite the expansion, net debt to EBITDA improved to 2.5 times, supported by approximately $1.5 billion in equity raised. American Healthcare REIT (NYSE:AHR) reported second-quarter normalized funds from operations of $0.54 per diluted share, a 28.6% increase from $0.42 a year earlier, as same-store net operating income growth, acquisition contributions and expense controls supported results. For the first six months of 2026, normalized FFO totaled $1.05 per diluted share, up 31.3% year over year. Chief Financial Officer Brian Peay said cash NOI increased about 31% from the prior-year period, reflecting organic portfolio growth and a full-period contribution from acquisitions completed over the past four quarters. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company raised its full-year 2026 normalized FFO guidance to $2.15 to $2.19 per diluted share, from a prior range of $2.03 to $2.09. At the midpoint, the revised outlook implies roughly 26% growth from 2025, Peay said. President and Chief Operating Officer Gabe Willhite said total portfolio same-store NOI rose 13.2% year over year during the second quarter and 4.9% sequentially. The company increased its full-year same-store NOI growth outlook to 11% to 13%, compared with prior guidance of 9% to 12%. Integrated Senior Health Campuses same-store NOI guidance increased to 13% to 16%, from 11% to 15%. Senior Housing Operating Portfolio, or SHOP, same-store NOI guidance rose to 18% to 21%, from 15% to 19%. Outpatient medical guidance was revised to flat to 1% growth. Triple-net lease property guidance remained at 2% to 3% growth. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Trilogy, the company’s integrated senior health campus business, produced 16.1% year-over-year same-store NOI growth and 5.4% sequential growth. Same-store occupancy averaged 90.7%, up 180 basis points from a year earlier, though down about 50 basis points from the first quarter, which Willhite characterized as typical seasonality. Trilogy’s same-store operating expenses declined 0.9% sequentially, while controllable costs fell 4.6%. The business reached a post-pandemic high for same-store NOI margin at 21.1%, an increase of 100 basis points from the first quarter. Quality mix represented 75.5% of resident days. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling SHOP same-store NOI increased 20.5% from a year earlier and 9.9% from the first quarter. The segment’s year-over-year NOI margin expanded 242 basis points to 22.3%, according to Willhite. He said most of the company’s SHOP beds are in assisted living and memory care, which tend to serve higher-acuity residents than independent living properties. Willhite said July leasing activity was ahead of the second-quarter pace and ahead of the same point last year, supporting the company’s view that it is entering the seasonal selling period with greater pricing power. Chief Investment Officer Stefan Oh said American Healthcare REIT closed more than $1.4 billion in acquisitions and investments year to date. During the second quarter, the company completed about $126.9 million of SHOP investments, including four communities in Georgia and South Carolina for approximately $86.4 million and one Minnesota community for about $40.5 million. All of those investments expanded relationships with existing operators. The company also sold three non-core properties for approximately $22.3 million. Oh said the sales were part of an ongoing effort to redirect capital toward higher-quality and more strategic assets. After quarter-end, American Healthcare REIT acquired 10 additional SHOP communities for approximately $1 billion and funded an $86.2 million loan on seven properties that include options to acquire them. The company’s investment pipeline exceeded $800 million, with most or all of that volume expected to close before year-end. Management said neither the pipeline nor the associated capital markets activity is included in its updated guidance. Oh said the company has received increased deal flow amid earlier cap-rate compression and improved operator performance. About half of its deals have come through off-market channels, he said, aided by the company’s operating relationships. Management said recent acquisitions have generally involved newer, institutional-quality properties in infill or dense suburban markets. Oh said going-in yields have remained in the mid-5% to low-6% range, with stabilized yields of 7% or higher. Chief Executive Officer Jeff Hanson said the average vintage of the approximately $2.2 billion of closed and pipeline acquisitions is 2019, reducing the average age of the company’s SHOP assets from 29 years to 21 years. Net debt to EBITDA improved to 2.5 times in the second quarter, compared with 3.0 times in the first quarter and 3.7 times in the second quarter of 2025. Peay said the company raised approximately $1.5 billion of equity through its May follow-on offering and its at-the-market program during the second quarter and after quarter-end. As of the call, American Healthcare REIT had approximately $631 million in unsettled forward-sale agreement proceeds, as well as cash on hand and full availability under its $800 million revolving credit facility, Peay said. Hanson said the company’s capital and operating focus remains centered on senior housing, including SHOP and Trilogy. He said outpatient medical’s contribution to NOI has declined to less than 13% after the company sold roughly one-third of its medical office buildings, and he expects that percentage to fall below 10% over time. The call also marked the first earnings discussion following former CEO Danny Prosky’s retirement. Prosky, who remains a board member and adviser, said he elected to step back from day-to-day leadership after a serious health event in February and a subsequent successful heart transplant. Hanson, who returned as CEO about six months ago, said his role should be viewed as mission- and job-driven rather than an indefinite appointment, with his success measured by the development of the next generation of leadership over the next 12 to 18 months. American Healthcare REIT, Inc (NYSE: AHR) was a publicly traded real estate investment trust focused on acquiring, owning and managing healthcare‐related properties across the United States. The company's portfolio spanned senior housing communities, skilled nursing facilities, medical office buildings and outpatient care centers, all operated under long‐term net lease or triple‐net lease structures designed to provide stable, predictable rental income. Employing a strategy of partnering with established healthcare operators, American Healthcare REIT targeted properties in both major metropolitan areas and high‐growth secondary markets to capitalize on demographic trends such as an aging population and increased demand for outpatient services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American Healthcare REIT Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved tenth consecutive quarter of double-digit same-store NOI growth, driven by strong occupancy retention and disciplined rate management across the operating portfolio. Management attributes outperformance to a 'differentiated platform' that leverages former operators' expertise and real-time insights from the Trilogy integrated campus model. Trilogy segment reached a post-pandemic high same-store NOI margin of 21.1% by effectively offsetting seasonal skilled nursing occupancy dips with senior housing strength and controllable cost reductions. Strategic pivot toward 'measured aggression' in acquisitions is fueled by a strengthening reputation with operators, allowing the company to be more selective while seeing more off-market deals. The SHOP portfolio's 20.5% year-over-year NOI growth was propelled by widening the spread between RevPAR and ExPOR, utilizing revenue management playbooks developed at Trilogy. Portfolio quality is being intentionally upgraded, with recent acquisitions averaging a 2019 vintage, reducing the average SHOP asset age from 29 to 21 years in a single year. Revised 2026 NFFO guidance to $2.15-$2.19 per share, representing approximately 26% growth over 2025, excluding the impact of the $800 million pending acquisition pipeline. Strategic focus is shifting toward rapid scaling to capture a 'generational investment opportunity' in senior housing, supported by a deleveraged balance sheet at 2.5x net debt to EBITDA. Future growth assumes a multi-year runway for Trilogy expansions, including 3-5 new campuses annually and modular villa projects that leverage existing land and pre-leasing demand. Management plans to deepen leadership and operating capabilities by onboarding industry-leading talent across asset management, clinical oversight, and technology divisions. Guidance for the remainder of 2026 assumes rate increases in the 4% to 6% range for highly occupied buildings, while lower-occupancy assets will focus on volume via move-in specials. CEO Danny Prosky retired following a medical leave and successful heart transplant; he remains a deeply engaged director and advisor to the management team. Jeff Hanson returned to the CEO role to lead a 'mission-driven' transition focused on scaling the platform before handing off to the next generation of leadership. Gabe Willhite was elevated to President while retaining his COO role, signaling the execution of a long-term internal succession plan. The company continues to reduce its exposure to the Outpatient Medical (OM) segment, with attributable NOI dropping toward a target of sub-10% to focus capital on senior housing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management credited the Trilogy team's specific focus on controllable costs, which were down 4.6% sequentially, though they noted Q3 may see seasonal utility increases in the Midwest. The outperformance is viewed as a result of operational execution across multiple business components rather than a single transitory factor. Increased volume is driven by cap rate compression and improved operator performance attracting sellers, alongside AHR's growing reputation as a 'partner of choice'. Approximately half of current deals are sourced off-market through deep industry relationships, allowing AHR to avoid competing solely on price. Management acknowledged the embedded value in the OM platform but emphasized that capital is being prioritized for the higher-growth senior housing sector. The company has already sold one-third of these buildings and will continue to evaluate alternatives to drive shareholder value while the segment's share of total NOI shrinks. Initial yields remain in the mid-5% to low-6% range, with stabilization targets of 7% or above, despite cap rate compression seen late last year. AHR is targeting high-quality infill markets with 5-8 year development barriers, often acquiring assets at 82% occupancy to capture significant value-add upside.

IRVINE, Calif., August 06, 2026--(BUSINESS WIRE)--American Healthcare REIT, Inc. (NYSE: AHR) (the "Company," "we," "our," "us," "management," or "AHR") is announcing today its second quarter 2026 results and increasing full year 2026 guidance. Key Highlights: Reported GAAP net income attributable to controlling interest of $30.6 million, or $0.16 per diluted share, for the three months ended June 30, 2026. Reported Normalized Funds From Operations attributable to controlling interest ("NFFO") of $0.54 per diluted share for the three months ended June 30, 2026. Achieved total portfolio Same-Store Net Operating Income ("NOI") growth of 13.2% for the three months ended June 30, 2026, compared to the same period in 2025. Achieved Same-Store NOI growth of 20.5% and 16.1% for the three months ended June 30, 2026, in its senior housing operating properties ("SHOP") and integrated senior health campuses ("ISHC") segments, respectively, compared to the same period in 2025. During the three months ended June 30, 2026, the Company acquired approximately $126.9 million of new investments within its SHOP segment. Since the beginning of 2026, the Company has completed $1.4 billion in new investments. The Company is increasing total portfolio Same-Store NOI growth guidance to 11.0% to 13.0% and NFFO per diluted share guidance to $2.15 to $2.19 for the year ending December 31, 2026, over a 5% increase versus the prior NFFO per diluted share guidance at the midpoint. Completed a follow-on common equity offering in May 2026, entering into forward sale agreements relating to 16,100,000 shares of common stock for approximately $811.4 million in gross proceeds. During the three months ended June 30, 2026, the Company entered into forward sale agreements pursuant to its at-the-market equity offering program ("ATM Program"), to sell 8,786,880 shares of common stock for approximately $433.2 million in gross proceeds. Subsequent to quarter end, the Company entered into additional forward sale agreements pursuant to its ATM Program to sell 4,706,002 shares of common stock for approximately $254.7 million in gross proceeds, assuming full physical settlement. During the three months ended June 30, 2026, the Company issued 4,704,556 shares of common stock to physically settle sales under previously announced forward sale agreements pursuant to its ATM Program for gross proceeds of approximately $228.7 million. Subsequent to quarter end, the Company issued an additional 23,334,350 shares of common stock to physically settle sales under forward sale agreements from its ATM Program and its May 2026 follow-on common equity offering for gross proceeds of approximately $1.18 billion. As of August 6, 2026, pursuant to its ATM Program and its May 2026 follow-on common equity offering, the Company had unsettled forward sale agreements outstanding relating to 12,246,596 shares of common stock that would result in approximately $630.5 million in gross proceeds assuming full physical settlement. Reported a 0.5x improvement in Net Debt-to-Annualized Adjusted EBITDA from 3.0x as of March 31, 2026, to 2.5x as of June 30, 2026. "Our results this quarter reflect a deliberate strategy: concentrate capital in senior housing and care, partner with operators who deliver quality outcomes, and support them with our platform that improves how those assets perform," said Jeff Hanson, the Company's Chairman and Chief Executive Officer. "That approach produced our tenth consecutive quarter of double-digit Same-Store NOI growth. We combined that strong organic growth with over $1.4 billion in new investments year-to-date. Our conviction in this opportunity is not new. We have been building toward it for years. What has strengthened is our capacity to act on it at scale. Our underwriting standards have not changed; what has changed is the quality and depth of the opportunities available to us, which reflects our strengthening position as the industry's partner of choice. Second Quarter 2026 Results The Company’s Same-Store NOI growth results for the three and six months ended June 30, 2026 are detailed below. Same-Store NOI growth in the second quarter of 2026, compared to the same period in 2025, was led by the Company’s operating portfolio, comprised of its ISHC and SHOP segments, through disciplined revenue management and effective expense control by its regional operating partners. "This quarter was operating execution, not just favorable conditions," said Gabe Willhite, AHR's President and Chief Operating Officer. "Same-Store occupancy gains year-over-year, dynamic revenue management, and expense discipline turned into 20.5% same-store NOI growth in SHOP and 16.1% in ISHC. We are extending our platform capabilities to our regional operating partners to facilitate growth, and we expect that work to compound through the second half." Transactional Activity During the three months ended June 30, 2026, the Company: Acquired four new SHOP assets for approximately $86.4 million, as previously announced. The properties are located in Georgia and South Carolina and will be managed and operated by one of the Company's existing regional operating partners. Acquired one new SHOP asset for approximately $40.5 million. The property is located in Minnesota and will be managed by one of the Company's existing regional operating partners. Sold three Non-Core Properties for approximately $22.3 million within various segments, of which two property sales for $8.1 million were previously announced. Subsequent to the quarter ended June 30, 2026, the Company: Acquired 10 new SHOP assets for approximately $1.0 billion. The properties are located in various states and will be managed and operated by new and existing regional operating partners. Funded a loan for seven properties for approximately $86.2 million with purchase options to acquire the properties. The properties are currently operated by one of the Company's existing tenants who leases other buildings within its Triple-Net Leased Properties segments. Following the Company's completed transaction activity during the three months ended June 30, 2026, and subsequent to quarter end, the Company's investments pipeline consists of over $800 million which includes newly awarded deals and deals in the pipeline previously disclosed in the Company's First Quarter 2026 Earnings Release that have yet to close. While the Company expects to close the deals in its investments pipeline by the end of 2026, it cannot guarantee when or if these closings will take place. Therefore, the Company is not including any additional transaction activity, including the awarded deals in its investments pipeline, in its 2026 guidance, beyond the transactions disclosed as completed. Development Activity The Company's total in-process development and expansion pipeline is expected to cost approximately $197.5 million, of which $72.0 million had been funded as of June 30, 2026. Capital Markets and Balance Sheet Activity As of June 30, 2026, the Company had total consolidated indebtedness of $1.4 billion and approximately $2.6 billion of total liquidity, comprised of cash and cash equivalents, undrawn capacity on its lines of credit, and expected gross proceeds from unsettled forward sale agreements, assuming full physical settlement. The Company's Net-Debt-to-Annualized Adjusted EBITDA as of June 30, 2026, was 2.5x. During the three months ended June 30, 2026, as previously announced, the Company amended its credit facility by increasing the size of the unsecured revolving credit facility portion from $600 million to $800 million, thereby increasing the total aggregate credit facility including term loan to $1.35 billion. The revolving portion of the credit facility now matures on April 1, 2030, and may be extended for two 6-month periods, subject to certain conditions. Further, the Company may increase the aggregate incremental amount of the entire credit facility from $1.35 billion to $1.85 billion, subject to certain terms and conditions. The Company's existing unsecured term loan facility within the credit facility in the initial aggregate amount of $550 million remains unchanged. During the three months ended June 30, 2026, the Company entered into forward sale agreements pursuant to its ATM Program, to sell 8,786,880 shares of common stock for approximately $433.2 million in gross proceeds. Subsequent to quarter end, the Company entered into additional forward sale agreements pursuant to its ATM Program to sell 4,706,002 shares of common stock for approximately $254.7 million in gross proceeds, assuming full physical settlement. The Company also completed a follow-on common equity offering in May 2026, entering into new forward sale agreements to issue 16,100,000 shares of common stock for gross proceeds of approximately $811.4 million. During the three months ended June 30, 2026, the Company issued 4,704,556 shares of common stock to physically settle sales under previously announced forward sale agreements pursuant to its ATM Program for gross proceeds of approximately $228.7 million. Subsequent to quarter end, the Company issued an additional 23,334,350 shares of common stock to physically settle sales under forward sale agreements from its ATM Program and its May 2026 follow-on common equity offering for gross proceeds of approximately $1.18 billion. As of August 6, 2026, pursuant to its ATM Program and its May 2026 follow-on common equity offering, the Company had unsettled forward sale agreements outstanding relating to 12,246,596 shares of common stock that would result in approximately $630.5 million in gross proceeds assuming full physical settlement. "With strong results in the first half and expectation of carrying that momentum through the second half we are raising full-year guidance for both NFFO per diluted share and Same-Store NOI growth," said Chief Financial Officer Brian Peay. "NFFO per diluted share is now expected to be between $2.15 to $2.19 in 2026, which would translate to over 25% per share growth versus 2025. Additionally, we funded our acquisitions with forward equity we prudently raised and still improved Net Debt-to-Adjusted EBITDA by half a turn during the quarter." Full Year 2026 Guidance The Company is increasing NFFO per diluted share and Same-Store NOI growth guidance for the year ending December 31, 2026. The Company's 2026 guidance does not assume any additional transaction or capital markets activity beyond the transactions or activity disclosed herein as completed. Guidance ranges are detailed below: Certain of the assumptions underlying the Company’s 2026 guidance can be found within the Non-GAAP reconciliations in this earnings release and in the appendix of the Company’s Second Quarter 2026 Supplemental Financial Information ("Supplemental"). A reconciliation of net income (loss) calculated in accordance with GAAP to NAREIT FFO and NFFO can be found within the Non-GAAP reconciliations in this earnings release. Non-GAAP financial measures and other terms, as used in this earnings release, are also defined and further explained in the Supplemental. The Company is unable to provide, without unreasonable effort, guidance for the most comparable GAAP financial measures of total revenues and property operating and maintenance expenses. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Same-Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net gain or loss on sale of real estate assets, stock-based compensation, casualty loss, non-Same-Store revenue and non-Same-Store operating expenses. These items are uncertain, depend on various factors and could have a material impact on the Company’s GAAP results for the guidance period. Distributions As previously announced, the Company’s Board of Directors declared a cash distribution for the quarter ended June 30, 2026 of $0.25 per share of its common stock. The second quarter distribution was paid in cash on July 17, 2026, to stockholders of record as of June 30, 2026. Supplemental Information The Company has disclosed supplemental information regarding its portfolio, financial position and results of operations as of, and for the three and six months ended, June 30, 2026, and certain other information, which is available on the Investor Relations section of the Company's website at https://ir.americanhealthcarereit.com. Conference Call and Webcast Information The Company will host a webcast and conference call at 1:00 p.m. Eastern Time on August 7, 2026. During the conference call, Company executives will review second quarter 2026 results, discuss recent events and conduct a question-and-answer period. To join via webcast, investors may use the following link: https://events.q4inc.com/attendee/449803626. To join the live telephone conference call, please dial one of the following numbers at least five minutes prior to the start time: North America Toll-Free: +1 833-461-5787International Toll: +1 585-542-9983International Dial-Ins: https://help.events.q4inc.com/eahc/international-dial-in-numbers Meeting ID: 449 803 626 A digital replay of the call will be available on the Investor Relations section of the Company’s website at https://ir.americanhealthcarereit.com shortly after the conclusion of the call. Forward-Looking Statements Certain statements contained in this press release, including statements relating to the Company's expectations regarding its performance; full year 2026 guidance, including net income per diluted share, NAREIT FFO per diluted share, NFFO per diluted share, total portfolio Same-Store NOI growth, and segment-level Same-Store NOI growth and margin expansion, purchases and sales of assets, including the timing of the closing of deals in its investment pipeline; development plans; the settlement of forward sale agreements; and asset and revenue management strategy may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "can," "expect," "intend," "anticipate," "estimate," "believe," "continue," "possible," "initiatives," "focus," "seek," "objective," "goal," "strategy," "plan," "potential," "potentially," "preparing," "projected," "future," "long-term," "once," "should," "could," "would," "might," "uncertainty" or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, and beliefs of, and assumptions made by, the Company's management and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied therein, including, without limitation, changing macroeconomic conditions, domestic legal and fiscal policies, geopolitical conditions and other risks disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 27, 2026, and subsequent periodic reports filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release. Non-GAAP Financial Measures The Company’s reported results are presented in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company also discloses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Net Debt-to-Annualized Adjusted EBITDA, NAREIT FFO, NFFO, NOI and Same-Store NOI. The Company believes these non-GAAP financial measures are useful supplemental measures of its operating performance and used by investors and analysts to compare the operating performance of the Company between periods and to other REITs or companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items. Definitions of the non-GAAP financial measures used herein and reconciliations to the most directly comparable financial measure calculated in accordance with GAAP can be found at the end of this earnings release. See below and "Definitions" for further information regarding the Company's non-GAAP financial measures. EBITDA and Adjusted EBITDA Management uses earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to facilitate internal and external comparisons to our historical operating results and in making operating decisions. EBITDA and Adjusted EBITDA are widely used by investors, lenders, credit and equity analysts in the valuation, comparison, and investment recommendations of companies. Additionally, EBITDA and Adjusted EBITDA are utilized by our Board of Directors to evaluate management. Neither EBITDA nor Adjusted EBITDA represents net income (loss) or cash flows provided by operating activities as determined in accordance with GAAP and should not be considered as alternative measures of profitability or liquidity. In addition, management uses Net Debt-to-Annualized Adjusted EBITDA as a measure of our ability to service our debt. Finally, the EBITDA and Adjusted EBITDA may not be comparable to similarly entitled items reported by other REITs or other companies. NAREIT Funds from Operations (FFO) and Normalized Funds from Operations (NFFO) We believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization and impairments, provides a further understanding of our operating performance to investors, industry analysts and our management, and when compared year over year, reflects the impact on our operations from trends in Occupancy rates, rental rates, operating costs, general and administrative expenses and interest costs, which may not be immediately apparent from net income (loss) as determined in accordance with GAAP. However, FFO and NFFO should not be construed to be (i) more relevant or accurate than the current GAAP methodology in calculating net income (loss) as an indicator of our operating performance, (ii) more relevant or accurate than GAAP cash flows from operations as an indicator of our liquidity or (iii) indicative of funds available to fund our cash needs, including our ability to make distributions to our stockholders. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and NFFO measures and the adjustments to GAAP in calculating FFO and NFFO. Presentation of this information is intended to provide useful information to investors, industry analysts and management as they compare the operating performance metrics used by the REIT industry, although it should be noted that some REITs may use different methods of calculating funds from operations and normalized funds from operations, so comparisons with such REITs may not be meaningful. Net Operating Income (NOI) We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are appropriate supplemental performance measures to reflect the performance of our operating assets because NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI exclude certain items that are not associated with the operations of the properties. We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are widely accepted measures of comparative operating performance in the real estate community and are useful to investors in understanding the profitability and operating performance of our property portfolio. However, our use of the terms NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing these amounts. NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are not equivalent to our net income (loss) as determined under GAAP and may not be a useful measure in measuring operational income or cash flows. Furthermore, NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should not be considered as alternatives to net income (loss) as an indication of our operating performance or as an alternative to cash flows from operations as an indication of our liquidity. NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should not be construed to be more relevant or accurate than the GAAP methodology in calculating net income (loss). NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should be reviewed in conjunction with other measurements as an indication of our performance. About American Healthcare REIT, Inc. American Healthcare REIT, Inc. (NYSE: AHR) is a real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate, focusing primarily on senior housing communities, skilled nursing facilities, and outpatient medical buildings across the United States, and in the United Kingdom and the Isle of Man. Definitions Adjusted EBITDA: EBITDA excluding the impact of income or loss from unconsolidated entities, straight line rent and amortization of above/below market leases, non-cash impact of changes to equity instruments, transaction, transition and restructuring costs, gain or loss on dispositions of real estate investments, amortization of closing costs for debt security instrument, unrealized foreign currency gain or loss, change in fair value of derivative financial instruments, impairments of real estate investments, impairments of intangible assets and goodwill, and non-recurring one-time items. Annualized Adjusted EBITDA: Current period (shown as quarterly) Adjusted EBITDA multiplied by 4. ATM Program: At-the-market equity offering program. Cash NOI: NOI excluding the impact of, without duplication, (1) non-cash items such as straight-line rent and the amortization of lease intangibles, (2) third-party facility rent payments and (3) other items set forth in the Cash NOI reconciliation included herein. Both Cash NOI and Same-Store NOI include Pro-Rata ownership and other adjustments. EBITDA: A non-GAAP financial measure that is defined as earnings before interest, taxes, depreciation and amortization. GAAP Revenue: Revenue recognized in accordance with Generally Accepted Accounting Principles ("GAAP"), which includes straight line rent and other non-cash adjustments. ISHC: Integrated senior health campuses include a range of senior care, including independent living, assisted living, memory care, skilled nursing services and certain ancillary businesses. Integrated senior health campuses are operated utilizing a RIDEA structure. NAREIT FFO or FFO: Funds from operations attributable to controlling interest; a non-GAAP financial measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT (the "White Paper"). The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from dispositions of certain real estate assets, gains or losses upon consolidation of a previously held equity interest, and impairment write-downs of certain real estate assets and investments, plus depreciation and amortization related to real estate, after adjustments for unconsolidated partnerships and joint ventures. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that impairments are based on estimated future undiscounted cash flows. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO. Net Debt: Total Debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash related to debt. For a reconciliation of Net Debt to total debt, refer to the Company’s Second Quarter 2026 Supplemental Financial Information. NOI: Net operating income; a non-GAAP financial measure that is defined as net income (loss), computed in accordance with GAAP, generated from properties before general and administrative expenses, transaction, transition and restructuring costs, depreciation and amortization, interest expense, gain or loss in fair value of derivative financial instruments, gain or loss on dispositions of real estate investments, impairment of real estate investments, impairment of intangible assets and goodwill, income or loss from unconsolidated entities, gain on re-measurement of previously held equity interest, foreign currency gain or loss, other income or expense and income tax benefit or expense. Non-Core Properties: Assets that have been deemed not essential to generating future economic benefit or value to our day-to-day operations and/or are projected to be sold. Normalized FFO or NFFO: FFO further adjusted for the following items included in the determination of GAAP net income (loss): transaction, transition and restructuring costs; amounts relating to changes in deferred rent and amortization of above- and below-market leases (which are adjusted in order to reflect such payments from a GAAP accrual basis); the non-cash impact of changes to our equity instruments; non-cash or non-recurring income or expense; the non-cash effect of income tax benefits or expenses; capitalized interest; impairment of intangible assets and goodwill; amortization of closing costs on debt investments; mark-to-market adjustments included in net income (loss); gains or losses included in net income (loss) from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan; and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect Normalized FFO on the same basis. Occupancy: With respect to OM, the percentage of total rentable square feet leased and occupied, including month-to-month leases, as of the date reported. With respect to all other property types, occupancy represents average quarterly operating occupancy based on the most recent quarter of available data. The Company uses unaudited, periodic financial information provided solely by tenants to calculate occupancy and has not independently verified the information. Outpatient Medical or OM: Outpatient Medical buildings. Pro-Rata: As of June 30, 2026, we owned and/or operated six buildings through entities of which we owned between 90.0% and 90.6% of the ownership interests. Because we have a controlling interest in these entities, these entities and the properties these entities own are consolidated in our financial statements in accordance with GAAP. However, while such properties are presented in our financial statements on a consolidated basis, we are only entitled to our Pro-Rata share of the net cash flows generated by such properties. As a result, we have presented certain property information herein based on our Pro-Rata ownership interest in these entities and the properties these entities own, as of the applicable date, and not on a consolidated basis. In such instances, information is noted as being presented on a "Pro-Rata share" basis. RIDEA structure: A structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, pursuant to which we lease certain healthcare real estate properties to a wholly-owned taxable REIT subsidiary ("TRS"), which in turn contracts with an eligible independent contractor ("EIK") to operate such properties for a fee. Under this structure, the EIK receives management fees, and the TRS receives revenue from the operation of the healthcare real estate properties and retains, as profit, any revenue remaining after payment of expenses (including intercompany rent paid to us and any taxes at the TRS level) necessary to operate the property. Through the RIDEA structure, in addition to receiving rental revenue from the TRS, we retain any after-tax profit from the operation of the healthcare real estate properties and benefit from any improved operational performance while bearing the risk of any decline in operating performance at the properties. Same-Store or SS: Properties owned or consolidated the full year in both comparison years and that are not otherwise excluded. Properties are excluded from Same-Store if they are: (1) sold, classified as held for sale or properties whose operations were classified as discontinued operations in accordance with GAAP; (2) impacted by materially disruptive events, such as flood or fire for an extensive period of time; or (3) scheduled to undergo or currently undergoing major expansions/renovations or business model transitions or have transitioned business models after the start of the prior comparison period. Same-Store NOI or SS NOI: Cash NOI for our Same-Store properties. Same-Store NOI is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. Both Cash NOI and Same-Store NOI include ownership and other adjustments. SHOP: Senior housing operating properties. Total Debt: The principal balances of the Company’s revolving credit facilities, term loan and secured indebtedness as reported in the Company’s consolidated financial statements. Trilogy: Trilogy Investors, LLC; one of our consolidated subsidiaries, in which we indirectly own a 100% interest as of June 30, 2026. Trilogy Management Services: Trilogy Management Services, LLC, an independent third-party operator that qualifies as an eligible independent contractor and manages all of the Company's integrated senior health campuses. Triple-Net Leased: A lease where the tenant is responsible for making rent payments, maintaining the leased property, and paying property taxes and other expenses. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806496982/en/ Contacts Alan Peterson Email: [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. American Healthcare REIT (AHR) recently reported quarterly results that topped expectations, with normalized FFO of $0.50, continued double digit Same Store NOI growth, and an increase to full year 2026 guidance. See our latest analysis for American Healthcare REIT. Despite the positive earnings surprise and higher full year 2026 guidance, recent momentum has cooled, with the share price down 11.6% over the past month and 13.7% over the past quarter. However, the 1 year total shareholder return of 32.9% still reflects a stronger longer term picture at the current price of $45.70. If the latest move in American Healthcare REIT has you thinking about where else growth and income might come from in healthcare, the 39 healthcare AI stocks is a useful way to spot other potential ideas. With American Healthcare REIT posting solid FFO, double digit Same Store NOI growth and higher 2026 guidance, yet the stock has recently pulled back, is this a genuine value opportunity, or is the market already pricing in that future growth? With American Healthcare REIT last closing at $45.70 against a narrative fair value of $58.85, the most followed view sees meaningful upside and ties it to long term earnings power rather than just the latest quarter. Read the complete narrative. Curious what sits behind that valuation gap? The narrative leans on steady top line expansion, rising margins, and a rich earnings multiple that assumes this trajectory holds. Result: Fair Value of $58.85 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the narrative could be challenged if occupancy and rate growth in Trilogy and SHOP cool from current levels, or if reimbursement changes pressure margins and cash flows. Find out about the key risks to this American Healthcare REIT narrative. The crowd narrative points to a fair value of $58.85, yet on a simple earnings yardstick American Healthcare REIT trades on a P/E of 87.8x. That is more than double the US Health Care REITs average of 40.4x and well above a fair ratio of 48x, which suggests limited room for error if growth or margins disappoint. For a closer look at what this pricing gap might mean in practice, including how it compares with peers at the same ratio level, See what the numbers say about this price — find out in our valuation breakdown. Given the mix of optimism and concern running through this story, it makes sense to move quickly and check the underlying data yourself. To weigh up what investors see on both sides, take a closer look at the 4 key rewards and 2 important warning signs. If you stop with just one stock, you risk missing other opportunities that better match your goals, risk comfort, and income needs across the market. Spot potential mispriced opportunities early by scanning the market with the 47 high quality undervalued stocks. Strengthen your income stream by reviewing companies in the 10 dividend fortresses. Keep risk in check by focusing on companies highlighted in the 63 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AHR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]