American Healthcare REIT ("AHR") Announces Fourth Quarter 2024 and Full Year 2024 Results; Issues Full Year 2025 Guidance

PR Newswire

IRVINE, Calif., Feb. 27, 2025

IRVINE, Calif., Feb. 27, 2025 /PRNewswire/ -- American Healthcare REIT, Inc. (the "Company," "we," "our," "management," or "us") (NYSE: AHR) announced today its fourth quarter and full year 2024 results and is issuing full year 2025 guidance.

Key Highlights:

   -- Reported GAAP net loss attributable to controlling interest of $(31.8) 
      million and GAAP net loss attributable to common stockholders of $(0.21) 
      per diluted share for the three months ended December 31, 2024. Reported 
      GAAP net loss attributable to controlling interest of $(37.8) million and 
      GAAP net loss attributable to common stockholders of $(0.29) per diluted 
      share for the year ended December 31, 2024. 
 
   -- Reported Normalized Funds from Operations attributable to common 
      stockholders ("NFFO") of $0.40 and $1.41 per diluted share for the three 
      months and year ended December 31, 2024, respectively. 
 
   -- Achieved total portfolio Same-Store Net Operating Income ("NOI") growth 
      of 21.6% and 17.7% for the three months and year ended December 31, 2024, 
      respectively, compared to the same periods in 2023. 
 
   -- Achieved 66.6% and 28.0% Same-Store NOI growth during the three months 
      ended December 31, 2024, from its senior housing operating properties 
      ("SHOP") and integrated senior health campuses ("ISHC"), respectively, 
      compared to the same period in 2023. Achieved 52.8% and 23.8% Same-Store 
      NOI growth during the year ended December 31, 2024, from its SHOP and 
      ISHC segments, respectively, compared to the same period in 2023. 
 
   -- During the year ended December 31, 2024, the Company purchased over $650 
      million of new investments. During the three months ended December 31, 
      2024, the Company acquired a SHOP asset in the Atlanta MSA for a total 
      consideration of approximately $7.5 million, before closing and 
      transaction costs. 
 
   -- In November, the Company established an at-the-market equity offering 
      program ("ATM program") allowing the Company to sell shares of common 
      stock for aggregate gross proceeds of up to $500 million. During the 
      three months ended December 31, 2024, the Company issued 4,285,531 shares 
      of common stock from its ATM program, raising gross proceeds of 
      approximately $120.2 million. During the year ended December 31, 2024, 
      the Company raised total gross proceeds of approximately $1.36 billion 
      through its equity offerings and ATM program. 
 
   -- The Company is issuing total portfolio Same-Store NOI growth guidance of 
      7.0% to 10.0% and NFFO per diluted share guidance of $1.56 to $1.60 for 
      the year ending December 31, 2025. 
 
   -- Reported a 4.2x improvement in the Company's Net Debt-to-Annualized 
      Adjusted EBITDA from 8.5x as of December 31, 2023, to 4.3x as of December 
      31, 2024. 

"We have much to be proud of in AHR's first year as a listed Healthcare REIT," said Danny Prosky, the Company's President and Chief Executive Officer. "We delivered strong earnings and achieved attractive NOI growth across our diversified healthcare portfolio. As we look ahead to 2025, the supply and demand fundamentals within the healthcare real estate industry remain robust. AHR is steadfast in its commitment to delivering high-quality care and performance across our facilities. This year, we expect to deliver both solid earnings per share and Same-Store NOI growth, building on the successful year we had in 2024."

Fourth Quarter 2024 and Full-Year 2024 Results

The Company's Same-Store NOI growth results for the three months and year ended December 31, 2024, are detailed below. Same-Store NOI growth results from its managed portfolio, comprised of ISHC and SHOP segments, led the Company's growth in 2024, compared to 2023, supported by occupancy growth and NOI margin expansion over the course of the year.

 
     Three Months Ended December 31, 2024 Relative to Three Months Ended 
                              December 31, 2023 
------------------------------------------------------------------------------ 
Segment                                           Same-Store NOI Growth 
------------------------------------------  ---------------------------------- 
ISHC                                                      28.0 % 
Outpatient Medical                                        1.3 % 
SHOP                                                      66.6 % 
Triple-Net Leased Properties                              1.7 % 
Total Portfolio                                           21.6 % 
------------------------------------------  ---------------------------------- 
 
    Year Ended December 31, 2024 Relative to Year Ended December 31, 2023 
Segment                                           Same-Store NOI Growth 
------------------------------------------  ---------------------------------- 
ISHC                                                      23.8 % 
Outpatient Medical                                        0.5 % 
SHOP                                                      52.8 % 
Triple-Net Leased Properties                              3.2 % 
Total Portfolio                                           17.7 % 
------------------------------------------  ---------------------------------- 
 

"Our portfolio focus on senior housing investments proved to be a winning strategy as senior housing fueled strong total portfolio Same-Store NOI growth in 2024," said Gabe Willhite, the Company's Chief Operating Officer. "Our ISHC and SHOP segments once again produced exceptional results in the fourth quarter with 28.0% and 66.6% year-over-year Same-Store NOI growth, respectively. I believe deeply that partnering with a highly-curated list of operating partners in combination with our ability to provide more focused asset management support, continue to be key differentiators driving our performance and demonstrating the strength of our platform. In 2025, we expect continued growth driven by strong senior housing fundamentals, which we anticipate to produce outsized revenue growth opportunities relative to expense growth and sustained margin expansion."

Transactional Activity

As previously announced, on October 1, 2024, the Company acquired a SHOP asset located in the Atlanta MSA consisting of 90 units for approximately $7.5 million, before closing and transaction costs, reflecting a price per unit of approximately $83,750. Operations at the property were transitioned to Senior Solutions Management Group, one of the Company's existing regional operators, in a RIDEA structure.

Subsequent to quarter end, the Company is under contract to acquire two SHOP assets for approximately $70.5 million. The transactions are expected to close in the first half of 2025. Both SHOP properties are expected to be operated by two of the Company's existing regional operators. Additionally, the Company also completed a lease buyout within its ISHC segment for approximately $15.9 million.

During the year ended December 31, 2024, the Company purchased over $650 million of new investments, including the minority membership interest in Trilogy Holdings that had been held by a joint venture partner. The Company has approved new ISHC development projects, including new campuses, independent living villas, and campus and wing expansions that will begin construction in 2025, with total expected construction costs of approximately $136.6 million.

As previously announced, on October 16, 2024, the Company sold one Outpatient Medical building for approximately $19.4 million. Additionally, during the three months ended December 31, 2024, the Company sold 10 properties from its Outpatient Medical, Triple-Net Leased Properties and ISHC segments for approximately $120.5 million. During the year ended December 31, 2024, the Company sold approximately $155.5 million of properties from various segments, further refining its portfolio and using proceeds to pay down debt or allocate capital to better risk-adjusted return opportunities, such as SHOP acquisitions and ISHC development.

Subsequent to quarter end, the Company sold one SHOP property for approximately $3.3 million.

Capital Markets and Balance Sheet Activity

As of December 31, 2024, the Company's total consolidated indebtedness was $1.69 billion, and it had approximately $984.3 million of total liquidity, comprised of cash, restricted cash and undrawn capacity on its lines of credit. The Company's Net-Debt-to-Annualized Adjusted EBITDA as of December 31, 2024, was 4.3x.

During the three months ended December 31, 2024, the Company established an ATM equity offering program, pursuant to which it may, from time to time, offer and sell shares of common stock for aggregate gross proceeds of up to $500 million. During the three months ended December 31, 2024, the Company issued 4,285,531 shares of common stock through its ATM program for gross proceeds of approximately $120.2 million, at an average price of $28.05 per share. As of December 31, 2024, the remaining amount available under the ATM program for future sales of common stock was approximately $379.8 million.

"Our guidance reflects our expectation that 2025 will be another year of strong earnings growth, building on the excellent double-digit Same-Store NOI growth delivered in 2024," said Brian Peay, the Company's Chief Financial Officer. "Additionally, we were able to strategically raise additional equity at attractive pricing and utilize those proceeds to buy out the remainder of Trilogy and also dramatically improve our balance sheet. I am very proud of the team's efforts this year, creating capacity to allow us to continue to execute on our business plan while ending the year with Net Debt-to- Annualized Adjusted EBITDA of 4.3x."

Full Year 2025 Guidance

(MORE TO FOLLOW) Dow Jones Newswires

February 27, 2025 16:15 ET (21:15 GMT)