American Healthcare REIT Reports Strong Earnings Call

American Healthcare REIT, Inc. ((AHR)) has held its Q2 earnings call. Read on for the main highlights of the call.

American Healthcare REIT, Inc. recently held its earnings call, revealing a generally positive sentiment characterized by strong financial performance. The company reported significant same-store NOI growth, successful acquisitions, and improved leverage metrics. Noteworthy achievements include obtaining the Great Place to Work Certification and increasing Medicare Advantage concentration. Despite these positives, challenges were noted in the outpatient medical segment and the complexities of navigating fragmented Medicare Advantage contracts. Overall, the positive aspects of the earnings call significantly outweighed the challenges.

Strong Same-Store NOI Growth

American Healthcare REIT reported a robust 13.9% growth in total portfolio same-store NOI for Q2 2025 compared to the same period in 2024. The company expects to maintain double-digit growth for the remainder of the year, showcasing its strong operational performance.

Successful Acquisitions and Pipeline Growth

The company has closed approximately $255 million in acquisitions year-to-date, with over $300 million in the pipeline. This indicates a strong potential for future growth and expansion, reinforcing the company’s strategic acquisition approach.

Improvement in Leverage Metrics

American Healthcare REIT has improved its leverage metrics, reducing net debt to EBITDA to 3.7x by the end of Q2 2025, down from 4.5x at the end of March 2025. This improvement reflects the company’s focus on strengthening its financial position.

Great Place to Work Certification

The company was awarded the Great Place to Work Certification, highlighting its commitment to employee satisfaction and a positive workplace culture, which can contribute to overall company performance.

Medicare Advantage Growth

Trilogy’s concentration with Medicare Advantage increased to 7.2% of resident days in Q2 2025, up from 5.8% a year ago. This growth has contributed positively to the company’s revenue, showcasing its strategic focus on this segment.

Increased 2025 Guidance

American Healthcare REIT raised its full-year 2025 NFFO per share guidance to a range of $1.64 to $1.68, up from the previous range of $1.58 to $1.64. This increase reflects the company’s confidence in its financial outlook and growth trajectory.

Outpatient Medical Segment Challenges

The outpatient medical segment showed sluggish growth, with guidance ranging from 1% to 1.5% in same-store NOI growth. This indicates a need for strategic adjustments to enhance performance in this area.

Potential Challenges in Medicare Contracts

The fragmented nature of Medicare Advantage contracts may pose challenges in negotiating higher rates and managing quality mix. This complexity requires careful navigation to optimize contract outcomes.

Forward-Looking Guidance

During the earnings call, American Healthcare REIT provided a robust outlook with several key metrics reflecting their growth trajectory. The company reported a 13.9% same-store NOI growth for Q2 2025, with the Trilogy segment achieving an impressive 18.3% growth year-over-year. The SHOP segment demonstrated even stronger performance with a 23% year-over-year growth. The company has also raised its full-year 2025 NFFO per share guidance, reflecting increased confidence in their financial outlook. Furthermore, the company continues to focus on high-quality long-term care assets and explore further external growth opportunities.

In conclusion, American Healthcare REIT’s earnings call painted a positive picture of the company’s financial health and strategic direction. With strong same-store NOI growth, successful acquisitions, and improved leverage metrics, the company is well-positioned for future growth. While challenges exist in certain segments, the overall sentiment remains optimistic, with increased guidance and a focus on strategic expansion.