American Healthcare REIT: Buy Rating Driven by Superior Growth, High-Quality Senior Housing Platform, and Compelling Valuation Upside

Juan C. Sanabria, an analyst from BMO Capital, has initiated a new Buy rating on American Healthcare REIT, Inc. (AHR).

Juan C. Sanabria has given his Buy rating due to a combination of factors centered on American Healthcare REIT’s strong growth profile and attractive valuation. He expects the company to post sector-leading earnings expansion, driven largely by its Trilogy and senior housing operating portfolios, which together account for the majority of its income and benefit from favorable demand-supply conditions. He also highlights that AHR’s cost of capital positions it well to pursue accretive acquisitions off a relatively small base, with his projections for transaction volume and resulting FFO growth running ahead of the broader market’s expectations. In addition, he underscores the quality of the Trilogy platform, noting its superior regulatory and quality scores that support occupancy, pricing power, and payer negotiations.

Sanabria believes that as AHR continues to deploy capital into higher-quality senior housing assets, the overall quality of its portfolio should improve while sustaining above-average same-store NOI growth. He emphasizes the company’s strong projected AFFO growth and points out that the stock trades at a compelling growth-adjusted valuation relative to healthcare REIT peers, which supports further upside to his target price. While he acknowledges risks around senior housing fundamentals, regulatory changes, and acquisition execution, he characterizes these as manageable within the context of robust industry tailwinds and AHR’s balance sheet and operating strengths. Taken together, these elements underpin his Outperform/Buy recommendation and 21% implied total return potential.

In another report released on January 20, Truist Financial also maintained a Buy rating on the stock with a $52.00 price target.