American Healthcare REIT Q2 Earnings Call Highlights

Key Points

• 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.

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.

Same-Store NOI Growth Continues

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.

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.

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.

Acquisition Activity Tops $1.4 Billion

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.

Balance Sheet and Leadership Transition

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.

About American Healthcare REIT (NYSE:AHR)

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.

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