American Healthcare REIT Q3 Earnings Call Highlights

Key Points

• American Healthcare REIT raised its 2026 outlook, increasing NFFO guidance to $2.23–$2.26 per diluted share and forecasting 12%–14% same-store NOI growth. The revised outlook follows third-quarter NFFO growth of 31.8% year over year.
• Senior housing operations continued to strengthen: SHOP same-store NOI rose 28.2%, occupancy reached 90%, and its NOI margin expanded 350 basis points to 23.5%. Trilogy same-store NOI grew 15.7%, with occupancy at 91.2%.
• The company invested $1.69 billion in the quarter and has more than $1 billion in awarded deals not included in its guidance. Management said available forward-sale proceeds and credit capacity can fund the pipeline, while future growth is focused on SHOP and Trilogy.

American Healthcare REIT NYSE: AHR raised its 2026 earnings and operating growth forecasts after reporting stronger third-quarter performance across its senior housing portfolio and completing $1.69 billion in investments during the period.

The company reported normalized funds from operations (NFFO) of $0.58 per diluted share, up 31.8% from a year earlier, Chief Financial Officer Aric Chang said on the November 6 earnings call. Total portfolio same-store net operating income (NOI) rose 13.8%, marking the company’s 11th consecutive quarter of double-digit growth, according to Chairman and CEO Jeff Hanson.

Management also outlined a pipeline of more than $1 billion in awarded deals, none of which is included in the revised guidance. The company expects to fund those investments with proceeds from unsettled forward share sales.

Higher outlook follows operating gains

American Healthcare REIT increased its full-year NFFO guidance to $2.23 to $2.26 per diluted share, from $2.15 to $2.19. The midpoint implies growth of more than 30% from 2025, Chang said.

The company raised its total portfolio same-store NOI growth forecast to 12% to 14%. Its segment outlook now calls for growth of 14.5% to 16.5% at Trilogy and 23% to 26% in its senior housing operating portfolio, or SHOP. The midpoint of the SHOP range increased by five percentage points.

Chang said the revised forecast includes transactions and capital markets activity completed through the call date, but no additional acquisitions beyond those closed year to date. General and administrative expense guidance was unchanged.

Senior housing occupancy and margins rise

SHOP same-store NOI increased 28.2% from a year earlier and 9.1% sequentially. Average same-store occupancy reached 90%, while revenue per occupied room rose 5.4% year over year and expense per occupied room increased 0.8%. The segment’s same-store NOI margin expanded by 350 basis points to 23.5%.

President and Chief Operating Officer Gabe Willhite attributed the revenue gains in part to pricing and reduced rent concessions. He said concessions fell 34% year over year as operators focused on rates and occupancy increased.

“Our goal is not to remain at 90% occupied in our portfolio,” Willhite said, adding that the company still sees room for occupancy gains while emphasizing revenue management.

At Trilogy, same-store NOI grew 15.7% year over year, and average occupancy rose to 91.2%. Revenue increased 4.8%, while operating expenses rose 2.2%; controllable costs declined 3.7%. Willhite said employee benefit savings contributed to the expense performance, describing that particular saving as more of a one-time item but saying Trilogy continually seeks efficiencies.

Investment pipeline and funding

Third-quarter investments brought the company’s year-to-date total to $2.1 billion, Chief Investment Officer Stefan Oh said. Among the transactions, American Healthcare REIT closed on six Kensington Senior Living communities for approximately $572 million as part of an eight-property portfolio with an aggregate contract price of about $873 million. The remaining two are expected to close by year-end.

The company also acquired eight communities for approximately $696 million in transactions that brought LCB Senior Living onto its platform. Oh said the acquisitions helped reduce the average age of the SHOP portfolio to 18.1 years from 22.9 years at the end of 2025.

Oh expects some of the awarded pipeline to close late in the fourth quarter, with the remainder closing in the first quarter of 2027. He said deal flow remains strong and that the company continues to target newer assets in high-barrier markets as well as select secondary markets.

Chang said net debt to annualized adjusted EBITDA fell to 1.9 times at quarter-end. As of the call, the company had approximately $1.3 billion in gross proceeds available under unsettled forward sales agreements and $850 million of capacity under its lines of credit. He said the company was fully funded for its awarded pipeline and additional opportunities and had no plan to raise capital for the pipeline currently visible.

Portfolio strategy and development

Hanson said the company’s future capital deployment and external growth are focused on SHOP and Trilogy. American Healthcare REIT has sold 30 outpatient medical assets and reduced that portfolio’s contribution to NOI from 35% to roughly 10%, he said, adding that the company expects to remain a net seller.

Willhite said the company also continually evaluates senior housing assets for potential sales but had no 2027 dispositions to announce. On development, he said Trilogy is expected to build three to five new campuses annually and has more than 30 campuses with excess land or a direct path to it for possible expansions.

About American Healthcare REIT (NYSE:AHR)

American Healthcare REIT, Inc is a self-managed real estate investment trust focused on owning and operating healthcare-related properties. The company provides real estate infrastructure for healthcare providers and senior-care operators through a diversified portfolio of properties serving patients, residents, and medical professionals.

Its investments include outpatient medical office buildings, integrated senior health campuses, skilled nursing facilities, senior housing communities, and other healthcare facilities.

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