American Healthcare REIT Reports Strong Q1 2025 Performance with Upgraded Full Year Guidance

American Healthcare REIT Q1 2025 Results: An Overview

American Healthcare REIT, Inc. (NYSE: AHR) recently published its financial results for the first quarter of 2025, revealing robust operational metrics that have allowed the company to revise its outlook for the entire year positively. The report highlights various key performance indicators that are crucial for stakeholders and potential investors.

Key Financial Metrics

During the three months that ended on March 31, 2025, American Healthcare REIT reported a GAAP net loss attributable to controlling interest amounting to $6.8 million, translating into a loss of $0.04 per diluted share. However, the financial results also showcased a Normalized Funds from Operations (NFFO) of $0.38 per diluted share for the same period.

The company experienced a healthy growth in total portfolio Same-Store Net Operating Income (NOI), which leapt by 15.1% compared to the first quarter of 2024. This was bolstered by significant increases in NOI from its senior housing operating properties (SHOP), which grew by 30.7%, and integrated senior health campuses (ISHC), which witnessed a growth of 19.8%.

Additionally, American Healthcare REIT conducted a lease buyout in the ISHC segment worth about $16.1 million. To further strengthen its financial position, the company issued a total of 1,577,113 shares through its at-the-market equity offering program (ATM), bringing in gross proceeds of approximately $47.7 million.

Upgraded Financial Guidance

Given the promising financial indicators from Q1, American Healthcare REIT has increased its full-year guidance for 2025. The Same-Store NOI growth guidance is now revised to a range of 9.0% to 13.0% from the previous range of 7.0% to 10.0%. In terms of earnings, the NFFO guidance has also been elevated by $0.03 at the midpoint, adjusting it to a range of $1.58 to $1.64 per diluted share.

These updates reflect the company’s strong operational performance during the quarter as well as favorable capital raising activities. The net debt-to-annualized adjusted EBITDA ratio stood at 4.5x as of March 31, demonstrating financial stability amid significant growth initiatives.

Strategic Remarks from Leadership

Danny Prosky, President and CEO, commented on the report, expressing confidence in the company's progress and its proactive capital strategy designed to support future investments. He noted the resilience of the demand for long-term care facilities in mitigating anticipated occupancy losses, further painting a positive picture for the company's operations.

Furthermore, Gabe Willhite, COO, highlighted that the operating sectors of the company successfully offset challenges that typically arise during the colder months, asserting that the diverse range of long-term care services provided through their Trilogy platform has proven beneficial.

As American Healthcare REIT positions itself for future growth, it is focused on expanding its operational efficiencies and capitalizing on increasing demand. The company is actively pursuing new opportunities, with a substantial pipeline of potential acquisitions valued at over $300 million.

Future Outlook

For the remainder of the year, management anticipates that the demand for long-term care will continue to rise, aided by the seasonal uptick that comes with warmer spring and summer months. The groundwork laid during Q1 is expected to pave the way for sustained momentum in performance metrics throughout 2025.

In summary, American Healthcare REIT is on an upward trajectory with promising Q1 results and enhanced guidance for the year ahead, illustrating its resilience and strategic focus in a dynamic healthcare real estate market.