American Healthcare REIT, Inc. Q4 FY2025 earnings call

• Leadership update: Jeff Hansen is interim CEO while Danny is on medical leave, Danny is recovering and engaged. - Operational results: Fourth quarter capped off exceptional year with double-digit same-store NOI growth. Growth in operating portfolio driven by occupancy gains, rate management, and expense controls. Trilogy saw same-store NOI and occupancy growth with revenue growth from rate and quality mix. Shop had strong growth in same-store NOI and occupancy. - Investment activity: 2025 was active investment year with over $950 million in new investments, majority in Shop, focused on relationship-driven sourcing, disciplined underwriting. Pipeline includes Trilogy expansions and campus growth initiatives. - Capital markets: Issued 2026 NFFO guidance of $1.99 to $2.05 per diluted share, total portfolio same-store NOI growth guidance 7% - 11% with segment-level ranges, executed in equity markets in Q4 2025 to fund acquisitions and development.

In the fourth quarter, total portfolio same-store NOI grew 11.8% with 14.2% for the full year 2025. The operating portfolio, including Trilogy and Shop segments, contributes 76.9% of consolidated cash NOI. Trilogy: same-store NOI increased 14% in Q4 and 18.4% for the full year, same-store occupancy reached 90.6% in Q4, up 275 basis points year-over-year, with Medicare and Medicare Advantage penetration increasing. Shop: same-store NOI increased 24.6% in Q4 and 25.2% for 2025, same-store occupancy surpassed 90% in Q4, averaging 90.6%, up approximately 290 basis points year-over-year.

• 2026 NFFO guidance: $1.99 to $2.05 per diluted share. - Total portfolio same-store NOI growth guidance: 7% to 11%. - Segment-level same-store NOI growth ranges: Trilogy 8% - 12%, Shop 15% - 19%, Outpatient medical 0% - 2%, Triple net lease property segment 2% - 3%.

• Risks associated with forward-looking statements, including numerous risks and uncertainties that could cause actual results to differ materially from projected. - Competition in the acquisition market for Shop segment from other healthcare REITs and private equity. - Volatility in hospital coverage for triple net lease property segment, such as the situation with the hospital in South Lake, Texas.

Q: Can you dive in a little bit deeper on the acquisition environment?

A: Stefan said they continue to focus on higher acuity shop assets, with some variance in pricing based on asset class.

Q: Just starting with the shop, thinking about sort of the guidance for this year, making it some deceleration, was just trying to think through if you can decompartmentalize in terms of, you know, REF4 and occupancy, how maybe you see this year playing out versus 2025.

A: Ron was told it's hard to say on occupancy increase, but shop had significant growth in 2024 - 2025 and has pricing power at 90.6% occupancy.

Q: I wanted to circle back on your comments regarding the revenue management system.

A: Gabe said it's an important differentiator, stems from unique partnership with Trilogy, still early in rolling out pilot programs.

Q: In terms of the acquisitions, the awarded deals, the $230 million in the pipeline, I know those aren't in guidance, but can you just give us a sense for like the potential timing of those and what is delaying the closing?

A: Stefan said pipeline is robust, deal activity high, with slowdown in December and January on marketed deals but still active, pipeline is dynamic.

Q: Good morning. Just hoping you could talk a little bit more about the investment pipeline and So what year one yields you expect...

A: Juan was told they've seen pricing in certain ranges, focusing on new or higher quality properties, higher acuity communities.

Q: Good afternoon. Thanks a lot for taking my questions. Maybe just on some of the, like, unstabilized or undermanaged properties that you are purchasing...

A: Stefan and Brian said it's about experience, presence in market, ability to manage labor and expenses, and outside demand growth impacting transition time.

Q: Thank you. I guess my first question was really just about the bridge between your normalized FFO growth and then your total same store NOI growth...

A: Stopping short of precise numbers, said shop has non-same store assets that will perform well, and Trilogy has less non-same store assets with dramatic returns.

Q: Okay, thanks for taking my question, and good to hear that Danny's at home and doing better. I guess just to start off, you kind of mentioned some of the real estate that you're targeting...

A: Seth was told they focus on operators with proven track record, and Trilogy's platform can help support smaller regional operators.

Q: Thanks, and good morning. Uh, within shop, what are you seeing in terms of seasonality so far in the first quarter...

A: Gabe said less flu impact this year compared to last, occupancy not deeply impacted.

Q: There's a pretty steep decline in hospital coverage during the quarter. I know it's a small part of the portfolio...

A: Brian said the hospital in South Lake, Texas is committed, volatility tied to shifting the hospital's focus, and they have a purchase option triggering in 2030.