American Healthcare REIT launched share offering By Investing.com

IRVINE, Calif. — American Healthcare REIT, Inc. (NYSE: AHR), a healthcare real estate investment trust (REIT), announced a public offering of 14.5 million shares of its common stock and is offering the underwriters a 30-day option to purchase up to an additional 2,175 million shares.

The proceeds from this offering will be used to acquire the remaining 24% minority interest in Trilogy Holdings, LLC currently held by a joint venture partner, as well as to repay indebtedness under its credit facilities. BofA Securities, Morgan Stanley and KeyBanc Capital Markets are acting as joint book-running managers for the transaction.

This offering is being made pursuant to a shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). Relevant documents, including a preliminary prospectus supplement and the accompanying prospectus, will be made available by the lead managers and through the SEC’s EDGAR database.

American Healthcare REIT’s portfolio includes a variety of healthcare properties such as outpatient medical facilities, senior living facilities and nursing facilities with locations in the United States, the United Kingdom and the Isle of Man.

The Company cautions that certain statements in the press release may be considered forward-looking statements and involve various risks and uncertainties. These statements are based on management’s current expectations and estimates and are covered by the safe harbor provisions for forward-looking statements. The risks associated with these statements have been detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other SEC filings.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. There will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful unless such registration or qualification is made under the securities laws of any such jurisdiction.

The information contained in this article is based on a press release from American Healthcare REIT, Inc.

In other recent news, American Healthcare REIT is at the center of several important developments. The company is forecasting a 3.3% increase in normalized funds from operations (FFO) for 2024 and significant growth in same-store net operating income (SSNOI) for 2024. Notably, KeyBanc raised the price target on the company from $16.00 to $27.00 and maintained an Overweight rating.

Truist Securities also adjusted its price target on American Healthcare REIT, first to $22 and then to $17, while maintaining a Buy rating. This adjustment indicates confidence in the company’s growth prospects, despite a strong growth profile relative to the stock’s valuation.

Additionally, BofA Securities revised its price target on the company to $27 from $19 and maintained a Buy rating. This follows recent management discussions that gave BofA Securities a deeper understanding of the company’s growth potential.

American Healthcare REIT’s SSNOI growth is performing better than expected, which could lead to an increase in the net funds from operations (NFFO) forecast for 2024. Analysts at Barclays Capital Inc., JMP Securities, KeyBanc and RBC Capital Markets have given American Healthcare REIT an “overweight” rating, underscoring the company’s strategic positioning in the healthcare real estate market.

Finally, American Healthcare REIT announced the date for its 2024 annual meeting of shareholders and the deadline for shareholder proposals. These are some of the company’s recent developments.

InvestingPro Insights

As American Healthcare REIT, Inc. (NYSE: AHR) looks to expand its portfolio through a new public offering, real-time data and insights from InvestingPro provide a deeper look into the company’s financial landscape. With an adjusted market capitalization of approximately $3.32 billion, the company is navigating financial markets with certain challenges and opportunities.

InvestingPro data shows that American Healthcare REIT has a negative price-to-earnings (P/E) ratio of -59.07, reflecting investors’ view on its earnings potential. Nevertheless, the company’s revenue has grown by 9.24% over the trailing twelve months to Q2 2024, showing a positive trend in operating performance. However, it is important to note that the gross margin stands at 16.44%, which InvestingPro Tips was able to identify as the company’s weak point.

Investors should note that the stock is currently trading near its 52-week high, with the price at 98.33% of that peak. This is consistent with an InvestingPro tip that indicates that the Relative Strength Index (RSI) suggests the stock is overbought. Analysts are forecasting that the company will be profitable this year, which could be a sign of a potential turnaround from the unprofitable situation of the past twelve months.

For those who want to dive deeper, additional InvestingPro Tips are available that could provide further insight into American Healthcare REIT’s performance and valuation. These include observations on its high EBIT valuation multiple and its high return over the last year. With 11 more tips available on InvestingPro, investors have access to a wealth of information that can support their decisions. To explore these tips and more, visit the dedicated InvestingPro page for American Healthcare REIT at https://www.investing.com/pro/AHR.

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