Analyst Wesley Golladay from Baird has commenced coverage of American Healthcare REIT (AHR, Financial) by assigning it an Outperform rating. Alongside this positive assessment, he has set a price target of $41 for the stock. This evaluation reflects a favorable view of the company's potential in the marketplace.
AHR Key Business Developments
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- American Healthcare REIT Inc (AHR, Financial) reported a strong Q1 2025 with a 15.1% year-over-year same-store NOI growth, driven by their operating portfolio.
- The company successfully executed a capital allocation initiative, strengthening its financial position and supporting planned external growth.
- AHR increased its full-year 2025 guidance for same-store NOI growth and NFFO per share, reflecting confidence in continued strong performance.
- The company has a robust pipeline of over $300 million in acquisitions expected to close by year-end, indicating strong future growth potential.
- AHR's operating portfolio, particularly the Trilogy and Shop segments, showed impressive growth, with Trilogy achieving a 19.8% increase and Shop a 30.7% increase in same-store NOI.
Negative Points
- The company faced challenges from a difficult flu season, which impacted occupancy rates in some segments.
- There is a potential risk associated with the regulatory approvals required for some of the acquisitions in the pipeline.
- The company is still in the early stages of some transactions, which could lead to uncertainties in timing and execution.
- AHR's focus on selling non-core assets may lead to short-term revenue fluctuations as they transition to higher growth assets.
- The company is exposed to potential impacts from tariffs and inflation, which could affect construction costs and overall expenses.
