AHR Stock Coverage Initiated with Positive Outlook | AHR Stock News

Author's Avatar
Jul 17, 2025

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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.