American Healthcare Reit, Inc. · NYSE:AHR
American Healthcare Reit — Q3 2024 Earnings Presentation
37 slides from American Healthcare Reit's earnings presentation, Nov 13, 2024
Slide 1: Investor Presentation November 2024
INVESTOR PRESENTATION NOVEMBER 2024
Slide 2: Disclaimers
DISCLAIMERS FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation, including statements relating to American Healthcare REIT, Inc.’s (the ”Company,” “its,” “we,” “our,” “us,” or “AHR”) expectations regarding its portfolio growth, interest expense savings, balance sheet, net in
Slide 3: Disclaimers (Cont'd)
DISCLAIMERS (CONT’D) Net Operating Income or NOI We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are appropriate supplemental performance measures to reflect the performance of our operating assets because NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI exclude certain items
Slide 4: Management Participants
MANAGEMENT PARTICIPANTS Danny Prosky Brian Peay Gabe Willhite Alan Peterson President & CEO CFO COO VP, Investor Relations & Finance 4
Slide 5: Recent Highlights
RECENT HIGHLIGHTS
Slide 6: Recent Highlights | Q3 2024 Portfolio Performance
RECENT HIGHLIGHTS | Q3 2024 PORTFOLIO PERFORMANCE +22.6% +61.8% 88.1% 1.29x +17.0% SS OUTPATIENT TRIPLE-NET SS TOTAL SS ISHC / Trilogy SS SHOP MEDICAL LEASED EBITDAR PORTFOLIO NOI GROWTH(1) NOI GROWTH(1) OCCUPANCY(2) COVERAGE(3) NOI GROWTH(1) SAME-STORE Q3 2024 REVENUE GROWTH SAME-STORE Q3 2024 NOI
Slide 7: Q3 2024 Earnings Highlights & Occupancy Update
RECENT HIGHLIGHTS | Q3 2024 EARNINGS HIGHLIGHTS & OCCUPANCY UPDATE SAME-STORE OCCUPANCY UPDATE BY PROPERTY SEGMENT (1) (2) Integrated Senior Health Campuses SHOP Outpatient Medical 90.0% 89.2% 87.6% 87.8% 88.1% 87.9% 86.5% 87.0% 81.8% Q3 2023 Q3 2024 November 1, 2024 Q3 2023 Q3 2024 November 1, 2024
Slide 8: Year-to-Date 2024 Investment Activity
RECENT HIGHLIGHTS | YEAR-TO-DATE 2024 INVESTMENT ACTIVITY SHOP INVESTMENTS Oregon Portfolio – February 2024 • 856 beds across 14 properties • ~$94.5 million purchase price (~$110k per bed) Washington Portfolio – September 2024 • 242 units across five properties • ~$36.2 million purchase price (~$149
Slide 9: AHR Overview
AHR OVERVIEW
Slide 10: Company Snapshot
COMPANY SNAPSHOT (as of or for three months ended 9/30/2024, as applicable) DIVERSIFIED HEALTHCARE PORTFOLIO WITH SENIOR HOUSING & CARE FOCUS Q3 2024 PRO-RATA CASH NOI % BY SEGMENT 66.9% OF PRO-RATA CASH NOI IN OPERATING PORTFOLIO (ISHC & SHOP) AHR 4 307 Integrated Senior Health Campuses DIVERSIFIED
Slide 11: Portfolio Key Stats
PORTFOLIO KEY STATS (as of 9/30/2024) INTEGRATED SENIOR OUTPATIENT SENIOR HOUSING TRIPLE-NET LEASED HEALTH CAMPUSES MEDICAL OPERATING PROPERTIES PROPERTIES 127 83 69 28 Campuses Properties Properties Properties 87.0% 88.1% 87.8% 91.4% Same-Store Occupancy (1) Same-Store Occupancy (2) Same-Store Occu
Slide 12: Operating Portfolio
OPERATING PORTFOLIO ISHC/TRILOGY AND SHOP
Slide 13: Regional Focus and Operator Affiliations
REGIONAL FOCUS AND OPERATOR AFFILIATIONS (as of 9/30/2024) TRILOGY MANAGEMENT SERVICES 129 Properties / Campuses 13,203 Beds / Units Headquarters in Louisville, KY SENIOR SOLUTIONS MANAGEMENT GROUP 19 Properties 1,595 Beds / Units Headquarters in Atlanta, GA PRIORITY LIFE CARE 12 Properties 988 Beds
Slide 14: Integrated Senior Health Campuses / Trilogy Overview
INTEGRATED SENIOR HEALTH CAMPUSES (as o f 9 / 3 0 / 2 0 24 ) / TRILOGY | OVERVIEW KEY HIGHLIGHTS 1997 4 • ABILITY TO AGE-IN-PLACE WITH FULL CONTINUUM OF CARE YEAR FOUNDED STATES o Unique mix of senior housing (AL/IL/MC) units (~43%) and skilled nursing beds (~57%) on same campus 127 10.0 • PURPOSE-B
Slide 15: The Trilogy Concept – A Unique Design for Senior Care
THE TRILOGY CONCEPT – A UNIQUE DESIGN FOR SENIOR CARE DEFINING INTEGRATED SENIOR HEALTH TRILOGY HAS ROBUST DEVELOPMENT CAMPUS CAPABILITIES • One facility that brings together various levels of senior • Historic stabilized yields achieved have been highly- care (IL/AL/MC/SNF) attractive • Allows for
Slide 16: Senior Housing Operating Properties (SHOP) Overview
SENIOR HOUSING OPERATING PROPERTIES (as o f 9 / 3 0 / 2 0 24 ) (SHOP) | OVERVIEW 69 16 • KEY HIGHLIGHTS LARGER FOCUS ON NEEDS-BASED CARE VERSUS PROPERTIES STATES MORE DISCRETIONARY SENIOR HOUSING o ~81% of total SHOP exposure in Assisted 26.7 7 MISSION-DRIVEN • Living and Memory Care Units HANDS-ON
Slide 17: Senior Housing Demonstrating Robust Organic Growth
SENIOR HOUSING DEMONSTRATING ROBUST ORGANIC GROWTH OPERATING AHR Operating Portfolio (ISHC/Trilogy & SHOP) has shown Peer Group- PORTFOLIO leading occupancy and Same-Store NOI growth. (1) OPERATING PORTFOLIO (AHR SHOP/Trilogy; Healthcare REIT Peers SHOP or Senior Housing - Managed)(1) (2) (3) Same-S
Slide 18: Capital Allocation
CAPITAL ALLOCATION
Slide 19: Capital Allocation – Strategic Sources and Uses
CAPITAL ALLOCATION – STRATEGIC SOURCES AND USES PROVEN AND MEASURED CAPITAL ALLOCATION EXPERIENCE TO NAVIGATE AND IDENTIFY THE BEST RISK-ADJUSTED RETURNS Disciplined Sourcing Strong Capital through Allocation Opportunistic Acumen across Dispositions Healthcare Real and Capital Estate Sectors Markets
Slide 20: Capital Markets & Balance Sheet
CAPITAL MARKETS & BALANCE SHEET
Slide 21: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS (as of 9/30/2024) KEY DEBT METRICS (1)(2) $1.90B TOTAL DEBT 4.67% WEIGHTED AVERAGE INTEREST RATE 11.5 YEARS WEIGHTED AVERAGE TERM Secured $1,000 DEBT MATURITY SCHEDULE Debt, Unsecured 68.5% Debt, 31.5% MILLIONS Floating Rate, $750 11.1% $500 $250 $0 Fixed Rate, 88.9% Fixed F
Slide 22: Management & Governance
MANAGEMENT & GOVERNANCE
Slide 23: Cohesive Management Team
COHESIVE MANAGEMENT TEAM EXPERIENCE THROUGH MARKET CYCLES AND WITH LARGEST HEALTHCARE REITS 26 YEARS AVG. EXPERIENCE OF EXECUTIVE TEAM Background & Years in Industry Background & Years in Industry • Former President & COO of Griffin-American Healthcare Kenny Lin • Former EVP, Accounting & Finance of
Slide 24: Experienced Board of Directors with Strong Governance
EXPERIENCED BOARD OF DIRECTORS WITH STRONG GOVERNANCE BOARD OF DIRECTORS COMMITMENT TO Jeff Hanson (Chairman since 2013(1)) GOVERNANCE • Former CEO of prior Griffin-American Healthcare REITs • Over 27 years real estate experience BOARD GOVERNANCE Danny Prosky (Director since 2014(1)) • Former Presid
Slide 25: ESG Initiatives
ESG INITIATIVES ENVIRONMENTAL SOCIAL GOVERNANCE • Completed Materiality Assessment • Proven commitment to a diversified • Seasoned SEC filer since 2014 with independent ESG consultant in workplace: • 2/3 of Board made up of October 2022, setting ESG strategy independent directors • Improved energy,
Slide 26: Appendix
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Slide 27: ISHC/Trilogy Segment Representative Properties
ISHC/TRILOGY SEGMENT REPRESENTATIVE PROPERTIES 10.0 YEARS AVERAGE AGE OF CAMPUSES/FACILITIES 27
Slide 28: Defined Terms
DEFINED TERMS • Adjusted EBITDA: EBITDA excluding the impact of gain or loss from unconsolidated entities, straight line rent and amortization of above/below market leases, non-cash stock-based compensation expense, business acquisition expenses, gain or loss on sales of real estate investments, unr
Slide 29: Defined Terms
DEFINED TERMS • Net Debt: Total long-term debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash pertaining to debt. • NOI: Net operating income; a non-GAAP financial measure that is defined as net income (loss), computed in accordance with GAAP, generated fr
Slide 30: Defined Terms
DEFINED TERMS • Same-Store NOI or SS NOI: Cash NOI for our Same-Store properties. Same-Store NOI is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. Both Cash NOI and Same-Store NOI include owne
Slide 31: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of Net (loss) income to Cash NOI for the quarterly and year-to-date periods shown below: Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 9/30/2023 YTD 9/30/2024 Net (loss) income $ (6,446) $ (30,959) $ (3,004) $ 2,926 $ (3,093) $ (45,928) $ (3,1
Slide 32: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of NOI (excluding Grant Income) to Cash NOI and Same-Store NOI (relating to Same-Store properties) for the quarterly and year-to-date periods shown below: Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 9/30/23 YTD 9/30/24 Integrated Senior Heal
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of NOI (excluding Grant Income) to Cash NOI and Same-Store NOI (relating to Same-Store properties) for the quarterly and year-to-date periods shown below: Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 9/30/23 YTD 9/30/24 Triple-Net Leased Prop
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of GAAP revenue to Cash revenue and Same-Store revenue (relating to Same-Store properties) for the quarterly and year-to-date periods shown below: Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 9/30/23 YTD 9/30/24 Integrated Senior Health Campu
Slide 35: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of GAAP revenue to Cash revenue and Same-Store revenue (relating to Same-Store properties) for the quarterly and year-to-date periods shown below : Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 9/30/23 YTD 9/30/24 Triple-Net Leased Properties
Slide 36: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of Net loss to Adjusted EBITDA for the three months ended September 30, 2024: Q3 2024 Net loss $ (3,093) Adjustments: Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt and derivative
Slide 37: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS (1) The following is a reconciliation of Interest Coverage Ratios and Net Debt for the three months ended September 30, 2024: Q3 2024 Interest Coverage Ratio Interest Expense $ 30,395 Capitalized Interest 56 Loss on debt and derivative extinguishments (572) Non-Cash Interest
American Healthcare REIT — Q3 2024 Earnings Presentation on 6ix