American Healthcare Reit, Inc. · NYSE:AHR
American Healthcare Reit — Q1 2024 Earnings Presentation
31 slides from American Healthcare Reit's earnings presentation, May 13, 2024
Slide 1: First Quarter 2024 Supplemental
First Quarter 2024 Supplemental EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS Certain statements contained in this supplemental, filed in conjunction with the First Quarter 2024 Earnings Press Release, including statements relating to American Healthcare REIT, Inc.’s (the ”Company”) expectations regarding its portfolio growth, interest expense sav
Slide 3: Our Properties (as of 3/31/2024)
3 Number of Buildings/ Campuses Beds/Units (1) Leased % (2) Wtd Avg Lease Term (years) Annualized Cash NOI Annualized Cash NOI Integrated Senior Health Campuses (ISHC) 126 12,993 85.6% - 153,344$ 49.4% 203,276$ 56.3% Outpatient Medical (OM) 86 4,396 88.1% 5.2 83,936 27.1% 83,936 23.3% Senior Housing
Slide 4: Integrated Senior Health Campuses: Total Portfolio and Same-Store
4 Total Portfolio Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Properties 122 123 125 125 126 IL/AL/MC units 4,143 4,170 4,169 4,158 4,194 SNF beds 5,562 5,542 5,586 5,567 5,607 Pro-Rata total beds/units 9,705 9,712 9,755 9,725 9,801 Average occupancy 84.2% 84.8% 86.2% 85.0% 85.6% Revenues (1) 272,903$ 2
Slide 5: ISHC Revenue per Payor and Bed Type
5 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Private 346.44$ 380.22$ 12.0% 12.0% 13.3% 14.0% Managed Care/Ins 403.50 396.64 0.4% 0.5% 0.5% 0.6% Medicaid 257.58 286.22 23.9% 22.9% 19.8% 20.1% Hospice Medicaid 271.47 301.27 3.9% 3.3% 3.4% 3.0% Medicare 640.62 650.13 13.6% 12.1% 28.1% 24.1% Medicare Advantage
Slide 6: Outpatient Medical: Total Portfolio and Same-Store
6 Total Portfolio Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Properties 101 90 87 85 83 Consolidated GLA (sq ft) 4,963 4,744 4,517 4,448 4,396 Ending occupancy 88.7% 89.7% 89.7% 89.2% 88.1% Revenues 36,971$ 36,294$ 35,163$ 32,971$ 33,724$ Operating expenses 14,102 13,530 13,365 12,070 12,740 Cash NOI (
Slide 7: Outpatient Medical (as of 3/31/2024)
7 Tenants ABR % S&P Credit Rating Christus Good Shepherd Health System 7,547$ 7.7% A+ Mercy Health 4,550 4.7% A+ Prime Healthcare 4,058 4.2% B- Montefiore Medical Center 2,364 2.4% BBB- Atrius Health, Inc. 2,205 2.3% BBB Remaining Portfolio 76,902 78.7% Total 97,626$ 100.0% Absorption Occupied Squar
Slide 8: Outpatient Medical Expiring Leases
8 Year # of Expiring Leases Total Sq. Ft.(1) % of GLA ABR (2) % of Total ABR Average Rent per Sq. Ft. 2024 70 347 8.9% 8,001$ 7.2% 23.06$ 2025 81 586 15.0% 15,986 14.4% 27.28 2026 48 218 5.6% 5,068 4.6% 23.25 2027 61 417 10.7% 11,438 10.3% 27.43 2028 59 505 13.0% 14,866 13.4% 29.44 Thereafter 181 1,
Slide 9: Senior Housing Operating Properties: Total Portfolio and Same-Store
9 Total Portfolio Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Properties 50 46 45 51 64 IL/AL/MC units 4,702 4,008 3,929 4,318 5,085 SNF beds 135 135 135 135 90 Consolidated total beds/units 4,837 4,143 4,064 4,453 5,175 Average occupancy 75.7% 76.8% 79.3% 80.4% 82.5% Revenues 46,481$ 47,409$ 43,635$ 48
Slide 10: ISHC & SHOP Partners (as of 3/31/2024)
10 Partner/Operator State Number of Buildings/Campuses Consolidated Beds/Units Pro-Rata Share Beds/Units Trilogy Management Services (1) KY,IN,MI,OH,WI 128 13,186 9,994 Senior Solutions Management Group AR,MS,TX,LA,MO 19 1,596 1,563 Priority Life Care IN, MI 15 988 988 Compass Senior Living OR 24 85
Slide 11: Triple-Net Leased Properties: Total Portfolio and Same-Store
11 Total Portfolio Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Properties 34 34 34 28 28 AL/MC beds/units 928 928 928 538 538 SNF beds 2,061 2,061 2,061 2,061 2,061 Consolidated total beds/units 2,989 2,989 2,989 2,599 2,599 Average operator occupancy (1)(2) 85.8% 86.4% 86.3% 87.4% 91.0% Revenues 11,732
Slide 12: Triple-Net Leased Properties Coverage
12 Coverage Senior Housing- Leased SNFs Hospital Total Weighted Average Maturity (years) Number of Leases Senior Housing- Leased SNFs Hospital Total Weighted Average Maturity (years) Number of Leases < 0.80x - 0.2% 2.3% 2.5% 12.9 2 - - 2.3% 2.3% 13.2 1 0.80x - 0.89x - - - - - - - - - - - - 0.90x - 0
Slide 13: Total Revenue and Lease Expiration (as of 3/31/2024)
13 MED HOP H3DUK SENS F RID Year 2024 8,001$ 7.2% -$ 0.0% -$ 0.0% 8,001$ 4.9% 2025 15,986 14.4% - 0.0% 4,011 100.0% 19,997 12.3% 2026 5,068 4.6% - 0.0% - 0.0% 5,068 3.1% 2027 11,438 10.3% - 0.0% - 0.0% 11,438 7.1% 2028 14,866 13.4% - 0.0% - 0.0% 14,866 9.2% Thereafter 55,512 50.1% 47,184 100.0% - 0.
Slide 14: Debt Maturities and Principal Payments (as of 3/31/2024)
14 Period Lines of Credit and Term Loan Mortgage Loans Payable Noncontrolling Interests' Share of Mortgage Loans Payable, Lines of Credit and Term Loan % of Combined Pro-Rata Debt Weighted Average Interest Rate (2) 2024 $ - $ 177,717 $ (35,778) $ 141,939 8.1% 6.88% 2025 210,000 168,275 (64,391) 313,
Slide 15: First Quarter 2024 Real Estate Acquisitions and Dispositions
15 Acquisitions Reportable Segment Number of Properties/ Campuses Units/Beds Ownership Percentage Purchase Price Average Cost per Unit/Bed SHOP 14 856 100.0% 94,461$ 110$ Dispositions Reportable Segment Number of Properties/ Campuses Units/Beds /GLA(1) Gross Proceeds SHOP 1 22 4,500$ Outpatient Medi
Slide 16: 2024 Guidance
16 2024 Guidance(1) (1) Company's guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a number of assumptions that are subject to change and many of which are outside of the Company's control. Actual results may differ materially from the
Slide 17: Segment Summary and Obligations
17 Segment # of Buildings/ Campuses SQ FT Total Beds/Units Q1 2024 Cash NOI (2) Q1 2024 Ann. Cash NOI (2) ISHC 126 7,033 9,801 38,336$ 153,344$ Outpatient Medical 83 4,243 20,075 80,300 SHOP - Grouped by Avg Occupancy >80% 55 2,890 3,617 8,411 33,644 60%-80% 16 1,007 1,102 194 776 <60% 7 390 423 (1,
Slide 18: Appendix: Non-GAAP Reconciliations and Defined Terms
18 First Quarter 2024 Supplemental Appendix Non-GAAP Reconciliations and Defined Terms
Slide 19: FFO and Normalized FFO Reconciliation
19 Q1 2023 Q1 2024 Net loss (27,615)$ (3,004)$ Depreciation and amortization related to real estate — consolidated properties 44,632 42,729 Depreciation and amortization related to real estate — unconsolidated entities 63 186 Loss (gain) on dispositions of real estate investments, net — consolidated
Slide 20: EBITDA Reconciliation
20 Q1 2024 Net loss $ (3,004) Adjustments: Loss from unconsolidated entities 1,205 Interest expense (including amortization of deferred financing costs, debt xxxdiscount/premium and loss on debt extinguishments) 36,438 Income tax expense 278 Depreciation and amortization (including amortization of a
Slide 21: Coverage Ratios and Net Debt Reconciliation
21 Q1 2024 Interest Coverage Ratios Interest Expense $ 36,438 Capitalized Interest 134 Loss on extinguishment of debt (1,280) Non-Cash Interest Expense(2) (3,605) Total Interest $ 31,687 Interest Coverage ratio(3) 2.3X Fixed Charges Coverage Ratios Total Interest $ 31,687 Secured Debt Principal Amor
Slide 22: Same-Store Property Reconciliation
22 For the Quarter Ended 3/31/2024 Integrated Senior Health Campuses Outpatient Medical SHOP Triple-Net Leased Properties Total properties/campuses 126 83 64 28 Recent acquisition/development conversions (1) - (15) - Non-Core Properties (4) (3) - (1) Transitions (1) - - (8) - Other (2) (13) - - - Sa
Slide 23: Net Loss to NOI Reconciliation
23 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net loss (27,615)$ (11,867)$ (6,446)$ (30,959)$ (3,004)$ General and administrative 13,053 11,774 11,342 11,341 11,828 Business acquisition expenses 332 888 1,024 3,551 2,782 Depreciation and amortization 44,670 44,701 49,273 43,960 42,767 Interest expense
Slide 24: Cash NOI and Same-Store NOI Reconciliation
24 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Integrated Senior Health Campuses NOI (excluding Grant Income) 33,409$ 34,160$ 36,728$ 41,766$ 41,980$ Facility rental expense 9,645 9,717 8,889 8,774 8,840 Cash NOI attributable to noncontrolling interest (1) (10,577) (10,780) (11,205) (12,416) (12,484) Ca
Slide 25: Triple-Net and Total NOI Reconciliation
25 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Triple-Net Leased Properties NOI (excluding Grant Income) 5,326$ 13,202$ 10,398$ 12,389$ 12,710$ Straight line rent (697) (666) (505) (293) (974) Other non-cash adjustments 8,467 305 2,903 225 227 Cash NOI attributable to noncontrolling interest (1) (182) (
Slide 26: Cash Revenue and Same-Store Revenue Reconciliation
26 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Integrated Senior Health Campuses GAAP revenue and Grant Income 361,770$ 369,237$ 373,355$ 384,993$ 393,122$ Grant Income - (6,381) (1,064) (30) - Cash revenue attributable to noncontrolling interest (1) (88,867) (89,135) (91,451) (94,566) (96,569) Cash rev
Slide 27: Triple-Net and Total Revenue Reconciliation
27 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Triple-Net Leased Properties GAAP revenue 6,113$ 13,928$ 11,282$ 13,010$ 13,348$ Straight line rent (697) (666) (505) (293) (974) Other non-cash adjustments 8,468 266 2,893 206 210 Cash revenue attributable to noncontrolling interest (1) (182) (184) (186) (
Slide 28: Defined Terms
28 • Adjusted EBITDA: EBITDA excluding the impact of stock-based compensation expense, acquisition and pursuit costs, gain (loss) on sales of real estate, unrealized foreign currency gain (loss), change in fair value of financial instruments, impairment of real estate assets, lease termination reven
Slide 29: Defined Terms (continued)
29 • NAV: Net asset value. • 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,
Slide 30: Defined Terms (continued)
30 • RIDEA structure: A structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, pursuant to which we lease certain healthcare real estate properties to a wholly-owned taxable REIT subsidiary (TRS), which in turn contracts with an eligible independent contractor (EIK)
Slide 31: Slide 31
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