American Healthcare Reit, Inc. · NYSE:AHR
American Healthcare Reit — Q4 2024 Earnings Presentation
32 slides from American Healthcare Reit's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter 2024 Supplemental
Fourth 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 Fourth Quarter 2024 and Full Year 2024 Earnings Press Release, including statements relating to American Healthcare REIT, Inc.'s (the "Company") expectations regarding its interest expense s
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures The Company’s reported results are presented in accordance with GAAP. The Company also discloses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Net Debt-to-Annualized Adjusted EBITDA, NAREIT FFO, NFFO, NOI and Same-Store NOI. The Company believes th
Slide 4: Our Properties (as of 12/31/2024)
4 Our Properties (as of 12/31/2024) (dollars in thousands) Pro-Rata (3)(4) Consolidated (4) 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 12,920 87.5% — $ 243,548 58.8% $ 243,5
Slide 5: Integrated Senior Health Campuses (ISHC)
5 Integrated Senior Health Campuses (ISHC) (1) Prior quarters information is presented to reflect the increase in ownership to 100% in the Company's ISHC segment effective September 2024. (2) Excludes Grant Income. (3) See reconciliations in the appendix of this presentation. (4) Controllable expens
Slide 6: ISHC Revenue per Payor and Bed Type
6 ISHC Revenue per Payor and Bed Type Average Daily Rate % of Resident Days % of Revenue Q4 2023 Q4 2024 % change Q4 2023 Q4 2024 Q4 2023 Q4 2024 Private $ 361.56 $ 387.62 7.2 % 11.9% 11.8% 13.6% 13.6% Managed Care/Insurance $ 386.55 $ 430.73 11.4 % 0.4% 0.3% 0.5% 0.4% Medicaid $ 293.35 $ 313.92 7.0
Slide 7: Outpatient Medical
7 Outpatient Medical (1) See reconciliations in the appendix of this presentation. Total Portfolio Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Properties 85 83 83 83 81 — — Consolidated GLA (sq ft) 4,448 4,396 4,400 4,400 4,262 4,448 4,262 Ending occupancy 89.2% 88.1% 88.5% 88.1% 87.9% 8
Slide 8: Outpatient Medical (as of 12/31/2024)
8 Outpatient Medical (as of 12/31/2024) Tenants ABR % S&P Credit Rating Christus Good Shepherd Health System $ 7,668 8.0% A+ Mercy Health 4,550 4.7% A+ Prime Healthcare 4,143 4.3% B- Montefiore Medical Center 2,417 2.5% BBB- Atrius Health, Inc. 2,249 2.3% BBB Remaining Portfolio 75,146 78.2% Total $
Slide 9: Outpatient Medical Expiring Leases
9 (1) Includes future leases signed, but not commenced. (2) The total ABR expiring in the applicable year. Expiring Leases Year # of Expiring Leases Total Sq. Ft. (1) % of GLA ABR (2) % of Total ABR Average Rent per Sq. Ft. 2025 101 570 15.3% $ 14,576 13.4% $ 25.57 2026 46 214 5.7% 4,939 4.6% 23.08
Slide 10: Senior Housing Operating Properties (SHOP)
10 Senior Housing Operating Properties (SHOP) (1) See reconciliations in the appendix of this presentation. (2) Excludes COVID subsidies. (3) Controllable expenses include utilities, food, repairs and maintenance, and other operating expenses. (4) Non-Controllable expenses include property taxes and
Slide 11: SHOP & ISHC Partners (as of 12/31/2024)
11 SHOP & ISHC Partners (as of 12/31/2024) Partner/Operator State Number of Properties/Campuses Pro-Rata Share Beds/Units Consolidated Beds/ Units Trilogy Management Services KY,IN,MI,OH,WI 128 13,130 13,130 Senior Solutions Management Group AR,MS,TX,LA,MO,GA 20 1,652 1,685 Priority Life Care IN, MI
Slide 12: Triple-Net Leased Properties
12 Triple-Net Leased Properties (1) Facilities are 100% triple-net leased, operators' occupancies are one quarter in arrears and hospitals are excluded. (2) Occupancy includes properties that transitioned to SHOP provided that the date of transition was during the applicable quarter. (3) See reconci
Slide 13: Triple-Net Leased Properties Rent Payment Coverage Stratification
13 Triple-Net Leased Properties Rent Payment Coverage Stratification (1) Represents trailing twelve month coverage metrics as of September 30, 2024. Percentages are based on Pro-Rata Cash NOI for the three months ended December 31, 2024. (2) Represents combined coverage metrics for all leases within
Slide 14: Revenue and Lease Expiration (as of 12/31/2024)
14 Revenue and Lease Expiration(1) (as of 12/31/2024) (1) Excludes ISHC and SHOP. (2) Total ABR expiring in the applicable year. Month-to-month leases are included as expirations in 2025. (3) Represents total interest income from debt security investment. ABR of Expiring Leases (2) as % of Total ABR
Slide 15: Debt Maturities and Principal Payments (as of 12/31/2024)
15 Debt Maturities and Principal Payments (as of 12/31/2024) (1) Debt maturing after 2029 has a weighted average maturity date of March 2053 (28 Years). (2) Interest rates reflect two in-place swap derivatives for $275 million each, which mature on January 19, 2026 with strikes at 4.41% and 3.74%. (
Slide 16: Full Year 2024 Real Estate Acquisitions and Dispositions
16 Full Year 2024 Real Estate Acquisitions and Dispositions (1) Outpatient Medical represents Square Feet GLA in thousands. Acquisitions Reportable Segment Number of Properties/ Campuses Beds/Units Gross Purchase Price Average Cost per Bed/Unit Integrated Senior Health Campuses - Lease buyouts 3 325
Slide 17: 2025 Guidance
17 (1) The 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 Company's ex
Slide 18: Components of NAV
18 Components of NAV(1) (1) Dollars, square feet and beds/units are presented on a consolidated basis as of December 31, 2024. (2) Cash NOI is adjusted to exclude non-recurring items. (3) Excludes interest income from debt security investment. (4) Weighted average rates reflect two in-place swap der
Slide 19: Appendix: Non-GAAP Reconciliations and Defined Terms
19 Fourth Quarter 2024 Supplemental Appendix Non-GAAP Reconciliations and Defined Terms
Slide 20: FFO / NFFO Reconciliation
20 FFO / NFFO Reconciliation(1) (1) Totals may not add due to rounding. QTD Full Year Q4 2024 Q4 2023 2024 2023 Net loss $ (32,429) $ (30,959) $ (35,600) $ (76,887) Depreciation and amortization related to real estate — consolidated properties 46,877 43,922 179,040 182,452 Depreciation and amortizat
Slide 21: Adjusted EBITDA Reconciliation
21 Adjusted EBITDA Reconciliation Q4 2024 Net loss $ (32,429) Adjustments: Interest expense (including amortization of deferred financing costs, debt discount/ premium and loss on debt extinguishments) 30,301 Income tax expense 486 Depreciation and amortization (including amortization of leased asse
Slide 22: Coverage Ratios and Net Debt Reconciliation
22 Coverage Ratios and Net Debt Reconciliation(1) (1) The details of the Adjusted EBITDA calculation can be found on the previous page. (2) Includes approximately $1.8 million of cash interest expense from mortgage insurance premiums and equipment financing. (3) Non-cash interest expense includes am
Slide 23: Same-Store Property Reconciliation
23 Same-Store Property Reconciliation (1) Includes two SNFs in Central Wisconsin that transitioned from the Triple-Net Leased Properties segment to SHOP on March 1, 2023 and six Michigan properties that transitioned from the Triple-Net Leased Properties segment to SHOP on November 1, 2023. (2) ISHC
Slide 24: Cash NOI Reconciliation
24 Cash NOI Reconciliation (1) All periods are based upon current quarter’s ownership percentage. Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Net (loss) income $ (30,959) $ (3,004) $ 2,926 $ (3,093) $ (32,429) $ (76,887) $ (35,600) General and administrative 11,341 11,828 11,746 11,921 1
Slide 25: Same-Store NOI Reconciliation (1/2)
25 Same-Store NOI Reconciliation (1/2) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Integrated Senior Health Campuses NOI (excluding Grant Income) $ 41,766 $ 41,980 $ 45,308 $ 48,399 $ 53,586 $ 146,063 $ 189,273 Facility rental expense 8,774 8,840 7,888 7,619 7,642 37,025 31,989 Cash NOI
Slide 26: Same-Store NOI Reconciliation (2/2)
26 Same-Store NOI Reconciliation (2/2) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Triple-Net Leased Properties NOI $ 12,389 $ 12,710 $ 12,234 $ 12,764 $ 12,068 $ 41,315 $ 49,776 Straight line rent (293) (974) (620) (534) (538) (2,161) (2,666) Other non-cash adjustments 225 227 233 236 2
Slide 27: Same-Store Revenue Reconciliation (1/2)
27 Same-Store Revenue Reconciliation (1/2) (1) Prior periods' information is presented to reflect the increase in ownership to 100% in the Company's ISHC segment effective September 2024. (2) All periods are based upon current quarter’s ownership percentage. Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 F
Slide 28: Same-Store Revenue Reconciliation (2/2)
28 Same-Store Revenue Reconciliation (2/2) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Triple-Net Leased Properties GAAP revenue $ 13,010 $ 13,348 $ 12,886 $ 13,265 $ 12,631 $ 44,333 $ 52,130 Straight line rent (293) (974) (620) (534) (538) (2,161) (2,666) Other non-cash adjustments 206
Slide 29: Defined Terms
29 • 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, unrealized for
Slide 30: Defined Terms (continued)
30 • NAV: Net asset value. • Net Debt: Total long-term debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash related to debt. • NOI: Net operating income; a non-GAAP financial measure that is defined as net income (loss), computed in accordance with GAAP, ge
Slide 31: Defined Terms (continued)
31 • 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 32: Slide 32
American Healthcare REIT — Q4 2024 Earnings Presentation on 6ix