American Healthcare Reit, Inc. · NYSE:AHR
American Healthcare Reit — Q4 2024 Earnings Presentation
41 slides from American Healthcare Reit's earnings presentation, Feb 28, 2025
Slide 1: Investor Presentation March 2025
INVESTOR PRESENTATION MARCH 2025
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 | Q4 2024 Portfolio Performance
RECENT HIGHLIGHTS | Q4 2024 PORTFOLIO PERFORMANCE +28.0% +66.6% 87.8% 1.34x +21.6% 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 Q4 2024 REVENUE GROWTH SAME-STORE Q4 2024 NOI
Slide 7: Recent Highlights | FY2024 Performance & 2025 NOI Growth Guidance
RECENT HIGHLIGHTS | FY2024 PERFORMANCE & 2025 NOI GROWTH GUIDANCE FY 2024 ISHC/TRILOGY AND SHOP OPERATING HIGHLIGHTS (1) SAME-STORE OCCUPANCY FY 2024 SAME-STORE GROWTH SAME-STORE NOI MARGIN 87.2% 52.8% 86.8% 20.4% 85.4% 17.7% 15.4% 15.0% 23.8% 11.8% 7.8% 4.9% 4.6% 81.1% FY 2023 FY 2024 Revenue Expen
Slide 8: Recent Highlights | Full-Year 2024 Investment Activity
RECENT HIGHLIGHTS | FULL-YEAR 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 (~$149.5k
Slide 9: AHR Overview
AHR OVERVIEW
Slide 10: AHR Company Snapshot
COMPANY SNAPSHOT (as of or for the three months ended 12/31/2024, as applicable) DIVERSIFIED HEALTHCARE PORTFOLIO WITH SENIOR HOUSING & CARE FOCUS Q4 2024 PRO-RATA CASH NOI % BY SEGMENT 71.0% OF PRO-RATA CASH NOI IN OPERATING PORTFOLIO CAME FROM MANAGED SEGMENTS (ISHC & SHOP) AHR 4 296 Integrated Se
Slide 11: Portfolio Key Stats
PORTFOLIO KEY STATS (as of 12/31/2024) INTEGRATED SENIOR OUTPATIENT SENIOR HOUSING TRIPLE-NET LEASED HEALTH CAMPUSES MEDICAL OPERATING PROPERTIES PROPERTIES 126 81 70 19 Campuses Properties Properties Properties 87.4% 87.8% 88.6% 89.2% Same-Store Occupancy (1) Same-Store Occupancy (2) Same-Store Occ
Slide 12: Senior Housing & Care Trends
SENIOR HOUSING & CARE TRENDS
Slide 13: Senior Housing Supply / Demand Fundamentals
SENIOR HOUSING SUPPLY / DEMAND FUNDAMENTALS 80+ YEAR OLD POPULATION IN UNITED STATES IS EXPECTED TO GROW BY OVER 700,000 INDIVIDUALS EVERY YEAR UNTIL 2030. (1) SENIOR HOUSING INDUSTRY HAS ADDED LESS THAN 62,000 TOTAL UNITS SINCE 2020. (2) SENIOR HOUSING IN HISTORICALLY HIGH DEMAND WHILE NEW SUPPLY R
Slide 14: Gap Between New Supply and Demand Expected to Persist
GAP BETWEEN NEW SUPPLY AND DEMAND EXPECTED TO PERSIST SENIOR HOUSING DEVELOPMENT PACE IS FALLING WELL BEHIND WHAT IS NEEDED TO MEET GROWING DEMAND SENIOR HOUSING DEVELOPMENT GAP (1) Current Development Pace vs. Units Required for 90% Occupancy (Based on NIC MAP Penetration Rate) CHALLENGING CONSTRUC
Slide 15: Operating Portfolio
OPERATING PORTFOLIO ISHC/TRILOGY AND SHOP
Slide 16: Regional Focus and Operator Affiliations
REGIONAL FOCUS AND OPERATOR AFFILIATIONS (as of 12/31/2024) TRILOGY MANAGEMENT SERVICES 128 Properties / Campuses 13,130 Beds / Units Headquarters in Louisville, KY SENIOR SOLUTIONS MANAGEMENT GROUP 20 Properties 1,685 Beds / Units Headquarters in Atlanta, GA PRIORITY LIFE CARE 12 Properties 988 Bed
Slide 17: Integrated Senior Health Campuses / Trilogy Overview
INTEGRATED SENIOR HEALTH CAMPUSES (as o f 12 / 3 1/ 2 0 2 4) / 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 126 10.2 • PURPOSE-B
Slide 18: 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 19: Trilogy Keys to Competitive Advantage
TRILOGY KEYS TO COMPETITIVE ADVANTAGE TRILOGY THE TRILOGY MOAT COMPETITORS building a lasting business BUILT-IN OPERATOR OF REGIONAL HIGH PRIVATE REFERRAL PHYSICAL CHOICE SCALE PAY MIX SOURCES PLANT Newer, purpose- Proven track Ability to control Lowers reliance on Integrated campus built facilities
Slide 20: Senior Housing Operating Properties (SHOP) Overview
SENIOR HOUSING OPERATING PROPERTIES (as o f 12 / 3 1/ 2 0 2 4) (SHOP) | OVERVIEW 70 17 • KEY HIGHLIGHTS LARGER FOCUS ON NEEDS-BASED CARE VERSUS PROPERTIES STATES MORE DISCRETIONARY SENIOR HOUSING o ~81% of total SHOP units are Assisted Living 26.7 7 MISSION-DRIVEN • and Memory Care HANDS-ON ASSET MA
Slide 21: 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 22: Capital Allocation
& a i i H SF | I. a a. =e PC APITABALE OC ATION =
Slide 23: 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 24: Capital Markets & Balance Sheet
CAPITAL MARKETS & BALANCE SHEET
Slide 25: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS (as of 12/31/2024) KEY DEBT METRICS (1)(2) $1.69B TOTAL DEBT 4.42% WEIGHTED AVERAGE INTEREST RATE 12.7 YEARS WEIGHTED AVERAGE TERM Secured DEBT MATURITY SCHEDULE Debt, Unsecured $700 Floating 59.1% Debt, 40.9% MILLIONS Rate, $600 8.2% $500 $400 $300 $200 $100 $0 2025 2026 20
Slide 26: Management & Governance
MANAGEMENT & GOVERNANCE
Slide 27: Cohesive Management Team
COHESIVE MANAGEMENT TEAM EXPERIENCE THROUGH MARKET CYCLES AND WITH LARGEST HEALTHCARE REITS 27 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 28: 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 28 years real estate experience BOARD GOVERNANCE Danny Prosky (Director since 2014(1)) • Former Presid
Slide 29: Corporate Responsibility Initiatives
CORPORATE RESPONSIBILITY INITIATIVES ENVIRONMENTAL SOCIAL GOVERNANCE • Completed Materiality Assessment • Commitment to providing high- • Seasoned SEC filer since 2014 with independent consultant in quality care and health outcomes • 2/3 of Board made up of October 2022, setting corporate • Proven c
Slide 30: Appendix
APPENDIX
Slide 31: ISHC/Trilogy Segment Representative Properties
ISHC/TRILOGY SEGMENT REPRESENTATIVE PROPERTIES 10.2 YEARS AVERAGE AGE OF CAMPUSES/FACILITIES 31
Slide 32: 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 33: 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 34: Defined Terms
DEFINED TERMS • Same-Store or SS: Properties owned or consolidated the full year in both comparison years and that are not otherwise excluded. Properties are excluded from Same-Store if they are: (1) sold, classified as held for sale or properties whose operations were classified as discontinued ope
Slide 35: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of Net (loss) income to Cash NOI for the quarterly and full-year periods shown below: 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 a
Slide 36: 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 full-year periods shown below: Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Integrated Senior Health Campuses
Slide 37: 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 full-year periods shown below: Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Triple-Net Leased Properties NOI
Slide 38: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of GAAP revenue and Grant Income to Cash revenue and Same-Store revenue (relating to Same-Store properties) for the quarterly and full-year periods shown below: Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Integrated Senior Health
Slide 39: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of GAAP revenue and Grant Income to Cash revenue and Same-Store revenue (relating to Same-Store properties) for the quarterly and full-year periods shown below : Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Triple-Net Leased Prope
Slide 40: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following is a reconciliation of Net loss to Adjusted EBITDA for the three months ended December 31, 2024: Q4 2024 Net loss $ (32,429) Adjustments: Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment
Slide 41: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS (1) The following is a reconciliation of Interest Coverage Ratios and Net Debt for the three months ended December 31, 2024: Q4 2024 Interest Coverage Ratios Interest Expense (2) $ 30,301 Capitalized Interest 73 Loss on extinguishment of debt (3,530) Non-Cash Interest Expens
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