American Healthcare Reit, Inc. · NYSE:AHR
American Healthcare Reit — Q4 2023 Earnings Presentation
31 slides from American Healthcare Reit's earnings presentation, Mar 21, 2024
Slide 1: Fourth Quarter 2023 Supplemental
Fourth Quarter 2023 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 2023 Earnings Press Release, including statements relating to American Healthcare REIT, Inc.’s (the ”Company”) expectations regarding its portfolio growth, interest expense sa
Slide 3: Our Properties (as of 12/31/2023)
3 Our Properties (as of 12/31/2023) (1) Bed/Units not reported for Outpatient Medical. Square Feet GLA in thousands shown instead. (2) ISHC and SHOP occupancies are quarter average, while Outpatient Medical and Triple-Net Leased Properties are quarter end spot occupancy. (3) Represents all property
Slide 4: Integrated Senior Health Campuses (ISHC)
4 Integrated Senior Health Campuses (ISHC) (1) Excludes Grant Income. (2) See reconciliations in the appendix of this presentation. (3) Controllable expenses include utilities, food, repairs and maintenance, and other operating expenses. (4) Non-Controllable expenses include property taxes and insur
Slide 5: ISHC Revenue per Payor and Bed Type
5 ISHC Revenue per Payor and Bed Type Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Private 322.40$ 362.67$ 12.4% 12.1% 13.1% 13.6% Managed Care / Insurance 368.56 389.82 0.3% 0.4% 0.4% 0.5% Medicaid 264.84 305.19 24.3% 24.2% 21.1% 22.8% Hospice Medicaid 283.34 297.08 3.9% 4.0% 3.6% 3.6% Medicare 644.31 651.9
Slide 6: Outpatient Medical
6 Outpatient Medical (1) See reconciliations in the appendix of this presentation. (dollars and square footage in thousands, except revenue per square foot and Cash NOI per square foot; dollars are Pro-Rata) Total Portfolio Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Properties 104 104 93 90 8
Slide 7: Outpatient Medical: Tenants and Absorption
7 Trailing 12-month Retention 83.5% Outpatient Medical (as of 12/31/2023) (dollars and square footage in thousands) Tenants ABR on a Pro-Rata Basis % S&P Credit Rating Christus Good Shepherd Health System 7,450$ 7.5% A+ Mercy Health 4,461 4.5% A+ Prime Healthcare 4,041 4.1% B- Montefiore Medical Cen
Slide 8: Outpatient Medical Lease Expirations
8 Outpatient Medical (as of 12/31/2023) (dollars and square footage in thousands) (1) Includes future leases. (2) Amount is based on the total ABR expiring in the applicable year. Year # of Expiring Leases Total Sq. Ft. (1) % of GLA ABR (2) % of Total ABR Average Rent per Sq. Ft. 2024 113 532 13.4%
Slide 9: Senior Housing Operating Properties (SHOP)
9 (dollars in thousands, except RevPOR, and Pro-Rata) Total Portfolio Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Properties 51 51 47 46 55 - - IL/AL/MC units 4,731 4,702 4,008 3,929 4,318 4,731 4,318 SNF beds - 135 135 135 135 - 135 Total beds/units 4,731 4,837 4,143 4,064 4,453 4,731 4,453 A
Slide 10: SHOP & ISHC Partners
10 SHOP & ISHC Partners (as of 12/31/2023) (1) AHR owns 74.1% of Trilogy managed campuses except for two in Wisconsin, which are 100% wholly-owned. AHR owns 75.4% as of 2/1/2024. (2) Omega Senior Living’s remaining 2 buildings transitioned to Heritage Communities on 3/1/2024. Partner/Operator State
Slide 11: Triple-Net Leased Properties
11 Same-Store Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Properties 28 28 28 28 28 28 28 Consolidated beds/units 2,599 2,599 2,599 2,599 2,599 2,602 2,599 Average operator occupancy (1) 86.9% 88.3% 89.1% 89.1% 90.1% 319 bps 87.2% 89.1% 197 bps Same-Store revenues (3) 9,770$ 9,927$ 9,930$ 10,1
Slide 12: Triple-Net Leased Rent Payment Coverage Stratification
12 Triple-Net Leased Rent Payment Coverage Stratification⁽¹⁾ (1) Represents trailing twelve-month coverage metrics as of September 30, 2023. Percentages are based of consolidated AHR Cash NOI for the three months ended December 31, 2023. Excludes Vista Springs from Triple-Net Leased Properties, whic
Slide 13: Revenue and Lease Expiration
13 Revenue and Lease Expiration(1) (as of 12/31/2023) (dollars in thousands) (1) Excludes ISHC and SHOP. (2) Amount is based on the total ABR expiring in the applicable year. Month-to-month leases are included as expirations in 2024. (3) Represents interest income from debt security investment. MED
Slide 14: Debt Maturities and Principal Payments
14 Debt Maturities and Principal Payments (as of 12/31/2023) (1) We amended our line of credit on February 14, 2024. As a result, $364,900,000 from our revolving lines of credit mature in 2028. (2) Interest rates reflects two in place swap derivatives for $275M each that mature on January 19, 2026 w
Slide 15: Full Year 2023 Real Estate Acquisitions and Dispositions
15 Full Year 2023 Real Estate Acquisitions and Dispositions (1) Ownership percentage as of December 31, 2023. (2) Gross proceeds include noncontrolling interests’ share as applicable. (dollars and square footage in thousands) Acquisitions Reportable Segment Number of Buildings/ Campuses Units/Beds O
Slide 16: 2024 Guidance
16 2024 Guidance(1) (1) Company's guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a number of assumptions that are subject to change and many of which are outside of the Company's control. Actual results may differ materially from the
Slide 17: Obligations
17 Obligations (Outstanding principal balance as of 12/31/23 at AHR & OP Unit share) AHR ISHC Total AHR ISHC Total AHR ISHC Total Mortgage Debt 393,550$ 932,763$ 1,326,313$ 382,119$ 690,838$ 1,072,957$ 4.45% 4.83% 4.70% Revolving LOC 364,900 309,823 674,723 364,900 229,466 594,366 7.11% 8.20% 7.53%
Slide 18: Appendix: Non-GAAP Reconciliations and Defined Terms
18 Fourth Quarter 2023 Supplemental Appendix Non-GAAP Reconciliations and Defined Terms
Slide 19: FFO / NFFO Reconciliation
19 FFO / NFFO Reconciliation(1) (dollars in thousands, except per share) (1) Totals may not add due to rounding. Q4 2022 Q4 2023 2022 2023 Net loss (49,300)$ (30,959)$ (73,383)$ (76,887)$ Depreciation and amortization related to real estate — consolidated properties 45,220 43,922 167,860 182,452 Dep
Slide 20: EBITDA Reconciliation
20 EBITDA Reconciliation (dollars in thousands) YTD 2023 Net loss $ (30,959) $ (76,887) Adjustments: Loss from unconsolidated entities 794 1,718 Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishments) 41,185 163,191 Income tax (be
Slide 21: Coverage Ratios and Net Debt Reconciliation
21 Coverage Ratios and Net Debt Reconciliation (1) (1) The details of the Adjusted proforma EBITDA calculation can be found on the previous page. (2) Non-cash interest expense includes amortization of loan fees and above and below-market debt. (3) Adjusted EBITDA Interest Coverage ratio calculated a
Slide 22: Same-Store Property Reconciliation
22 Same-Store Property Reconciliation (1) Includes two Central Wisconsin properties that transitioned from SNF to SHOP on March 1, 2023 and nine Michigan properties that transitioned from Triple-Net Leased to SHOP on November 1, 2023. (2) ISHC includes 12 expansions, nine investment developments, on
Slide 23: Cash NOI Reconciliation
23 Cash NOI Reconciliation (1) All quarters are based upon current quarter’s ownership percentage. (dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Net loss (49,300)$ (27,615)$ (11,867)$ (6,446)$ (30,959)$ (73,383)$ (76,887)$ General and administrative 11,745 13,053 11,774 11
Slide 24: Same-Store NOI Reconciliation
24 Same-Store NOI Reconciliation (dollars in thousands and Pro-Rata) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Integrated Senior Health Campuses Cash NOI 32,859$ 31,886$ 32,496$ 33,785$ 37,431$ 108,376$ 135,598$ New acquisitions/dispositions/transitions (10,872) (11,471) (10,637) (11,711) (1
Slide 25: (dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022
25 (dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Integrated Senior Health Campuses GAAP revenue and Grant Income 360,279$ 361,770$ 369,237$ 373,355$ 384,993$ 1,279,485$ 1,489,355$ Grant Income (2,959) - (6,381) (1,064) (30) (24,820) (7,475) Cash revenue attributable to non
Slide 26: (dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022
26 (dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Triple-Net Leased Properties GAAP revenue 14,054$ 6,113$ 13,928$ 11,282$ 13,010$ 56,627$ 44,333$ Straight line rent (728) (697) (666) (505) (293) (3,230) (2,161) Other non-cash adjustments 460 8,468 266 2,893 206 1,820 11,83
Slide 27: 2024 Earnings Guidance Reconciliation
27 2024 Earnings Guidance Reconciliation (1) Amounts presented net of noncontrolling interests' share and AHR's share of unconsolidated entities. The foregoing projections reflect management's view of current and future market conditions. There can be no assurance that the Company's actual results w
Slide 28: Defined Terms
28 • Adjusted EBITDA: Adjusted EBITDA is defined as 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 a
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 is a non-GAAP financial measure that is defined as net income (loss), computed in accordance with GAA
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 TRS, which in turn contracts with an EIK to operate such properties for a fee. Under this structure,
Slide 31: Slide 31
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