American Healthcare Reit, Inc. · NYSE:AHR
American Healthcare Reit — Q2 2024 Earnings Presentation
32 slides from American Healthcare Reit's earnings presentation, Aug 5, 2024
Slide 1: Second Quarter 2024 Supplemental
Second 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 Second Quarter 2024 Earnings Press Release, including statements relating to American Healthcare REIT, Inc.’s (the ”Company”) expectations regarding its portfolio growth, interest expense sa
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, NAREIT FFO, NFFO, NOI and Same-Store NOI. The Company believes these non-GAAP financial measures are usef
Slide 4: Our Properties (as of 6/30/2024)
4 Our Properties (as of 6/30/2024) (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 12,991 86.0% — $ 161,716 48.6% $ 212,78
Slide 5: Integrated Senior Health Campuses (ISHC)
5 Integrated Senior Health Campuses (ISHC) (1) Prior quarters information has been updated to reflect the increase in ownership to 76.0% in the Company's ISHC segment effective April 2024. (2) Excludes Grant Income. (3) See reconciliations in the appendix of this presentation. (4) Controllable expen
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 Q2 2023 Q2 2024 Q2 2024 vs Q2 2023 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Private $ 349.47 $ 382.11 9.3 % 12.2% 12.0% 13.9% 14.1% Managed Care/Insurance $ 394.77 $ 408.21 3.4 % 0.4% 0.4% 0.6% 0.5% Medicaid $ 269.23 $ 2
Slide 7: Outpatient Medical
7 Outpatient Medical (1) See reconciliations in the appendix of this presentation. Total Portfolio Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 YTD 6/30/23 YTD 6/30/24 Properties 90 87 85 83 83 - - Consolidated GLA (sq ft) 4,744 4,517 4,448 4,396 4,400 4,744 4,400 Ending occupancy 89.7% 89.7% 89.2% 88.1%
Slide 8: Outpatient Medical (as of 6/30/2024)
8 Outpatient Medical (as of 6/30/2024) Tenants ABR % S&P Credit Rating Christus Good Shepherd Health System $ 7,580 7.7% A+ Mercy Health 4,550 4.6% A+ Prime Healthcare 4,143 4.2% B- Montefiore Medical Center 2,411 2.5% BBB- Atrius Health, Inc. 2,205 2.2% BBB Remaining Portfolio 77,340 78.8% Total $
Slide 9: Outpatient Medical lease expirations
9 Outpatient Medical (as of 6/30/2024) (1) Includes future leases. (2) Amount is based on 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. 2024 52 224 5.8% $ 4,436 4.0% $ 19.80 2025 80 5
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 6/30/2024)
11 SHOP & ISHC Partners (as of 6/30/2024) (1) The Company indirectly owns 76.0% of campuses managed by Trilogy Management Services, except for the two in Wisconsin, which are wholly owned by the Company. Partner/Operator State Number of Properties/Campuses Consolidated Beds/ Units Pro-Rata Share Bed
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 up until the date of transition. (3) See reconciliations in the appendix of this presen
Slide 13: Triple-Net Leased Properties Rent Payment Coverage Stratification
13 Triple-Net Leased Properties Rent Payment Coverage Stratification⁽¹⁾ (1) Represents trailing twelve month coverage metrics as of March 31, 2024. Percentages are based of Pro-Rata Cash NOI for the three months ended June 30, 2024. (2) Represents combined coverage metrics for all leases within each
Slide 14: Revenue and Lease Expiration (as of 6/30/2024)
14 Revenue and Lease Expiration(1) (as of 6/30/2024) (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 total interest income from debt security investment. ABR of Expiring Leases
Slide 15: Debt Maturities and Principal Payments (as of 6/30/2024)
15 Debt Maturities and Principal Payments (as of 6/30/2024) (1) Interest rates reflect three in-place swap derivatives of $750 million. One $200 million swap matures on June 5, 2025 with a strike at 4.40%. Two $275 million swaps mature on January 19, 2026 with strikes at 4.41% and 3.74%. (2) Exclude
Slide 16: Year-to-Date 2024 Real Estate Acquisitions and Dispositions
16 Year-to-Date 2024 Real Estate Acquisitions and Dispositions (1) Outpatient Medical represents Square Feet GLA in thousands. Acquisitions Reportable Segment Number of Properties/ Campuses Units/Beds Ownership Percentage Gross Purchase Price Average Cost per Unit/Bed SHOP 14 856 100.0% $94,461 $110
Slide 17: 2024 Guidance
17 2024 Guidance(1) (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
Slide 18: Components of NAV
18 Components of NAV(1) (1) Dollars and square feet in thousands. Dollars, square feet and beds/units are based on Company's pro-rata ownership as of June 30, 2024. (2) Cash NOI is adjusted to exclude nonrecurring items. (3) Excludes interest income from debt security investment. Segment # of Buildi
Slide 19: Appendix: Non-GAAP Reconciliations and Defined Terms
19 Second 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 YTD Q2 2024 Q2 2023 2024 2023 Net income (loss) $ 2,926 $ (11,867) $ (78) $ (39,482) Depreciation and amortization related to real estate — consolidated properties 45,226 44,663 87,955 89,295 Depreciation and amortization re
Slide 21: EBITDA Reconciliation
21 EBITDA Reconciliation Q2 2024 Net Income $ 2,926 Adjustments: Interest expense (including amortization of deferred financing costs, debt discount/ premium and loss on debt extinguishments) 30,596 Income tax expense 686 Depreciation and amortization (including amortization of leased assets and acc
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) Non-cash interest expense includes amortization of loan fees and above- and below-market debt. (3) Interest Coverage ratio calculated as Adjusted EBITDA divided
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 quarters are based upon ownership percentage as of the most recent quarter end. Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 YTD 6/30/23 YTD 6/30/24 Net (loss) income $ (11,867) $ (6,446) $ (30,959) $ (3,004) $ 2,926 $ (39,482) $ (78) General and administrative 11,774 1
Slide 25: Same-Store NOI Reconciliation (1/2)
25 Same-Store NOI Reconciliation (1/2) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 YTD 6/30/23 YTD 6/30/24 Integrated Senior Health Campuses NOI (excluding Grant Income) $ 34,160 $ 36,728 $ 41,766 $ 41,980 $ 45,308 $ 67,569 $ 87,288 Facility rental expense 9,717 8,889 8,774 8,840 7,888 19,362 16,728 Cas
Slide 26: Same-Store NOI Reconciliation (2/2)
26 Same-Store NOI Reconciliation (2/2) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 YTD 6/30/23 YTD 6/30/24 Triple-Net Leased Properties NOI $ 13,202 $ 10,398 $ 12,389 $ 12,710 $ 12,234 $ 18,528 $ 24,944 Straight line rent (666) (505) (293) (974) (620) (1,363) (1,594) Other non-cash adjustments 305 2,903
Slide 27: Same-Store Revenue Reconciliation (1/2)
27 Same-Store Revenue Reconciliation (1/2) (1) All quarters are based upon current quarter’s ownership percentage. (2) Prior quarters information has been updated to reflect the increase in ownership to 76.0% in the Company's ISHC segment effective April 2024. Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Slide 28: Same-Store Revenue Reconciliation (2/2)
28 Same-Store Revenue Reconciliation (2/2) (1) All quarters are based upon current quarter’s ownership percentage. (2) Prior quarters information has been updated to reflect the increase in ownership to 76.0% in the Company's ISHC segment effective April 2024. Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Slide 29: Defined Terms: Adjusted EBITDA
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: NAV, Net Debt, NOI
30 • 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 31: Defined Terms: RIDEA structure
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)
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American Healthcare REIT — Q2 2024 Earnings Presentation on 6ix