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AHR Celebrates One Year on NYSE, 145% Increase in Per Share Stock Price

By Mari Nicholson

AHR Celebrates One Year on NYSE, 145% Increase in Per Share Stock Price

The board and management team of American Healthcare REIT Inc. (NYSE: AHR) will celebrate the one-year anniversary of the company’s listing on the New York Stock Exchange by ringing the opening bell this morning.

AHR was formed by the 2021 merger of non-traded Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, along with those REIT’s former external advisor, American Healthcare Investors. The company acquires, owns and operates a diversified portfolio of clinical healthcare real estate, focusing primarily on senior housing communities, skilled nursing, and outpatient medical buildings across the United States, the United Kingdom, and the Isle of Man.

Since its Feb. 7, 2024, debut on the NYSE, the company’s stock price has grown 145%, from $12 per share to $29.40 per share (as of the close of trading on Feb. 6, 2025), with a market cap of $4.5 billion. AHR is the nation’s eighth largest healthcare real estate investment trust based on market capitalization, as of Jan. 31, 2025, per the National Association of Real Estate Investment Trusts.

“Ringing the Opening Bell is an exciting moment that commemorates a year of significant progress, growth, and a steadfast commitment to excellence for all of our stakeholders,” said Danny Prosky, president and chief executive officer. “This milestone is a testament to our team’s dedication and the strength of our portfolio. This celebration is just the beginning for AHR as we remain focused on providing high-quality care for the communities we serve, seizing new growth opportunities and driving strong operational performance to deliver lasting value for our stockholders.”

The REIT declared a quarterly distribution of $0.25 per share for the quarter ending Dec. 31, 2024. The distribution was payable in cash to all holders of record of its common stock as of the close of business on Dec. 31, 2024.

AHR debuted on the New York Stock Exchange on Feb. 7, 2024, following an initial public offering of 56 million shares of its common stock priced at $12 per share. These shares were sold primarily to institutional buyers.

Using the net proceeds from its IPO, AHR paid down approximately $721 million of its outstanding debt obligations carrying a weighted average interest rate of approximately 7.5%. The company said this meaningfully improved leverage metrics and provided it with additional capacity and flexibility.

Legacy retail investors – owners of approximately 66 million shares purchased for the equivalent of $40 per share (adjusted for a one-for-four reverse stock split executed in 2021) – had their illiquid shares converted to tradeable shares in August 2024. At the close of trading that day, AHR stock finished at $15.67, down 2.91% over the course of a day which saw the Dow Jones Industrial Average fall over 1,000 points and the Nasdaq Composite and S&P 500 each sink 3%. More than three million shares traded, nearly three times the normal volume.

As of Sept. 30, 2024, the company owned and/or operated 324 buildings and integrated senior health campuses, representing approximately 19,676,000 square feet of gross leasable area, for an aggregate contract purchase price of approximately $4.67 billion. In addition, it owned a real estate-related debt investment purchased for approximately $60.4 million.

Notable highlights from its Q3 2024 results included:

  • A reported net loss of $3.1 million, and a net loss attributable to common stockholders of $0.03 per diluted share for the quarter;
  • Reported normalized funds from operations attributable to common stockholders of $0.36 per diluted share for the quarter;
  • Total portfolio same-store net operating income growth of 17% for the quarter compared to the same period in 2023, highlighted by 61.8% and 22.6% same-store NOI growth from its senior housing operating properties and integrated senior health campuses;
  • Increasing its total portfolio same-store NOI growth guidance from a range of 12% to 14% to a revised range of 15% to 17%, for the rest of 2024;
  • Completing a follow-on equity offering for approximately 20 million shares of common stock and raising gross proceeds of approximately $471.2 million; and
  • Acquiring its joint venture partner’s remaining 24% minority membership interest in Trilogy REIT Holdings and becoming Trilogy’s sole owner for a consideration of approximately $258 million of cash, which included the pre-negotiated “base” purchase price of $247 million and the approximate $11 million pro-rata distributions owed to the company’s joint venture partner.

AHR will host a webcast and conference call on Feb. 28 to discuss their fourth quarter 2024 earnings results. Investors may join the webcast or register for the conference call.

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