American Healthcare REIT Sees Strong Growth in 2024

Strategic Insights -

At Nareit's REITweek: 2024 Investor Conference, Danny Prosky, president and CEO of American Healthcare REIT, Inc., attributed the company's significant organic same store earnings growth to favorable demographic trends driven by the aging baby boomer population. The company reported a 33.5% same store earnings growth year-over-year in their SHOP portfolio and nearly 20% growth in their Trilogy investments.

Key Takeaways:

  • American Healthcare REIT reported a 33.5% same store earnings growth year-over-year in their SHOP portfolio, driven by favorable demographic trends.
  • The company's Trilogy investments saw nearly 20% growth, underpinning their strong Q1 results.
  • Danny Prosky attributes this growth to the aging baby boomer population driving demand in long-term care facilities.
  • Prosky assured that while the pace of growth might vary, the supply-demand fundamentals remain compelling, bolstered by minimal new supply in recent years.
  • The company expects to maintain organic same-store growth as the cornerstone of their strategy for the second half of the year and into 2025.
  • With approximately 75% of their investments in long-term care, American Healthcare REIT remains optimistic about capitalizing on ongoing market opportunities within this sector.
  • Prosky believes it's a good time to be in long-term care, citing a five to six year period of very little new supply and expected demand from aging baby boomers.

Statistics:

  • 33.5% same store earnings growth year-over-year in the SHOP portfolio (American Healthcare REIT)
  • Nearly 20% growth in Trilogy investments (American Healthcare REIT)
  • 75% of American Healthcare REIT's investments are in long-term care
  • 5-6 year period of very little new supply in long-term care facilities
  • 2025: expected growth trajectory towards maintaining organic same-store growth

Sources:

  • National Association of Real Estate Investment Trusts (NAREIT)
  • American Healthcare REIT, Inc. (NYSE: AHR)
  • Nareit's REITweek: 2024 Investor Conference (held June 3-6 in New York)