American Healthcare REIT's Growth Story Is Still Young

(16min)

Summary

  • AHR prioritizes partnering with high-quality care operators, driving long-term success and strong CMS quality scores across its senior housing portfolio.
  • Q1 2025 same-store NOI growth reached 15.1%, with the ISHC segment leading at 19.8% and SHOP at 30.7%, supporting robust portfolio performance.
  • The AFFO payout ratio remains healthy at 86%, and AHR retains $27 million annually after dividends, supporting $80-100 million in annual development investments and a healthy acquisition pipeline.
  • Shares trade at ~25x 2025 AFFO, offering a valuation discount versus WELL's 34x, reinforcing my positive outlook and investment thesis.
  • Looking for more investing ideas like this one? Get them exclusively at High Yield Landlord. Learn More »
Sunrise Assisted Living

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Senior housing represents one of the most exciting growth trends in the commercial real estate asset class.

Right now, we are still in the early stages of this growth trend. The population of seniors (aged 80+) in the United States is projected to soar

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This article was written by

20.43K Followers

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AHR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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