- American Healthcare REIT Q1 Earnings Call Highlights
May 9, 2026
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Key Points
Interested in American Healthcare REIT, Inc.? Here are five stocks we like better. American Healthcare REIT raised its full-year 2026 outlook after another strong quarter, with total portfolio same-store NOI up 12.1% and normalized FFO per share at $0.50, up 31.6% year over year. Performance was led by the Trilogy integrated senior health campuses and the SHOP segment, which posted same-store NOI growth of 14.5% and 19.7%, respectively, alongside higher occupancy and margin expansion. The company also outlined an active growth strategy, with $249.2 million of acquisitions closed year to date, more than $650 million of awarded deals in the pipeline, and a stronger balance sheet after boosting credit capacity and reducing leverage.
American Healthcare REIT (NYSE:AHR) raised its 2026 outlook after reporting another quarter of double-digit same-store net operating income growth, supported by strength in its Trilogy integrated senior health campus business and senior housing operating portfolio.
On the company’s first-quarter earnings call, Chairman, Interim CEO and President Jeffrey Hanson said the REIT delivered “another exceptionally strong quarter across core metrics,” citing double-digit same-store NOI growth for the ninth consecutive quarter, continued acquisition activity, a stronger balance sheet and increased full-year guidance.
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Hanson also provided an update on CEO and President Danny Prosky, who experienced a health event in February. Hanson said Prosky is recovering at home, recently underwent an important medical procedure that “went exceedingly well,” and has remained engaged in board meetings virtually. Hanson said the company does not yet have a definitive timeline for Prosky’s return but expects more clarity soon.
Same-Store NOI Growth Continues Across Key Segments
Chief Operating Officer Gabe Willhite said total portfolio same-store NOI rose 12.1% in the first quarter, marking the company’s ninth straight quarter of double-digit growth. He attributed the performance to long-term care demand, constrained new senior housing supply, operator quality and the durability of American Healthcare REIT’s platform.
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Willhite said the 80-and-older population, a core user of long-term care, is growing at an accelerating pace, while senior housing supply growth remains near historic lows because new construction remains difficult for many developers to justify economically.
Story Continues
The company’s Integrated Senior Health Campus segment, also known as Trilogy, reported same-store NOI growth of 14.5%. Same-store occupancy averaged 91.2%, up about 220 basis points year over year, while same-store revenue rose 6.9% on rate and occupancy gains. Willhite said Trilogy’s quality mix reached 75.5% of resident days on a same-store basis, up about 60 basis points from a year earlier.
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Willhite said Trilogy’s same-store NOI margins exceeded 20% for the first time since COVID, calling it “another important milestone.” In the senior housing operating portfolio, or SHOP, same-store NOI increased 19.7%, with same-store occupancy averaging 88.6%, up roughly 255 basis points from a year earlier. SHOP same-store NOI margin expanded about 215 basis points to 20.6%.
Willhite said the company is managing the SHOP business through “dynamic revenue and expense management,” including building occupancy early in the year and managing street rates as spring and summer demand improves.
Acquisition Pipeline Expands
Chief Investment Officer Stefan Oh said American Healthcare REIT has closed $249.2 million of acquisitions year to date, all within the SHOP segment. About $162.8 million closed during the first quarter, including five previously announced communities in California and Missouri for about $117.5 million and two Kansas properties totaling about $45.3 million. After quarter-end, the company closed on six additional SHOP assets in Georgia and South Carolina for about $86.4 million.
Oh said the company’s investment process begins with underwriting operators before assets, focusing on care quality, operating history and market knowledge. He said much of the company’s activity comes through off-market or limited-process channels, providing what he described as an informational advantage.
In addition to acquisitions already closed, Oh said American Healthcare REIT has more than $650 million of awarded deals that have not yet closed. He said the company expects those deals to close well before the end of 2026. During the question-and-answer session, Oh said the pipeline is “almost exclusively in SHOP,” with roughly 80% involving existing operators and 20% involving new operators. He said a majority of the $650 million pipeline is expected to close by the end of the second quarter, with the remainder closing in the third quarter.
Oh also said the company’s in-process development pipeline totals about $173.9 million in expected cost, of which approximately $52.4 million has been funded. The pipeline is primarily made up of Trilogy campus expansions and independent living villa projects.
Guidance Raised After Strong First Quarter
Chief Financial Officer Brian Peay said first-quarter normalized funds from operations were $0.50 per diluted share, up 31.6% from $0.38 per diluted share in the prior-year quarter. Peay said the results were driven mainly by double-digit same-store NOI growth and contributions from $950 million of acquisitions completed in 2025.
The company increased its full-year 2026 same-store NOI growth guidance to a range of 9% to 12%. At the midpoint, Peay said the outlook implies a third consecutive year of double-digit total portfolio same-store NOI growth.
Trilogy same-store NOI growth guidance: 11% to 15% SHOP same-store NOI growth guidance: 15% to 19% Outpatient medical same-store NOI growth guidance: 0% to 2% Triple-net lease property same-store NOI growth guidance: 2% to 3%
American Healthcare REIT also raised full-year 2026 NFFO guidance to $2.03 to $2.09 per share, up $0.04 at the midpoint. Peay said that would represent 20% growth in NFFO per share over 2025. He noted the guidance includes only transactions and capital markets activity completed as of the call date.
Balance Sheet and Capital Markets Activity
Peay said net debt to annualized EBITDA improved to 3.0 times as of March 31, 2026, down from 3.4 times at the end of 2025. During the first quarter and early in the second quarter, the company entered into forward sale agreements under its at-the-market program to sell about 8.1 million shares for $412.7 million in gross proceeds.
As of the call, Peay said the company had unsettled forward agreements representing about $527.4 million in gross proceeds, assuming full physical settlement. He also said American Healthcare REIT amended its credit facility after quarter-end, increasing unsecured revolving credit facility capacity to $800 million from $600 million and extending maturity to April 2030, with two six-month extension options. No amounts were outstanding on the revolver as of the call.
Responding to an analyst question about capital sources, Peay said the company views retained earnings as its cheapest form of equity, also pointing to dispositions of smaller, less strategic assets, the ATM program and available credit facility capacity. He said the company is “happy at 3x debt to EBITDA” and is committed to running the business with “essentially investment credit-rated ratios.”
Management Highlights Operator Strategy and Supply Constraints
During the Q&A session, analysts focused on Trilogy’s growth, margins, development plans and the SHOP acquisition environment. Willhite said Trilogy benefits from high occupancy, rate management and selective Medicare Advantage relationships. He said a proposed 2.4% CMS rate was “not a surprise” and described it more as a floor than a ceiling for Trilogy’s skilled nursing rate growth, given the operator’s ability to manage private pay and Medicare Advantage relationships.
Willhite also said Trilogy’s development strategy in Wisconsin is likely to focus primarily on development rather than acquisitions, because Trilogy’s integrated model is difficult to replicate through purchased assets. He said Trilogy is committed to three to four new campuses per year, with Wisconsin growth expected to be incremental alongside opportunities in existing states.
On SHOP acquisitions, Oh said deal activity is high and that American Healthcare REIT is still buying below replacement cost. He said stabilized yields remain in the sevens through disciplined underwriting, though cap rates have generally moved 25 to 50 basis points over the past year, depending on the deal.
Peay said the company continues to sell some outpatient medical assets, particularly smaller and slower-growth buildings, but remains committed to a diversified healthcare investment strategy. He said acquisitions are currently focused on SHOP, which will make outpatient medical a smaller portion of the overall portfolio over time.
About American Healthcare REIT (NYSE:AHR)
American Healthcare REIT, Inc (NYSE: AHR) was a publicly traded real estate investment trust focused on acquiring, owning and managing healthcare‐related properties across the United States. The company's portfolio spanned senior housing communities, skilled nursing facilities, medical office buildings and outpatient care centers, all operated under long‐term net lease or triple‐net lease structures designed to provide stable, predictable rental income.
Employing a strategy of partnering with established healthcare operators, American Healthcare REIT targeted properties in both major metropolitan areas and high‐growth secondary markets to capitalize on demographic trends such as an aging population and increased demand for outpatient services.
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- American Healthcare REIT Q1 Earnings Call Highlights
May 9, 2026 · marketbeat.com
American Healthcare REIT NYSE: AHR raised its 2026 outlook after reporting another quarter of double-digit same-store net operating income growth, supported by strength in its Trilogy integrated senior health campus business and senior housing operating portfolio.
- American Healthcare REIT (AHR) Q1 2026 Transcript
May 8, 2026
Image source: The Motley Fool.
Date
Friday, May 8, 2026 at 1 p.m. ET
Call participants
Chairman, Interim CEO, and President — Jeffrey HansonChief Operating Officer — Gabriel WillhiteChief Investment Officer — Stefan K. OhChief Financial Officer — Brian S. Peay
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Takeaways
Total portfolio same-store NOI growth -- 12.1% growth, marking nine consecutive quarters of double-digit gains across the company’s portfolio.ISHC (Trilogy) same-store NOI growth -- 14.5% increase, with an average same-store occupancy of 91.2%, up approximately 220 basis points, supported by 6.9% same-store revenue growth.Trilogy same-store quality mix -- 75.5% of resident days on a same-store basis, up about 60 basis points, with a total portfolio increase of 200 basis points, reflecting focus on Medicare Advantage and payor quality alignment.Trilogy same-store NOI margin -- Exceeded 20% for the first time since COVID, establishing a post-pandemic operational milestone.SHOP segment same-store NOI growth -- 19.7% increase; same-store occupancy averaged 88.6%, up approximately 255 basis points; NOI margin expanded by about 215 basis points to reach 20.6%.Q1 acquisitions -- Closed $162.8 million in new SHOP segment acquisitions, including five communities in California and Missouri ($117.5 million), and two in Kansas ($45.3 million).Post-quarter SHOP acquisitions -- Acquired six SHOP assets in Georgia and South Carolina for $86.4 million, expanding Southeast presence.Pipeline of awarded deals -- Over $650 million, with a focus on SHOP and about 80% involving existing operators.Development pipeline -- $173.9 million in-process, with $52.4 million funded, predominantly involving Trilogy campus expansions and independent living villas.Normalized FFO -- Reported at $0.50 per diluted share, reflecting 31.6% growth from $0.38 per share in the prior year’s first quarter.Leverage profile -- Net debt to annualized EBITDA improved to 3.0x, down by 0.4x from year-end 2025.ATM forward sale agreements -- Sold about 8.1 million shares for $412.7 million in gross proceeds, with unsettled agreements representing $527.4 million in additional proceeds.Credit facility amendment -- Increased unsecured revolver capacity to $800 million, extended maturity to April 2030, with no current borrowings outstanding.2026 guidance -- Raised full-year same-store NOI growth target to 9%-12% total; 11%-15% at Trilogy, 15%-19% in SHOP, 0%-2% in outpatient medical, and 2%-3% in triple-net lease.2026 NFFO per share guidance -- Now $2.09 to $2.30 per share, up $0.04 at the midpoint, targeting 20% growth over 2025.
Summary
American Healthcare REIT(NYSE:AHR) reported accelerated external growth initiatives, underpinned by $249.2 million in closed SHOP acquisitions and a $650 million pipeline primarily with existing operating partners. Management highlighted capital efficiency improvements, with no borrowings under the newly expanded $800 million revolving facility and dry powder from $527.4 million in unsettled forward equity. The company disclosed a shift in asset mix, divesting a third of outpatient medical holdings and increasingly concentrating investment in higher-growth SHOP properties. Diversification and underwriting discipline provided access to off-market opportunities and quality assets below replacement cost, confirmed by management’s statement that “We are still buying below replacement cost.” Guidance for general and administrative expense was increased, attributed solely to stock-based compensation linked to performance and rising share price. The development pipeline’s expansion, particularly in integrated senior health campuses, reflects ongoing pursuit of market-specific scale with Trilogy as anchor partner.
The company’s disposition strategy continues to reduce exposure to low-growth and triple-net segments, which now comprise less than 6% of the portfolio and are “shrinking every day.”Trilogy Health Services’ use of dynamic revenue software enables daily unit pricing based on demand and attributes, providing “a significant tailwind for revenue.”An estimated three to four new Trilogy campuses will be developed annually, with regional scale in Wisconsin contingent on achieving at least five to six assets and on securing required bed licenses.Management’s dividend policy is structured to retain earnings, providing a not inconsequential amount of self-funded equity, which is considered the cheapest capital source for acquisitions.G&A guidance increases result from new stock-based awards, including programmatic operator equity incentives, and higher share prices, not from expenses unrelated to performance.On supply constraints, the leadership stated that certificate-of-need regimes in key states maintain “the most durable competitive moat” and limit new skilled nursing supply to their own pipeline.The asset management approach allows for immediate occupancy ramp and rate optimization after new acquisition, accelerating non-same-store NOI growth relative to stabilized assets.Declining Medicare growth rates are being offset by quality mix improvements and payor selection in skilled nursing, with management noting, “Their skilled nursing rate, if you look at our supplemental, is growing at 5% a year—ahead of inflation.”
Industry glossary
SHOP: Senior Housing Operating Portfolio—a segment of owned senior living properties managed directly for operational upside rather than leased to tenants.NOI: Net operating income—the company’s preferred cash measure at the property level (excluding corporate expenses, depreciation, interest, and taxes).FFO / NFFO: (Normalized) funds from operations—a REIT-specific performance metric adjusting net income for real estate depreciation and other non-cash items.ISHC / Trilogy: Integrated senior health campus—a segment managed by Trilogy Health Services, combining independent living, assisted living, and skilled nursing on the same campus.RevPOR: Revenue per occupied room—a key metric for evaluating per-room top-line performance in senior housing properties.ATM: At-the-market equity issuance program—a flexible tool for raising equity capital opportunistically via open market share sales.CON: Certificate of need—a regulatory approval required in some states for new healthcare facility development, restricting supply growth.
Full Conference Call Transcript
Jeffrey Hanson, Chairman and Interim CEO and President; Gabriel Willhite, Chief Operating Officer; Stefan K. Oh, Chief Investment Officer; and Brian S. Peay, Chief Financial Officer. On today's call, Jeffrey Hanson, Gabriel Willhite, Stefan K. Oh, and Brian S. Peay will provide high-level commentary discussing our operational results, financial position, our increased 2026 guidance, and other recent news relating to American Healthcare REIT, Inc. Following these remarks, we will conduct a question and answer session. Please be advised that this call will include forward-looking statements.
All statements made during this call other than statements of historical fact are forward-looking statements and are subject to numerous risks and uncertainties that could cause results to differ materially from those projected in these statements. Therefore, you should exercise caution in interpreting and relying on them. I refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results, financial condition, and prospects. All forward-looking statements speak only as of today, 05/08/2026, or such other dates as may otherwise be specified. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
During the call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable measures calculated in accordance with GAAP are included in our earnings release, supplemental information package, and our filings with the SEC. You can find these documents as well as an audio webcast replay of this conference call on the Investor Relations section of our website at americanhealthcarereit.com.
With that, I will turn the call over to our Chairman, Interim CEO, and President, Jeffrey Hanson.
Jeffrey Hanson: Thanks, Alan, and good morning, everyone. Before the team gets into the quarter, I want to provide a brief update on Danny Prosky, our CEO and President. As you know, he experienced a health event in February and he continues to recover at home. We are very pleased to share that he underwent the only important medical procedure that was part of his treatment and recovery plan a couple of weeks ago. It went exceedingly well, and he is in good spirits and making strong progress at home.
I would also note that during the entirety of this interim period, he has remained fully engaged in each of our board meetings virtually, and he and I speak regularly each week on the business front. Although we do not have a definitive timeline for his reentry, given the recent procedure we do expect to have that clarity soon and look forward to sharing the details with you in the near term. In the meantime, AHR is advancing with full momentum, and I want to be clear about what that looks like from where I sit.
As most of you already know, I served as Chairman and CEO of our predecessor companies, so stepping into this seat is not a transition into unfamiliar territory. To the contrary, it is a return to a business, a strategy, and a team that I know intimately and have significant track record with. Gabriel Willhite, Stefan K. Oh, Brian S. Peay, and the broader leadership team are executing at a high level, and my role has been to lead alongside them day to day and full time since Danny’s event, making sure that we continue to operate with the discipline and ambition that you expect of AHR. The results you will hear this morning reflect that fact.
Q1 was another exceptionally strong quarter across core metrics: double-digit same-store NOI growth for the ninth consecutive quarter, efficient capital formation and accretive deployment, an even further strengthened balance sheet, and raised full-year guidance. Rather than isolated data points, these represent the output of a strategy that we have forged together over time and a team that is executing consistently. What gives me the greatest confidence, though, is what lies beneath these numbers. AHR exists to deliver higher-quality care and superior resident and patient outcomes while also striving to be the most sought-after and trusted capital partner for some of the best operators in the space. This mission is not a slogan.
It is the operating logic that AHR fully embraces and that our people live each and every day through our strategic operating partnerships. When we get our operator relationships right, underwrite with discipline, and structure capital to support long-term performance rather than short-term optics, financial results naturally follow. Q1 is another quarter of evidence that this approach is not only effective, but that it is effective at scale. With that, I will turn it over to Gabriel and the rest of the team to walk through our operating performance. Gabriel?
Gabriel Willhite: Thanks, Jeffrey. Q1 2026 was another strong quarter for AHR's operating portfolio. We delivered total portfolio same-store NOI growth of 12.1%, our ninth consecutive quarter of double-digit total portfolio same-store NOI growth. That kind of sustained consistency reflects the confluence of three key things: the enduring strength of the fundamentals underpinning long-term care, the quality of our regional operating partners, and the durability of our platform. Let me say a word about the strength of those fundamentals because I think it is important context for everything you are going to hear today. Long-term care demand is being driven by a demographic wave that is still in the early stages.
The 80+ population, the core consumer of long-term care ranging from independent living to skilled nursing, is growing at an accelerating rate as baby boomers age. Meanwhile, new supply growth across senior housing remains near historic lows. The economics of new construction do not pencil for most developers today, and that dynamic has not changed recently. What you get from that combination—surging demand meeting constrained supply—is a compelling operating environment our operators are experiencing right now: occupancy surpassing prior high-water marks with potential for stabilized occupancies to settle well beyond 90%, sustained rate growth, and expanding margins. We believe this trend will continue well into the next decade.
Now into the quarter, our ISHC segment, also known as Trilogy, delivered same-store NOI growth of 14.5% with same-store occupancy averaging 91.2%, up roughly 220 basis points year over year. Same-store revenue growth of 6.9% was driven by both rate and occupancy improvements. A big driver of rate growth has been the continued improvement in quality mix, which now stands at 75.5% of resident days on a same-store basis, up roughly 60 basis points from a year ago, and up 200 basis points on a total portfolio basis.
This shift directly reflects Trilogy's continuing focus on alignment with payor sources, especially Medicare Advantage plans, that value quality outcomes and are committed to paying a rate necessary to deliver high-quality care, which, of course, is the hallmark of Trilogy's business. Trilogy's clinical reputation is what earns its strong census, and we continue to invest in maintaining and expanding it. I am proud to report that as a result of Trilogy's consistent use of the various levers at its disposal, Trilogy's same-store NOI margins have now eclipsed 20% for the first time since COVID. Congratulations to the Trilogy team for surpassing another important milestone. Turning to SHOP, same-store NOI increased 19.7% for the first quarter.
Same-store occupancy averaged 88.6%, up roughly 255 basis points year over year, and same-store NOI margin expanded approximately 215 basis points to 20.6%. Performance in the SHOP same-store pool reflects our approach to bottom-line optimization—more specifically, the utilization of various levers available which enable us to continuously calibrate financial performance through dynamic revenue and expense management in our operating portfolio. Early in the year, that meant building a strong occupancy foundation to combat what I view as regular seasonality pressures in our high-acuity portfolio and positioning the portfolio to capture incremental demand as the selling season really gains momentum.
As move-in activity accelerates in the spring and into the summer, we are highly focused on managing street rates while taking a more measured, resident-focused approach to in-place pricing. This ability to adjust in real time—market by market, asset by asset, by acuity level, and even unit by unit—is absolutely central to how we seek to sustain NOI growth above historic averages over the next several years without compromising high-quality care and outcome standards that take precedence. The operating leverage in this portfolio continues to build. As occupancy continues to push higher, each incremental dollar of revenue flows through at a disproportionately higher margin.
Combined with the structural demand tailwinds I described earlier, we remain highly confident in our ability to deliver sustained double-digit NOI growth through 2026. I want to close by thanking each of our operating partners as well as our AHR asset management teams for their unwavering commitment to the residents and communities they serve—Trilogy Health Services, Senior Solutions Management Group, Great Lakes Management, Compass Senior Living, Heritage Senior Living, Cogir Senior Living, Priority Life Care, Heritage Communities, and WellQuest Living. Your work is the foundation of everything we are able to report today. Thank you. With that, I will turn it over to Stefan.
Stefan K. Oh: Thanks, Gabriel. Q1 2026 was a productive quarter for our investments team, and I am pleased to say the volume and quality of what we are seeing in the market has only increased as we move through the year. Year to date, we have closed $249.2 million of new acquisitions, all within our SHOP segment. Approximately $162.8 million of those acquisitions closed during the first quarter. This includes the five previously announced communities in California and Missouri for approximately $117.5 million and two additional properties in Kansas that closed after our last earnings call totaling approximately $45.3 million.
Subsequent to quarter end, we closed on six more SHOP assets in Georgia and South Carolina for approximately $86.4 million, deepening our Southeast presence with one of our trusted regional operators. Every deal we do starts the same way: with a relationship. Before we spend time underwriting any asset, we have underwritten the operator first—their commitment to resident care, how they run their buildings, and how their teams have performed under varying circumstances over time. In parallel, we build a deep understanding of the market before we invest capital. That operator-first approach means that a lot of our activity comes through off-market or limited-process channels where we have a genuine informational advantage.
Our trust in the operator drives our confidence to pursue opportunities alongside them, informed by real insight into execution, consistency, and alignment. This depth of conviction is simply not available to everyone underwriting the same asset in a broadly marketed process, and it is a meaningful competitive advantage in how we price risk and project returns. Our underwriting process is equally deliberate—we look at market demographics, operator expertise, acuity mix, asset age, the holistic long-term cash flow profile, and the competitive set, not simply initial yield. The goal is not near-term accretion for its own sake; it is building a portfolio of assets that will generate durable, compounding NOI growth for years to come.
We are highly selective, and that selectivity has served us well. What gives us added confidence heading into the back half of this year is what we are seeing from the 2025 investments we closed. Across a number of our acquisitions completed last year, performance is already tracking ahead of our initial underwriting. That is a direct reflection of how we approach every deal from day one. The asset management plan is developed with our operating partners since they are touring and underwriting the deal alongside us. So by the time we take ownership, that plan is already in motion, and our partners are executing against it.
Seeing those early results come in above expectations reinforces our conviction in both the process and the operators we are deploying capital with, and it informs how we underwrite and structure new investments today. In addition to the approximately $250 million we have closed to date, we have a pipeline of over $650 million of awarded deals that have yet to close. We expect to close these well before the end of 2026 and feel very good about the quality and composition of what is in front of us. On development, our in-process pipeline totals approximately $173.9 million in expected cost, of which approximately $52.4 million has been funded to date.
These are predominantly Trilogy campus expansions and independent living villa projects. They are capital-efficient growth opportunities layered onto existing operational platforms that should extend our earnings runway at attractive yields with limited market risk. In summary, we remain well positioned with capital available to execute quickly and efficiently, a growing network of trusted operators, and a pipeline that gives us real confidence in continued accretive deployment through the balance of this year at the very least. With that, I will turn it over to Brian.
Brian S. Peay: Thanks, Stefan. Q1 2026 was another quarter of strong financial performance, and I am happy to report that these results support an increase to our full-year 2026 guidance. For the first quarter, we reported normalized funds from operations, or NFFO, of $0.50 per diluted share, representing 31.6% growth compared to $0.38 per diluted share in Q1 2025. These results were driven primarily by the continued double-digit total portfolio same-store NOI growth, supplemented by accretion from the $950 million of acquisitions completed in 2025 that are now contributing to earnings.
Our proactive, hands-on asset management approach has continued to deliver solid financial performance at the start of 2026, and the strength of Q1 gives us confidence in raising our same-store NOI growth guidance for the full year to a range of 9% to 12%. At the segment level, our current full-year 2026 same-store NOI growth guidance is as follows: 11% to 15% growth at Trilogy; 15% to 19% growth in SHOP; 0% to 2% growth in outpatient medical; and a range of 2% to 3% growth in our triple-net lease property segment.
Turning to the balance sheet, our net debt to annualized EBITDA improved to 3.0x as of 03/31/2026, down from 3.4x at the end of 2025, as strong EBITDA growth continues to improve our already attractive leverage profile. On the capital markets front, during the first quarter and the first few days of the second quarter, we entered into forward sale agreements under our ATM program to sell approximately 8.1 million shares for $412.7 million in gross proceeds. As of today, we maintain unsettled forward agreements under our ATM program representing approximately $527.4 million in gross proceeds, assuming full physical settlement.
With well over $1 billion available on our existing program, we will continue to utilize this tool opportunistically depending on how the stock is trading. I also want to highlight the credit facility amendment completed subsequent to quarter end. We increased our unsecured revolving credit facility capacity from $600 million to $800 million, we extended the maturity to April 2030, and we have two six-month extension options. As of today, there are zero amounts outstanding on the revolver. Between our forward sale agreements and the increased available capacity on our line of credit, we have meaningfully de-risked the execution of our external growth plans, which include the over $650 million Stefan described.
This should provide us with the ability to deploy capital at scale throughout 2026. Combined, the strong organic and external growth is prompting us to increase our full-year 2026 NFFO per share guidance to a range of $2.30 to $2.09 per share, up $0.04 at the midpoint and would now reflect 20% growth in NFFO per share over 2025. As always, our guidance includes only those transactions and capital markets activity that have been completed as of today. We are entering the rest of the year from a position of strength—growing earnings, continuing to improve our already attractive leverage, creating ample liquidity, and fostering relationships with operators that continue to deliver strong performance.
We remain focused on executing our mission of facilitating high-quality care and health outcomes for residents while creating long-term value for our shareholders. And with that, operator, we would like to open the line for questions.
Operator: We will now open the call for questions. Please limit yourself to one question and a follow-up, two total. You will be allowed to re-queue if you wish. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Farrell Granath from Bank of America. Farrell, please go ahead.
Farrell Granath: My first one is in regards to the same-store NOI growth guidance within your segments. We know that the Trilogy, or Integrated Health Campus, guidance was increased, but SHOP remained unchanged, and especially that all segments outperformed the midpoints of your guidance this quarter. Can you give a little more color on how you are thinking about that pacing through the rest of the year, or generally if there is any baked-in conservatism?
Brian S. Peay: Sure. Good morning, or afternoon as it is. Trilogy had such a strong quarter that we felt a lot of conviction they were going to continue to exceed. If we did not raise guidance, then the rest of the year would have looked relatively flat compared to the first quarter. So that was a no-brainer. On the SHOP side, we still have tremendous conviction in the space. We love our operator base, and we believe they can continue to deliver. If you look at the supplemental and go into the SHOP portfolio, what you will notice is that sequentially from Q4 2025 to Q1 2026, there was a pretty significant uptick. Same-store SHOP NOI increased by a little over 9.3%.
That is part of the reason why it gave us pause. It is only the first quarter, but we have tremendous conviction about their ability to continue to perform.
Farrell Granath: Thank you. And then my follow-up question is in regards to your sources of capital. I know you just ran through a little bit on the lowering of your leverage as well as the ATM that you have outstanding. Can you walk me through how you think about sourcing of capital and uses when you are thinking about your acquisition pipeline going forward?
Brian S. Peay: Yes. REITs are an interesting vehicle—required to pay out 90% of your taxable income, it is really difficult to maintain a lot of retained earnings. Having said that, our board has decided on a dividend policy that is allowing us to retain a not inconsequential amount of earnings. That is the cheapest form of equity that we can source, so that is first and foremost. Second, we have dedicated ourselves to a disposition program. Over time, we have been selling smaller, less strategic, lower-growth assets. That is a nice source of funds for us to utilize for external growth, for debt paydowns, and for whatever else might come up.
Beyond that, on the equity side, we have been a user of the ATM in the past, based on the stock price, and I think we will, again, based on stock price, utilize the ATM in the future. It is an incredibly efficient vehicle for raising capital, and when you can do it on a forward basis, you can do it in a non-dilutive way. Obviously, our use of those funds—we are doing it in an immediately accretive, but more importantly, a long-term accretive fashion. I did leave out the line of credit. We are happy at 3.0x debt to EBITDA.
There is nothing bad that happens to us to the extent that number continues to go lower; it really just creates dry powder. As long as we can continue to hit the earnings growth that we have projected, we do have $800 million of capacity. In thinking about those as alternatives, I do not think you are going to see us run the debt up very much at all. We are committed to running the company with essentially investment-grade ratios because we know that it is going to help the equity trade at its best possible multiple.
Operator: Your next question comes from the line of Austin Wurschmidt from KeyBanc Capital Markets. Austin, please go ahead.
Austin Wurschmidt: Great, thanks. Gabriel, the Trilogy portfolio this quarter saw very strong sequential NOI pickup from all the levers that you have spoken about in past quarters. I think it was even better sequential growth versus what you saw last year, which was really strong. Recognizing there are a lot of moving pieces and some seasonality in this business, does that sequential strength carry momentum into the spring and summer, or is that not necessarily the right way to think about the business?
Gabriel Willhite: I think that is a great way to think about the business, Austin. One thing I will point out—in 2025, many things went right for Trilogy, most of which are repeatable, and a few were one-time. For example, we talked about the Medicare Advantage strategy and trying to find different ways to optimize our partners on that front. In March 2025, we signed a new contract with a partner that was substantially higher and opened up more residents to Trilogy facilities, so it had a strong impact on 2025 earnings. That would be a bit of a headwind in 2026.
Counterbalancing that is exactly what you are talking about, which is coming into the year with higher occupancy than we had last year at Trilogy. That higher occupancy unlocks the ability to not only push rate on very full buildings within the Trilogy ecosystem—some with private-pay occupancies near 100%—but it also helps us continue to work on the Medicare Advantage strategy, prioritizing partners that are willing to pay for the quality of care that Trilogy delivers. There are a lot of different Medicare Advantage plans you could have a contract with.
Some are looking for the low-cost provider; others realize the best way for the plan to make money is to provide the highest quality of care to the resident to get them healthy faster. That is exactly what Trilogy brings to the table. I am still a big believer in Trilogy. They are one of the best operators I have ever seen. If there are ways to pull different levers to continue to push on NOI, they will figure out a way to do it. And we have the right, unique alignment with our management contract with them that will reward them for their outperformance with AHR stock, like we have talked about in the past as well.
Austin Wurschmidt: That is helpful. It leads into my follow-up question: you highlighted NOI margins are now back above 20% for the first time since COVID. Given the higher occupancy today and the ability to push rate on the private-pay side of the business, what sort of medium- or longer-term opportunity set do you see to drive margins across the Trilogy portfolio?
Gabriel Willhite: We did 134 basis points of margin expansion last year—that was a pretty good mark for them. In some ways, it could get trickier in 2026 as you push further ahead, because the Medicare growth rate is decelerating a little bit. That number is triggered off inflation, and as inflation comes down, that number comes down as well. One other thing I have not talked about yet is the development pipeline at Trilogy. Currently, if you look at what we have disclosed in our supplemental, you will see that it skews toward IL and senior housing.
Those businesses have higher margins, and as we lean into those product types and try to expand on the AL and IL side of their business, I think you will see margin expansion as a result of asset mix shifting to more private pay as well.
Austin Wurschmidt: Helpful. Thanks for the time.
Operator: Your next question comes from the line of Michael Carroll from RBC Capital Markets. Michael, please go ahead.
Michael Carroll: Gabriel, I wanted to continue on that line of questioning, specifically talking about Trilogy's expansion plans in Wisconsin. I noticed the development that recently broke ground was in Wisconsin. Should we think about the growth that Trilogy is going to pursue in that new state as largely happening via development?
Gabriel Willhite: I think that is probably the base case, Michael. What we would like to do is get to a spot where the best operators have a regional presence. Regional presence matters because they can get a regional director to oversee multiple different facilities, and there are synergies from sharing employees and creating an upward path for employees within your campuses. We would love to see a concentration of Trilogy campuses in Wisconsin where we can utilize the benefits of that kind of regional strategy that has worked so well for Trilogy in the past.
It is hard for Trilogy to find acquisition opportunities that allow them to run their integrated model, and we do not want to move away from the integrated model. Maybe 75% of Trilogy's assets are purpose-built for their business. It is one of the reasons why they outperform: there are operational and care synergies that come from having AL, IL, and SNF under one roof. If you have a Trilogy prototype that has been value-engineered over several iterations, it is just easier to do that. So I think that is the base case. We are always looking for creative solutions. The Portage campus that is in our supplemental is one of those interesting opportunities.
It was a defunct assisted living building that went dark. It was a 50-unit building, which is really hard to operate. We bought it, and instead of building ground up, we added on the necessary skilled nursing component. It was a really smart way to lower the total development cost, and it is going to be a good deal for us because of it. I think we will continue to look for those opportunities, but the base case is the Trilogy prototypes.
Jeffrey Hanson: Michael, keep in mind also, the state where Trilogy has the most concentration is Indiana. They may have 7 thousand to 8 thousand beds in Indiana. The total addressable market in Indiana is far larger than that, so they can continue to grow in Indiana and in all of the other states they are in, in addition to Wisconsin.
Michael Carroll: That is helpful. Sticking with Wisconsin a little bit, how many assets do you really need to get that regional scale, and how many developments in Wisconsin are you willing to pursue at a time? Should we think about that as one a year, or can Trilogy pursue more if they like the success they are having and try to build that necessary scale right away?
Gabriel Willhite: We are evaluating all those things right now. To your first question about how many you want for a regional concentration, I think you want to be in the five to six-plus range. We are committed to what we have said in the past—three to four new campuses a year with Trilogy. That is currently a mix of Wisconsin and its other existing markets. Partially because of the CON requirements—those widen the moat for Trilogy and create a competitive advantage. These are CON states; you need the licenses in Wisconsin. That is something we need to manage through to make sure that we get the license in the counties we want to be in as well.
So I think it will be incremental within the Wisconsin market as we augment it with markets Trilogy has already identified in the states they currently operate in.
Michael Carroll: Great, thanks. Appreciate it.
Operator: Your next question comes from the line of Seth Bergey with Citi. Seth, go ahead.
Seth Bergey: Hey, thanks for taking my question. I wanted to dive into the $650 million pipeline a little bit more—geographically where those assets are located and whether those are primarily with existing operators? And then the third point would be whether your underwriting yields have changed at all given it seems there are more players entering the senior living space.
Stefan K. Oh: Hey, good morning, Seth. Deal activity right now is very high. Our pipeline is in great shape. We have closed $250 million so far this year and have another ~$650 million that has been awarded. It is almost exclusively in SHOP. We are not surprised to see other people showing a lot of interest in this space—it is attractive and still in the early stages of extended demand growth. We are in an advantageous position. About half of our deals are coming on an off-market basis. We have been able to raise capital that allows us to compete on the targeted assets we really want to buy, and we have a good reputation as a buyer.
If you look at the composition of our deals—higher quality, newer—primarily with existing operators that we already have in our portfolio today. One hundred percent of what we have closed so far has been with existing operators. Our pipeline is probably a mix of about 80% existing and 20% new. We continue to look in all the major regions where our operators are already located. That is our primary focus: growing in the areas where they have expertise. The team has done a great job of identifying, sourcing, and underwriting with our partners on these acquisitions, and I think we are going to be very pleased as we close these throughout the year.
Seth Bergey: Thanks. And then thinking about the supply and demand picture, where are you acquiring at a discount to replacement cost, and how high do rates need to move before you start to see new supply come in on the SHOP side?
Stefan K. Oh: We are still buying below replacement cost. Construction, although there is not a whole lot of it, continues to come in at higher amounts—the cost to build continues to grow. We have been fortunate to continue to find deals below replacement cost, even in primary markets where we see high barriers to entry. Pricing continues to be within our bandwidth. We are still seeing stabilized yields in the 7s, and that is through continued disciplined underwriting. Our previous underwriting is proving out, and that gives us more confidence going forward.
Gabriel Willhite: One thing I would add to that, Seth—AHR has been in the SHOP business for a long time and through cycles. On the supply side, the things Stefan is targeting are areas where we think there is more runway before supply really picks up. That is why you do not see us focused on Florida, which is a great state for senior housing but one where we have seen it become overbuilt quickly. The pipeline he is building takes into account when supply may start ramping, and it is built to have a longer runway.
Seth Bergey: Okay. Thank you so much.
Operator: Our next question comes from the line of Ronald Kamdem with Morgan Stanley. Ronald, please go ahead.
Ronald Kamdem: Hey, great. I want to go back to Trilogy. You are always optimizing for revenue, but thinking about the occupancy trajectory and the incremental margins that are coming through, how much more upside do you think you have at this point and how is that playing out?
Gabriel Willhite: On a few different fronts, Trilogy still has a lot of meat on the bone. From the occupancy perspective, even at what I think are market-leading levels, we are still seeing occupancy grow—especially strong in the senior housing space. Typically, this is a downtime of the year with seasonality, so it is nice to see that Trilogy has been able to hold steady and had a really great year of occupancy growth last year. I think that is going to continue. When people understand there is a market reputation for being the place that takes care of your family the best, you are going to be a preferred provider.
The other thing they have really figured out is that quality will carry the day from a rate perspective as well. If you appreciate the quality of care above all other things, you are willing to pay for that quality and experience because it costs a little more to deliver that. Trilogy is leaning into the revenue management side through a proprietary software program they developed over years that prices units dynamically on a daily basis, based on market demand, market prices, leasing, and unit attributes. They are far in front of where many other senior housing operators are, by and large, and that will be a significant tailwind for revenue.
The real question is the velocity of those things—it is hard to predict how quickly occupancy will continue to build when you are at higher levels and how much rate growth will continue over the next year. I have extreme confidence both will be higher by the end of the year than they are now, but the rate of change is hard to speculate on.
Ronald Kamdem: Great, and then my follow-up—during the quarter there was a lot of talk about the CMS proposed rate. The preliminary rate came out at 2.4%. How did you and Trilogy react to that? Does that change anything for the business plan, not only near term but longer term, if that rate continues to trail inflation?
Gabriel Willhite: This is where people are often the most uninformed on Trilogy’s business, so I am glad you asked. Most people assume that skilled nursing rates will just grow at an inflationary rate and you are stuck with it. If you have followed Trilogy for the last several years, you have seen that is not true. Their skilled nursing rate, if you look at our supplemental, is growing at 5% a year—ahead of inflation and significantly ahead for a couple of reasons. One, a big component of their skilled nursing is private pay. Those rates move much like private-pay senior housing, and Trilogy has control over those rates, so I would expect them to outpace inflation.
Even though Medicare Advantage contracts typically price off of the Medicare rate increases, Trilogy has been able to select MA plans and manage those relationships in a way where they are generating rate growth of 6.6% last quarter—well above inflation and the Medicare rate—because they are being more selective about who they partner with. As occupancy grows, it creates the opportunity to be even more selective. They have sophisticated systems for managing that entire process, which comes with scale, experience, and great leadership. The 2.4% was not a surprise.
That is more like a floor than a ceiling, and I fully expect Trilogy to manage all of their opportunities for maximizing revenue growth within skilled nursing to push it beyond 2.4%.
Ronald Kamdem: Helpful. Thank you.
Operator: Your next question comes from the line of Juan Sanabria from BMO. Juan, go ahead.
Juan Sanabria: I wanted to ask about the SHOP RevPOR growth—looks a little below where you were trending last year. Was there an impact from the typical seasonality with some discounts in the first quarter that may have impacted growth, and how should we think about RevPOR trending for the balance of the year?
Gabriel Willhite: The biggest reason for the deceleration in RevPOR growth is that we changed the same-store universe, which happens once a year for us. If you looked at our 2025 same store, the RevPOR growth there would be high 4s—more in line with what we are expecting and managing toward. The reason it is lower in the current same store is that we have shifted some non-stabilized assets into the same store. Those assets have incredible NOI growth, but the strategy has always been build occupancy first and grow rate second.
As they are building occupancy, they are a meaningful component of the NOI growth on a same-store basis, and we think it is a great way for us to add value and grow NOI. The second thing is that it would be an oversimplification of a complex operating business to look at one number like RevPOR without the context of the expense side. We are managing toward NOI growth—taking many different things into account to deliver the most NOI growth. For example, we asked our operators to focus on reducing the referral fees we pay for move-ins.
That helps on the expense side, and if you pass a little of those savings on to residents, it may be a headwind for RevPOR. But it still grows NOI and expands margin. It is exactly what we did: we reduced referral fees by over 20% in our portfolio year over year. As occupancies push higher, you need to look at a variety of things to optimize NOI, and that is what we are asking our operators to do.
Juan Sanabria: Great, thank you. Earlier in the call, you noted sources and uses to fund acquisitions, including dispositions. There seems to be a very strong bid across the spectrum for different asset types within health care, including medical office. Have you thought about potentially selling assets more quickly or at a larger scale—assuming you have the ability to redeploy those proceeds—to take advantage of the bid, or maybe explore joint venture opportunities?
Brian S. Peay: Juan, my guess is you are talking about our outpatient medical portfolio. Everything else is such a tiny piece—our triple net is less than 6% and shrinking every day. We are well aware of the value embedded in our outpatient medical segment. All the fundamentals that make the long-term care business really positive are equally true for outpatient medical: older, aging America; more doctor visits; more things happening in an outpatient setting than in hospitals; and a lack of new supply. Having said that, we have not added to our outpatient medical—we have not even underwritten an outpatient medical building in years. It continues to shrink as a piece of our portfolio.
We have sold over a third of the assets in the outpatient medical segment—smaller, slower-growth assets. We have another handful of buildings we are continuing to expose to the market, and we expect to sell those. Beyond that, we are pretty happy with our portfolio. It is a nice balance. We loved having outpatient medical buildings during the pandemic—the occupancy in that segment was higher at the end of 2021 than it was at the beginning of 2021. As of now, we are committed to a diversified strategy of health care investments.
But everything we are buying is SHOP, and we are selling a little more outpatient medical, so that is going to become a smaller and smaller piece of the total.
Juan Sanabria: Thank you.
Operator: Your next question comes from the line of Alec Feygin with Baird. Alec, please go ahead.
Alec Feygin: Thanks for taking my question. On the development strategy, is Trilogy or AHR the bigger driver of identifying where and when to start new projects?
Gabriel Willhite: Within the development pipeline at Trilogy, it is collaborative, but the Trilogy team is really driving the identification of opportunities—bringing them to us to collaborate and then deciding which to pursue. The development pipeline at Trilogy for new campuses is probably 30 markets deep within its current footprint. How do we decide which three or four to pursue a year? We have to marry a few different things: land availability significant enough to build out an entire campus and allow room for expansion (including villas), and where we have access to bed licenses. There is some magic to that as well.
Because Trilogy has scale, there is almost a bed-license bank they can pull from within their ownership universe to move licenses from one campus to the next or slide licenses from one county to the next. Those rules are complex and hard to navigate, and it is hard to find the licenses to do it. That is a big advantage for Trilogy that I do not think people fully appreciate. We are going to continue to be incremental in the new campuses we add. The opportunity set is really deep, and it is a multi-year development pipeline that is essentially exclusive to us, so that is going to continue for the foreseeable future.
Brian S. Peay: And as you can imagine, we are going to help decide what makes the most sense for us as far as the commitment to development, the dollars we are putting out, and the yields we are going to demand in return for that.
Alec Feygin: Thank you for all that. Switching gears—beyond the three to four developments for Trilogy, what is the appetite with other operators to do development funding? If not now, what would you need to see in order to pursue those opportunities in the future?
Gabriel Willhite: It is something we are looking at. We have not hit go on any new developments with other operators right now. First, we are looking at our existing portfolio and taking a page from the Trilogy playbook—seeing where we have excess land in high-demand, high-occupancy assets, and expanding our existing SHOP buildings. The IRRs on those investments are the highest in our entire portfolio; the limitation is the dollars are not unlimited and not a major amount either. We are doing that, and we are actually using Trilogy’s development capabilities to help us manage those processes—a great example of platform synergies working for our collective benefit.
With other new ground-up developments, we are thinking about how we can expand our existing relationships, use our operating partners that have development experience, and potentially grow their presence in their current markets. We have not found the perfect opportunity to do that yet, but I think we are getting closer. The holdup is that we are buying things below replacement cost, and that will be the holdup until that shifts. We know the demographics will continue to be strong and that supply is not enough to keep up with demand over the next five to ten years—we will hit max occupancy at some point.
The question is when do you really want to start developing to meet that opportunity when you have other opportunities in front of you that are below replacement cost? It is hard to say yes to that.
Alec Feygin: Yeah, that is great color. Thank you for the time.
Operator: Your next question comes from the line of Michael Stroyeck from Green Street. Michael, please go ahead.
Michael Stroyeck: Thanks, and good morning. Within Trilogy, expense growth saw a pretty nice deceleration in 1Q versus recent quarters. Were there any one-timers that may have impacted expenses during the quarter—anything worth calling out that may have driven that deceleration?
Gabriel Willhite: No, it is more of a broad focus on expense management. This was in response to decelerating Medicare reimbursement, us understanding that was coming and getting out in front of it to manage expenses. When I say “us,” I mean really the Trilogy team. We made some significant investments last year, and I think this year we will see expense management really work for them and help expand margin further. No one-timers.
Michael Stroyeck: Understood. And going back to a point you made on CONs—As SNF occupancy continues to trend higher, have you seen any states relax certificate-of-need rules or any indication we could see an acceleration in supply growth across any of your markets?
Gabriel Willhite: No. In fact, that is exactly why I say Trilogy has the most durable competitive moat in our entire portfolio. If you look at skilled nursing development, beds as a percentage of inventory being added is negative and has been for several years—more beds are coming offline than online. If any are coming online, I would speculate almost all are coming from Trilogy. So the supply side on that part of the business is not going to be a problem. That is where there is the absolute longest runway in our portfolio.
It is really hard to develop SNF because most existing buildings are focused on Medicaid, with an average Medicaid mix of 60% to 70%, which makes it hard to pencil from a development perspective. It works at Trilogy because they have the integrated campus, great hospital relationships, and a disproportionate amount of residents on Medicare and Medicare Advantage plans, which are higher-reimbursement sources. That is really hard to replicate if you are not an experienced operator with regional concentration.
Operator: Your next question comes from the line of Michael Goldsmith with UBS. Michael, please go ahead.
Michael Goldsmith: Good afternoon. Thanks a lot for taking my questions. On the last call, you indicated that the non-same-store pools for both Trilogy and SHOP actually grow faster than the same store, but that could be lumpy. How should we think about the NOI growth in the non-same-store pools for Trilogy and SHOP relative to the same-store pools?
Brian S. Peay: Anecdotally, that is not a bad supposition. If you unpack the type of asset we have been targeting, these are assets that are going to have a tremendous amount of internal growth. So when we finally put them into the same-store pool, you are going to see dramatic same-store earnings growth. For example, in 2025 we bought a building that was 74% occupied from a developer who had cycled through operators and then self-operated. We bought it in a market where we have a trusted operator running buildings for us at 95%+ occupancy. We have tremendous conviction in their ability to grow that asset.
Not every asset is like that, but that is the type we have been targeting, and there is upside. So it is fair to say the non-same-store is going to grow faster than the same store.
Michael Goldsmith: Got it. Some of your peers have reported that U.S. SHOP has gotten more competitive. Given AHR does not disclose initial yield, are you seeing more cap-rate compression to start the year? And can you share the timing on that $650 million pipeline?
Stefan K. Oh: On timing, a majority of what we have in the $650 million pipeline will close by the end of this quarter, with the remainder closing in the third quarter. As far as pricing, it is fair to say that cap rates have moved generally 25 to 50 basis points over the last year, but it is very deal specific. We are buying a mix of light value-add and stabilized assets. We are focused on long-term cash-flow durability—what is the projection over several years, not just the first year. That has been consistent throughout. We have still been able to find deals that make a lot of sense for us, and there are many other deals we continue to look at.
Michael Goldsmith: And while I have you, can you walk through what was the driver of the G&A guidance increase?
Brian S. Peay: Sure. It is not a bad thing—in fact, I think it is a positive. The real increase in G&A is tied to stock-based compensation. Two buckets. First, last year investors approved our ability to reward our operators for outperformance with incentive compensation in the form of AHR stock, which gives us best-in-class alignment. We did grant some shares, and those grants are now showing up in the numbers. Second, stock-based comp goes up when the stock price goes up, and we have been in the blessed position of having the stock price go up. So the G&A guide went up.
Michael Goldsmith: Thank you very much. Good luck in the next quarter.
Operator: There are no further questions at this time. I will now turn the call back to Jeffrey Hanson, Chairman and Interim CEO, for closing remarks.
Jeffrey Hanson: Thank you, operator, and thank you, everybody, for investing your time and for your continued support and confidence in the company. I know Danny is attending the call this morning as well, and he is looking forward to reconnecting with all of you directly as soon as he is able. With that, we will conclude the call, and have a great weekend.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.
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- Basata Raises $21M Series A to Rebuild the $1T Operational Layer of American Healthcare
May 8, 2026
PHOENIX, May 8, 2026 /PRNewswire/ -- Basata, the AI company rebuilding the operational layer of US healthcare, today announced a $21 million Series A led by Basis Set Ventures, with participation from Cowboy Ventures, PHX Ventures, Zenda Capital, and Victoria Treyger. The round brings total funding to $24.5 million.$21 Series A led by Basis Set, with participation by Cowboy Ventures, PHX Ventures, Zenda
Basata's AI agents handle the administrative work still running on fax machines and phone calls, like referrals, intake, patient scheduling, and follow-up — end to end. A referral arrives by fax, Basata extracts the patient details and creates a chart in the EHR, an AI voice agent calls the patient, and the appointment is booked in minutes instead of weeks. The company has served more than 500,000 patients to date, including 100,000 in the past month, and works with providers some of the largest specialty groups in the country across cardiology, urology, gastroenterology, ophthalmology, and growing.
Practices using Basata process 100% of incoming referrals the same day, unlock 50% more administrative labor capacity, and reduce time-to-first-patient-contact from weeks to minutes. Roughly 70% of new sales come from customer referrals.
"Healthcare administration is one of the most consequential and least supported workforces in America," said Kaled Alhanafi, co-founder and CEO of Basata. "We didn't build Basata to replace administrators. We built it for them. 'Basata' is Arabic for simplicity, and that is what these teams deserve."
Basata's founding team came together around a shared conviction that healthcare's biggest failures aren't clinical, they're operational. The country's clinicians and administrators are world-class; the tools they have been handed are not. CEO Kaled Alhanafi lost his mother as a young adult to a healthcare administrative error. Co-founder Chetan, a former principal engineer at Medtronic, watched his wife wait months to see a cardiologist. Co-founder Vivin, a Computer Science PhD, saw his wife endure the same broken referral process.
That conviction shapes how the company builds. "Our Forward-Deployed Engineer returned from two weeks onsite at a customer site, eyes bloodshot, after manually processing referrals and faxes all day," said Chetan Patel, co-founder and president of Basata. "It proved that if you aren't in the trenches, you'll never grasp how intense this workload is. Building in a bubble fails. We design tech that works because we are on the ground with our customers. This is why so many practices are trusting us with their workflows."
Story Continues
Customers feel the difference. "Before Basata, we regularly had a backlog of 500+ unprocessed referrals, some waiting for months," said Rich Bondi, CEO of Southwest Cardiovascular Associates. "Once Basata came in, the backlog went to zero. We've seen an 18% boost in new patient conversions because patients are contacted right away. Basata truly transformed our patient care."
The new funding will enable Basata to scale what's already working in tackling the $1 trillion operational layer of US healthcare end to end, replacing the patchwork of point solutions practices have stitched together with a single system built alongside the administrators who use it every day.
"It's 2026, self-driving cars can navigate my city, but patients still have to fight through hold music and fax machines to get care," said Alhanafi. "That's the disconnect we're fixing. In the next decade, healthcare operations will become fully autonomous. Intake, scheduling, coordination, and billing will just happen in the background, and patients will finally experience what exceptional healthcare actually feels like."
About Basata
Basata deploys specialty-specific AI agents that automate healthcare's administrative workflows end-to-end. From faxes to referrals to call centers, our agents take on the repetitive tasks that slow down health systems and practices, so teams move faster and patients get better access. Learn more at www.basata.aiBasata logo (PRNewsfoto/Basata)Cision
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- American Healthcare REIT, Inc. (AHR) Q1 2026 Earnings Call Transcript
May 8, 2026 · seekingalpha.com
American Healthcare REIT, Inc. (AHR) Q1 2026 Earnings Call Transcript
- American Healthcare REIT: Q1 Earnings Snapshot
May 7, 2026
IRVINE, Calif. (AP) — IRVINE, Calif. (AP) — American Healthcare REIT Inc. (AHR) on Thursday reported a key measure of profitability in its first quarter.
The real estate investment trust, based in Irvine, California, said it had funds from operations of $94.8 million, or 50 cents per share, in the period.
Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.
The company said it had net income of $23.7 million, or 13 cents per share.
The real estate investment trust posted revenue of $650.8 million in the period. Its adjusted revenue was $649.2 million.
American Healthcare REIT expects full-year revenue in the range of $2 million to $2.1 million.
The company's shares have climbed slightly more than 5% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $49.60, an increase of 52% in the last 12 months.
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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AHR at https://www.zacks.com/ap/AHR
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- American Healthcare REIT Announces First Quarter 2026 Results; Increases Full Year 2026 Guidance
May 7, 2026
IRVINE, Calif., May 7, 2026 /PRNewswire/ -- American Healthcare REIT, Inc. (NYSE: AHR) (the "Company," "we," "our," or "AHR") is announcing today its first quarter 2026 results and increasing full year 2026 guidance.American Healthcare REIT logo (PRNewsfoto/American Healthcare Investors)
Key Highlights:
Reported GAAP net income attributable to controlling interest of $23.7 million, or $0.13 per diluted share, for the three months ended March 31, 2026. Reported Normalized Funds From Operations attributable to common stockholders ("NFFO") of $0.50 per diluted share for the three months ended March 31, 2026, representing over 30% growth compared to the same period in 2025. Achieved total portfolio Same-Store Net Operating Income ("NOI") growth of 12.1% for the three months ended March 31, 2026, compared to the same period in 2025. Achieved Same-Store NOI growth of 19.7% and 14.5% for the three months ended March 31, 2026, from its senior housing operating properties ("SHOP") and integrated senior health campuses ("ISHC") segments, respectively, compared to the same period in 2025. During the three months ended March 31, 2026, the Company acquired approximately $162.8 million of new investments within its SHOP segment. During the three months ended March 31, 2026, the Company entered into forward sale agreements pursuant to its at-the-market equity offering program ("ATM Program"), to sell 7,028,164 shares of common stock for approximately $357.4 million in gross proceeds. Subsequent to quarter end, the Company entered into additional forward sale agreements pursuant to its ATM Program to sell 2,561,583 shares of common stock for approximately $123.7 million in gross proceeds, assuming full physical settlement. During the three months ended March 31, 2026, the Company issued 3,974,731 shares of common stock to physically settle sales under previously announced forward sale agreements pursuant to its ATM Program and its November 2025 equity offering for gross proceeds of approximately $191.2 million. Subsequent to quarter end, the Company issued an additional 2,755,996 shares of common stock to physically settle sales under forward sale agreements from its ATM Program for gross proceeds of approximately $134.0 million. As of May 7, 2026, pursuant to its ATM Program, the Company had unsettled forward sale agreements outstanding relating to 10,498,207 shares of common stock that would result in approximately $527.4 million in gross proceeds assuming full physical settlement. Reported a 0.4x improvement in Net Debt-to-Annualized Adjusted EBITDA from 3.4x as of December 31, 2025 to 3.0x as of March 31, 2026. The Company is increasing total portfolio Same-Store NOI growth guidance to 9.0% to 12.0% and NFFO per diluted share guidance to $2.03 to $2.09 for the year ending December 31, 2026.
Story Continues
"Our first quarter results reflect another exceptionally strong period across our core metrics, including our ninth consecutive quarter of double-digit Same-Store NOI growth, efficient capital formation and accretive deployment, a strengthened balance sheet, and a raise to our full year 2026 Same-Store NOI growth and NFFO per share guidance," said Jeff Hanson, Chairman, Interim Chief Executive Officer and President. "These results reflect AHR's mission to deliver higher-quality care and superior resident and patient outcomes while serving as the most sought-after and trusted capital partner for the best operators in our industry."
First Quarter 2026 Results
The Company's Same-Store NOI growth results for the three months ended March 31, 2026 are detailed below. Same-Store NOI growth in the first quarter of 2026, compared to the same period in 2025, was led by the Company's operating portfolio, comprised of its ISHC and SHOP segments, through disciplined revenue management and effective expense control by its regional operating partners.
Three Months Ended March 31, 2026 Relative to Three Months Ended March 31, 2025 Segment Same-Store NOI Growth ISHC 14.5 % SHOP 19.7 % Outpatient Medical 1.6 % Triple-Net Leased Properties 4.6 % Total Portfolio 12.1 %
"Our senior housing portfolio delivered strong operating performance this quarter, with Trilogy once again distinguishing itself as a leader in the sector through the strength of its differentiated operating model," said Gabe Willhite, the Company's Chief Operating Officer. "The consistency and quality of Trilogy's results underscore the durability of its approach and its ability to drive sustained superior performance. Across the broader senior housing portfolio, we were able to drive continued NOI expansion by actively managing a range of operational and pricing levers, dynamically balancing them to optimize profitability and maximize total NOI. We remain confident in our ability to build on this momentum and deliver sustained earnings growth as we continue executing on these strategies."
Transactional Activity
During the three months ended March 31, 2026, the Company:
Acquired five new SHOP assets for approximately $117.5 million, as previously announced. The properties are located in California and Missouri, and will be managed and operated by two of the Company's existing regional operating partners. Acquired two new SHOP assets for approximately $45.3 million. The properties are located in Kansas and will be managed and operated by one of the Company's existing regional operating partners.
Subsequent to the quarter ended March 31, 2026, the Company:
Acquired six new SHOP assets for approximately $86.4 million. The properties are located in Georgia and South Carolina and will be managed and operated by one of the Company's existing regional operating partners. Sold two Non-Core Properties for approximately $8.1 million within its Outpatient Medical and Triple-Net Leased Properties segments.
Following the Company's completed transaction activity during the three months ended March 31, 2026, and subsequent to quarter end, the Company's investments pipeline consists of over $650 million which includes newly awarded deals and deals in the pipeline previously disclosed in the Company's Fourth Quarter 2025 Earnings Release that have yet to close. While the Company expects to close the deals in its investments pipeline by the end of 2026, it cannot guarantee when or if these closings will take place. Therefore, the Company is not including any additional transaction activity, including the awarded deals in its investments pipeline, in its 2026 guidance, beyond the transactions disclosed as completed.
Development Activity
The Company completed three and started two development projects during the three months ended March 31, 2026.The Company's total in-process development and expansion pipeline is expected to cost approximately $173.9 million, of which $52.4 million had been funded as of March 31, 2026.
Capital Markets and Balance Sheet Activity
As of March 31, 2026, the Company had total consolidated indebtedness of $1.53 billion and approximately $1.31 billion of total liquidity, comprised of cash and cash equivalents, undrawn capacity on its lines of credit, and expected gross proceeds from unsettled forward sale agreements, assuming full physical settlement. The Company's Net-Debt-to-Annualized Adjusted EBITDA as of March 31, 2026, was 3.0x.
During the three months ended March 31, 2026, the Company entered into forward sale agreements pursuant to its ATM Program, to sell 7,028,164 shares of common stock for approximately $357.4 million in gross proceeds, assuming full physical settlement. Subsequent to quarter end, the Company entered into additional forward sale agreements pursuant to its ATM Program to sell 2,561,583 shares of common stock for approximately $123.7 million in gross proceeds, assuming full physical settlement.
During the three months ended March 31, 2026, the Company issued 3,974,731 shares of common stock to settle sales under previously discussed forward sale agreements from its ATM Program and its November 2025 equity offering for gross proceeds of approximately $191.2 million. Subsequent to quarter end, the Company issued an additional 2,755,996 shares of common stock to settle sales under forward sale agreements from its ATM Program for gross proceeds of approximately $134.0 million. As of May 7, 2026, pursuant to its ATM Program, the Company had unsettled forward sale agreements outstanding relating to 10,498,207 shares of common stock that would result in approximately $527.4 million in gross proceeds assuming full physical settlement.
Additionally, subsequent to quarter end, the Company amended its credit facility by increasing the size of the unsecured revolving credit facility portion from $600 million to $800 million, thereby increasing the total aggregate credit facility including term loan to $1.35 billion. The revolving portion of the credit facility now matures on April 1, 2030, and may be extended for two 6-month periods, subject to certain conditions. Further, the Company may increase the aggregate incremental amount of the entire credit facility from $1.35 billion to $1.85 billion, subject to certain terms and conditions. The Company's existing unsecured term loan facility within the credit facility in the initial aggregate amount of $550 million remains unchanged.
"Our proactive hands-on asset management approach has led to solid financial performance at the start of 2026, allowing us to increase our Same-Store NOI growth and NFFO per diluted share guidance for the year," said Brian Peay, the Company's Chief Financial Officer. "Our updated Same-Store NOI growth guidance at the midpoint would suggest a third consecutive double-digit growth year for AHR. Additionally, we have supplemented that organic growth with accretive acquisitions utilizing capital we have sourced through our equity offering programs at attractive prices. With well over $1 billion available on our existing ATM program we plan to continue to utilize forward sale agreements to the extent that the stock continues to trade well, in addition to using the capacity on our line of credit, thereby de-risking the execution of new investments in our pipeline that we expect to close by the end of the year."
Full Year 2026 Guidance
The Company is increasing NFFO per diluted share and Same-Store NOI growth guidance for the year ending December 31, 2026. The Company's 2026 guidance does not assume any additional transaction or capital markets activity beyond the transactions or activity disclosed herein as completed. Guidance ranges are detailed below:
Full Year 2026 Guidance Metric Midpoint Current FY 2026 Range Prior FY 2026 Range Net income per diluted share $0.54 $0.51 to $0.57 $0.75 to $0.81 NAREIT FFO per diluted share $1.96 $1.93 to $1.99 $1.93 to $1.99 NFFO per diluted share $2.06 $2.03 to $2.09 $1.99 to $2.05 Total Portfolio SS NOI Growth 10.5 % 9.0% to 12.0% 7.0% to 11.0% Segment-Level SS NOI Growth: ISHC 13.0 % 11.0% to 15.0% 8.0% to 12.0% SHOP 17.0 % 15.0% to 19.0% 15.0% to 19.0% Outpatient Medical 1.0 % 0.0% to 2.0% 0.0% to 2.0% Triple-Net Leased Properties 2.5 % 2.0% to 3.0% 2.0% to 3.0%
Certain of the assumptions underlying the Company's 2026 guidance can be found within the Non-GAAP reconciliations in this earnings release and in the appendix of the Company's First Quarter 2026 Supplemental Financial Information ("Supplemental"). A reconciliation of net income (loss) calculated in accordance with GAAP to NAREIT FFO and NFFO can be found within the Non-GAAP reconciliations in this earnings release. Non-GAAP financial measures and other terms, as used in this earnings release, are also defined and further explained in the Supplemental. The Company is unable to provide, without unreasonable effort, guidance for the most comparable GAAP financial measures of total revenues and property operating and maintenance expenses. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Same-Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net gain or loss on sale of real estate assets, stock-based compensation, casualty loss, non-Same-Store revenue and non-Same-Store operating expenses. These items are uncertain, depend on various factors and could have a material impact on the Company's GAAP results for the guidance period.
Distributions
As previously announced, the Company's Board of Directors declared a cash distribution for the quarter ended March 31, 2026 of $0.25 per share of its common stock. The first quarter distribution was paid in cash on April 17, 2026, to stockholders of record as of March 31, 2026.
Supplemental Information
The Company has disclosed supplemental information regarding its portfolio, financial position and results of operations as of, and for the three months ended, March 31, 2026, and certain other information, which is available on the Investor Relations section of the Company's website at https://ir.americanhealthcarereit.com.
Conference Call and Webcast Information
The Company will host a webcast and conference call at 1:00 p.m. Eastern Time on May 8, 2026. During the conference call, Company executives will review first quarter 2026 results, discuss recent events and conduct a question-and-answer period.
To join via webcast, investors may use the following link: https://events.q4inc.com/attendee/173789053.
To join the live telephone conference call, please dial one of the following numbers at least five minutes prior to the start time:
United States (Local): +1 585 542 9983
United States (Toll-Free): +1 833 461 5787
International Dial-Ins: https://help.events.q4inc.com/eahc/international-dial-in-numbers
Meeting ID: 173789053
A digital replay of the call will be available on the Investor Relations section of the Company's website at https://ir.americanhealthcarereit.com shortly after the conclusion of the call.
Forward-Looking Statements
Certain statements contained in this press release, including statements relating to the Company's expectations regarding its performance, interest expense savings, balance sheet, net income or loss attributable to common stockholders and per diluted share, NAREIT FFO attributable to common stockholders and per diluted share, NFFO attributable to common stockholders and per diluted share, total portfolio Same-Store NOI growth, segment-level Same-Store NOI growth, occupancy, NOI growth, revenue growth, purchases and sales of assets, development plans, and the settlement of forward sale agreements may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "can," "expect," "intend," "anticipate," "estimate," "believe," "continue," "possible," "initiatives," "focus," "seek," "objective," "goal," "strategy," "plan," "potential," "potentially," "preparing," "projected," "future," "long-term," "once," "should," "could," "would," "might," "uncertainty" or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, and beliefs of, and assumptions made by, the Company's management and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied therein, including, without limitation, changing macroeconomic conditions, domestic legal and fiscal policies, and geopolitical conditions and other risks disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 27, 2026, and subsequent periodic reports filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.
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, Net Debt-to-Annualized Adjusted EBITDA, NAREIT FFO, NFFO, NOI and Same-Store NOI. The Company believes these non-GAAP financial measures are useful supplemental measures of its operating performance and used by investors and analysts to compare the operating performance of the Company between periods and to other REITs or companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items. Definitions of the non-GAAP financial measures used herein and reconciliations to the most directly comparable financial measure calculated in accordance with GAAP can be found at the end of this earnings release. See below and "Definitions" for further information regarding the Company's non-GAAP financial measures.
EBITDA and Adjusted EBITDA
Management uses earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to facilitate internal and external comparisons to our historical operating results and in making operating decisions. EBITDA and Adjusted EBITDA are widely used by investors, lenders, credit and equity analysts in the valuation, comparison, and investment recommendations of companies. Additionally, EBITDA and Adjusted EBITDA are utilized by our Board of Directors to evaluate management. Neither EBITDA nor Adjusted EBITDA represents net income (loss) or cash flows provided by operating activities as determined in accordance with GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the EBITDA and Adjusted EBITDA may not be comparable to similarly entitled items reported by other REITs or other companies. In addition, management uses Net Debt-to-Annualized Adjusted EBITDA as a measure of our ability to service our debt.
NAREIT Funds from Operations (FFO) and Normalized Funds from Operations (NFFO)
We believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization and impairments, provides a further understanding of our operating performance to investors, industry analysts and our management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and interest costs, which may not be immediately apparent from net income (loss) as determined in accordance with GAAP. However, FFO and NFFO should not be construed to be (i) more relevant or accurate than the current GAAP methodology in calculating net income (loss) as an indicator of our operating performance, (ii) more relevant or accurate than GAAP cash flows from operations as an indicator of our liquidity or (iii) indicative of funds available to fund our cash needs, including our ability to make distributions to our stockholders. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and NFFO measures and the adjustments to GAAP in calculating FFO and NFFO. Presentation of this information is intended to provide useful information to investors, industry analysts and management as they compare the operating performance metrics used by the REIT industry, although it should be noted that some REITs may use different methods of calculating funds from operations and normalized funds from operations, so comparisons with such REITs may not be meaningful.
Net Operating Income (NOI)
We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are appropriate supplemental performance measures to reflect the performance of our operating assets because NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI exclude certain items that are not associated with the operations of the properties. We believe that NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are widely accepted measures of comparative operating performance in the real estate community and are useful to investors in understanding the profitability and operating performance of our property portfolio. However, our use of the terms NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing these amounts.
NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI are not equivalent to our net income (loss) as determined under GAAP and may not be a useful measure in measuring operational income or cash flows. Furthermore, NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should not be considered as alternatives to net income (loss) as an indication of our operating performance or as an alternative to cash flows from operations as an indication of our liquidity. NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should not be construed to be more relevant or accurate than the GAAP methodology in calculating net income (loss). NOI, Cash NOI, Pro-Rata Cash NOI and Same-Store NOI should be reviewed in conjunction with other measurements as an indication of our performance.
About American Healthcare REIT, Inc.
American Healthcare REIT, Inc. (NYSE: AHR) is a real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate, focusing primarily on senior housing communities, skilled nursing facilities, and outpatient medical buildings across the United States, and in the United Kingdom and the Isle of Man.
AMERICAN HEALTHCARE REIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2026 and 2025
(In thousands, except share and per share amounts) (Unaudited) March 31,
2026 December 31,
2025 ASSETS Real estate investments, net $ 4,319,911 $ 4,183,419 Debt security investment, net 92,304 92,136 Cash and cash equivalents 119,380 114,836 Restricted cash 37,504 36,917 Accounts and other receivables, net 241,594 204,313 Identified intangible assets, net 250,424 253,236 Goodwill 234,942 234,942 Operating lease right-of-use assets, net 130,405 135,399 Other assets, net 172,194 171,028 Total assets $ 5,598,658 $ 5,426,226 LIABILITIES AND EQUITY Liabilities: Mortgage loans payable, net $ 962,375 $ 966,925 Lines of credit and term loan, net 549,818 549,761 Accounts payable and accrued liabilities 340,265 317,742 Identified intangible liabilities, net 1,978 2,110 Financing obligations 33,675 33,902 Operating lease liabilities 130,806 135,603 Security deposits, prepaid rent and other liabilities 58,386 59,568 Total liabilities 2,077,303 2,065,611 Commitments and contingencies Equity: Stockholders' equity: Preferred stock, $0.01 par value per share; 200,000,000 shares authorized;
none issued and outstanding — — Common stock, $0.01 par value per share; 700,000,000 shares authorized;
189,942,357 and 185,911,442 shares issued and outstanding as of
March 31, 2026 and December 31, 2025, respectively 1,894 1,852 Additional paid-in capital 5,065,446 4,880,169 Accumulated deficit (1,583,441) (1,559,279) Accumulated other comprehensive loss (2,224) (2,104) Total stockholders' equity 3,481,675 3,320,638 Noncontrolling interests 39,680 39,977 Total equity 3,521,355 3,360,615 Total liabilities and equity $ 5,598,658 $ 5,426,226
AMERICAN HEALTHCARE REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended March 31, 2026 and 2025
(In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 Revenues: Resident fees and services $ 609,767 $ 497,176 Real estate revenue 41,007 43,427 Total revenues 650,774 540,603 Expenses: Property operating expenses 512,171 432,423 Rental expenses 13,100 13,643 General and administrative 17,605 13,155 Transaction, transition and restructuring costs 1,971 1,837 Depreciation and amortization 67,062 41,114 Total expenses 611,909 502,172 Other income (expense): Interest expense: Interest expense, net (18,796) (22,945) Gain (loss) in fair value of derivative financial instruments 1,527 (750) Loss on dispositions of real estate investments, net — (359) Impairment of real estate investments (418) (21,706) Income (loss) from unconsolidated entities 792 (1,848) Foreign currency (loss) gain (819) 1,416 Other income, net 2,335 1,525 Total net other expense (15,379) (44,667) Income (loss) before income taxes 23,486 (6,236) Income tax benefit (expense) 525 (604) Net income (loss) 24,011 (6,840) Net (income) loss attributable to noncontrolling interests (298) 36 Net income (loss) attributable to controlling interest $ 23,713 $ (6,804) Net income (loss) per common share attributable to controlling interest: Basic $ 0.13 $ (0.04) Diluted $ 0.13 $ (0.04) Weighted average number of common shares outstanding: Basic 187,319,513 156,922,819 Diluted 187,970,438 156,922,819 Net income (loss) $ 24,011 $ (6,840) Other comprehensive (loss) income: Foreign currency translation adjustments (120) 176 Total other comprehensive (loss) income (120) 176 Comprehensive income (loss) 23,891 (6,664) Comprehensive (income) loss attributable to noncontrolling interests (298) 36 Comprehensive income (loss) attributable to controlling interest $ 23,593 $ (6,628)
AMERICAN HEALTHCARE REIT, INC.
NAREIT FFO and Normalized FFO Reconciliation
For the Three Months Ended March 31, 2026 and 2025
(In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 Net income (loss) $ 24,011 $ (6,840) Depreciation and amortization related to real estate — consolidated properties 66,993 41,015 Depreciation and amortization related to real estate — unconsolidated entities 14 497 Impairment of real estate investments — consolidated properties 418 21,706 Loss on dispositions of real estate investments, net — consolidated properties — 359 Net (income) loss attributable to noncontrolling interests (298) 36 Depreciation, amortization, impairments and net loss on dispositions —
noncontrolling interests (784) (892) NAREIT FFO attributable to controlling interest $ 90,354 $ 55,881 Transaction, transition and restructuring costs $ 1,971 $ 1,837 Amortization of above- and below-market leases 330 413 Amortization of closing costs — debt security investment 12 37 Change in deferred rent (582) (672) Non-cash impact of changes to equity instruments 4,858 2,551 Non-cash income tax benefit (724) — Capitalized interest (644) (97) Loss on debt extinguishments — 508 (Gain) loss in fair value of derivative financial instruments (1,527) 750 Foreign currency loss (gain) 819 (1,416) Adjustments for unconsolidated entities (1) — Adjustments for noncontrolling interests (51) (50) Normalized FFO attributable to controlling interest $ 94,815 $ 59,742 NAREIT FFO and Normalized FFO weighted average common
share outstanding — diluted 187,970,438 157,428,446 NAREIT FFO per common share attributable to controlling
interest — diluted $ 0.48 $ 0.35 Normalized FFO per common share attributable to controlling
interest — diluted $ 0.50 $ 0.38
AMERICAN HEALTHCARE REIT, INC.
Adjusted EBITDA Reconciliation
For the Three Months Ended March 31, 2026
(In thousands) (Unaudited) Net income $ 24,011 Interest expense, net (including amortization of deferred financing costs and debt discount/premium) 18,796 Income tax benefit (525) Depreciation and amortization (including amortization of leased assets and
accretion of lease liabilities) 67,506 EBITDA 109,788 Income from unconsolidated entities (792) Straight line rent and amortization of above/below market leases (696) Non-cash impact of changes to equity instruments 4,858 Transaction, transition and restructuring costs 1,971 Amortization of closing costs — debt security investment 12 Foreign currency loss 819 Gain in fair value of derivative financial instruments (1,527) Impairment of real estate investments 418 Adjusted EBITDA $ 114,851
AMERICAN HEALTHCARE REIT, INC.
NOI and Cash NOI Reconciliation
For the Three Months Ended March 31, 2026 and 2025
(In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Net income (loss) $ 24,011 $ (6,840) General and administrative 17,605 13,155 Transaction, transition and restructuring costs 1,971 1,837 Depreciation and amortization 67,062 41,114 Interest expense 18,796 22,945 (Gain) loss in fair value of derivative financial instruments (1,527) 750 Loss on dispositions of real estate investments, net — 359 Impairment of real estate investments 418 21,706 (Income) loss from unconsolidated entities (792) 1,848 Foreign currency loss (gain) 819 (1,416) Other income, net (2,335) (1,525) Income tax (benefit) expense (525) 604 Net operating income 125,503 94,537 Straight l
ine rent
(780) (735) Facility rental expense 6,761 7,499 Other non-cash adjustments 14 202 Cash NOI from dispositions 10 (221) Cash NOI attributable to noncontrolling interests (1) (250) (251) Cash NOI (1) $ 131,258 $ 101,031
(1) All periods are based upon current quarter's ownership percentage.
AMERICAN HEALTHCARE REIT, INC.
Same-Store Revenue Reconciliation
For the Three Months Ended March 31, 2026 and 2025
(In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 ISHC GAAP Revenue $ 502,743 $ 428,692 Cash revenue from dispositions — (1,480) Cash revenue 502,743 427,212 Revenue attributable to new acquisitions/dispositions/other (160,081) (106,563) Revenue attributable to Non-Core Properties (6,554) (6,203) Same-Store revenue $ 336,108 $ 314,446 SHOP GAAP Revenue $ 107,024 $ 68,484 Cash revenue from dispositions — (166) Cash revenue attributable to noncontrolling interests (1) (287) (270) Cash revenue (1) 106,737 68,048 Revenue attributable to new acquisitions/dispositions (34,027) (413) Revenue attributable to development conversion (904) (638) Revenue attributable to Non-Core Properties (607) (589) Same-Store revenue (1) $ 71,199 $ 66,408 Outpatient Medical GAAP Revenue $ 30,842 $ 33,194 Straight line rent (358) (173) Other non-cash adjustments (491) (324) Cash revenue 29,993 32,697 Revenue attributable to dispositions — (2,996) Revenue attributable to Non-Core Properties (1,874) (2,651) Same-Store revenue $ 28,119 $ 27,050 Triple-Net Leased Properties GAAP Revenue $ 10,165 $ 10,233 Straight line rent (422) (562) Other non-cash adjustments 200 225 Cash revenue attributable to noncontrolling interest (1) (194) (190) Cash revenue (1) 9,749 9,706 Debt security investment (1,158) (1,481) Revenue attributable to dispositions — (26) Revenue attributable to Non-Core Properties (159) (156) Other normalizing revenue adjustments (354) (261) Same-Store revenue (1) $ 8,078 $ 7,782
AMERICAN HEALTHCARE REIT, INC.
Same-Store Revenue Reconciliation - (Continued)
For the Three Months Ended March 31, 2026 and 2025
(In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Total Portfolio GAAP Revenue $ 650,774 $ 540,603 Straight line rent (780) (735) Other non-cash adjustments (291) (99) Cash revenue from dispositions — (1,646) Cash revenue attributable to noncontrolling interests (1) (481) (460) Cash revenue (1) 649,222 537,663 Debt security investment (1,158) (1,481) Revenue attributable to new acquisitions/dispositions/other (194,108) (109,998) Revenue attributable to development conversion (904) (638) Revenue attributable to Non-Core Properties (9,194) (9,599) Other normalizing revenue adjustments (354) (261) Same-Store revenue (1) $ 443,504 $ 415,686
(1) All periods are based upon current quarter's ownership percentage.
AMERICAN HEALTHCARE REIT, INC.
Same-Store NOI Reconciliation
For the Three Months Ended March 31, 2026 and 2025
(In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 ISHC NOI $ 71,759 $ 52,991 Facility rental expense 6,761 7,499 Cash NOI from dispositions — (274) Cash NOI 78,520 60,216 New acquisitions/dispositions/other (9,933) (337) Non-Core Properties (912) (770) Same-Store NOI $ 67,675 $ 59,109 SHOP NOI $ 25,837 $ 11,762 Cash NOI from dispositions — 55 Cash NOI attributable to noncontrolling interests (1) (57) (62) Cash NOI (1) 25,780 11,755 New acquisitions/dispositions (11,408) 194 Development conversion 330 360 Non-Core Properties (66) (82) Same-Store NOI (1) $ 14,636 $ 12,227 Outpatient Medical NOI $ 18,718 $ 20,509 Straight line rent (358) (173) Other non-cash adjustments (203) (41) Cash NOI from dispositions 10 (2) Cash NOI 18,167 20,293 Dispositions — (1,585) Non-Core Properties (918) (1,727) Same-Store NOI $ 17,249 $ 16,981 Triple-Net Leased Properties NOI $ 9,189 $ 9,275 Straight line rent (422) (562) Other non-cash adjustments 217 243 Cash NOI attributable to noncontrolling interest (1) (193) (189) Cash NOI (1) 8,791 8,767 Debt security investment (1,158) (1,481) Dispositions — 12 Non-Core Properties (159) (155) Same-Store NOI (1) $ 7,474 $ 7,143
AMERICAN HEALTHCARE REIT, INC.
Same-Store NOI Reconciliation - (Continued)
For the Three Months Ended March 31, 2026 and 2025
(In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Total Portfolio NOI $ 125,503 $ 94,537 Straight line rent (780) (735) Facility rental expense 6,761 7,499 Other non-cash adjustments 14 202 Cash NOI from dispositions 10 (221) Cash NOI attributable to noncontrolling interests (1) (250) (251) Cash NOI (1) 131,258 101,031 Debt security investment (1,158) (1,481) New acquisitions/dispositions/other (21,341) (1,716) Development conversion 330 360 Non-Core Properties (2,055) (2,734) Same-Store NOI (1) $ 107,034 $ 95,460
(1) All periods are based upon current quarter's ownership percentage.
AMERICAN HEALTHCARE REIT, INC.
Earnings Guidance Reconciliation
For the Year Ending December 31, 2026
(Dollars and shares in millions, except per share amounts) (Unaudited) Full Year
2026 Guidance Prior Full Year
2026 Guidance Low High Low High Net income attributable to common stockholders $97.80 $109.08 $142.40 $153.49 Depreciation and amortization (1) 271.00 271.00 225.90 225.90 Impairment of real estate investments (1) 0.40 0.40 — — NAREIT FFO attributable to common stockholders $369.20 $380.48 $368.30 $379.39 Amortization of other intangible assets/liabilities (1) 1.30 1.30 1.30 1.30 Change in deferred rent (1) (2.30) (2.30) (2.90) (2.90) Non-cash impact of changes to equity plan (1) (2) 20.00 20.00 15.40 15.40 Other adjustments (1) (3) (0.01) (0.01) (2.20) (2.20) Normalized FFO attributable to common stockholders $388.19 $399.47 $379.90 $390.99 Net income per common share — diluted $0.51 $0.57 $0.75 $0.81 NAREIT FFO per common share — diluted $1.93 $1.99 $1.93 $1.99 Normalized FFO per common share — diluted $2.03 $2.09 $1.99 $2.05 NAREIT FFO and Normalized FFO weighted average
shares — diluted 191.1 191.1 190.6 190.6 Total Portfolio Same-Store NOI growth 9.0 % 12.0 % 7.0 % 11.0 % Segment-Level Same-Store NOI growth: ISHC 11.0 % 15.0 % 8.0 % 12.0 % SHOP 15.0 % 19.0 % 15.0 % 19.0 % Outpatient Medical 0.0 % 2.0 % 0.0 % 2.0 % Triple-Net Leased Properties 2.0 % 3.0 % 2.0 % 3.0 %
(1) Amounts presented net of noncontrolling interests' share and AHR's share of unconsolidated entities. (2) Amounts represent amortization of equity compensation and fair value adjustments to performance-based equity compensation. (3) Includes adjustments for capitalized interest, transaction, transition and restructuring costs, and additional items as noted in the Company's definition of Normalized FFO.
Definitions
Adjusted EBITDA: EBITDA excluding the impact of income or loss from unconsolidated entities, straight line rent and amortization of above/below market leases, non-cash impact of changes to equity instruments, transaction, transition and restructuring costs, gain or loss on sales of real estate investments, amortization of closing costs for debt security instrument, unrealized foreign currency gain or loss, change in fair value of derivative financial instruments, impairments of real estate investments, impairments of intangible assets and goodwill, and non-recurring one-time items.
Annualized Adjusted EBITDA: Current period (shown as quarterly) Adjusted EBITDA multiplied by 4.
ATM Program: At-the-market equity offering program.
Cash NOI: NOI excluding the impact of, without duplication, (1) non-cash items such as straight-line rent and the amortization of lease intangibles, (2) third-party facility rent payments and (3) other items set forth in the Cash NOI reconciliation included herein. Both Cash NOI and Same-Store NOI include Pro-Rata ownership and other adjustments.
EBITDA: A non-GAAP financial measure that is defined as earnings before interest, taxes, depreciation and amortization.
GAAP Revenue: Revenue recognized in accordance with Generally Accepted Accounting Principles ("GAAP"), which includes straight line rent and other non-cash adjustments.
ISHC: Integrated senior health campuses include a range of senior care, including independent living, assisted living, memory care, skilled nursing services and certain ancillary businesses. Integrated senior health campuses are operated utilizing a RIDEA structure.
NAREIT FFO or FFO: Funds from operations attributable to controlling interest; a non-GAAP financial measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT (the "White Paper"). The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of certain real estate assets, gains or losses upon consolidation of a previously held equity interest, and impairment write-downs of certain real estate assets and investments, plus depreciation and amortization related to real estate, after adjustments for unconsolidated partnerships and joint ventures. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that impairments are based on estimated future undiscounted cash flows. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO.
Net Debt: Total Debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash related to debt. For a reconciliation of Net Debt to total debt, refer to the Company's First Quarter 2026 Supplemental Financial Information.
NOI: Net operating income; a non-GAAP financial measure that is defined as net income (loss), computed in accordance with GAAP, generated from properties before general and administrative expenses, transaction, transition and restructuring costs, depreciation and amortization, interest expense, gain or loss in fair value of derivative financial instruments, gain or loss on dispositions, impairments of real estate investments, impairments of intangible assets and goodwill, income or loss from unconsolidated entities, gain on re-measurement of previously held equity interest, foreign currency gain or loss, other income or expense and income tax benefit or expense.
Non-Core Properties: Assets that have been deemed not essential to generating future economic benefit or value to our day-to-day operations and/or are projected to be sold.
Normalized FFO or NFFO: FFO further adjusted for the following items included in the determination of GAAP net income (loss): transaction, transition and restructuring costs; amounts relating to changes in deferred rent and amortization of above and below-market leases (which are adjusted in order to reflect such payments from a GAAP accrual basis); the non-cash impact of changes to our equity instruments; non-cash or non-recurring income or expense; the noncash effect of income tax benefits or expenses; capitalized interest; impairments of intangible assets and goodwill; amortization of closing costs on debt investments; mark-to-market adjustments included in net income (loss); gains or losses included in net income (loss) from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan; and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect Normalized FFO on the same basis.
Occupancy: With respect to OM, the percentage of total rentable square feet leased and occupied, including month-to-month leases, as of the date reported. With respect to all other property types, occupancy represents average quarterly operating occupancy based on the most recent quarter of available data. The Company uses unaudited, periodic financial information provided solely by tenants to calculate occupancy and has not independently verified the information.
Outpatient Medical or OM: Outpatient Medical buildings.
Pro-Rata: As of March 31, 2026, we owned and/or operated six buildings through entities of which we owned between 90.0% and 90.6% of the ownership interests. Because we have a controlling interest in these entities, these entities and the properties these entities own are consolidated in our financial statements in accordance with GAAP. However, while such properties are presented in our financial statements on a consolidated basis, we are only entitled to our Pro-Rata share of the net cash flows generated by such properties. As a result, we have presented certain property information herein based on our Pro-Rata ownership interest in these entities and the properties these entities own, as of the applicable date, and not on a consolidated basis. In such instances, information is noted as being presented on a "Pro-Rata share" basis.
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") to operate such properties for a fee. Under this structure, the EIK receives management fees, and the TRS receives revenue from the operation of the healthcare real estate properties and retains, as profit, any revenue remaining after payment of expenses (including intercompany rent paid to us and any taxes at the TRS level) necessary to operate the property. Through the RIDEA structure, in addition to receiving rental revenue from the TRS, we retain any after-tax profit from the operation of the healthcare real estate properties and benefit from any improved operational performance while bearing the risk of any decline in operating performance at the properties.
Same-Store or SS: Properties owned or consolidated the full year in both comparison years and that are not otherwise excluded. Properties are excluded from Same-Store if they are: (1) sold, classified as held for sale or properties whose operations were classified as discontinued operations in accordance with GAAP; (2) impacted by materially disruptive events, such as flood or fire for an extensive period of time; or (3) scheduled to undergo or currently undergoing major expansions/renovations or business model transitions or have transitioned business models after the start of the prior comparison period.
Same-Store NOI or SS NOI: Cash NOI for our Same-Store properties. Same-Store NOI is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. Both Cash NOI and Same-Store NOI include ownership and other adjustments.
SHOP: Senior housing operating properties.
Total Debt: The principal balances of the Company's revolving credit facilities, term loan and secured indebtedness as reported in the Company's consolidated financial statements.
Trilogy: Trilogy Investors, LLC; one of our consolidated subsidiaries, in which we indirectly own a 100% interest as of March 31, 2026.
Trilogy Management Services: Trilogy Management Services, LLC, an independent third-party operator that qualifies as an eligible independent contractor and manages all of the Company's integrated senior health campuses.
Triple-Net Leased: A lease where the tenant is responsible for making rent payments, maintaining the leased property, and paying property taxes and other expenses.
Contact: Alan Peterson
Email: investorrelations@ahcreit.com Cision
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- American Healthcare REIT Announces First Quarter 2026 Results; Increases Full Year 2026 Guidance
May 7, 2026 · prnewswire.com
IRVINE, Calif., May 7, 2026 /PRNewswire/ -- American Healthcare REIT, Inc. (NYSE: AHR) (the "Company," "we," "our," or "AHR") is announcing today its first quarter 2026 results and increasing full year 2026 guidance.
- AMERICAN HEALTHCARE REIT ANNOUNCES FIRST QUARTER 2026 RESULTS; INCREASES FULL YEAR 2026 GUIDANCE
May 7, 2026
IRVINE, CALIF., MAY 7, 2026 /PRNEWSWIRE/ -- AMERICAN HEALTHCARE REIT, INC. (NYSE: AHR) (THE "COMPANY," "WE," "OUR," OR "AHR") IS ANNOUNCING TODAY ITS FIRST QUARTER 2026 RESULTS AND INCREASING FULL YEAR 2026 GUIDANCE.
- Stocks Steady Before the Open as Investors Await U.S.-Iran Updates; Earnings and Economic Data on Tap
May 7, 2026
June S&P 500 E-Mini futures (ESM26) are up +0.03%, andJune Nasdaq 100 E-Mini futures (NQM26) are down -0.01% this morning as investors await the outcome of diplomatic efforts aimed at ending the Iran war.
The U.S. is awaiting Iran’s response to its proposal to reopen the Strait of Hormuz and end the war. Bloomberg reported on Wednesday that Washington has conveyed a one-page memorandum to the Islamic Republic that would gradually reopen the waterway and remove the American blockade on Iranian ports. Iran is expected to deliver its response through Pakistan in the coming days, the report said. Meanwhile, an Israeli strike on Lebanon’s capital on Wednesday underscored how tensions remain high.
More News from Barchart
Dear Apple Stock Fans, Mark Your Calendars for May 11 Nasdaq Futures Rally on Upbeat AMD Earnings and U.S.-Iran Peace Deal Optimism Stock Surge on Robust Tech Earnings and US-Iran Peace Hopes Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.
The price of WTI crude fell over -2% on Thursday after Saudi news outlet Al Arabiya reported that negotiations to gradually reopen the Strait are underway and that a breakthrough could come in the coming hours. The 10-year T-note yield fell one basis point to 4.34% as inflation expectations eased.
Market participants are also awaiting a new round of U.S. economic data and corporate earnings reports, along with comments from Federal Reserve officials.
In yesterday’s trading session, Wall Street’s three main equity benchmarks ended in the green, with the S&P 500 and Nasdaq 100 posting new all-time highs. Super Micro Computer (SMCI) jumped over +24% and was the top percentage gainer on the S&P 500 after the AI server maker reported better-than-expected FQ3 adjusted EPS and provided solid FQ4 guidance. Also, Advanced Micro Devices (AMD) surged more than +18% and was the top percentage gainer on the Nasdaq 100 after the chipmaker posted upbeat Q1 results and delivered a blockbuster Q2 sales forecast. In addition, DaVita (DVA) popped over +23% after the kidney dialysis company reported stronger-than-expected Q1 results and raised its full-year guidance. On the bearish side, CDW Corp. (CDW) cratered more than -20% and was the top percentage loser on the S&P 500 after the company posted weaker-than-expected Q1 adjusted EPS.
The ADP National Employment report released on Wednesday showed that U.S. private nonfarm payrolls rose by 109K in April, slightly weaker than expectations of 118K.
Story Continues
“The labor market has been on a solid but precarious footing for some time, not exactly growing but also not significantly deteriorating,” said Elizabeth Renter, senior economist at NerdWallet.
St. Louis Fed President Alberto Musalem said on Wednesday that there is considerable uncertainty over the future path of the economy and monetary policy, but he sees risks tilting more toward inflation than toward employment. “Inflation is running meaningfully above our target of 2%,” Musalem said. Separately, Chicago Fed President Austan Goolsbee cautioned against reflexively cutting interest rates in response to stronger productivity growth, noting that such a trend can sometimes fuel inflation.
Meanwhile, U.S. rate futures have priced in a 94.2% probability of no rate change and a 5.8% chance of a 25 basis point rate cut at the conclusion of the Fed’s June meeting.
First-quarter corporate earnings season continues, with notable companies such as McDonald’s (MCD), Gilead Sciences (GILD), Cloudflare (NET), Airbnb (ABNB), Monster Beverage (MNST), and CoreWeave (CRWV) slated to release their quarterly results today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +12% increase in quarterly earnings for Q1 compared to the previous year, marking the sixth consecutive quarter of double-digit growth.
On the economic data front, investors will focus on U.S. Initial Jobless Claims data, set to be released in a couple of hours. Economists expect this figure to be 205K, compared to last week’s number of 189K.
U.S. Unit Labor Costs and Nonfarm Productivity preliminary data will also be closely watched today. Economists forecast Q1 Unit Labor Costs to rise +2.6% q/q and Nonfarm Productivity to rise +0.7% q/q, compared to the fourth-quarter numbers of +4.4% q/q and +1.8% q/q, respectively.
The U.S. Construction Spending report for March will come in today. Notably, the release will also incorporate the February figures. Economists expect construction spending to rise +0.3% m/m in March.
The Fed’s Consumer Credit report will be released today as well. Economists project the U.S. Consumer Credit to be $12.5 billion in March, compared to the previous figure of $9.5 billion.
In addition, market participants will hear perspectives from Minneapolis Fed President Neel Kashkari, Cleveland Fed President Beth Hammack, and New York Fed President John Williams throughout the day.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.34%, down -0.28%.
The Euro Stoxx 50 Index is up +0.05% this morning as investors await updates on a potential U.S.-Iran peace agreement and digest a wave of corporate earnings reports. U.S. President Donald Trump said on Wednesday that the Iran war has “a very good chance of ending” and that it’s “possible” it could end before his trip to Beijing next week, according to an interview with PBS News Hour. Luxury, travel, and automobile stocks led the gains on Thursday. At the same time, food and beverage stocks slumped, weighed down by a more than -12% plunge in Campari (CPR.M.DX) after the spirits group reported weaker-than-expected Q1 revenue. Utility stocks also sank. Data from Eurostat released on Thursday showed that Eurozone monthly retail sales declined in March, with weakening consumer sentiment tied to the Middle East conflict suggesting demand could soften further in the months ahead. Separately, data showed that Germany’s monthly factory orders jumped in March, signaling possible front-loading of orders to manage rising energy prices and supply disruptions that followed the start of the Middle East conflict. Meanwhile, Norway’s central bank unexpectedly raised its policy rate by 25 basis points to 4.25% on Thursday to curb inflation pressures fueled by robust wage growth and high energy costs. “Inflation is too high and has run above target for several years,” said Norges Governor Ida Wolden Bache in a statement. Sweden’s central bank kept its key policy rate unchanged at 1.75%, as expected, but said it remains vigilant and is ready to act swiftly if the Middle East conflict pushes inflation higher or weighs on economic growth. European Central Bank Governing Council member Francois Villeroy de Galhau said on Thursday that the ECB cannot commit to raising its key rate at its June meeting, and that its decisions will instead be guided by evidence of shifts in the economy. In other corporate news, Shell (SHEL.LN) fell over -2% after the oil major reported solid Q1 profit but cautioned about reduced gas production due to the Middle East conflict and launched a smaller buyback than in prior quarters. At the same time, Zealand Pharma (ZEAL.C.DX) surged more than +16% after reporting better-than-expected Q1 results.
Germany’s Factory Orders and Eurozone’s Retail Sales data were released today.
The German March Factory Orders rose +5.0% m/m, stronger than expectations of +1.0% m/m.
Eurozone’s March Retail Sales fell -0.1% m/m and rose +1.2% y/y, stronger than expectations of -0.3% m/m and +1.0% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.48%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +5.58%.
China’s Shanghai Composite Index closed higher today amid optimism that the U.S. and Iran were close to reaching a deal to end their conflict. 5G communication stocks outperformed on Thursday. Liquor stocks also advanced. Limiting gains, energy stocks sank as oil prices dropped for a third straight day. The Wall Street Journal reported that the U.S. and Iran are working with mediators on a framework to resume negotiations that could end the conflict and reopen the Strait of Hormuz. Lloyd Chan, senior currency analyst at MUFG, said, “Signs continue to point to limited appetite for further escalation in the Middle East.” Meanwhile, China’s tourism sector recorded an increase in trips during the Labor Day holidays, although official data released the day after the five-day break did not include spending figures that typically provide a fuller picture of consumption over the period. In other news, The Wall Street Journal reported on Wednesday that Washington and Beijing are considering the launch of formal talks on AI. Market watchers are closely monitoring U.S.-China developments as U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping next week during his first visit to China in eight years. In corporate news, BeOne Medicines gained over +3% after the drugmaker reported a jump in its Q1 earnings.
Japan’s Nikkei 225 Stock Index closed sharply higher today as markets reopened after a holiday break, with investors playing catch-up to a global equities rally fueled by robust technology earnings and signs of a potential peace agreement in the Middle East. Oil prices held their previous session’s losses on speculation that a U.S.-Iran agreement would help restore oil shipments through the vital Strait of Hormuz. Takashi Ito, senior strategist at Nomura Securities, said, “Lower oil prices are significant for companies, as even a modest easing of inflation can provide meaningful relief.” Technology stocks led the gains on Thursday, with SoftBank Group jumping over +18% on renewed confidence in the AI trade. Mining, industrial, and financial stocks also climbed. The benchmark index closed above the 62,000 mark for the first time. It also posted its largest daily percentage gain since April 2025. Meanwhile, minutes of the Bank of Japan’s March meeting released on Thursday showed that many board members believed interest rates may need to be raised if the energy shock driven by the Iran war persists and triggers concerns about second-round effects on broader inflation. One member said the BOJ should raise rates “without long intervals,” while another stated the central bank would need to tighten “without hesitation” if the economy showed no signs of weakening from the conflict. Elsewhere, Japan’s top currency diplomat, Atsushi Mimura, said on Thursday that the country faces no limits on how frequently it can intervene in currency markets and remains in daily contact with U.S. authorities, underscoring Tokyo’s readiness to step in to support the yen. In corporate news, TOTO Ltd. rose over +4% as investors continued to pour into the stock, reassessing the toilet maker as a stealth AI play given its critical role in the semiconductor supply chain. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -5.40% to 37.64.
Pre-Market U.S. Stock Movers
Fortinet (FTNT) surged more than +15% in pre-market trading after the cybersecurity vendor posted upbeat Q1 results and raised its full-year revenue guidance.
DoorDash (DASH) climbed about +10% in pre-market trading after the food-delivery app reported better-than-expected Q1 EPS.
AppLovin (APP) rose more than +3% in pre-market trading after the mobile advertising platform reported stronger-than-expected Q1 results and issued above-consensus Q2 revenue guidance.
Arm Holdings (ARM) slumped over -6% in pre-market trading after CEO Rene Haas cautioned about weakness in the smartphone industry, denting a vital source of the company’s revenue.
Fastly (FSLY) plummeted more than -21% in pre-market trading despite the cloud computing company posting strong Q1 results and raising its full-year guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - May 7th
McDonald’s (MCD), Gilead Sciences (GILD), Howmet Aerospace (HWM), McKesson (MCK), Cloudflare (NET), Airbnb (ABNB), Monster Beverage (MNST), CoreWeave (CRWV), Motorola Solutions (MSI), Republic Services (RSG), Ubiquiti (UI), Sempra (SRE), Wheaton Precious Metals (WPM), W.W. Grainger (GWW), Microchip Technology (MCHP), Cheniere Energy (LNG), Vistra (VST), Targa Resources (TRGP), Coinbase Global (COIN), Datadog (DDOG), Zoetis (ZTS), Rocket Lab (RKLB), Rocket Companies (RKT), Block (XYZ), Becton, Dickinson and Company (BDX), Consolidated Edison (ED), Kenvue (KVUE), Cheniere Energy Partners (CQP), Natera (NTRA), Insmed (INSM), Tapestry (TPR), Expedia Group (EXPE), Mettler-Toledo International (MTD), MACOM Technology Solutions Holdings (MTSI), Formula One Group (FWONA), Formula One Group (FWONK), Affirm Holdings (AFRM), US Foods Holding (USFD), Corpay (CPAY), Evergy (EVRG), Viatris (VTRS), The Carlyle Group (CG), Akamai Technologies (AKAM), Toast (TOST), Warner Music Group (WMG), News Corporation (NWS), News Corporation (NWSA), Lamar Advertising Company (LAMR), Reinsurance Group of America (RGA), Applied Optoelectronics (AAOI), BridgeBio Pharma (BBIO), MP Materials (MP), Globus Medical (GMED), HubSpot (HUBS), DraftKings (DKNG), Guardant Health (GH), Gen Digital (GEN), Unity Software (U), The Trade Desk (TTD), Wynn Resorts (WYNN), Arrowhead Pharmaceuticals (ARWR), Essential Utilities (WTRG), Texas Roadhouse (TXRH), Bentley Systems (BSY), Arrow Electronics (ARW), American Healthcare REIT (AHR), Allegro MicroSystems (ALGM), Charles River Laboratories International (CRL), CareTrust REIT (CTRE), StandardAero (SARO), ESCO Technologies (ESE), Celsius Holdings (CELH), Vaxcyte (PCVX), Installed Building Products (IBP), Lincoln National (LNC), Clearwater Analytics Holdings (CWAN), Primo Brands (PRMB), GATX Corporation (GATX), The Middleby Corporation (MIDD), JFrog (FROG), Clearway Energy (CWEN), ESAB Corporation (ESAB), USA Rare Earth (USAR), Century Aluminum Company (CENX), Nexstar Media Group (NXST), Dropbox (DBX), Loar Holdings (LOAR), Genpact (G), EPAM Systems (EPAM), Blackstone Secured Lending Fund (BXSL), Scholar Rock Holding (SRRK), Xenon Pharmaceuticals (XENE), OUTFRONT Media (OUT), Paylocity Holding (PCTY), HA Sustainable Infrastructure Capital (HASI), Lantheus Holdings (LNTH), PTC Therapeutics (PTCT), Lyft, Inc. (LYFT), Teleflex (TFX), Diodes (DIOD), MarketAxess Holdings (MKTX), Opendoor Technologies (OPEN), BGC Group (BGC), Planet Fitness (PLNT), Main Street Capital (MAIN), Nelnet (NNI), Vontier (VNT), Axcelis Technologies (ACLS), Post Holdings (POST), Fortune Brands Innovations (FBIN), Ligand Pharmaceuticals (LGND), MDU Resources Group (MDU), NuScale Power (SMR), Crinetics Pharmaceuticals (CRNX), ACI Worldwide (ACIW), Power Integrations (POWI), Griffon (GFF), International Seaways (INSW), WillScot Holdings (WSC), Synaptics (SYNA), Trex Company (TREX), Shake Shack (SHAK), Kontoor Brands (KTB), SoundHound AI (SOUN), RingCentral (RNG).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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