How is AHR funding its large acquisition program?

The company closed acquisitions and investments exceeding $1.4 billion since the beginning of fiscal 2026 after raising approximately $1.5 billion of capital in Q2 and the subsequent period. As of August 7, 2026, unsettled forward sale agreements would provide approximately $631 million upon settlement, and the $800 million revolving credit facility was fully available. The financing helped reduce net debt to earnings before interest, taxes, depreciation, and amortization to 2.5 times from 3 times in the previous quarter. The company also plans to use retained earnings, sales of non-strategic assets, and the at-the-market program when its use is accretive.

What growth runway is available to Trilogy after fiscal Q2 2026?

Trilogy had five new campuses under construction, and AHR targets opening three to five campuses annually with additional expansion projects. The company owns, or has a direct path to owning, excess land at approximately 30 Trilogy communities that allows for the development of villa projects. Management estimated that completing five or six villa projects annually provides a runway exceeding five years of opportunities under its control. Expansion options also include adding wings and standalone Legacy Village memory care communities with approximately 40 units per project.

American Healthcare REIT, Inc.

Factor	Score	Value	Avg	Rank
Valuation	19	77.7x	17.8x	Bottom tier
Growth	88	16.4%	7.1%	Top tier
Quality	42	10.7%	4.5%	Around median
Safety	68	1.9x	2.6x	Top tier
Capital Return	64	1.87%	2.12%	Around median
Momentum	76	27.9%	2.9%	Top tier
Sentiment	44	3	3	Around median

Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 1 analysts setting price target

$64.43

⁦+20.3%⁩

Current Price $53.58·Median $63.00

Low

$61.00

High

$70.00

Current price

$53.58

Average target

$64.43

Street summary

Target price raised while coverage remains limited

Bullish tilt

The consensus target price rose to 64.43 from 60.71 over the last 30 days, an increase of 3.72 or 6.13%, while there was no change over the last 7 days. The current price of 53.77 is below consensus, with a target range between 61 and 70, but the number of analysts is only one, making the consensus signal limited despite the revision trend becoming more positive.

As of 2026-09-09

Revisions momentum · 30d

⁦+6.1%⁩

Average rating

★ 4.40

Buy

Analyst coverage

Buy conviction

100%

High

Rating activity · 30d

0↑ · 0↓

Target dispersion

17%

Analyst ratings over time15 analysts rating

Strong BuyBuyHoldSellStrong Sell

Rating trend — last 12 months4.31 → 4.40

Recent analyst moves

= Reiterate2026-09-02
Scotiabank
Outperform
= Reiterate2026-08-31
Barclays
Overweight
= Reiterate2026-08-19
KeyBanc
Overweight

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Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range

MetricValuePosition within sectorVerdict

P/E (TTM)
77.65x
5.03x40.26x
Expensive
Forward P/E
79.41x
5.89x47.13x
Expensive
EV / EBITDA
18.15x
3.68x29.40x
Near median
FCF Yield
1.7%
-23.1%16.7%
Above average
Revenue Growth YoY
16.4%
-14.0%37.7%
Above average
EPS Growth YoY
387.5%
-121.8%181.8%
Exceptional
Gross Margin
21.2%
-5.0%81.8%
Near median
ROIC
10.7%
-4.2%9.5%
Exceptional
Net Debt / EBITDA
1.95x
1.55x12.39x
Low debt
Dividend Yield
1.9%
0.6%15.6%
Low
Payout Ratio
147.5%
31.2%370.0%
Moderate
Altman Z-Score
3.74
-0.883.10
Exceptional

Financial Analysis

Company Overview

American Healthcare REIT invests in healthcare assets, with a strategic focus on senior housing through its Trilogy portfolio and its SHOP portfolio, which is managed by regional operators. Growth is generated by higher occupancy and rates, an improved payer mix, and tighter expense control at existing communities, in addition to acquiring new communities and developing and expanding Trilogy campuses. The company is also reallocating capital from non-core properties and its outpatient medical portfolio to higher-quality senior housing assets.

In fiscal Q2 2026, revenue was $674.3 million, gross profit was $149.4 million, net income was $30.6 million, and earnings per share were $0.16. This equates to a gross profit margin of approximately 22.2% and a net income margin of approximately 4.5%, compared with revenue of $650.8 million and net income of $23.7 million in fiscal Q1 2026; revenue therefore grew approximately 3.6% sequentially, while net income increased approximately 29.1%. Over the last 12 months, the company recorded revenue of $2.5 billion and net income of $100.3 million, compared with annual revenue of $2.3 billion and net income of $69.8 million in fiscal 2025.

Operating activity drove performance, as same-store portfolio net operating income increased 13.2% year over year in fiscal Q2 2026. Trilogy achieved 16.1% growth in same-store net operating income and a margin of 21.1%, while SHOP achieved 20.5% growth and a margin of 22.3%. By contrast, guidance reflects a clear divergence in the mix: the company targets growth of 18% to 21% for SHOP and 13% to 16% for integrated senior health campuses, compared with only 0% to 1% growth for outpatient medical properties and 2% to 3% for triple-net leased properties.

What's Driving the Stock

The company raised its fiscal 2026 diluted NFFO per-share guidance to a range of $2.15–$2.19 from $2.03–$2.09; the midpoint implies growth of approximately 26% over fiscal 2025, following a 28.6% increase in fiscal Q2 2026 NFFO to $0.54 per share.
Fiscal 2026 same-store portfolio net operating income growth guidance was raised to 11%–13% from 9%–12%, driven by an increase in the SHOP range to 18%–21% and the integrated senior health campuses range to 13%–16%. This guidance does not include awarded transactions that were part of an acquisition pipeline exceeding $800 million as of August 7, 2026.
Closed acquisitions and investments since the beginning of fiscal 2026 exceeded $1.4 billion, including approximately $126.9 million of SHOP investments during Q2, followed after quarter-end by ten SHOP communities for approximately $1 billion and an $86.2 million loan secured by seven properties with options to acquire them. The average year built of the closed assets and those in the transaction pipeline, with a total value of approximately $2.2 billion, was 2019.
Internal performance supports share growth, as Trilogy same-store net operating income increased 16.1% year over year with occupancy of 90.7%, while senior housing occupancy within Trilogy reached 91.9% and increased 200 basis points year over year. Trilogy same-store operating expenses declined 0.9% sequentially, including a 4.6% decrease in controllable costs, lifting the margin 100 basis points sequentially to 21.1%.
Financing capacity improved alongside the expansion; net debt to earnings before interest, taxes, depreciation, and amortization declined to 2.5 times in fiscal Q2 2026, from 3 times in the previous quarter and 3.7 times a year earlier. The company also raised approximately $1.5 billion of capital, and as of August 7, 2026, it had unsettled forward sale agreements that would provide approximately $631 million upon settlement, along with a fully available $800 million revolving credit facility.

Buying & Selling Case

▲ Buying Case4 pts

+AHR combines strong organic growth with expansion funded by a less leveraged balance sheet; same-store net operating income growth reached 13.2%, NFFO per share grew 28.6%, and leverage declined to 2.5 times in fiscal Q2 2026.
+Trilogy and SHOP demonstrate scalable operating strength: same-store net operating income grew 16.1% and 20.5%, respectively, while SHOP's margin expanded by 242 basis points year over year to 22.3%. Trilogy's Medicare Advantage rate also grew approximately 8.4% year over year, reflecting improvements in revenue management and payer mix.
+The transaction pipeline exceeding $800 million as of August 7, 2026, provides a potential source of additional growth not included in the raised guidance. The company says approximately half of its transactions are sourced off-market, while it targets assets with an average year built of 2019, initial yields in the mid-5% to low-6% range, and targeted stabilized yields of 7% or more.
+Trilogy has a multi-year development runway that includes five campuses under construction and approximately 30 communities with owned excess land or a direct path to acquiring it. The company targets opening three to five new campuses annually, in addition to five or six villa projects annually, within an expansion opportunity that management estimates exceeds five years at the current pace.

Valuation

The analyst consensus rates AHR shares a "Buy," with an average target of $63.43 and a target range of $60 to $70; both the average and lowest target are above the 52-week high of $58.7, while the annual range extends down to $40. This reflects expectations of continued rerating alongside NFFO growth and acquisitions, but it increases valuation sensitivity to any failure to meet fiscal 2026 guidance or integrate the large transaction pipeline without pressure on margins and earnings per share.

BuyAnalyst target: $63.43(+18.4%)

Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.

FAQ

What were AHR's key results in fiscal Q2 2026?

Revenue was $674.3 million, gross profit was $149.4 million, net income was $30.6 million, and earnings per share were $0.16. Revenue increased approximately 3.6% sequentially from $650.8 million in fiscal Q1 2026, while net income rose approximately 29.1% from $23.7 million. Diluted NFFO also reached $0.54 per share, up 28.6% from $0.42 a year earlier. The total portfolio achieved 13.2% year-over-year growth in same-store net operating income.

Why did AHR raise its fiscal 2026 guidance?

The company attributed the increase to organic portfolio growth and the contribution of acquisitions closed during the previous four quarters, which together contributed to an approximately 31% year-over-year increase in cash net operating income. It raised its diluted NFFO per-share range to $2.15–$2.19 from $2.03–$2.09, equivalent to approximately 26% growth at the midpoint compared with fiscal 2025. It also raised same-store portfolio net operating income growth to 11%–13% from 9%–12%. As of August 7, 2026, the guidance did not include awarded transactions valued at more than $800 million.

How important are Trilogy and SHOP to American Healthcare REIT's growth?

Trilogy achieved 16.1% year-over-year growth in same-store net operating income during fiscal Q2 2026, with occupancy of 90.7% and a margin of 21.1%. Senior housing occupancy within Trilogy was approximately 91.9%, while the quality mix of resident days reached 75.5%. SHOP increased its same-store net operating income by 20.5% and expanded its margin by 242 basis points year over year to 22.3%. The company relies on Trilogy's revenue management, sales, and analytics tools to support a larger number of SHOP operators.

−The pace of acquisitions increases execution and integration risks; the company has closed more than $1.4 billion of investments since the beginning of fiscal 2026 and had a transaction pipeline exceeding $800 million, while adding new regional operators and expanding its presence in the Northeast and Southeast. Absorbing this volume requires expanding asset management, clinical oversight, underwriting, and technology capabilities without weakening operator selection standards or targeted returns.
−Growth is not evenly distributed across segments; guidance targets only 0% to 1% growth in outpatient medical properties and 2% to 3% in triple-net leased properties, compared with 18%–21% in SHOP. This divergence increases the growth trajectory's dependence on continued exceptional performance in senior housing and Trilogy.
−Occupancy remains exposed to seasonality and the turnover of residents with greater healthcare needs; Trilogy skilled nursing occupancy declined approximately 70 basis points sequentially in fiscal Q2 2026, and total Trilogy occupancy declined approximately 50 basis points. Management also noted that expenses could be affected by utility and weather seasonality in communities heavily concentrated in the Midwest.
−Expansion financing depends partly on equity issuance, as the company raised approximately $1.5 billion of capital in fiscal Q2 2026 and the subsequent period and had unsettled forward sales totaling approximately $631 million. Although this liquidity reduced leverage and funded acquisitions, continued use of the at-the-market program remains a potential source of per-share dilution if the transactions do not generate sufficient accretive growth.
−The range of analyst targets assumes an optimistic valuation; the average target of $63.43 and the lowest target of $60 exceed the high of the 52-week range of $58.7, while the highest target reaches $70. Achieving these valuations requires continued high NFFO growth and execution of the acquisition pipeline without margin deterioration. Insiders also recorded three sales totaling a net $1.5 million during the three months ending with the latest transaction on June 26, 2026, with the caveat that these sales may have been prearranged and are not sufficient on their own to support a negative view.

Company Profile

AHR American Healthcare REIT, Inc.

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