Strong Buy Rating on American Healthcare REIT: Outperformance and Growth Prospects Amidst Aging Demographic Tailwinds

Bank of America Securities analyst Joshua Dennerlein maintained a Buy rating on American Healthcare REIT, Inc. (AHR – Research Report) today and set a price target of $15.00.

Joshua Dennerlein has given his Buy rating due to a combination of factors, including American Healthcare REIT, Inc.’s performance in its initial earnings release since going public and its growth prospects. The company outperformed expectations with a 25% beat on normalized Funds from Operations (FFO) per share, attributing significant growth to its Senior Housing and Integrated Senior Health Campus (ISHC) portfolios. This resulted in a substantial 9.5% increase in same-store Net Operating Income (NOI), underscoring the company’s robust operational capabilities and promising future within the sector.

Furthermore, the REIT’s conservative guidance for the coming year, with a midpoint normalized FFO per share projection and a total portfolio same-store NOI growth of 5.0-7.0%, reflects a cautious yet optimistic outlook. The previous year’s impressive same-store NOI growth in ISHC and Senior Housing Operating Platform (SHOP) segments, coupled with anticipated occupancy improvements, suggest potential for margin expansion. While acknowledging the potential headwinds for the Medical Office Building (MOB) segment, Dennerlein remains positive on the company’s fundamentals, particularly within the RIDEA segments, which are expected to benefit from an aging American demographic.

Dennerlein covers the Real Estate sector, focusing on stocks such as Welltower, Mid-America Apartment, and Omega Healthcare. According to TipRanks, Dennerlein has an average return of -3.8% and a 40.00% success rate on recommended stocks.

In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $16.00 price target.

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American Healthcare REIT, Inc. (AHR) Company Description:

American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company’s assets having built and nurtured the company’s international portfolio since its original property acquisition in 2014.