American Healthcare REIT's Q2 2025: Unpacking Contradictions in Acquisition Strategy, Occupancy Trends, and NOI Growth

Acquisition pipeline and strategy, occupancy trends and expectations, same-store NOI growth expectations are the key contradictions discussed in American Healthcare REIT's latest 2025Q2 earnings call.



Strong Financial Performance and Earnings Growth:
- American Healthcare REIT reported normalized FFO of $0.42 per fully diluted share for Q2 2025, up 27% year-over-year, indicating strong organic growth.
- This growth was driven by select acquisitions and capital markets initiatives.

occupancy and Revenue Growth in Operating Portfolio:
- Same-store NOI increased by 13.9% in the second quarter of 2025 compared to the same period in 2024, with particularly strong results in Trilogy and SHOP segments.
- This was supported by broad-based improvements in occupancy and rate growth, reflecting an emphasis on high-quality care and employee satisfaction.

Expansion of Medicare Advantage Resident Mix:
- Trilogy's Medicare Advantage enrollees now make up 7.2% of resident days, compared to 5.8% a year ago, reflecting an increased focus on quality care and improved quality mix.
- This shift is attributed to higher-quality outcomes and effective revenue management strategies, which have led to improvement in payor mix and higher average daily rates.

Capital Allocation and Acquisition Strategy:
- The company closed approximately $174 million in acquisitions since the previous call, with a focus on high-quality long-term care assets under the RIDEA structure.
- This strategy aims to enhance the overall quality of the asset base and align with the favorable operating environment in the healthcare sector.