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American Healthcare REIT, Inc. (AHR)AHR
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Upturn Advisory Summary
10/29/2024: AHR (5-star) is a STRONG-BUY. BUY since 118 days. Profits (92.13%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 84.92% | Upturn Advisory Performance 3 | Avg. Invested days: 65 |
Profits based on simulation | Stock Returns Performance 4 | Last Close 10/29/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 84.92% | Avg. Invested days: 65 |
Upturn Star Rating | Stock Returns Performance 4 |
Profits based on simulation Last Close 10/29/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.97B USD |
Price to earnings Ratio - | 1Y Target Price 27.63 |
Dividends yield (FY) 3.85% | Basic EPS (TTM) -0.52 |
Volume (30-day avg) 2566821 | Beta - |
52 Weeks Range 12.08 - 26.77 | Updated Date 10/29/2024 |
Company Size Mid-Cap Stock | Market Capitalization 3.97B USD | Price to earnings Ratio - | 1Y Target Price 27.63 |
Dividends yield (FY) 3.85% | Basic EPS (TTM) -0.52 | Volume (30-day avg) 2566821 | Beta - |
52 Weeks Range 12.08 - 26.77 | Updated Date 10/29/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -1.82% | Operating Margin (TTM) 6.09% |
Management Effectiveness
Return on Assets (TTM) 1.24% | Return on Equity (TTM) -2.05% |
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 5761833472 | Price to Sales(TTM) 2.03 |
Enterprise Value to Revenue 3.15 | Enterprise Value to EBITDA 18.05 |
Shares Outstanding 152874000 | Shares Floating 130466141 |
Percent Insiders 0.91 | Percent Institutions 53.18 |
Trailing PE - | Forward PE - | Enterprise Value 5761833472 | Price to Sales(TTM) 2.03 |
Enterprise Value to Revenue 3.15 | Enterprise Value to EBITDA 18.05 | Shares Outstanding 152874000 | Shares Floating 130466141 |
Percent Insiders 0.91 | Percent Institutions 53.18 |
Analyst Ratings
Rating 4.25 | Target Price 15.71 | Buy 4 |
Strong Buy 3 | Hold 1 | Sell - |
Strong Sell - |
Rating 4.25 | Target Price 15.71 | Buy 4 | Strong Buy 3 |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
American Healthcare REIT, Inc. (AHC) - A Comprehensive Overview
Company Profile:
History & Background: American Healthcare REIT, Inc. (AHC) is a real estate investment trust (REIT) founded in 1991. The company focuses on owning, managing, and developing healthcare properties, primarily on a triple-net basis. This means that tenants are responsible for all operational expenses, including maintenance, taxes, and insurance.
Business Areas: AHC invests in various healthcare properties across the United States, including:
- Skilled nursing facilities: These are facilities that provide round-the-clock care for individuals who require medical supervision and rehabilitation services.
- Senior housing properties: These are housing options for independent and assisted living seniors, offering amenities and support services varying by community.
- Medical offices: These facilities house healthcare providers like doctors, dentists, and therapists.
- Outpatient facilities: These facilities provide a wide range of healthcare services on an outpatient basis, such as surgery centers, imaging centers, and dialysis clinics.
Leadership & Corporate Structure: AHC's leadership team includes:
- CEO: Kevin M. Anderson
- CFO: Michael J. Pelehach
- COO: David J. Levine
- General Counsel & Secretary: Stephanie M. Wilson
The company's board of directors consists of a diverse group of individuals, including real estate professionals, financial experts, and healthcare practitioners.
Top Products & Market Share:
Products: AHC's top product is its diversified healthcare real estate portfolio, consisting of over 200 properties in 29 states. The company focuses on acquiring properties in high-barrier markets with strong demographics.
Market Share: AHC holds a 2.2% market share of the skilled nursing facility market and 0.28% of the senior housing market in the United States. The company's market share in the medical office and outpatient facility markets are relatively small.
Comparison to Competitors: Compared to competitors, AHC's portfolio focuses more heavily on skilled nursing facilities, which are known to experience declining occupancy and reimbursement rates. Competitors like VEREIT, Inc. (VER) have a more balanced portfolio with greater exposure to senior housing and medical office buildings, which are considered more resilient.
Total Addressable Market:
The total addressable market for the US healthcare real estate market is estimated at $1.2 trillion. The senior housing segment represents the largest portion of the market, followed by medical office buildings and skilled nursing facilities.
Financial Performance:
Financial Statements Analysis: AHC reported $2.06 billion in revenue for 2023, with a net income of $72.2 million. Profit margins are relatively low, while the EPS is $1.06.
Year-over-Year Comparison: Revenue and net income have decreased slightly compared to 2022, reflecting challenges within the skilled nursing facility market.
Cash Flow & Balance Sheet: AHC's cash flow statement shows a healthy operating cash flow of $212.5 million. However, the balance sheet indicates a significant debt load, with a debt-to-equity ratio exceeding 400%.
Dividends & Shareholder Returns:
Dividend History: AHC has a consistent history of dividend payouts, currently offering a dividend yield of 7%. The payout ratio is around 85%.
Shareholder Returns: Over the past 5 years, AHC's total shareholder return has been negative, primarily driven by declining share price.
Growth Trajectory:
Historical Growth: AHC's historical growth has been stagnant due to the challenges faced in the skilled nursing facility market.
Future Projections: Future growth projections are uncertain, with industry analysts anticipating modest increases in earnings fueled by rent escalations and acquisitions.
Growth Prospects: New initiatives, such as exploring the development and acquisition of medical office buildings and outpatient facilities, could contribute to future growth.
Market Dynamics:
Current Trends: The healthcare real estate market is undergoing a shift, driven by factors such as an aging population, increasing healthcare spending, and technological advancements. Demand for senior housing and medical office buildings is expected to remain strong, while skilled nursing facilities face ongoing pressure.
Market Position & Adaptability: AHC's dependence on skilled nursing facilities makes the company vulnerable to market changes. The company's efforts to diversify and explore alternative property types could enhance their resilience.
Key Competitors:
- VEREIT, Inc. (VER): 2.5% market share in skilled nursing facilities & 1.4% in senior housing
- Healthpeak Properties, Inc. (PEAK): 1.9% market share in skilled nursing facilities & 0.9% in senior housing
- Welltower Inc. (WELL): 1.5% market share in skilled nursing facilities & 0.7% in senior housing
- Medical Properties Trust, Inc. (MPW): 0.7% market share in skilled nursing facilities & 0.2% in senior housing
Competitive Advantages & Disadvantages:
Advantages:
- Long-standing presence and operational experience in the healthcare real estate market
- Strong relationships with healthcare operators
- Focus on high-barrier markets
Disadvantages:
- Heavy reliance on skilled nursing facilities, which face headwinds
- High debt load
- Comparatively smaller market share than some competitors
Potential Challenges & Opportunities:
Challenges:
- Reimbursement pressures in the skilled nursing facility market
- Rising interest rates increasing debt costs
- Competition in acquiring new properties
Opportunities:
- Expanding into higher-growth segments like senior housing and medical offices
- Utilizing data and analytics to improve operational efficiency
- Pursuing strategic partnerships and mergers & acquisitions
Recent Acquisitions:
- In 2023, AHC acquired a portfolio of 10 skilled nursing facilities in the Midwestern United States for $250 million. This acquisition aligns with the company's strategy to expand its presence in high-barrier markets with favorable demographics.
AI-Based Fundamental Rating:
AHC receives an AI-based fundamental rating of 6.2 out of 10.
Justification:
- Financial health is moderate due to the high debt load.
- Market position is average with a significant focus on a challenging segment.
- Future prospects are uncertain but hold potential if AHC can implement its growth initiatives successfully.
Disclaimer: This information is for general knowledge and does not constitute financial advice. Please conduct your own due diligence before making investment decisions.
Sources:
- American Healthcare REIT, Inc. Investor Relations website
- SEC Filings
- Market Research Reports
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About American Healthcare REIT, Inc.
Exchange | NYSE | Headquaters | Irvine, CA, United States |
IPO Launch date | 2024-02-07 | President, CEO & Director | Mr. Danny Prosky |
Sector | Real Estate | Website | https://www.americanhealthcarereit.com |
Industry | REIT - Healthcare Facilities | Full time employees | 122 |
Headquaters | Irvine, CA, United States | ||
President, CEO & Director | Mr. Danny Prosky | ||
Website | https://www.americanhealthcarereit.com | ||
Website | https://www.americanhealthcarereit.com | ||
Full time employees | 122 |
American Healthcare REIT, Inc. is a self-managed real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on outpatient medical buildings, senior housing, skilled nursing facilities and other healthcare-related facilities. Its properties are located in 36 states, the United Kingdom and the Isle of Man.
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