American Healthcare REIT Delivers Strong Q4 Results Amid Favorable Long-Term Care Market
At its recent conference call, American Healthcare REIT (AHR) reported a stellar fourth quarter in 2024, with the company's President and CEO, Danny Prosky, proudly declaring that it was one of the most favorable fundamental backdrops for long-term care he had observed during his 33-year career in the healthcare REIT industry.
The growth in demand for senior housing and long-term care services is a trend expected to continue through 2030, with an estimated 700,000 individuals turning 80 or older each year. Meanwhile, the supply of new units has remained relatively flat since 2020, averaging just less than 20,000 per annum.
Commenting on this growth, Danny Prosky noted that he was confident AHR would be able to capture the increasing demand for long-term care services across its portfolio. "We will be able to capture this growing demand wave," he said during the call.
The company's operational results reflected another exceptional period of same-store NOI (net operating income) growth, meaning the rising long-term care needs of an aging population. Its hands-on asset management approach has continued to expand NOI margins, particularly within its managed segments, comprising integrated senior health campuses referred to as Trilogy and SHOP portfolios.
As AHR enters 2025, it expects the rate of revenue growth to continue to exceed the rate of expense growth, positioning the company to build on the impressive same-store NOI growth achieved in 2024. NOI from Trilogy and SHOP segments has grown to 71% of total NOI as of the end of the fourth quarter in 2024, with this share expected to continue growing by year-end, driven by organic earnings growth and strategic investments.
AHR's President and CEO, Danny Prosky, emphasized his pride in delivering on AHR's mission in 2024 – "providing high-quality care, high-quality health outcomes, and strong financial performance across our portfolio." He expressed optimism that the company would continue to deliver on this mission in 2025.
American Healthcare REIT has emerged as a leader in the long-term care market, capitalizing on the growing demand for senior housing services. With its hands-on asset management approach and strategic investments, the company is well-positioned to capture the growth wave and drive success through 2025 and beyond.
