One-glance verdict
Overvalued
$16.58 our estimate vs market $52.30
Wall Street consensus: $64.40 (288.3% higher than our fair-value estimate)
215% above our estimate, beyond the bull case
Fundamentals snapshot
American Healthcare REIT, Inc.
AHR · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$52.30
52-week range
$40.00 - $58.70
Market cap
$11.40B
Balance sheet
Stretched
1.97x Concerning
Net debt $1.41B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.7% last year.
- Reward Returns 4.0% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.6% (peer median: 1.4%).
What this company does
American Healthcare REIT, Inc.
American Healthcare REIT is a company that owns and manages healthcare-related buildings like senior housing and medical clinics, operating as a special type of company called a REIT (a Real Estate Investment Trust, which mainly owns buildings to collect rent). It makes money from the rent and service fees paid by residents and tenants, which matters because an aging population is expected to increase demand for these types of facilities.
How the company got here
American Healthcare REIT (AHR) was formed in 2021 through the merger of two existing real estate companies, Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV. This combination created a much larger company with a diverse portfolio of healthcare-related properties. At the same time, the new company brought its management in-house, meaning it now directly employs the team that runs its operations instead of paying an external firm. A key milestone was reached in February 2024, when AHR had its Initial Public Offering (IPO), listing its shares on the New York Stock Exchange and making them available for the public to buy and sell.
What it actually does
Think of AHR as a specialized landlord for the healthcare industry. The company owns different types of medical buildings and senior living communities in the United States, the United Kingdom, and the Isle of Man. Its main business is to acquire and own these properties, and then either lease them out to healthcare providers or manage the facilities themselves. AHR is structured as a Real Estate Investment Trust (REIT), which is a type of company that owns and often operates income-producing real estate and is required to pay out most of its taxable income to shareholders in the form of dividends (a portion of the company's profits paid out to its owners).
Integrated Senior Health Campuses
This is the company's largest business segment. These are large properties that offer a variety of living options and care levels for seniors, all on one campus. This can include independent living apartments, assisted living for those who need some help with daily activities, and skilled nursing facilities for people requiring more significant medical care. The company makes money from the fees residents pay for housing and services. By having different levels of care in one place, residents can transition to higher levels of care as their needs change without having to move to a new community.
Senior Housing Operating Properties (SHOP)
In this part of the business, AHR has more direct involvement in the day-to-day operations of its senior housing communities. Instead of just collecting rent, the company is exposed to the financial performance of the properties, including how many residents are living there (occupancy) and the rates they pay. This means AHR can earn more when the properties do well, but also takes on more risk if they struggle. This segment is a key focus for the company's growth through acquiring new properties.
Outpatient Medical
This segment consists of medical office buildings and other outpatient facilities. These are the types of buildings where you might go to see your doctor, get physical therapy, or have minor procedures done without being admitted to a hospital. AHR leases this space to various tenants like physician groups and healthcare systems. This provides a steady stream of rental income for the company.
Triple-Net Leased Properties
In a triple-net lease, the tenant, which could be a hospital or a skilled nursing facility operator, is responsible for paying not only the rent but also the three main property expenses: taxes, insurance, and maintenance. This arrangement provides a very predictable and stable income stream for AHR because it has fewer variable costs to manage for these properties. This segment includes a variety of healthcare facilities like senior housing, skilled nursing facilities, and hospitals.
What management is betting on now
The company's leadership is focused on growing its portfolio of senior housing properties, particularly through acquisitions in its Integrated Senior Health Campuses and Senior Housing Operating Properties segments. They believe that the aging population creates a strong and growing demand for these types of facilities. Management is also concentrating on improving the performance of its existing properties by increasing the number of residents and managing costs effectively. Strengthening the company's financial position by managing its debt is another key priority.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$674.25M
Net income
$30.61M
Diluted EPS
0.16
Operating cash flow
$118.62M
Free cash flow
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Sources
Revenue
$650.77M
Net income
$23.71M
Diluted EPS
0.13
Operating cash flow
$81.07M
Free cash flow
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Sources
Revenue
$604.08M
Net income
$10.78M
Diluted EPS
0.07
Operating cash flow
$55.16M
Free cash flow
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Sources
Revenue
$572.94M
Net income
$55.93M
Diluted EPS
0.33
Operating cash flow
$107.19M
Free cash flow
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Sources
Revenue
$542.50M
Net income
$9.91M
Diluted EPS
0.06
Operating cash flow
$71.47M
Free cash flow
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Sources
Revenue
$540.60M
Net income
$-6.80M
Diluted EPS
-0.04
Operating cash flow
$60.62M
Free cash flow
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Sources
Revenue
$496.83M
Net income
$-31.77M
Diluted EPS
-0.23
Operating cash flow
$59.51M
Free cash flow
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Sources
Revenue
$476.83M
Net income
$-4.13M
Diluted EPS
-0.03
Operating cash flow
$63.13M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $16.58 vs current price $52.30
Wall Street consensus is the average analyst price target: $64.40 (288.3% higher than our fair-value estimate).
Our most-likely fair value is $16.58 a share — about 68.3% below today's price of $52.30, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $1.4B. Interest coverage 2.0x.
Net debt
$1.41B
Interest coverage
1.97x
American Healthcare REIT, Inc.'s profit covers its interest bill about 2.0 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
AHR
BASELINE
American Healthcare REIT, Inc.
Total debt $1.57B Interest coverage 1.97x This is the baseline the peer rows are being compared against.
Total debt $4.03B Interest coverage 3.46x +76% vs AHR Carries about 1.8x more debt cushion than AHR.
Total debt $2.63B Interest coverage 2.35x +19% vs AHR Carries about 1.2x more debt cushion than AHR.
Total debt $1.21B Interest coverage 4.91x +149% vs AHR Carries about 2.5x more debt cushion than AHR.
Total debt $1.28B Interest coverage 3.53x +79% vs AHR Carries about 1.8x more debt cushion than AHR.
Total debt $779.49M Interest coverage 3.53x +79% vs AHR Carries about 1.8x more debt cushion than AHR.
What you should know
The case for and against AHR
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.7% last year.
-
Returns 4.0% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 0.6% (peer median: 1.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
76.91x
Forward P/E
52.83x
P/B
2.76x
P/S
4.55x
EV/EBITDA
28.74x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
19.3%
Operating margin
6.8%
Net margin
4.8%
ROE
4.0%
ROA
2.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.42x
Current ratio
1.31x
Quick ratio
1.06x
Total debt
$1.57B
Total cash
$157.85M
Growth
How the business has been compounding
Revenue TTM
$2.50B
Revenue 5Y CAGR
19.1%
EPS TTM
0.68
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$362.04M
Free CF TTM
$165.88M
FCF margin
6.6%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
147.1%
Last ex-div date
2026-06-30