One-glance verdict
Overvalued
$16.58 our estimate vs market $56.02
Wall Street consensus: $63.69 (284.0% higher than our fair-value estimate)
238% above our estimate, beyond the bull case
Fundamentals snapshot
American Healthcare REIT, Inc.
AHR · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$56.02
52-week range
$44.81 - $58.70
Market cap
$12.21B
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, Inc. (AHR) owns and manages buildings where healthcare happens, like places for seniors to live and medical offices. Their main income comes from rent collected from these properties, similar to how a landlord makes money, and this is important because consistent rent payments provide a steady stream of income. They also make money from loans they've made related to healthcare real estate.
How the company got here
American Healthcare REIT, Inc. was formed in October 2021 through the merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, along with the acquisition of American Healthcare Investors. [13] This strategic combination created a larger, more integrated healthcare real estate investment trust (REIT). [2] The company's roots trace back to 2014, with a management team that has experience navigating various market cycles in healthcare real estate. [2] This foundation has allowed the company to build a diverse portfolio focused on properties that cater to an aging population and the delivery of healthcare services. [2]
What it actually does
American Healthcare REIT, Inc. is a self-managed REIT that owns and operates a wide range of clinical healthcare properties. [10] Think of them as a landlord that specializes in buildings where people receive medical care or long-term support. [8] Their properties are located in the United States, the United Kingdom, and the Isle of Man. [10] The company's strategy is to invest in properties that benefit from long-term demographic trends, such as the growing elderly population, and the increasing demand for healthcare services. [6]
Integrated Senior Health Campuses
This segment of American Healthcare REIT focuses on properties that offer a spectrum of senior care services. [3] These campuses often combine independent living, assisted living, and memory care facilities, along with skilled nursing services and other related healthcare offerings. [3] The company partners with operators who provide high-quality care within these communities, aiming to create a positive living environment for residents. [4] This business line is a significant part of the company's strategy, especially given the aging demographic trends. [7]
Senior Housing Operating Properties (SHOP)
In this segment, American Healthcare REIT has a more direct role in the operations of senior housing facilities. [1] This means the company is more closely tied to the day-to-day performance, including occupancy rates (the percentage of available units that are filled) and the revenue generated from resident fees. [1, 8] The SHOP segment has shown strong performance, driven by the recovery from the COVID-19 pandemic and the increasing demand for senior living solutions. [7, 8]
Outpatient Medical (OM)
This part of the business involves owning and leasing medical office buildings and other outpatient facilities. [1] These properties are typically leased to various healthcare providers, such as doctors' offices, clinics, and health systems. [1] The leases provide a more stable and predictable stream of rental income for the REIT. [1] While a core part of their portfolio, the company has been gradually reducing its exposure to this segment. [7]
Triple-Net Leased Properties
In this segment, American Healthcare REIT owns healthcare facilities, including senior housing and skilled nursing facilities, that are leased to third-party operators. [3] The "triple-net" aspect means that the tenant (the operator) is responsible for paying not only the rent but also property taxes, property insurance, and maintenance costs. [3] This structure shifts many of the operating expenses and risks to the tenant, providing a more consistent income stream for the REIT. [1]
What management is betting on now
Management is focused on strengthening the company's financial foundation and improving the performance of its senior housing operations. [1] They are strategically prioritizing investments in senior housing and related assets, aiming to achieve industry-leading results. [6] A key priority is to leverage the operating platform of partners like Trilogy across a wider network of operators, while also accelerating acquisitions and expanding relationships with existing partners. [7] The company is also working to enhance its organizational infrastructure to support future growth. [7]
Price history
How the share price has moved
—
Loading price history…
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
—
Fetching…
Sources
Revenue
$650.77M
Net income
$23.71M
Diluted EPS
0.13
Operating cash flow
$81.07M
Free cash flow
—
Fetching…
Sources
Revenue
$604.08M
Net income
$10.78M
Diluted EPS
0.07
Operating cash flow
$55.16M
Free cash flow
—
Fetching…
Sources
Revenue
$572.94M
Net income
$55.93M
Diluted EPS
0.33
Operating cash flow
$107.19M
Free cash flow
—
Fetching…
Sources
Revenue
$542.50M
Net income
$9.91M
Diluted EPS
0.06
Operating cash flow
$71.47M
Free cash flow
—
Fetching…
Sources
Revenue
$540.60M
Net income
$-6.80M
Diluted EPS
-0.04
Operating cash flow
$60.62M
Free cash flow
—
Fetching…
Sources
Revenue
$496.83M
Net income
$-31.77M
Diluted EPS
-0.23
Operating cash flow
$59.51M
Free cash flow
—
Fetching…
Sources
Revenue
$476.83M
Net income
$-4.13M
Diluted EPS
-0.03
Operating cash flow
$63.13M
Free cash flow
—
Fetching…
Sources
Is it cheap or expensive?
Fair value $16.58 vs current price $56.02
Wall Street consensus is the average analyst price target: $63.69 (284.0% higher than our fair-value estimate).
Our most-likely fair value is $16.58 a share — about 70.4% below today's price of $56.02, 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 $4.02B Interest coverage 3.46x +76% vs AHR Carries about 1.8x more debt cushion than AHR.
Total debt $2.44B 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 $985.09M 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)
83.61x
Forward P/E
56.59x
P/B
2.95x
P/S
4.88x
EV/EBITDA
30.72x
PEG ratio
—
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
0.67
EPS 5Y CAGR
—
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
1.8%
Payout ratio
149.2%
Last ex-div date
2026-09-30