American Healthcare REIT stock initiated with Outperform rating at Baird

Published 17/07/2025, 21:56
American Healthcare REIT stock initiated with Outperform rating at Baird

Investing.com - Baird has initiated coverage on American Healthcare REIT , Inc (NYSE:AHR) with an Outperform rating and a price target of $41.00. The stock, currently trading at $37.26 with a market capitalization of $6 billion, has delivered an impressive 136% return over the past year and offers a 2.68% dividend yield. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The research firm views AHR as a strong investment option for gaining exposure to the anticipated multi-year growth in the senior housing-managed sector, noting that over 70% of the company’s net operating income (NOI) comes from SHOP ( Senior Housing (NASDAQ:DHC) Operating Portfolio) and ISHC (Integrated Senior Health Campuses) properties. InvestingPro data shows the company’s revenue growing at 10.53%, with analysts expecting continued profitability this year. Get access to 12 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Baird expects robust organic growth from AHR’s SHOP and ISHC segments, citing higher operating leverage and favorable supply and demand conditions in the market.

The firm also highlighted the Trilogy platform as a positive factor for AHR, stating it provides development opportunities and should drive additional growth for the SHOP segment as best practices are shared across the organization.

American Healthcare REIT operates as a real estate investment trust focused on healthcare properties, with a significant concentration in senior housing facilities.

In other recent news, American Healthcare REIT, Inc. reported a strong financial performance for the first quarter of 2025. The company achieved $540.6 million in revenue and a 26% year-over-year increase in normalized funds from operations (NFFO) per share. This growth was driven by robust results in their Trilogy and SHOP segments. KeyBanc and JMP Securities both raised their price targets for American Healthcare REIT to $40, reflecting optimism about the company’s growth potential and strategic position. Citi also increased its price target from $30 to $37, citing positive demographic trends and demand in the healthcare property sector.

American Healthcare REIT has revised its full-year 2025 guidance upward, with a new NFFO per share range of $1.58 to $1.64. The company’s strategic initiatives, such as issuing accretive equity to reduce debt and acquiring new assets, have contributed to its strong performance. Analysts from KeyBanc anticipate that the company will benefit from improving cost of capital and a growing pipeline of opportunities, leading to further upside in 2025 guidance. Meanwhile, JMP Securities emphasized the company’s exposure to RIDEA assets, which they believe have strong fundamentals.

The company’s management has expressed confidence in navigating higher expenses and inflation, while also highlighting the need for industry expansion to meet demand. American Healthcare REIT is actively pursuing new growth opportunities with existing and potential new operating partners. The company’s recent operator summit focused on sharing best practices and reinforcing its commitment to quality care and resident satisfaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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