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IRVINE, Calif. - American Healthcare REIT, Inc. (NYSE: AHR), a real estate investment trust specializing in healthcare properties, has initiated a public offering of 14.5 million shares of common stock. The company also plans to provide underwriters a 30-day option to purchase up to an additional 2.175 million shares.
The proceeds from this offering are earmarked for the acquisition of the remaining 24% minority interest in Trilogy Holdings, LLC, currently held by a joint venture partner, and for the repayment of debt under its credit facilities. BofA Securities, Morgan Stanley, and KeyBanc Capital Markets are serving as the joint book-running managers for the transaction.
This offering is being conducted in accordance with a shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Relevant documents, including a preliminary prospectus supplement and accompanying prospectus, will be available from the book-running managers and via the SEC's EDGAR database.
American Healthcare REIT's portfolio includes a variety of healthcare-related properties such as outpatient medical buildings, senior housing, and skilled nursing facilities, with locations across the United States, the United Kingdom, and the Isle of Man.
The company has cautioned that certain statements in the press release could be considered forward-looking and are subject to various risks and uncertainties. These statements are based on management's current expectations and beliefs and are covered by safe harbor provisions for forward-looking statements. The risks associated with these statements have been detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2023, among other filings with the SEC.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
The information provided in this article is based on a press release statement from American Healthcare REIT, Inc.
In other recent news, American Healthcare REIT has been the focus of several key developments. The company provided guidance for a 3.3% increase in 2024 Normalized Funds From Operations (FFO) and a significant rise in same-store net operating income (SSNOI) growth for 2024. Notably, KeyBanc raised its price target for the company to $27.00, up from $16.00, maintaining an Overweight rating.
Truist Securities also adjusted its price target for American Healthcare REIT, first to $22 and then to $17, while maintaining a Buy rating. This adjustment indicates confidence in the company's growth prospects, despite a strong growth profile relative to the stock's valuation.
Furthermore, BofA Securities revised its price target for the company, raising it from $19 to $27, maintaining a Buy rating. This follows recent management meetings which provided BofA Securities with a deeper understanding of the company's growth potential.
American Healthcare REIT's SSNOI growth is tracking ahead of expectations, which could lead to an increase in 2024 Net Funds From Operations (NFFO) guidance. Analysts from Barclays Capital Inc., JMP Securities, KeyBanc, and RBC Capital Markets have given American Healthcare REIT an Overweight rating, highlighting the company's strategic positioning in the healthcare real estate market.
Finally, American Healthcare REIT has announced the date for its 2024 annual meeting of stockholders and the deadline for stockholder proposals. These are among the recent developments for the company.
InvestingPro Insights
As American Healthcare REIT, Inc. (NYSE: AHR) looks to expand its portfolio through a new public offering, real-time data and insights from InvestingPro provide a deeper understanding of the company's financial landscape. With an adjusted market capitalization of approximately $3.32 billion, the company has been navigating the financial markets with certain challenges and opportunities.
InvestingPro data reveals that American Healthcare REIT has a negative P/E ratio of -59.07, reflecting investor sentiment about its earnings potential. Despite this, the company's revenue has grown by 9.24% over the last twelve months as of Q2 2024, showing a positive trend in its operational performance. However, it's important to note that the gross profit margin stands at 16.44%, which InvestingPro Tips identify as a weak point for the company.
Investors should be aware that the stock is currently trading near its 52-week high, with the price at 98.33% of this peak. This aligns with an InvestingPro Tip indicating that the Relative Strength Index (RSI) suggests the stock is in overbought territory. Despite this, analysts predict that the company will be profitable this year, which may be a sign of a potential turnaround from its unprofitable status over the last twelve months.
For those looking to delve deeper, there are additional InvestingPro Tips available that could offer further insights into American Healthcare REIT's performance and valuation. These include observations on its trading at a high EBIT valuation multiple and its high return over the last year. With 11 more tips available on InvestingPro, investors have access to a wealth of information to help guide their decisions. To explore these tips and more, visit the dedicated InvestingPro page for American Healthcare REIT at https://www.investing.com/pro/AHR.
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