American Healthcare Reit Eyes $300m Growth Pipeline After Pushing Noi Higher

American Healthcare REIT (NYSE: AHR) is continuing to invest in its SHOP segment, with sights set on a $300 million pipeline of opportunities ahead.

The Irvine, California-based real estate investment trust’s (REIT) holdings include 125 integrated senior campuses managed by Trilogy Health Services, which it fully acquired last year. The company also has 69 properties within its SHOP segment and 19 triple-net leased properties.

Total average occupancy for the company’s integrated senior campuses registered at 88.5% in the first quarter of 2025, representing a gain over the 85.6% occupancy rate the portfolio had in the same period in 2024.

The company’s SHOP segment had a total average occupancy rate of 85.5% in 1Q25, representing a slight decrease compared with 4Q24, when total SHOP occupancy averaged 86%. That average is higher than the 82.5% occupancy rate the portfolio carried in the first quarter of 2024.

According to AHR President and CEO Danny Prosky, the company doesn’t “want to make the mistake of myopically focusing on occupancy growth.”

“Instead, we take a much more holistic approach with our operators, always starting with quality of care first, and also looking at other key drivers like rate concessions, referral fees and other factors that positively impact margin and ultimately, NOI,” Prosky said during the call Friday with investors and analysts.

To that end, American Healthcare REIT and its operating partners drove a 30% increase in same-store net operating income for its SHOP segment, compared to the first quarter of 2024. Similarly, the company reported an NOI gain of 19.8% for its integrated senior campus portfolio compared to the first quarter of 2024.

Revenue per occupied room (RevPOR) for the company’s SHOP segment grew to $5,112 in 1Q25, representing a 6% gain over the same period in 2024.

AHR’s operating partners include Trilogy Management Services, Senior Solutions Management Group, Priority Life Care, Compass Senior Living, Cogir Senior Living, Heritage Senior Living and Heritage Communities.

AHR’s stock closed at $34.93, up 8.5% from the previous close.

The REIT continued to expand after the end of the first quarter, with a recent $65 million acquisition transitioned to Heritage Senior Living.

American Healthcare REIT is adding two new operating partners to its roster, and it is looking to further grow that number as it targets a $300 million pipeline of acquisitions expected to close this year, Prosky said.

The company’s pipeline leans toward the SHOP with “almost all newer buildings” that are at most 10 years old with an average cost of being in the low $200,000 range per unit. Assets are a combination of stabilized and “really new, not yet stabilized” assets that are being seen more as a value-add acquisition.

“As we’ve been building this pipeline, several of these assets have actually come to us on an off-market or direct basis,” Oh said, noting it goes back to the REIT’s original strategy of working with operators. “It’s really being able to work with them, have them bring us transactions that work for them, what they’re seeing or potentially even bring us assets that are in their existing portfolio that they want to sell.”

“These were actually groups that we had identified as ones that we wanted to grow with at some point in time,” Stefan Oh, chief investment officer, said. “Effectively, we’re also looking at where do these folks operate, how do they complement the existing operator pool that we have and are they going to be in markets where we want to grow and and help us to expand our growth into those markets.”

The new operators will allow for “more opportunities to see additional assets” in their respective markets and continue to diversify the operator pool, Oh added.

Brian Peay, chief financial officer, noted AHR leaders have been tracking these operators “for years.”

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