Yahoo Finance American Healthcare REIT Inc. Reports Mixed 2023 Results and Provides 2024 Guidance
GAAP Net Loss: $(0.42) and $(1.08) per share for Q4 and full year 2023, respectively.
Normalized Funds from Operations (NFFO): $0.38 and $1.40 per share for Q4 and full year 2023, respectively.
Same-Store Revenue Growth: 5.2% for Q4 and 7.7% for the full year 2023.
Same-Store NOI Growth: 8.6% year-over-year, with significant growth in SHOP and ISHC segments.
Debt Reduction: Paid down approximately $721 million in debt, improving leverage metrics.
2024 Guidance: Projects NAREIT FFO per share of $1.13 to $1.19 and Normalized FFO per share of $1.18 to $1.24.
Dividend Announcement: Quarterly cash distribution of $0.25 per share for Q1 2024.
On March 21, 2024, American Healthcare REIT Inc (NYSE:AHR) released its 8-K filing, disclosing its financial performance for the fourth quarter and full year of 2023. The company, which specializes in owning and operating a diversified portfolio of healthcare real estate, reported a GAAP net loss attributable to stockholders for both the quarter and the year. However, the company also reported positive Normalized Funds from Operations (NFFO) and growth in same-store revenue and Net Operating Income (NOI).
American Healthcare REIT Inc's performance in 2023 was marked by a GAAP net loss, which the company attributes to various factors including the ongoing recovery from the pandemic. Despite the net loss, the company achieved a 5.2% and 7.7% total portfolio same-store revenue growth for the fourth quarter and full year, respectively, compared to the same periods in 2022. This growth was largely driven by occupancy gains in the company's RIDEA-operated assets.
The company's financial achievements in 2023 include the disposal of approximately $195 million of non-core properties and a successful public offering of common stock, which led to a significant pay down of debt obligations. These strategic moves have improved the company's leverage metrics and provided additional capacity and flexibility.
Income Statement Highlights
The company's income statement reflects the challenges and achievements of the past year. Resident fees and services, real estate revenue, and grant income comprised the bulk of the company's revenues, which totaled $1.87 billion for the year. Property operating expenses, rental expenses, general and administrative expenses, and depreciation and amortization were the major expense categories, leading to a total expense of $1.80 billion.
Balance Sheet and Cash Flow Statement Analysis
As of December 31, 2023, American Healthcare REIT Inc's balance sheet showed total assets of $4.58 billion, with real estate investments netting $3.43 billion. The company's liabilities totaled $3.12 billion, with mortgage loans and lines of credit being significant components. The balance sheet also reflected a reduction in total equity, from $1.57 billion in 2022 to $1.43 billion in 2023.
The company's cash flow statement details the operational, investing, and financing activities over the year. Notably, the company's efforts to improve its financial position are evident in the pay down of approximately $721 million in outstanding debt obligations.
Looking Forward to 2024
For the year ending December 31, 2024, American Healthcare REIT Inc has established guidance ranges that reflect optimism for continued growth. The company expects NAREIT FFO per share to range from $1.13 to $1.19 and Normalized FFO per share to range from $1.18 to $1.24. Additionally, the company projects a total portfolio same-store NOI growth of 5.0% to 7.0%.
The company's performance in 2023, despite the GAAP net loss, demonstrates resilience and strategic management in a challenging environment. The positive NFFO and same-store revenue and NOI growth are indicative of the company's underlying operational strength. With the successful reduction of debt and the issuance of 2024 guidance, American Healthcare REIT Inc is positioning itself for a potentially stronger performance in the coming year.
For more detailed information, investors and interested parties are encouraged to review the full earnings release and supplemental financial information available on the company's website.
As American Healthcare REIT Inc navigates the post-pandemic landscape, its focus on optimizing performance across its diversified healthcare portfolio will be critical to its success. The company's commitment to being responsible stewards of capital for all stockholders is reflected in its strategic decisions and forward-looking guidance.
Explore the complete 8-K earnings release (here) from American Healthcare REIT Inc for further details.
This article first appeared on GuruFocus.
