stockrowLatest quarter
American Healthcare REIT reported Q3 FY2026 revenue of $742.1 million, up 29.5% from $572.9 million a year earlier. Diluted earnings per share fell to $0.14 from $0.33, while net income attributable to controlling interest was $31.2 million.
The company’s 10-Q attributed higher resident fees and services revenue in both its integrated senior health campus and senior housing operating property businesses to acquisitions, higher occupancy and increased billing rates. The filing also said higher occupancy and care levels increased labor and other operating expenses.
American Healthcare REIT’s gross margin rose to 22.2% from 18.5%, while its operating margin fell to 6.36% from 7.41%. The filing said depreciation and amortization increased primarily because acquisitions added amortization of in-place lease intangible assets. Free cash flow rose to $166.9 million from $85.0 million a year earlier. On the call, CEO Jeff Hanson said total portfolio same-store net operating income grew 13.8% in the quarter.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $742.1 million | $572.9 million | 29.5% |
| Diluted EPS | $0.14 | $0.33 | −57.6% |
| Gross margin | 22.2% | 18.5% | 3.7 percentage points |
| Operating margin | 6.36% | 7.41% | −1.0 percentage point |
| Free cash flow | $166.9 million | $85.0 million | 96.4% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $572.9 million | $565.3 million | Beat by 1.36% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
President and COO Gabe Willhite said sequential occupancy growth and pricing contributed to the quarter’s senior housing performance. He said the company was extending Trilogy’s revenue-management strategies to other operators, helping them adjust pricing. In the senior housing operating portfolio, Willhite said same-store revenue grew 9%, driven by 5.4% growth in revenue per occupied room.
Asked about the durability of net operating income growth, Willhite said more highly occupied buildings increasingly rely on revenue management rather than occupancy gains. He added that the company still wanted to increase occupancy: “our goal is not to remain at 90% occupied in our portfolio.” He said management expected demand from the baby boomer generation to support occupancy and that its focus on assisted living and memory care gave it room to meet needs-based demand.
Willhite said the operating platform also gives partners access to data, benchmarking and asset-management support. On development, he said Trilogy was building three to five new campuses a year and had more than 30 campuses with excess land or a direct path to it for potential expansions.
CEO Jeff Hanson said the company had completed $2.1 billion in investments year to date and had an awarded pipeline of more than $1 billion. He said the pipeline was outside revised guidance and was expected to be funded with proceeds from unsettled forward sale agreements. CFO Aric Chang said the company had approximately 1.3 billion of gross proceeds available under those agreements and $850 million of capacity under its lines of credit.
Responding to a question about acquisition pricing, Chief Investment Officer Stefan Oh said recent purchases reflected property quality, location and operators’ ability to improve performance. Chang said the revised outlook implied Q4 senior housing same-store NOI growth would repeat the high-20% Q3 result.
Guidance
American Healthcare REIT raised its FY2026 normalized funds from operations guidance to $2.23 to $2.26 per diluted share from $2.15 to $2.19. It also raised its total portfolio same-store net operating income growth forecast to 12.0% to 14.0% from 11.0% to 13.0%.
CFO Aric Chang said the revised segment forecasts call for growth of 14.5% to 16.5% at Trilogy, 23.0% to 26.0% at senior housing operating properties, 0.50% to 1.00% at outpatient medical properties and 2.50% to 3.50% at triple-net properties. He said the guidance includes completed transactions but excludes awarded deals still in the pipeline.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating income, Non Gaap Trilogy Kingston Same Store Noi | FY2027 | American Healthcare REIT expects the Kingston portfolio to fuel strong same-store NOI growth in FY2027. | — | — |
| Operating income, Non Gaap Shop Same Store Noi | Q4 FY2026 | American Healthcare REIT expects Q4 FY2026 SHOP same-store NOI growth to repeat its high-20% Q3 result. | — | — |
| Operating income growth, Non Gaap Triple Net Same Store Noi | FY2026 | 2.50%–3.50% | — | New |
| Operating income growth, Non Gaap Outpatient Medical Same Store Noi | FY2026 | 0.50%–1.00% | — | New |
| Operating income growth, Non Gaap Shop Same Store Noi | FY2026 | 23.0%–26.0% | — | New |
| Operating income growth, Non Gaap Trilogy Same Store Noi | FY2026 | 14.5%–16.5% | — | New |
| Operating income growth, Non Gaap Total Portfolio Same Store Noi Growth | FY2026 | 12.0%–14.0% | — | New |
| Operating expenses, General and Administrative | FY2026 | American Healthcare REIT expects FY2026 general and administrative expenses to grow much more slowly than NOI. | — | — |
| Revenue growth, Shop High Occupancy Building Rate Growth | FY2026 | 4.00%–6.00% | — | New |
| Operating income growth, Outpatient Medical Same Store Noi Growth | FY2026 | 0.00%–1.00% | — | New |
| EPS, Non Gaap Normalized Ffo | FY2026 | $2.15–$2.19 | — | New |
| Operating income growth, Total Portfolio Same Store Noi Growth Non Gaap | FY2026 | 11.0%–13.0% | — | New |