American Healthcare REIT, Inc. (NYSE: AHR)

Sector: Real Estate Industry: REIT - Healthcare Facilities CIK: 0001632970
Market Cap 6.95 Bn
P/B 2.87
P/E -212.00
P/S 3.23
ROIC (Qtr) 6.29
Div Yield % 2.36
Rev 1y % (Qtr) 9.38
Total Debt (Qtr) 1.70 Bn
Debt/Equity (Qtr) 0.63
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About

American Healthcare REIT, Inc. (AHR) operates in the healthcare real estate industry, investing in and managing a diversified portfolio of clinical healthcare properties. The company's operations span the United States, the United Kingdom, and the Isle of Man. AHR's main business activities involve the acquisition, ownership, and operation of various healthcare facilities, including outpatient medical buildings, senior housing, skilled nursing facilities, and other healthcare-related properties. These properties generate revenue through lease agreements...

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Investment thesis

Bull case

  • Operating cash flow of 298.79M provides exceptional 1564.32x coverage of minority interest expenses 191000, showing strong core operations.
  • Operating cash flow of 298.79M provides strong 26.66x coverage of stock compensation 11.21M, indicating sustainable incentive practices.
  • Strong operating cash flow of 298.79M provides 5.51x coverage of SG&A expenses 54.27M, showing efficient operational cost management.
  • Strong tangible asset base of 4.35B provides 2.57x coverage of total debt 1.70B, indicating robust asset backing and low credit risk.
  • Cash position of 184.36M provides exceptional 965.25x coverage of minority interest expenses 191000, indicating strong liquidity.

Bear case

  • Operating cash flow of 298.79M barely covers its investment activities of (286.11M), with a coverage ratio of -1.04, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 298.79M provides thin coverage of dividend payments of (158.97M) with a -1.88 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 184.36M provide limited coverage of acquisition spending of (552000), which is -333.99x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 298.79M provides minimal -15.51x coverage of tax expenses of (19.27M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 11.30M provides weak coverage of capital expenditures of 287.49M, with a 0.04 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Healthcare Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 WELL Welltower Inc. 143.17 Bn 152.82 13.21 21.38 Bn
2 VTR Ventas, Inc. 38.32 Bn 152.44 6.57 13.22 Bn
3 OHI Omega Healthcare Investors Inc 9.79 Bn 37.42 11.00 4.26 Bn
4 DOC Healthpeak Properties, Inc. 9.29 Bn 18.52 5.20 10.14 Bn
5 CTRE CareTrust REIT, Inc. 8.40 Bn 26.19 17.62 0.89 Bn
6 AHR American Healthcare REIT, Inc. 6.95 Bn -212.00 3.23 1.70 Bn
7 HR Healthcare Realty Trust Inc 6.42 Bn -26.10 5.44 4.15 Bn
8 NHI National Health Investors Inc 2.58 Bn 24.34 21.93 1.11 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.81 1.24
EV to Cash from Ops. EV/CFO 33.98 24.29
EV to Debt EV to Debt 5.10 3.18
EV to EBIT EV/EBIT 114.56 14.77
EV to EBITDA EV/EBITDA 23.32 19.20
EV to Free Cash Flow [EV/FCF] EV/FCF 39.46 1.78
EV to Market Cap EV to Market Cap 1.25 1.96
EV to Revenue EV/Rev 4.03 11.43
Price to Book Value [P/B] P/B 2.87 2.64
Price to Earnings [P/E] P/E -212.00 29.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.17 -1.90
Dividend Payout Ratio % Div Payout % (Qtr) 909.10 299.46
Dividend per Basic Share Div per Share (Qtr) 1.00 1.85
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 1,492.54 49.00
Interest Coverage Int. cover (Qtr) 1.08 2.08
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -163.07 -326.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 58.02 31.24
Dividend Growth (1y) % Div 1y % (Qtr) 33.33 12.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 223.64 35.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.67 12.40
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.89 25.81
EBT Growth (1y) % EBT 1y % (Qtr) 124.69 71.96
EPS Growth (1y) % EPS 1y % (Qtr) 123.40 29.36
FCF Growth (1y) % FCF 1y % (Qtr) -65.82 -181.35
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.41 13.29
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.17
Cash Payout Ratio Cash Payout (Qtr) 0.27 0.07
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.63 4.36
Interest Cover Ratio Int Coverage (Qtr) 1.08 2.08
Times Interest Earned Times Interest Earned (Qtr) 1.08 2.08
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.70 55.93
EBIT Margin % EBIT Margin % (Qtr) 4.74 28.99
EBT Margin % EBT Margin % (Qtr) 0.36 13.55
Gross Margin % Gross Margin % (Qtr) 18.30 71.26
Net Profit Margin % Net Margin % (Qtr) 1.20 13.18