American Healthcare REIT, Inc. 2026 Q2 Earnings Call

Thank you for joining us for American Healthcare REIT's second quarter 2026 earnings conference call. With me today are Chairman and Chief Executive Officer, Jeff Hanson, President and Chief Operating Officer, Gabe Willhite, Chief Investment Officer, Stefan Oh, and Chief Financial Officer, Brian Peay. We are also joined this morning by Danny Prosky, a member of our board of directors and the company's former president and chief executive officer, who will share some personal reflections later in this call. On today's call, Jeff, Gabe, Stefan, and Brian will provide high-level commentary discussing our operational results, financial position, our increased 2026 guidance, and other recent news relating to American Healthcare REIT. Following these remarks and Danny's contributions, we will conduct a question and answer session. Please be advised that this call will include forward-looking statements.

All statements made during this call, other than statements of historical fact, are forward-looking statements that are subject to numerous risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Therefore, you should exercise caution in interpreting and relying on them. I refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results, financial condition, and prospects. All forward-looking statements speak only as of today, August 7, 2026, or such other dates as may otherwise be specified. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During the call, we will discuss certain non-GAAP financial measures which we believe can be useful in evaluating the company's operating performance.

These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable measures calculated in accordance with GAAP are included in our earnings release, supplemental information package, and our filings with the SEC. You can find these documents as well as an audio webcast replay of this conference call on the investor relations section of our website at www.americanhealthcarereit.com. With that, I'll turn the call over to AHR's Chairman and Chief Executive Officer, Jeff Hanson.

Thanks, Alan, and good morning, everyone. As most of you know, two weeks ago, we announced that Danny Prosky elected to retire after a medical leave of absence that began in early February. Fortunately, he's had a truly remarkable recovery, and he continues to serve as a deeply engaged director and as a valued advisor to the management team. As Alan just mentioned, he's actually with us today to share some thoughts prior to Q&A. As many of you are aware, Danny, Matt Streiff, and I built this platform beginning 21 years ago, and I led it as CEO for 16 of those years before Danny succeeded me about four and a half years ago.

Because this is very familiar territory, since my return to this role almost exactly six months ago, I've been leading since day one alongside our team with the discipline, ambition, and intensity you'd expect of AHR, given the enviable market position with which we've been entrusted, and we take that trust very seriously, by the way. The theme of this quarter is the durability of the competitive advantages that our management team is deploying to drive calculated growth as we work hard to scale a powerful and a differentiated platform to generate even greater value for shareholders. Q2 was another exceptionally strong quarter. While some investors are simply being carried by the sector's tailwinds, our achievements across core metrics illustrate our position of strength in the marketplace.

For example, double-digit same-store NOI growth for the 10th consecutive quarter, industry-leading NFFO per share growth with a material increase in full-year guidance, while continuing to delever, which of course is highlighted by net debt to EBITDA of only 2.5 times, exceptionally strong acquisition execution with over $1.4 billion in closed deals year to date, with an additional more than $800 million locked up and in the pipeline, all expected to close prior to year-end. By the way, none of which is reflected in our revised earnings guidance. Of course, efficient capital formation and accretive deployment into some of the highest quality senior housing product located in some of the most desirable infill markets in the country at scale, with compelling risk-adjusted returns at a very attractive spread to our cost of capital.

Rather than isolated data points, by the way, these results represent the output of a strategy that we forged together over the course of many years, and a team that continues to execute at the highest level and with excellence. Although we're very proud, by the way, of what we've accomplished to date, we remain strictly focused on ensuring that the best version of this company is still ahead of us. A word on pace, because our volume is up meaningfully this year, and we'd rather address that directly than have it inferred. Our underwriting discipline has not changed. What has changed is the depth and the quality of the opportunity set in front of us.

As our standing with operators has continued to strengthen materially, and as our balance sheet has become an even stronger foundation for seizing opportunities, more of the right opportunities are simply reaching us first, and that's enabled us to be more selective, not less. Given the recent leadership announcement, I want to be clear about how I will personally continue to lead this exceptional organization. The mission, the strategy, and the discipline that's driven our results does not change. They don't change for a simple reason: because Danny and I, in conjunction with the management team that you all know so well, built our strategy and our operating ethos together over the past decade.

With that said, we will never rest on even recent accomplishments because the only scoreboard we focus on is forward-looking and calibrated to the results that we're posting for our core constituents, from our valued investors to residents in our communities all across the country. My focus, among other things, is in two core areas. Number 1, rapidly scaling this platform to deliver the outsized growth that we're being valued to deliver, and to do so in a disciplined and a responsible manner, while simultaneously positioning this platform to seize the generational investment opportunity before us in the senior housing sector today. Number 1 is rapid scaling to drive outsized growth. Number 2, strengthening an extremely talented leadership team that Danny and I, and our broader board, has long since viewed as the future of the company for the next decade and beyond.

That means deepening our operating capabilities and adding some of the best talent in the country in important roles across the org chart, while continuing to drive robust internal and intelligent external growth at significant scale. As we previously announced, Gabe Willhite has been elevated to president while also retaining his COO role. He and I are working together to deepen the leadership at every level of the organization while Stefan and Brian continue to drive our investments and finance capabilities with the same discipline that you've come to rely on. I'd also like to acknowledge one of AHR's valued independent directors, Scott Estes, who as many of you know, served for 12 years as Welltower CFO.

He was appointed lead independent director last month because AHR is committed to best practices in corporate governance, and Scott's combination of judgment and experience has continued to prove invaluable throughout his service on our board. All of the efforts that we're discussing today are, quite frankly, in service of a simple and enduring vision. To position AHR as the most sought-after capital partner for the best senior housing operators in America while simultaneously delivering the highest quality care and superior health outcomes for our nation's valued elders. The demographic tailwind behind long-term care, as you all know, is powerful and still in early stages, and supply remains profoundly constrained. That tailwind essentially is available to every investor in the sector. What sets us apart is what we've built underneath it. Many of our key people are former operators, and that's by design. There's Trilogy. These advantages give us a finger on the pulse of this business each and every day, and real-time insight into what's actually working across thousands of units.

It also means we sit across the table from our partners as people who've lived in the operating world, not just in the capital markets. Operators know the difference, and they choose accordingly. Add development capabilities and bed licenses in a sector where both are valuable and rare. You have advantages that continue to compound. Cost to capital determines, as we all know, what you can offer to pay. It doesn't determine what you get shown or what you get done. Anyone can be the highest bidder. AHR is strengthening our position as the industry's partner of choice, and we intend to keep widening that gap. With that, I'll turn it over to the team.

Gabe? Thanks, Jeff. Before I get into the quarter, let me thank Jeff and the board for the confidence they've shown in me.