American Healthcare REIT Announces Primary Public Offering of Common Stock

Rhea-AI Summary

American Healthcare REIT (NYSE: AHR) has announced a primary public offering of 14,500,000 shares of its common stock. The company plans to grant underwriters a 30-day option to purchase up to an additional 2,175,000 shares. Proceeds will be used to acquire its joint venture partner's 24% minority stake in Trilogy Holdings, and to repay debt on existing lines of credit. BofA Securities, Morgan Stanley, and KeyBanc Capital Markets are acting as joint book-running managers for the offering. The stock issuance is being made under the company's effective shelf registration statement filed with the SEC. A preliminary prospectus supplement and accompanying prospectus will be available from the underwriters or the SEC's EDGAR database.

Positive

• Potential to acquire full ownership of Trilogy Holdings,
• Opportunity to reduce debt on existing lines of credit
• Utilization of established shelf registration for efficient capital raising

Negative

• Potential dilution of existing shareholders' ownership
• Increase in outstanding shares may impact earnings per share

Financial Analyst

American Healthcare REIT's primary public offering of 14.5 million shares with an additional 2.175 million option signals a significant capital raise. This move aims to consolidate ownership in Trilogy Holdings and reduce debt, potentially improving the company's financial position. However, investors should note the dilutive effect on existing shareholders.

The involvement of major underwriters like BofA Securities, Morgan Stanley and KeyBanc Capital Markets lends credibility to the offering. This could indicate strong institutional interest, potentially supporting the stock price post-offering. The use of proceeds for strategic acquisitions and debt repayment suggests a focus on growth and balance sheet optimization, which could enhance long-term shareholder value if executed effectively.

REIT Specialist

This offering marks a pivotal moment for American Healthcare REIT, potentially transforming its market position. By acquiring the remaining 24% stake in Trilogy Holdings, AHR is consolidating its portfolio in the healthcare real estate sector. This move could lead to improved operational efficiencies and stronger negotiating power with tenants.

The decision to repay debt using the proceeds is a prudent financial strategy, especially in the current rising interest rate environment. It could result in lower interest expenses and improved debt-to-equity ratios. However, investors should monitor the pricing of the offering and its impact on the company's net asset value per share. The success of this offering could set the stage for future growth initiatives and potentially position AHR as a more dominant player in the healthcare REIT space.

IRVINE, Calif., Sept. 18, 2024 /PRNewswire/ -- American Healthcare REIT, Inc., (NYSE: AHR; the "Company"), announced today that it has commenced an underwritten public offering of 14,500,000 shares of its common stock. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 2,175,000 shares of common stock.

The Company expects to use the net proceeds from the offering to exercise its option to purchase its joint venture partner's 24% minority membership interest in Trilogy Holdings, LLC and to repay certain amounts of debt outstanding under its lines of credit. All of the shares are being offered by the Company.

BofA Securities, Morgan Stanley and KeyBanc Capital Markets are acting as the joint book-running managers of the offering.

The offering of the common stock is being made pursuant to the Company's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC.  When available, a copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; Morgan Stanley & Co. LLC, Attn.: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; or KeyBanc Capital Markets Inc., 127 Public Square, 7^th Floor, Cleveland, OH 44114, Attention: Equity Syndicate, or by visiting the EDGAR database on the SEC's web site at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About American Healthcare REIT, Inc.
American Healthcare REIT, Inc. is a self-managed REIT that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on outpatient medical buildings, senior housing, skilled nursing facilities and other healthcare-related facilities. Its properties are located in the United States, the United Kingdom and the Isle of Man.

Forward-Looking Statements
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "can," "expect," "intend," "anticipate," "estimate," "believe," "continue," "possible," "initiatives," "focus," "seek," "objective," "goal," "strategy," "plan," "potential," "potentially," "preparing," "projected," "future," "long-term," "once," "should," "could," "would," "might," "uncertainty" or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, and beliefs of, and assumptions made by, the Company's management and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied therein, including, without limitation, risks disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic reports filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.

Contact:	Alan Peterson
	VP, Investor Relations & Finance
	(949) 270-9200
	investorrelations@ahcreit.com

 

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SOURCE American Healthcare REIT, Inc.

FAQ

How many shares is American Healthcare REIT (AHR) offering in its public offering?

American Healthcare REIT (AHR) is offering 14,500,000 shares of its common stock, with an option for underwriters to purchase up to an additional 2,175,000 shares within 30 days.

What will American Healthcare REIT (AHR) use the proceeds from the stock offering for?

AHR plans to use the proceeds to purchase its joint venture partner's 24% minority stake in Trilogy Holdings, and to repay debt on existing lines of credit.

Who are the joint book-running managers for American Healthcare REIT's (AHR) stock offering?

BofA Securities, Morgan Stanley, and KeyBanc Capital Markets are acting as the joint book-running managers for AHR's stock offering.

How can investors access the prospectus for American Healthcare REIT's (AHR) stock offering?

Investors can obtain the preliminary prospectus supplement and accompanying prospectus from the underwriters or through the SEC's EDGAR database at www.sec.gov once it becomes available.