American Healthcare REIT, Inc. (NYSE:AHR) has entered into a sales agreement to offer up to $500 million of its common stock, according to a recent 8-K filing with the Securities and Exchange Commission.
The real estate investment trust, specializing in healthcare-related properties, announced today that it has partnered with a group of financial institutions, including BofA Securities, Barclays (LON:BARC) Capital, and Citigroup (NYSE:C) Global Markets, among others, to facilitate the at-the-market equity offering.
The shares will be sold through negotiated transactions or at market prices, and the timing and amount of sales will be contingent upon market conditions and other factors. The company may also enter into forward sale agreements with several banks, which would involve borrowing and selling shares to hedge the banks' exposure.
American Healthcare REIT plans to contribute the net proceeds from the offering and any forward sale agreement to its operating partnership, which will then be used for general corporate purposes such as debt repayment or repurchasing, working capital, capital expenditures, and potential future investments.
The equity offering is being made under a prospectus supplement dated November 18, 2024, and a related prospectus dated August 12, 2024, as part of the company's shelf registration statement filed earlier this year. Venable LLP has provided a legal opinion regarding the validity of the shares to be issued and sold.
Investors are advised that this report is based on a press release statement and should not be considered as an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, American Healthcare REIT has seen significant developments after releasing its third-quarter financial report for 2024.
RBC Capital has maintained an Outperform rating on the shares and raised the stock's price target to $30.00 from the previous $28.00, citing the company's strong positioning for organic growth. Truist Securities also increased its price target to $29, reflecting the company's robust third-quarter performance and forward-looking financial guidance for the year.
American Healthcare REIT recently launched a public offering of 14.5 million shares of common stock. Proceeds from this offering are set to be used for the acquisition of the remaining 24% minority interest in Trilogy Holdings, LLC, and the repayment of debt under its credit facilities. The company has also become the sole owner of Trilogy Holdings through an all-cash deal worth approximately $258 million.
During the company's recent annual meeting, shareholders approved several key proposals including the election of directors, ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, and the approval of the American Healthcare REIT, Inc. 2024 Employee Stock Purchase Plan.
Lastly, the company has guided for a 3.3% increase in 2024 Normalized Funds From Operations and a significant rise in same-store net operating income growth for 2024.
InvestingPro Insights
American Healthcare REIT's recent move to offer up to $500 million of its common stock aligns with its strong market performance and growth trajectory. According to InvestingPro data, the company has shown impressive price returns, with a 114.89% total return over the past year and a substantial 92.54% return in the last six months. This robust performance is reflected in the stock trading near its 52-week high, at 97.88% of that peak.
InvestingPro Tips suggest that while AHR is not currently profitable over the last twelve months, analysts predict the company will be profitable this year. This expectation of improved financial performance could be a driving factor behind the equity offering, as the company seeks to capitalize on its strong market position and investor confidence.
The company's revenue growth of 9.88% over the last twelve months and a more impressive 12.76% growth in the most recent quarter indicate a positive trajectory that may support the success of this new offering. Additionally, with liquid assets exceeding short-term obligations, AHR appears to be in a solid financial position to manage this expansion of its equity base.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for American Healthcare REIT, providing a deeper understanding of the company's financial health and market position.
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