American Healthcare REIT Expands Operations with Trilogy Deal
American Healthcare REIT Completes Key Acquisition
American Healthcare REIT, Inc. (NYSE: AHR) has recently taken a significant step forward in its business strategy with the acquisition of the remaining minority membership interest in Trilogy REIT Holdings, LLC, marking a notable evolution in its operations.
Understanding the Deal
By exercising its purchase option, American Healthcare REIT acquired the 24% minority interest previously held by its joint venture partner, an affiliate of NorthStar Healthcare Income, Inc. This transaction solidified American Healthcare REIT as the sole owner of Trilogy Holdings, further establishing its footprint in the healthcare real estate sector.
Financial Aspects of the Transaction
The acquisition took place on a recent date, with the total all-cash purchase price approximately amounting to $258 million. This figure encompasses a pre-negotiated base purchase price of $247 million, alongside an $11 million pro-rata distribution owed to the joint venture partner leading up to the acquisition's closing date.
To finance this acquisition, the Company utilized net proceeds from its equity offering. The offering also closed around the same timeframe, allowing American Healthcare REIT to allocate funds efficiently and effectively. Additionally, part of these proceeds was used to reduce approximately $194 million of outstanding debt on its credit lines, enhancing its financial posture moving forward.
Impact on Business Operations
Based on the Company’s financial results up until the middle of the year, the Integrated Senior Health Campuses segment would represent an impressive 55.3% of the total portfolio cash net operating income had the acquisition been completed at the beginning of that period. This statistic underlines the strategic importance of this investment to the Company’s overall business health.
Leadership Insights on the Acquisition
American Healthcare REIT's President and CEO, Danny Prosky, expressed enthusiasm over the completion of this acquisition. He conveyed that it was executed in a manner that was both accretive and leverage neutral. Prosky noted, “We will continue our mission, alongside Trilogy Management Services, LLC, to provide high-quality care in the communities our campuses serve.” His vision for future growth opportunities highlights the forward momentum the Company anticipates gaining from this acquisition.
About American Healthcare REIT, Inc.
American Healthcare REIT stands as a self-managed real estate investment trust that specializes in acquiring, owning, and operating a diverse portfolio of clinical healthcare real estate. Their focus primarily lies within outpatient medical buildings, senior housing, skilled nursing facilities, and other healthcare-related properties across various regions, including the U.S., the U.K., and the Isle of Man.
Contact Information
For further inquiries, interested parties should reach out to:
Alan Peterson
VP, Investor Relations & Finance
Phone: (949) 270-9200
Email: investorrelations@ahcreit.com
Frequently Asked Questions
What was the scope of the recent acquisition by American Healthcare REIT?
The acquisition allowed American Healthcare REIT to purchase the remaining 24% minority membership interest in Trilogy REIT Holdings, making them the sole owner.
How much did American Healthcare REIT pay for the acquisition?
The total cash investment for the remaining interest was approximately $258 million, which includes various financial considerations.
What impact will this acquisition have on American Healthcare REIT's portfolio?
The Integrated Senior Health Campuses segment is expected to significantly boost their total cash net operating income, highlighting the transaction's importance.
Who commented on the successful acquisition and what did they say?
CEO Danny Prosky expressed excitement and conveyed that the acquisition aligns with their mission to provide high-quality care.
How does American Healthcare REIT position itself in the market?
As a self-managed REIT, it focuses on a diversified portfolio aimed at securing clinical healthcare real estate across prominent markets.
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