American Healthcare REIT (NYSE: AHR) is exploring various strategies for margin growth beyond simply increasing occupancy rates. Executives from the REIT highlighted Trilogy Health Services as a key factor in this growth during an earnings call on Aug. 6.
Trilogy, which manages 128 communities for American Healthcare REIT, focuses on quality mix and value-based care opportunities to drive top line growth. This approach allows for margin expansion independent of occupancy growth, according to Gabe Willhite, COO of American Healthcare REIT.
The REIT reported a normalized FFO of 33 cents per share in the second quarter, with the stock price closing at $16.67, up 6.5% from the previous close. Trilogy Health Services has been successful in improving worker retention, reducing turnover costs, and maintaining steady net operating income margins.
American Healthcare REIT sees Trilogy as a strong investment with potential for further growth, aiming to exceed 90% occupancy in the coming months. The company is focused on expanding Trilogy through new developments and partnerships with regional operators.
Despite a competitive market, American Healthcare REIT remains confident in its growth strategy, emphasizing its relationships with operators like Trilogy as key drivers of future success.
