American Healthcare REIT (NYSE: AHR) is optimistic about expanding independent senior living development at Trilogy Health Services campuses, with President and CEO Danny Prosky highlighting the potential for revenue growth. Prosky’s confidence in Trilogy’s future success and the positive impact of the recent REIT public offering were evident in the latest earnings call.
The addition of independent living villas is expected to boost revenue and help Trilogy move towards pre-pandemic operating margins. Prosky expressed his belief in returning to pre-COVID margins through occupancy growth and emphasized the success of existing villa units, which operate at 95% occupancy.
With land already owned by Trilogy for new build expansions, Prosky foresees private-pay growth opportunities while keeping construction costs low. The company reported significant net operating income growth and margin expansion, signaling a positive outlook for the future.
Overall, AHR’s senior living portfolio spans 55 properties in 14 states, with continued focus on capturing the full value of market dynamics. The recent stock offering raised nearly $773 million, surpassing initial expectations, and executives issued a guidance of $1.18 to $1.24 per diluted share for normalized funds from operations.
AHR stock closed at $13.93 per share on Friday, reflecting ongoing market fluctuations amid the company’s growth strategies.
