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American Healthcare REIT Announces Closing of Public Offering

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American Healthcare REIT, Inc. completes a public offering of 64,400,000 shares of common stock at $12.00 per share, with net proceeds of $717.6 million to repay credit facility. The stock began trading on NYSE under the symbol 'AHR'.
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The completion of American Healthcare REIT, Inc.'s public offering represents a significant capital influx for the company, with the sale of 64.4 million shares at $12.00 each culminating in proceeds that exceed $772.8 million. This event is particularly noteworthy considering the full exercise of the underwriters' overallotment option, an indication of strong investor demand. The immediate application of these funds to repay existing credit facilities is a strategic move that will likely improve the company's debt profile and potentially lower interest expenses.

From a financial perspective, the reduction in leverage could enhance the REIT's creditworthiness, possibly leading to more favorable borrowing terms in the future. Moreover, the successful public offering and subsequent debt repayment may be viewed positively by credit rating agencies, potentially resulting in an improved credit rating. Investors typically monitor such developments closely, as they can affect the company's financial flexibility and cost of capital, which in turn can have implications for dividend distributions—a key aspect for REIT investors.

Within the real estate investment trust (REIT) sector, American Healthcare REIT's focus on healthcare-related properties is particularly relevant. The healthcare sector is generally considered to be recession-resistant and properties such as medical office buildings and senior housing are in steady demand due to demographic trends like an aging population. The successful capital raise and subsequent debt repayment plan indicate a proactive approach to capital management that could position the REIT for strategic acquisitions or development projects.

Investors often look for REITs with strong portfolios and the ability to execute on growth strategies. By entering the public market and increasing its financial flexibility, American Healthcare REIT may be better positioned to capitalize on market opportunities and enhance its property portfolio, which could lead to increased rental income and asset appreciation over time. This is a key factor in the REIT's ability to generate and sustain shareholder value.

The legal aspects surrounding American Healthcare REIT's public offering are critical for ensuring regulatory compliance and investor confidence. The offering's reliance on a prospectus and the effective registration statement with the Securities and Exchange Commission (SEC) are standard procedures that provide transparency and protect investor interests. It's important for potential investors to note that the offering's legality is contingent upon adherence to state and jurisdictional securities laws.

Additionally, the involvement of prominent financial institutions as lead book-running managers and co-managers adds a layer of credibility to the offering. Their role in managing the offering process, from due diligence to pricing and distribution, is essential in mitigating legal risks and ensuring the offering's success. The legal framework governing such transactions is designed to maintain market integrity and compliance with these regulations is a positive indicator of the company's governance standards.

IRVINE, Calif., Feb. 9, 2024 /PRNewswire/ -- American Healthcare REIT, Inc., (the "Company"), a self-managed real estate investment trust ("REIT") that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on medical office buildings, senior housing, skilled nursing facilities, hospitals and other healthcare-related facilities, announced today that it has completed its public offering of 64,400,000 shares of its common stock at a price to the public of $12.00 per share. This includes the exercise in full by the underwriters of their option to purchase up to an additional 8,400,000 shares of common stock in the offering to cover overallotments.

Shares of the Company's common stock began trading on the New York Stock Exchange on February 7, 2024 under the symbol "AHR."

The Company intends to use the net proceeds received from the offering to repay approximately $717.6 million of the amount outstanding under its credit facility.

BofA Securities and Morgan Stanley acted as lead book-running managers for the offering. KeyBanc Capital Markets, Citigroup, RBC Capital Markets, Barclays and Truist Securities are acting as bookrunners for the offering. Citizens JMP, Fifth Third Securities, Regions Securities LLC and Credit Agricole CIB acted as co-managers for the offering.

The offering was made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained from: BofA Securities, NC1-022-02-25, Attn: Prospectus Department, 201 North Tryon Street, Charlotte, NC 28255-0001 or by email to dg.prospectus_requests@bofa.com; Morgan Stanley & Co. LLC, Attn.: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; KeyBanc Capital Markets, Attention: Equity Syndicate, 127 Public Square, 7th Floor, Cleveland, OH 44114, by fax at 1-216-689-0845; or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146).

A registration statement relating to the offering has been filed with the SEC and has been declared effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or other jurisdiction in which such 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 medical office buildings, senior housing, skilled nursing facilities, hospitals and other healthcare-related facilities. As of September 30, 2023, its total assets of approximately $4.6 billion consisted of 298 buildings and integrated senior health campuses owned and/or operated by the Company that are located in 36 states, the United Kingdom and the Isle of Man, representing approximately 18.9 million square feet of gross leasable area.

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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/american-healthcare-reit-announces-closing-of-public-offering-302058863.html

SOURCE American Healthcare REIT, Inc.

American Healthcare REIT, Inc. offered 64,400,000 shares of its common stock in the public offering.

American Healthcare REIT, Inc. offered its common stock at a price of $12.00 per share in the public offering.

American Healthcare REIT, Inc. received approximately $717.6 million in net proceeds from the public offering to repay its credit facility.

The stock of American Healthcare REIT, Inc. started trading on the New York Stock Exchange on February 7, 2024 under the symbol 'AHR'.

BofA Securities and Morgan Stanley acted as lead book-running managers for the offering by American Healthcare REIT, Inc.

The net proceeds received from the public offering by American Healthcare REIT, Inc. will be used to repay approximately $717.6 million of the amount outstanding under its credit facility.
American Healthcare REIT Inc

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