American Healthcare REIT, Inc.

Chief Investment Officer, and Brian Paye, Chief Financial Officer. On today's call, Danny, Gabe, Stephon, and Brian will provide high-level commentary discussing our operational results, financial position, changes related to our increased 2025 guidance, and other recent news relating to American Healthcare REIT. Following these remarks, we will conduct a question and answer session. Please be advised that this call will include forward-looking statements. All statements made during this call other than statements of historical fact or forward-looking statements that are subject to numerous risk and uncertainties that could cause actual results to differ materially from those projected in these statements. Therefore, you should exercise caution in interpreting and relying on them. I refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results, financial condition, and prospects. All forward-looking statements speak only as of today, August 8, 2025. or such other dates as may otherwise be specified. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise except as required by law. During the call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable measures calculated in accordance with GAAP are included in our earnings release, supplemental information package, and our filings with the SEC. You can find these documents as well as an audio webcast replay of this conference call in the investor relations section of our website at www.americanhealthcareread.com. With that, I'll turn the call over to our president and CEO, Danny Prosky.

Thank you, Alan. Good morning or good afternoon, everyone. and thank you for joining us on today's call. We are excited to report another very strong quarter for AHR. We continue to make meaningful progress across our portfolio with outsized organic earnings growth, accretive acquisitions, and disciplined capital markets activity. All of this is supported, of course, by the continuing strong business fundamentals across the entire seniors housing industry. The two main points regarding our business that I would continue to emphasize are as follows. Number one, It is imperative that we here at AHR continue to stress to our operating partners that our number one commitment here at the company is a continued focus on quality resident care and high quality health outcomes. We firmly believe that emphasizing patient care as well as employee satisfaction at the facility level will allow us to continue to provide strong financial results for our shareholders. And two, although the past couple of years have allowed our industry to perform well financially across the board, Due to a very favorable operating environment, we believe that we are in the early innings of a multi-year secular trend of ongoing improvements of operating metrics throughout the industry, with rising occupancies, rep poor, margins, and net operating income. We expect the mismatch between supply and demand within the managed long-term care segments to remain favorable for the foreseeable future. These strong results would, of course, not be possible without the hard work of our AHR team members and our operating partners, and I thank them for the energy that they bring each day into all facets of our business. Now let's jump in. During the second quarter, we delivered another quarter of strong performance led by our operating portfolio, which is comprised of our integrated senior health campuses, also known as Trilogy, and our shop segments. We delivered 13.9% total portfolio same-store NOI growth in the second quarter of 2025 compared to the same period in 2024. And from our operating initiatives, where we continue to optimize the various levers in our control, we expect to capture more of this robust demand to drive double-digit total portfolio same-store NOI growth for the remainder of the year. On the capital allocation front, we have been complementing our strong organic growth with successful execution of new investments with approximately $255 million of acquisitions closed on so far this year. You may recall that during our first quarter earnings call, I noted that we had well over $300 million of high quality seniors housing assets in our pipeline. I'm excited to report that we have already closed on approximately $174 million of properties that were part of that group since our last earnings call. I would also like to congratulate our investments team for continuing to build out our pipeline to the point where we still have well over $300 million of awarded deals in our pipeline. Our acquisition focus remains on high-quality, long-term care assets that will be owned under a RIDEA structure. Additionally, we have been diligent and measured in our capital markets activity by sourcing attractively priced equity capital, which allows us to preserve optionality to continue pursuing further growth without relying on only one capital source. This is evidenced by the improvements we've seen in our leverage metrics with net debt to EBITDA, which stands at 3.7 times at the end of the second quarter. I'll remind everyone on the call that the same ratio stood at 4.5 times on March 31st of this year. Finally, before I turn it over to the team, I'd like to take a moment to acknowledge that AHR has been awarded the Great Place to Work certification by Great Place to Work, the global authority in workplace culture. I am grateful that our mission of high quality care and outcomes is shared by all of our team members and that our work provides meaning for our employees. All of our recent and future successes are owed to the AHR team members. And again, I want to thank you all for cultivating the purpose-oriented culture here at the company that has led to this recognition, which I know is only a small symbol of what we continue to build together. With that, I'll turn it over to Gabe to walk through our operational results in more detail.

Thanks, Danny. Q2 was another strong quarter operationally. As Danny mentioned, our total same-store NOI increased 13.9% year-over-year with particularly strong results in Trilogy and in SHOP. Starting with Trilogy, we saw same-store NOI growth of 18.3% year-over-year, which was supported by broad-based improvements in occupancy and rate growth without compromising the focus on managing expenses. Occupancy climbed to 88.9%, a 219 basis point increase over the prior year, with average daily rates across all payors growing by 7.8% year-over-year. That growth was aided by Trilogy's comprehensive revenue management program and continuous focus on improving quality mix. Within Trilogy, we're seeing growth across both skilled and senior living lines. And as I've mentioned before, the story of Trilogy's growth is not just limited to simply one component of revenue. As we look across some of the key drivers, I'd like to highlight that Trilogy's high quality of care continues to be recognized by Medicare Advantage plans and their enrollees, contributing to an increase in concentration with Medicare Advantage now making up 7.2% of resident days compared to 5.8% a year ago. Given that Trilogy has a portfolio-wide overall CMS rating of over four stars compared to the national average of below three stars, I'd anticipate that Trilogy will continue to be a highly sought after post-acute care provider. Beyond the payors, we're also seeing strong tour volumes and observing a rise in internal referrals between care settings, which continues to support length of stay and improve margins that stand to benefit from more operating leverage at current levels. In short, Trilogy continues to execute on multiple fronts, further establishing themselves as a top operator in America. In shop, the momentum continues. Same-store NOI was up 23% year-over-year, and while average same-store occupancy appears flat from Q1 to Q2, occupancy was actually ramping and increasing through the quarter, rebounding from the impacts that the heavier winter flu season brought in Q1. In fact, throughout the second quarter, we realized the highest level of moving activity we've seen in our shop segment in years and maybe even ever. And at the end of the second quarter, shop spot same store occupancy was north of 87.5%. These occupancy gains are also being accomplished while remaining proactive in our pricing strategies, which resulted in REVPOR accelerating in Q2 with growth of 6.6% compared to the same quarter last year. Similar to Trilogy, our shop portfolio stands to benefit from operating leverage embedded at this occupancy and current same-store NOI margin, which is now above 20%. It's important to point out that our shop performance is a testament to our operating partners' ability to execute with the support of our active asset management team and our platform. We're continually refining our operating platform capabilities by leveraging expertise across our operators, particularly Trilogy. We've done this by improving best-in-class regional benchmarking tools and resources across our operating portfolio and the various operators, allowing for better pricing discipline, wage monitoring, and expense management. As we move into the second half of the year, we continue to see a compelling backdrop. Outside levels of demand paired with anemic levels of supply growth and low construction starts suggest that we should continue to benefit from a multi-year tailwind of favorable operating fundamentals. With our operating portfolio now accounting for approximately 75% of our total NOI and growing, we believe we've positioned ourselves favorably to continue delivering strong NOI growth across our diversified healthcare portfolio. Now I'll turn it over to Stefan to discuss our recent investments activity.