AHR

American Healthcare REIT is a diversified clinical-healthcare landlord (senior housing, skilled-nursing facilities, medical-office buildings) that reached an inflection in FY2025. Revenue grew 11.2% to $2.09B and, for the first time after four straight years of net losses (-$47.8M, -$81.3M, -$71.5M, -$37.8M from FY2021-2024), the company posted positive net income of $69.8M (EPS $0.42). Operating income rose 14.2% to $415M (19.8% operating margin) and operating cash flow surged 67.2% to $294M, reflecting recovering senior-housing occupancy and the integration of its Trilogy operations.

The balance sheet improved markedly: total liabilities fell 5.4% while equity jumped 46.9% to $3.32B, cutting leverage to a conservative 0.62x liabilities/equity. The dividend rose 35.3% to $164M and is well-covered by the $294M of operating cash flow. The flip side is how the equity grew — shares outstanding rose 19.3% to 188M, meaning much of the growth was funded by issuance rather than retained earnings (which remain at -$1.56B). The 110.8x P/E and 4.2x sales look extreme but are typical for a REIT where GAAP EPS is suppressed by $188M of depreciation; the stock should be judged on cash flow, where it is more reasonably valued.