American Healthcare REIT's (AHR) 2026 funds from operations, or FFO, estimates have been raised ahead of the company's Q1 results as it is seen benefitting from a higher investment pace, RBC Capital Markets said in a note emailed Monday.
RBC's 2026 FFO estimate for American Healthcare REIT is now $2.04 per share, an increase of $0.03 per share, which compares to the management's outlook range of $1.99 to 2.05 per share, the note said.
The new estimates are backed by the company's higher investment pace, reflecting about $900 million of net investment activity annually, up about $350 million compared to RBC's previous estimates, the investment firm said.
RBC noted, however, that this will likely be offset by "more modest" Trilogy same store net operating income, or NOI, growth, reflecting a 10% compound annual growth rate in 2026 and 2027, which is a decrease of about 200 basis points versus RBC's previous estimates.
The new estimates reflect a core earnings growth rate of 18.5% this year and 15.9% next year, an outlook which is "generally supported by low-double-digit levered organic growth and mid-single-digit external growth offset by modest G&A and other leakage," the note said.
American Healthcare REIT is scheduled to release its Q1 results on May 7.
RBC kept American Healthcare REIT's outperform rating and $54 price target.
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