Critical Analysis: American Healthcare REIT (AHR) and The Competition

American Healthcare REIT (NYSE:AHR) is one of 292 publicly-traded companies in the “Real estate investment trusts” industry, but how does it compare to its rivals? We will compare American Healthcare REIT to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.

Institutional & Insider Ownership

16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 68.7% of shares of all “Real estate investment trusts” companies are owned by institutional investors. 1.0% of American Healthcare REIT shares are owned by company insiders. Comparatively, 7.1% of shares of all “Real estate investment trusts” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares American Healthcare REIT and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Healthcare REIT	-1.84%	-1.87%	-0.80%
American Healthcare REIT Competitors	-3.37%	-192.55%	1.20%

Dividends

American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. American Healthcare REIT pays out -208.3% of its earnings in the form of a dividend. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.3% and pay out -198.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for American Healthcare REIT and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Healthcare REIT	0	1	7	0	2.88
American Healthcare REIT Competitors	4356	14909	14722	404	2.32

American Healthcare REIT currently has a consensus price target of $25.13, suggesting a potential downside of 10.81%. As a group, “Real estate investment trusts” companies have a potential upside of 6.51%. Given American Healthcare REIT’s rivals higher probable upside, analysts plainly believe American Healthcare REIT has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares American Healthcare REIT and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Healthcare REIT	$1.87 billion	-$71.47 million	-58.69
American Healthcare REIT Competitors	$979.51 million	$120.25 million	19.74

American Healthcare REIT has higher revenue, but lower earnings than its rivals. American Healthcare REIT is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

American Healthcare REIT rivals beat American Healthcare REIT on 8 of the 14 factors compared.

About American Healthcare REIT

Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.