American Healthcare REIT is gearing up for a significant move in the financial landscape as it eyes a $700 million initial public offering (IPO), Bloomberg reported on Tuesday.
The REIT’s primary operating partner is Louisville, Kentucky-based Trilogy Health Services, which is one of the nation’s largest skilled nursing and senior living providers.
“Trilogy constitutes more than a third of American Healthcare REIT’s $4.4 billion portfolio and is the strongest performing component,” Danny Prosky, president and CEO of AHR, said in a press release issued in November 2023. At that time, American Healthcare REIT had just announced a purchase agreement to take full ownership of subsidiary Trilogy REIT Holdings.
Having initially announced its intention to file for an IPO in 2022, the REIT is on the verge of launching the offering, possibly within the upcoming week, according to unnamed sources cited by Bloombergg. The REIT reportedly aims to secure $700 million in the IPO, with the specifics of the offering subject to potential changes based on investor interest.
Proceeds from the IPO will be allocated towards the repayment of existing debts and potential acquisitions of health care properties. The New York Stock Exchange is expected to list the REIT under the ticker symbol AHR.
The firm currently operates in a non-traded status and is working with Bank of America, Citigroup, Morgan Stanley, and KeyBanc Capital Markets on the IPO, according to Bloomberg.
American Healthcare REIT was formed in 2021 through the merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, and their acquisition of American Healthcare Investors.
The REIT currently manages a portfolio of nearly 300 properties, covering approximately 19.1 million square feet as of June, Bisnow reported. The company’s asset valuation, reported in its latest regulatory filing after the third quarter, stands at $4.6 billion.
A spokesperson for the REIT had not replied to Skilled Nursing News’ request for comment as of publication time, but Bloomberg reported that the company is in a quiet period and refraining from comment.