On Monday, JMP Securities launched coverage on American Healthcare REIT, Inc (NYSE:AHR) with a Market Outperform rating on the stock and a price target of $16.00. The firm's analysis suggests confidence in the real estate investment trust's (REIT) potential, particularly noting its focus on senior housing facilities, medical office buildings, skilled nursing facilities, and integrated senior health campuses.
American Healthcare REIT, headquartered in Irvine, California, recently went public on the New York Stock Exchange on February 7, 2024, with an initial public offering (IPO) that raised approximately $772.8 million. Since its listing, the company has seen a total return of 14.0%, indicating a strong start on the market.
The company's current portfolio is substantial, boasting $4.2 billion in gross investments spread across 298 properties. These properties are not only located throughout the United States but also extend into the United Kingdom, demonstrating the REIT's international reach.
JMP Securities has based the $16.00 price target on a 15x multiple of the estimated 2025 funds from operations (FAD), a common metric used to assess REITs' performance. The firm anticipates that American Healthcare REIT will experience above-average organic growth in the coming years, which is expected to contribute to the share price's outperformance.
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