American Healthcare REIT, an Irvine-based investor in a variety of clinical healthcare real estate properties, is looking to take its act to Wall Street.
The non-traded real estate investment trust—whose shares are now registered with the Securities and Exchange Commission but do not trade on major securities exchanges, limiting liquidity for its investors—on Sept. 16 announced plans for an initial public offering on the New York Stock Exchange.
The size of the offering, or proposed stock price, hasn’t been determined yet. A $100 million placeholder value was given for the IPO, which is being underwritten by BofA Securities, Citigroup and KeyBanc Capital Markets. The company’s shares will trade under the “AHR” ticker symbol.
The REIT believes “that AHR is positioned well for the future, and that a public listing can provide the opportunity for AHR to access the public markets for growth capital while also providing liquidity to existing stockholders in the future,” Chief Executive and President Danny Prosky said in a letter to existing shareholders.
9th Largest of Type
AHR’s assets totaled some $4.5 billion as of June 30, making it the ninth largest public reporting healthcare REIT in the nation, according to regulatory filings.
Other large operators in the space include Irvine’s Sabra Health Care REIT Inc. (Nasdaq: SBRA) and San Clemente’s CareTrust REIT Inc. (NYSE: CTRE).
Its portfolio includes 313 medical office buildings, senior housing, skilled nursing facilities, hospitals and other healthcare-related facilities, with about 19.5 million square feet of gross leasable area.
AHR counts over 11,200 senior housing beds and is approaching 10,000 skilled nursing beds, according to its registration statement.
The portfolio is spread across 36 states in the U.S; it also has properties in the United Kingdom. None of its holdings are in Orange County; its nearest property is in Fresno.
The REIT’s seen a few twists in ownership structure over the years.
AHR was previously known as Griffin-American Healthcare REIT IV until a year ago, when it merged with another non-traded REIT, which was also run under the Griffin-American name. At the time of that deal, an IPO was said to be likely by the end of 2022.
AHR reported $1.4 billion in revenue for the 12 months ended June 30. For the first half of this year, adjusted EBITDA was $129 million, according to regulatory filings.
AHR’s team counts several ties to the area’s real estate sector. Prosky, as well as Chairman Jeff Hanson and EVP Mathieu Streiff, previously worked on the investment side of commercial brokerage Grubb & Ellis, which was for a time based in Orange County.
Members of AHR’s management team have overseen the acquisition of about $9.3 billion in healthcare real estate investments, based on aggregate contract purchase price, over the last 16 years, on behalf of the existing REIT and other prior public reporting REITs.
Notable directors for the REIT include Wil Smith, founder and CEO of Irvine’s Greenlaw Partners, as well as Gerald Robinson, a former EVP at Newport Beach’s Pacific Life.