American Healthcare REIT ramps up buying spree, adds nearly $1 billion of operating healthcare assets in 2025

Big acquisition push and what it means up front

American Healthcare REIT announced a large acquisition effort across its operating portfolio, saying it completed more than $950 million of purchases during full-year 2025. The company framed the activity as a deliberate step to expand cash-flowing assets and deepen its exposure to care settings that pay steady rent.

For investors, the simple takeaway is this: the REIT shifted from a quieter period into an active buying stance. The deals are big enough to matter to the balance sheet and to near-term earnings. Management presented the activity as strategic rather than opportunistic, and it signaled that the acquisitions are meant to strengthen recurring revenue rather than to fuel speculative development.

Where the REIT focused its buying and the make-up of the portfolio additions

The company said the purchases were concentrated in its operating portfolio — meaning properties already providing patient care and generating rent today. That mix typically includes senior housing and skilled nursing assets, and the announcement suggested the bulk of the dollars went to stabilized, income-producing properties rather than ground-up projects.

Geographically, the acquisitions appear to be spread across multiple U.S. regions rather than clustered in a single market. That is consistent with a strategy to balance regional demand and payer mixes. The REIT emphasized that the new assets increase its scale in markets where it already has operations, improving local economies of scale for management and property teams.

Notably, the company did not highlight headline trophy assets or single blockbuster deals. Instead, this looks like a series of portfolio purchases and individual property transactions that together push the total above the $950 million mark. For investors, that means the value of the package comes from steady rents and occupancy rather than a single transformational property.

How the buys were financed and what that means for leverage and liquidity

The announcement did not publish a full, line-by-line financing table. Still, the company said it used a mix of available liquidity and capital markets tools to fund the purchases. In practice for a REIT this size, that mix usually includes cash on hand, draws under existing credit facilities, and selective debt or equity raises when needed.

From an investor standpoint, the key questions are how these transactions change leverage and how they affect liquidity through the next reporting period. Adding nearly $1 billion of assets will often be paired with new borrowing unless the REIT had unusually large cash reserves. New debt pushes leverage ratios higher, which matters because healthcare properties are capital intensive and because interest costs remain a primary margin risk.

Management said the acquisitions are accretive to funds from operations (FFO) on a pro forma basis, implying the deals should help cover any added interest expense. The company also left the door open for further M&A, framing this year’s activity as part of a multi-year plan to grow operating cash flow. Investors should expect explicit financing details in the next quarterly filing and possibly a refreshed guidance figure for leverage or FFO.

How the market will likely judge the deal: shares, yield and peer context

The healthcare REIT space is sensitive to occupancy and payer-mix news, and investors tend to compare players on dividend yield, balance-sheet strength and operational trends. Companies such as Welltower (WELL) and Ventas (VTR) have shown that disciplined acquisitions can reward shareholders, but they also underline the danger of overpaying when yields compress.

For holders of American Healthcare REIT, the acquisitions will be viewed through two lenses. If the properties deliver stable cash flow and occupancy holds up, the deals could support the dividend and improve long-term total return. If the purchases force the REIT to raise expensive debt or dilute the dividend, the market may mark the shares down.

Analysts will watch next quarter’s FFO, same-store operating results and any disclosure about purchase yields versus the REIT’s cost of capital. Those metrics will drive whether investors see the activity as value-creating or simply growth at the wrong price.

Risks, the near-term outlook and what investors should watch next

The largest short-term risks are classic for healthcare real estate: occupancy swings, changes in payer mix (private-pay versus Medicare/Medicaid), and reimbursement shifts that affect operators’ ability to pay rent. Integration risk is also real — folding many new properties into existing management systems takes time and can temporarily drag on margins.

Investors should watch four items closely in coming weeks: the company’s next quarterly filing for exact financing detail and pro forma leverage; reported FFO and dividend coverage that reflect the new assets; occupancy and operator performance updates for the acquired properties; and any comments on future capital raises or a pause in buying activity if market conditions change.

Overall, this was a clear move to grow the portfolio’s income base. It looks constructive if the REIT preserved balance-sheet flexibility and bought at sensible yields. It looks riskier if management pushed leverage too far or paid up in a frothy market. For a shareholder base that prizes steady cash flow, those are the stakes to watch.

Sources

• prnewswire.com