BMO Capital Markets analyst Juan Sanabria has launched coverage of American Healthcare REIT, Inc. (NYSE: AHR) with an Outperform rating and a price objective of $55.00. The stock is trading at $46.33 and has outperformed over the trailing year with a 67.21% gain, according to available market data.
Sanabria's initiation centers on AHR's concentrated exposure to two operating platforms - Trilogy and Senior Housing Operating Properties (referred to as SHOP) - which together account for 75.4% of the REIT's net operating income (NOI). The analyst expects that these assets will drive leading earnings growth as demand and supply dynamics in the relevant markets accelerate.
Additional financial metrics cited in the report point to underlying strength. Net income is projected to increase this year, and the company carries a high Piotroski score of 8, a signal within the report of solid financial condition. BMO also highlights a favorable implied cap rate or weighted average cost of capital at 5.1%, which the firm interprets as supportive of "meaningfully accretive external growth off a smaller asset base."
On leverage and liquidity, the initiation notes that AHR operates with a moderate debt profile - a debt-to-common equity ratio of 0.63 - and a current ratio of 1.53, indicating available near-term liquidity. The balance-sheet posture is characterized in the note as enabling disciplined growth while maintaining financial flexibility.
Looking to the earnings power outlook, BMO's model projects 2026 funds from operations (FFO) per share of $2.02, which represents an 18.2% year-over-year increase and sits 1.6% ahead of consensus estimates on the Street. That outperformance in the forecast is attributed in part to an acquisition assumption of $1.2 billion built into BMO's projections.
Market valuation data included in the initiation shows AHR with a market capitalization of approximately $8.35 billion, trading at a price-to-earnings ratio of 296.66 and an enterprise value to EBITDA multiple of 26.25. BMO's $55 target implies roughly a 21% total return from the current share price, and the analyst situates the target inside a $52 to $60 range for comparable scenarios. The REIT currently yields about 2.16% on dividends.
The initiation stresses that realization of the forecast relies on execution - a point the analyst emphasizes as key to achieving the outlined growth and returns.
Recent corporate activity at the company complements the initiation. AHR has priced an underwritten public offering of 8.1 million shares, expected to raise about $388.8 million in gross proceeds. The REIT was also active on the acquisition front in 2025, completing purchases totaling more than $950 million concentrated in its Integrated Senior Health Campuses and Senior Housing Operating Properties segments.
In addition, AHR entered a forward sale agreement for 1.2 million shares that includes settlement flexibility extending into 2027.
Other analyst coverage referenced in the note shows Truist Securities raising its price target for AHR to $53 from $46 while maintaining a Buy rating, citing solid quarterly results and higher earnings guidance as the rationale.
The research memo also mentions broader market index activity affecting other companies, noting that Amneal Pharmaceuticals, LegalZoom.com and Dutch Bros are scheduled to join S&P Dow Jones Indices with changes effective in early 2026.
For investors and market participants focused on healthcare real estate and senior housing, the initiation adds a view that AHR's concentrated operating exposure, planned acquisitions and financing actions will be central to near-term earnings momentum and valuation trajectories. The analyst's assumptions and the company's recent capital actions form the basis of the projected FFO improvement and the stated price target.