IRVINE, Calif. - American Healthcare REIT, Inc. (NYSE:AHR) announced today the pricing of an underwritten public offering of 14 million shares of its common stock, according to a press release. The offering is expected to generate gross proceeds of approximately $705.6 million before expenses.
The timing of this offering comes as AHR shares trade at $51.68, near their 52-week high of $54.67, following a remarkable 54.85% return over the past year.
The offering is expected to close Friday, subject to customary closing conditions. BofA Securities is acting as the underwriter for the offering.
The company entered into a forward sale agreement with BofA Securities or an affiliate with respect to the 14 million shares. Under the agreement, the forward purchaser or its affiliate is expected to borrow shares from third parties and sell them to the underwriter.
The underwriter has been granted a 30-day option to purchase up to an additional 2.1 million shares. If exercised, the company expects to enter into an additional forward sale agreement for those shares, bringing the total potential offering to 16.1 million shares.
The company will not receive proceeds from the initial sale of shares by the forward purchaser. The company expects to physically settle the forward sale agreement within approximately 24 months from the prospectus supplement date.
The company expects to contribute net proceeds from the settlement to its operating partnership in exchange for OP Units. The operating partnership is expected to use the proceeds for general corporate purposes, including potential future investments.
American Healthcare REIT is a real estate investment trust that owns and operates clinical healthcare real estate, focusing on senior housing, skilled nursing facilities, and outpatient medical buildings in the US, UK, and Isle of Man. The company generated revenue of $2.37 billion over the last twelve months with 12.68% growth, while maintaining profitability with earnings per share of $0.58.
