American Healthcare REIT launches public offering of 14 million shares

American Healthcare REIT Inc. (NYSE: AHR) announced it has commenced an underwritten public offering of 14 million shares of common stock on a forward basis.

BofA Securities is serving as the underwriter for the offering. The company expects to enter into a forward sale agreement with BofA Securities or an affiliate for the 14 million shares.

The underwriter has a 30-day option to purchase up to an additional 2.1 million shares. If exercised, American Healthcare REIT expects to enter into an additional forward sale agreement for those shares.

Under the forward sale structure, the forward purchaser or its affiliate is expected to borrow shares from third parties and sell them to the underwriter. The forward purchaser is not required to borrow and sell the shares if it cannot do so after commercially reasonable efforts, if borrowing costs exceed a specified threshold, or if certain conditions are not met.

American Healthcare REIT intends to physically settle the forward sale agreements within approximately 24 months from the prospectus supplement date. Upon settlement, the company will issue shares to the forward purchaser and receive cash proceeds equal to the applicable forward sale price, subject to certain adjustments.

The company will not receive proceeds from the initial sale of shares by the forward purchaser. Net proceeds from the eventual settlement will be contributed to the company's operating partnership in exchange for OP Units, with the operating partnership using the funds 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, including senior housing communities, skilled nursing facilities, and outpatient medical buildings in the United States, United Kingdom, and Isle of Man.

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