American Healthcare acquires remaining 24% membership interest in Trilogy

American Healthcare REIT has now exercised its purchase option to acquire the remaining 24% minority membership interest in Trilogy REIT Holdings, that had been held by the Company’s joint venture partner, an affiliate of NorthStar Healthcare Income. Upon the closing of the acquisition, the Company became the sole owner of Trilogy Holdings and the Company’s Integrated Senior Health Campuses, or ISHC. Details of the transactions are as follows: On September 20, the Company acquired the 24% minority membership interest for a total all-cash purchase price of approximately $258M, which includes the pre-negotiated “base” purchase price of $247M and the approximate $11M pro-rata distribution owed to the Company’s joint venture partner through the closing date of the acquisition. The Company funded the acquisition using net proceeds from its equity offering that also closed on September 20, and the Company used the remaining net proceeds from the equity offering to repay approximately $194.0M of debt outstanding on its lines of credit. Based on the Company’s results for the three months ended June 30, and assuming the Company had closed the acquisition as of the first day of such period, the Company’s ISHC segment would have comprised approximately 55.3% of the Company’s total portfolio cash net operating income for such period. “We are excited to have completed the acquisition of our joint venture partner’s 24% minority membership interest in Trilogy Holdings in an accretive and leverage neutral manner. Additionally, we paid down existing outstanding indebtedness on our lines of credit with the remaining net proceeds from our recent common stock offering, which we believe will result in further accretion and borrowing capacity,” said Danny Prosky, American Healthcare REIT’s President and CEO.