Senior Housing REITs Post Big Gains, Raise Billions

Retirement communities are now the fast lane in American Healthcare REIT's portfolio. AHR said same-store net operating income, meaning income minus property expenses at buildings it owned in both periods, rose 28.2% in its senior housing operating segment in the third quarter versus a year earlier ^[1].

That compares with 0.4% for AHR's outpatient medical buildings and 2.7% for its triple-net leased properties, according to the company ^[1]. These two filings can't rank senior housing against every property type nationwide, but inside AHR the gap is wide.

How the money is flowing

• AHR bought 17 senior housing properties for about $1.69 billion last quarter, taking its 2026 purchases to roughly $2.07 billion ^[1].
• As of Nov. 5, AHR held about $1.32 billion in forward equity, shares it agreed to sell but will deliver and get paid for later ^[1].
• CareTrust raised $578.2 million settling a May forward offering and $280.5 million selling shares through its at-the-market program in the quarter ^[2].
• After the quarter, CareTrust added a $700 million term loan due 2032 and expanded its revolving credit line to $2.0 billion ^[2].

But selling new shares splits future profits across more owners, so each purchase has to earn more than the stock it costs. AHR's guidance assumes no deals beyond those already closed, and it says it cannot guarantee its pipeline of over $1.0 billion will close ^[1]. AHR President Gabe Willhite said "supply and demand dynamics alone do not guarantee success in this business" ^[1], while CareTrust lists reimbursement rates and possible minimum staffing rules among its risks ^[2].

What it means for you

CareTrust puts its 2026 investments at a blended stabilized yield of 8.1%, meaning expected income once properties settle in ^[2]. By our math, that is about $81,000 a year on every $1 million, versus $49,000 from a 10-year Treasury at 4.9% ^[3]. That $32,000 gap pays for operator and care risk, though both REITs carry little debt: net debt is 1.9x yearly EBITDA at AHR and 1.4x at CareTrust ^[1][2].

Zoom out

With the 10-year Treasury yield up 0.8 points from a year ago ^[3], both companies are funding growth mostly with stock and modest debt. AHR now forecasts 23% to 26% senior housing income growth for 2026, up from 18% to 21% ^[1].