American Healthcare REIT Buys Remaining Stake in Trilogy REIT Holdings

American Healthcare REIT announced that it now fully owns Trilogy Health Services’ parent company, Trilogy REIT Holdings, after paying about $258 million to buy the remaining 24% minority membership interest.

AHR stated that the acquisition included a base purchase price of $247 million as well as a $11 million pro-rata distribution to the prior joint venture partner, an affiliate of NorthStar Healthcare Income. The company is now the sole owner of Trilogy Holdings and its Integrated Senior Health Campuses.

AHR funded the acquisition using net proceeds from its equity offering and used the remaining proceeds to repay approximately $194 million of debt outstanding on its lines of credit.

“We will continue our mission, alongside Trilogy Management Services, LLC as our operating partner, to provide high-quality care in the communities and for those individuals our campuses serve,” said Danny Prosky, American Healthcare REIT’s president and CEO. “We look forward to the potential future growth opportunities we will be able to access with the completion of this transaction.”

In November 2023, AHR announced it had signed into a purchase agreement with NorthStar, giving AHR the opportunity to acquire all of NorthStar’s minority membership investment in Trilogy. In February, the REIT announced that it was considering purchasing the remaining portion in Trilogy that it did not hold.

Irvine, CA-based American Healthcare REIT, Inc. is a self-managed real estate investment trust that acquires, owns and operates a portfolio of clinical healthcare real estate properties, focusing primarily on outpatient medical buildings, senior housing, skilled nursing facilities and other healthcare-related facilities.