American Healthcare REIT announced late Tuesday that it now fully owns the parent company of Trilogy Health Services after paying approximately $258 million to acquire the remaining 24% minority membership interest it did not own.
The Irvine, CA-based real estate investment trust purchased the interest in Trilogy REIT Holdings that had been held by the REIT’s joint venture partner, an affiliate of NorthStar Healthcare Income. American Healthcare REIT now is the sole owner of Trilogy Holdings and its senior living communities and skilled nursing facilities.
AHR President and CEO Danny Prosky said the REIT was “excited to have completed the acquisition.”
“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,” he said. “We look forward to the potential future growth opportunities we will be able to access with the completion of this transaction.”
Prosky said the self-managed REIT used the remaining net proceeds from its recent common stock offering to pay down $194 million in debt that was outstanding on its lines of credit, “which we believe will result in further accretion and borrowing capacity.”
AHR announced in November that it had entered into a purchase agreement with NorthStar that granted AHR the option to buy all of the minority membership interest that NorthStar held in Trilogy. In February, the REIT said it was considering buying the remaining interest in Trilogy that it did not own. In April, AHR acquired additional stock in Trilogy that was owned by members of Trilogy management team and some members of Trilogy’s advisory committee, then owning 76% of the company. AHR said it had until Sept. 20, 2025, to purchase the remaining interest.
The latest action came Sept. 20, when AHR closed on an equity offering, the net proceeds of which it used to fund the acquisition. AHR said the $258 million purchase price included the pre-negotiated base purchase price of $247 million and the approximate $11 million pro-rata distribution owed to the company’s joint venture partner through the closing date of the acquisition.
AHR Chief Financial Officer Brian Peay previously said that Trilogy is AHR’s “largest and best operator.” As of June 30, Louisville, KY-based Trilogy operated 126 continuum of care campuses in four states, according to a presentation on the AHR website dated Sept. 6. The campuses have a total of 7,431 skilled nursing beds and 5,560 assisted living units, with total occupancy at 86%.
In July, Trilogy announced plans to develop or expand its senior living or skilled nursing offerings in four Midwest states: Indiana, Kentucky, Michigan and Ohio. The company kicked off the expansions with the addition of 26 new independent living “patio homes” at The Lakes of Sylvania in Sylvania, OH. Patio homes are planned for other sites as well, and Trilogy also plans two additional construction projects.
In addition to long-term care properties, AHR’s portfolio includes outpatient medical buildings and other healthcare-related facilities in the United States, the United Kingdom and the Isle of Man.
