AH Realty Trust, Inc.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag AHRT's debt & leverage

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.86, IC: 1.3x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.86

  ✗Lynch< 0.33

  Cash - Long-term Debt$-926.3M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change51.56% -> 58.78%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.86

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.86

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=10.1x, D/EBITDA=8.9x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.86

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.8620; #3738/4210 (top 88.8%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)3.8%

  ✗Buffett> 10%

  ROIC - WACC-6.2%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.11x -> 0.11x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital3.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=2.4%; FY2024: ROIC=3.7%; FY2025: ROIC=3.0%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 3.0%)

  ✗SleepROIC > 12% in a majority of years
• Valuation8% pass✓ 8✗ 20▾

  12 of 13 flag AHRT's valuation — Graham, Lynch, Greenblatt +9 more

  Price / Book Value per Share0.8x

  ✓Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Price / 3-yr avg EPS87.0x

  ✗Graham<= 15x

  Price-to-Book Ratio0.8x

  ✓Graham<= 1.5x

  P/E x P/B70.90

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.9%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)8.0x

  ✓Dreman< 8x

  Valuation ReasonablenessOE Yield=19.0%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.8x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-480.0% (IV=$1.10 vs Price=$6.38)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low116% of trailing low ($5.50)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-6.37%; #3968/6340 (top 62.6%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.8436; #1814/6449 (top 28.1%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.12x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-11.3%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.3835; #2970/5247 (top 56.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-6.31%; #3203/6202 (top 51.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag AHRT's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)-81.2%

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.39 (2013) -> $-0.07 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-1.2% CAGR over 11 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency15/15 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth4.1%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-2.7% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 24.1% -> 28.4%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR-5.8%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-3.7% over 5 years

  ✗Neff7%-20% annualized
• Profitability19% pass✓ 11✗ 24▾

  13 of 16 flag AHRT's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)11/15 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-81.2%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)15/15 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)4.6%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)28.4% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)0.71

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-7.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.9%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.22%

  ✓PiotroskiROA > 0

  ROA Change YoY1.42% -> 0.22% (delta: -1.20%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.47%, ROA=0.22%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-7.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.8x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity2.6% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-480.0% (IV=$1.10 vs Price=$6.38)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency15/15 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue24.3%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity-7.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR-2.7% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend24.1% (2023) -> 28.4% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 24.1% -> 28.4%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-6.37%; #3968/6340 (top 62.6%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-7.55%; #3312/5226 (top 63.4%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0112; #905/5884 (top 15.4%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-3.7% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years8/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts23% pass✓ 3✗ 10▾

  Split decision: 10 FAIL · 3 PASS · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (1/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 4)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (2/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag AHRT's cash flow — Buffett, Lynch, Pabrai +4 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing

  ✗LynchPositive and growing

  Operating Cash Flow$64.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.47%, ROA=0.22%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)8.0x

  ✓Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency15/15 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models50% pass✓ 3✗ 3▾

  Models split on AHRT at $6.38 — fair values range $1.10–$7.90

  Greenblatt fair value$7.70

  ✓Greenblatt+17.1% margin vs $6.38

  Dreman fair value$1.10

  ✗Dreman-480.0% margin vs $6.38

  Pabrai fair value$7.07

  ✓Pabrai+9.8% margin vs $6.38

  Akre fair value$7.90

  ✓Akre+19.2% margin vs $6.38

  Marks fair value$5.75

  ✗Marks-11.1% margin vs $6.38

  Templeton fair value$3.99

  ✗Templeton-59.9% margin vs $6.38