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Mar 31, 2021
Welltower Q1 2021 Earnings Report
Welltower's financial performance for Q1 2021 was reported, featuring key strategic moves and operational updates.
Key Takeaways
Welltower reported a net income of $0.17 per diluted share and normalized FFO of $0.80 per diluted share. The company saw an increase in Seniors Housing Operating (SHO) portfolio occupancy and completed significant investments and dispositions, including a substantial exit from its operating relationship with Genesis Healthcare.
Net income attributable to common stockholders was reported at $0.17 per diluted share.
Normalized FFO attributable to common stockholders was reported at $0.80 per diluted share.
SHO portfolio occupancy increased by approximately 60 bps from the pandemic low on March 12, 2021.
Completed $368 million of pro rata gross investments and $216 million in pro rata property dispositions during the quarter.
Welltower
Welltower
Welltower Revenue by Segment
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com Forward Guidance
Welltower anticipates net income per share to be between $0.31 and $0.36, and normalized FFO per share to be between $0.72 and $0.77 for the second quarter of 2021.
Positive Outlook
- Guidance assumes a continuation of recent trends resulting in an approximate increase of 130 bps in SHO Portfolio Occupancy through the second quarter.
- Full year general and administrative expenses are anticipated to be approximately $135 million to $140 million.
- Stock-based compensation expense is expected to be approximately $21 million.
- Second quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
- Approximately $320 million of development funding is anticipated in 2021 relating to projects underway on March 31, 2021.
Challenges Ahead
- The extent to which the COVID-19 pandemic impacts operations depends on future developments, which are highly uncertain.
- Second quarter guidance does not include the recognition of any Provider Relief Funds which may be received during the quarter.
- Guidance does not include any additional investments, dispositions or capital transactions beyond those announced.
- Guidance does not include any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items.
- Expects pro rata disposition proceeds of $1.1 billion at a blended yield of 7.9% in 2021.