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Mar 31, 2023
Welltower Q1 2023 Earnings Report
Welltower's financial performance in Q1 2023 showed positive trends, marked by growth in revenue, normalized FFO, and same-store NOI, alongside strategic capital deployment and portfolio optimization.
Key Takeaways
Welltower reported a solid first quarter in 2023, with net income of $0.05 per diluted share and normalized FFO of $0.85 per diluted share. The company saw strong same-store NOI growth, particularly in its Seniors Housing Operating portfolio, and completed significant investment and capital activity to strengthen its liquidity and fund future growth.
Net income attributable to common stockholders was reported at $0.05 per diluted share.
Normalized FFO attributable to common stockholders was reported at $0.85 per diluted share.
Total portfolio year-over-year same store NOI grew by 11.0%, driven by a 23.4% increase in the Seniors Housing Operating portfolio.
Approximately $785 million of pro rata gross investments were completed during the quarter.
Welltower
Welltower
Welltower Revenue by Segment
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com Forward Guidance
Welltower has revised its full year 2023 net income attributable to common stockholders outlook to a range of $0.57 to $0.72 per diluted share and increased the midpoint of its normalized FFO attributable to common stockholders guidance to a range of $3.39 to $3.54 per diluted share.
Positive Outlook
- Expect average blended SSNOI growth of 9% to 13%.
- Seniors Housing Operating SSNOI growth approximately 17% to 24%.
- Seniors Housing Triple-net SSNOI growth approximately 1% to 3%.
- Outpatient Medical SSNOI growth approximately 2% to 3%.
- Long-Term/Post-Acute Care SSNOI growth approximately 3% to 4%.
Challenges Ahead
- Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO by approximately $0.19 per diluted share.
- A strengthening U.S. Dollar relative to the British Pound and Canadian Dollar are expected to reduce 2023 normalized FFO by approximately $0.19 per diluted share.
- General and administrative expenses are anticipated to be approximately $166 million to $174 million.
- Stock-based compensation expense is expected to be approximately $31 million.
- Expect pro rata disposition proceeds of $393 million at a blended yield of 5.7% in the next twelve months.