Loading...
•
Jun 30, 2023
Welltower Q2 2023 Earnings Report
Welltower reported mixed results for Q2 2023, with strong SSNOI growth offset by a net income decrease.
Key Takeaways
Welltower's Q2 2023 results showed a net income of $0.20 per diluted share and normalized FFO of $0.90 per diluted share. The company experienced a 12.7% year-over-year same-store NOI growth, driven by a 24.2% increase in the Seniors Housing Operating portfolio. Welltower revised its full-year net income outlook to $0.73 to $0.84 per diluted share and normalized FFO guidance to $3.48 to $3.59 per diluted share.
Net income attributable to common stockholders was $0.20 per diluted share.
Normalized FFO attributable to common stockholders was $0.90 per diluted share.
Total portfolio year-over-year same store NOI grew by 12.7%, with Seniors Housing Operating portfolio growth of 24.2%.
The company closed or is under contract to close 26 new transactions representing pro rata acquisition and loan funding of approximately $2.3 billion since the beginning of Q2.
Revenue by Segment
Forward Guidance
Welltower revised its full-year 2023 outlook, increasing the midpoint of the normalized FFO attributable to common stockholders guidance range and updating assumptions for same-store NOI growth, interest rates, and other factors.
Positive Outlook
- Average blended SSNOI growth is expected to be 10% to 13%.
- Seniors Housing Operating SSNOI is projected to grow approximately 20% to 25%.
- The company anticipates funding an additional $441 million of development in 2023 related to projects underway on June 30, 2023.
- Pro rata disposition proceeds are expected to be $966 million at a blended yield of 5.0% in the next twelve months.
- Net income attributable to common stockholders guidance has been revised to a range of $0.73 to $0.84 per diluted share.
Challenges Ahead
- Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO attributable to common stockholders by approximately $0.20 per diluted share versus 2022.
- Earnings guidance includes only those acquisitions closed to date, with no transitions or restructures beyond those announced.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...