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Jun 30, 2024
Welltower Q2 2024 Earnings Report
Welltower reported second quarter results, demonstrating strong financial performance and strategic portfolio transitions.
Key Takeaways
Welltower reported a strong second quarter, marked by a 16.7% increase in normalized FFO per share, driven by Seniors Housing Operating portfolio growth. The company completed significant investments and portfolio transitions, strengthening its balance sheet and liquidity.
Net income attributable to common stockholders was $0.42 per diluted share.
Normalized FFO attributable to common stockholders increased by 16.7% year-over-year to $1.05 per diluted share.
Total portfolio same-store NOI grew by 11.3%, with Seniors Housing Operating portfolio leading at 21.7%.
Completed $1.7 billion in pro rata gross investments, including acquisitions, loan funding, and development funding.
Welltower
Welltower
Welltower Revenue by Segment
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com Forward Guidance
Welltower revised its full-year net income attributable to common stockholders guidance to $1.52 to $1.60 per diluted share and increased its normalized FFO guidance to $4.13 to $4.21 per diluted share.
Positive Outlook
- Expect average blended SSNOI growth of 10.0% to 12.5%.
- Seniors Housing Operating SSNOI growth approximately 19.0% to 23.0%.
- Seniors Housing Triple-net SSNOI growth approximately 3.0% to 4.0%.
- Outpatient Medical SSNOI growth approximately 2.0% to 3.0%.
- Long-Term/Post-Acute Care SSNOI growth approximately 2.0% to 3.0%.
Challenges Ahead
- Earnings guidance includes only acquisitions announced or closed to date.
- No transitions or restructures beyond those announced to date are included.
- General and administrative expenses are anticipated to be approximately $205 million to $211 million.
- Stock-based compensation expense is expected to be approximately $40 million.
- Expect pro rata disposition proceeds of $643 million at a blended yield of 6.9% in the next twelve months.