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Sep 30, 2021
Welltower Q3 2021 Earnings Report
Welltower's Q3 2021 performance was marked by strategic investments, portfolio growth, and a positive shift in seniors housing fundamentals, despite increased operating expenses.
Key Takeaways
Welltower reported a net income of $0.42 per diluted share and normalized FFO of $0.80 per diluted share. The Seniors Housing Operating portfolio saw occupancy gains and revenue growth, with positive trends in the US and UK. The company completed significant investments and dispositions, and Moody's and S&P revised their ratings outlook to Stable.
Net income attributable to common stockholders was $0.42 per diluted share.
Normalized FFO attributable to common stockholders was $0.80 per diluted share.
Seniors Housing Operating portfolio occupancy increased by approximately 210 bps during the third quarter.
Completed $2.2 billion of pro rata gross investments during the third quarter.
Welltower
Welltower
Welltower Revenue by Segment
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com Forward Guidance
Welltower anticipates net income per share between $0.20 and $0.25 and normalized FFO per share between $0.78 and $0.83 for Q4 2021. The guidance assumes a sequential increase in average pro rata occupancy of 140 bps in the fourth quarter for the SHO Portfolio.
Positive Outlook
- Midpoint of normalized FFO guidance assumes a sequential increase in average pro rata occupancy of 140 bps in the fourth quarter.
- Full year general and administrative expenses to be approximately $129 million to $131 million.
- Stock-based compensation expense to be approximately $19 million.
- Fourth quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
- Anticipate funding approximately $221 million of development in 2021 relating to projects underway on September 30, 2021.
Challenges Ahead
- Guidance does not include the recognition of any Provider Relief Funds which may be received during the quarter.
- Guidance includes only those acquisitions closed or announced to date.
- No transitions or restructures beyond those announced to date are included.
- 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.