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Welltower
🇺🇸 NYSE:WELL
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Sep 30, 2022

Welltower Q3 2022 Earnings Report

Welltower's Q3 2022 performance reflected growth in normalized FFO and same-store NOI, driven by strong performance in the Seniors Housing Operating portfolio. Strategic investments and capital management activities were undertaken to enhance the company's financial position and growth prospects.

Key Takeaways

Welltower reported a net loss of $0.01 per diluted share, but normalized FFO of $0.84 per diluted share. The company saw same-store NOI growth of 7.2%, driven by a 17.6% increase in the Seniors Housing Operating portfolio. Welltower completed $1.1 billion in pro rata gross investments and reduced variable rate debt by $817 million after the quarter ended.

Net loss attributable to common stockholders was $0.01 per diluted share; normalized FFO was $0.84 per diluted share.

Normalized FFO growth attributable to common stockholders per diluted share increased by 5.0% year-over-year (6.2% on a constant currency basis, excluding Provider Relief Funds).

Total portfolio same-store NOI grew by 7.2%, with Seniors Housing Operating portfolio same-store NOI growing by 17.6%.

Completed $1.1 billion of pro rata gross investments, including $850 million in acquisitions and loan funding, and $203 million in development funding.

Total Revenue
$1.47B
Previous year: $1.24B
+18.9%
EPS
$0.84
Previous year: $0.8
+5.0%
Normalized FFO
$391M
Previous year: $342M
+14.3%
Gross Profit
$562M
Previous year: $510M
+10.0%
Cash and Equivalents
$343M
Previous year: $304M
+13.0%
Total Assets
$37.4B
Previous year: $33.5B
+11.8%

Welltower

Welltower

Welltower Revenue by Segment

Forward Guidance

Welltower expects net income attributable to common stockholders to be in the range of $0.08 to $0.13 per diluted share and normalized FFO attributable to common stockholders to be in the range of $0.80 to $0.85 per diluted share for the quarter ending December 31, 2022.

Positive Outlook

  • Average blended SSNOI growth of 8.5% to 10.5% expected.
  • Seniors Housing Operating SSNOI growth of approximately 18.5% to 23.5% expected.
  • Seniors Housing Triple-net SSNOI growth of approximately 5% to 6% expected.
  • Outpatient Medical SSNOI growth of approximately 1.5% to 2.5% expected.
  • Health System SSNOI growth of approximately 2.75% expected.

Challenges Ahead

  • Fourth quarter guidance does not include the recognition of any Provider Relief Funds.
  • Increased interest rates on floating rate debt and a strengthening U.S. Dollar are expected to reduce fourth quarter 2022 normalized FFO by approximately $0.03 per diluted share versus the third quarter 2022.
  • Increased interest rates on floating rate debt and a strengthening U.S. Dollar are expected to reduce fourth quarter 2022 normalized FFO by approximately $0.06 per diluted share versus the fourth quarter 2021.
  • General and administrative expenses are anticipated to be approximately $34 million to $36 million.
  • Stock-based compensation expense is anticipated to be approximately $6 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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