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Sep 30, 2023
Welltower Q3 2023 Earnings Report
Reported strong third quarter results driven by SSNOI growth and strategic capital deployment.
Key Takeaways
Welltower reported a strong third quarter with normalized FFO of $0.92 per share and same-store NOI growth of 14.1%, driven by its Seniors Housing Operating portfolio. The company completed $1.4 billion in pro rata acquisitions and loan funding during the quarter and revised its full-year outlook upward.
Net income attributable to common stockholders was $0.24 per diluted share.
Normalized FFO attributable to common stockholders was $0.92 per diluted share.
Total portfolio year-over-year same store NOI grew by 14.1%, driven by Seniors Housing Operating portfolio growth of 26.1%.
Completed $1.4 billion of pro rata acquisitions and loan funding during the third quarter.
Welltower
Welltower
Welltower Revenue by Segment
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com Forward Guidance
Welltower revised its full year 2023 net income attributable to common stockholders outlook to a range of $0.91 to $0.95 per diluted share and full year normalized FFO attributable to common stockholders guidance to a range of $3.59 to $3.63 per diluted share.
Positive Outlook
- Expect average blended SSNOI growth of 11.5% to 13.5%.
- Seniors Housing Operating SSNOI growth of approximately 23% to 26%.
- Seniors Housing Triple-net SSNOI growth of approximately 1.5% to 2.5%.
- Outpatient Medical SSNOI growth of approximately 2.5% to 3%.
- Long-Term/Post-Acute Care SSNOI growth of approximately 4% to 5%.
Challenges Ahead
- Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO by approximately $0.20 per diluted share versus 2022.
- Strengthening U.S. Dollar relative to the British Pound and Canadian Dollar are expected to reduce 2023 normalized FFO by approximately $0.20 per diluted share versus 2022.
- Anticipate general and administrative expenses to be approximately $176 million to $180 million.
- Anticipate stock-based compensation expense to be approximately $35 million.
- Expect pro rata disposition proceeds of $624 million at a blended yield of 5.5% in the next twelve months.