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Welltower
🇺🇸 NYSE:WELL
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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.

Total Revenue
$1.66B
Previous year: $1.47B
+12.8%
EPS
$0.92
Previous year: $0.84
+9.5%
Normalized FFO
$486M
Previous year: $391M
+24.1%
Gross Profit
$667M
Previous year: $562M
+18.7%
Cash and Equivalents
$2.69B
Previous year: $343M
+682.3%
Total Assets
$41.7B
Previous year: $37.4B
+11.3%

Welltower

Welltower

Welltower Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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