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Sep 30, 2024
Welltower Q3 2024 Earnings Report
Welltower's financial performance was solid, marked by significant growth in normalized FFO and same-store NOI, driven by strong performance in the Seniors Housing Operating portfolio and strategic capital deployment.
Key Takeaways
Welltower reported a strong third quarter with a 20.7% increase in normalized FFO per share and a 12.6% growth in total portfolio same-store NOI. The Seniors Housing Operating portfolio was a key driver, with revenue growth and margin expansion. The company also completed substantial investments and improved its liquidity position.
Net income attributable to common stockholders was $0.73 per diluted share.
Normalized funds from operations (FFO) attributable to common stockholders increased by 20.7% year-over-year to $1.11 per diluted share.
Total portfolio same-store NOI grew by 12.6%, driven by a 23.0% increase in the Seniors Housing Operating (SHO) portfolio.
Completed $2.4 billion of pro rata gross investments, including acquisitions, loan funding, and development funding.
Revenue by Segment
Forward Guidance
Welltower revised its 2024 outlook, increasing the guidance range for net income per share to $1.75 - $1.81 and normalized FFO per share to $4.27 - $4.33. The guidance assumes continued strong same-store NOI growth and includes announced acquisitions and development projects.
Positive Outlook
- Expect average blended SSNOI growth of 11.5% to 13.0%.
- Seniors Housing Operating SSNOI growth approximately 22.0% to 24.0%.
- Includes only acquisitions announced or closed to date.
- Anticipate funding an additional $247 million of development in 2024.
- Expect pro rata disposition proceeds of $899 million.
Challenges Ahead
- No transitions or restructures beyond those announced to date are included.
- Updated guidance does not include any additional pandemic relief funds in 2024.
- Guidance does not include any additional investments, dispositions or capital transactions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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