Welltower Q3 2024 Earnings Report
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.
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Welltower 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.
- Excludes any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items beyond those disclosed.
- Pro rata disposition proceeds of $899 million at a blended yield of 8.4% in the next twelve months.