Welltower Q4 2019 Earnings Report
Key Takeaways
Welltower reported strong fourth-quarter results, driven by growth in normalized FFO and same-store NOI. The company completed significant investments and continued to redefine healthcare infrastructure.
Net income attributable to common stockholders was $0.55 per diluted share, compared to $0.27 per diluted share in 2018.
Normalized FFO attributable to common stockholders was $1.05 per diluted share, compared to $1.01 per diluted share in 2018, representing 4% normalized FFO growth.
Total portfolio same store NOI grew by 2.2%, driven by consistent performance across all property types.
Completed over $1.4 billion of pro rata gross investments.
Welltower
Welltower
Welltower Revenue by Segment
Forward Guidance
Welltower introduced its 2020 earnings guidance, anticipating net income per share between $2.96 and $3.06 and normalized FFO per share between $4.20 and $4.30.
Positive Outlook
- Expects average blended SSNOI growth of 1.5% to 2.5%.
- Seniors housing operating SSNOI growth approximately 1.00% to 2.50%.
- Seniors housing triple-net SSNOI growth approximately 2.25% to 2.75%.
- Outpatient medical SSNOI growth approximately 2.25% to 2.75%.
- Health system SSNOI growth approximately 1.95%.
Challenges Ahead
- Long-term/post-acute care SSNOI growth approximately 2.0% to 2.5%.
- Anticipates annual general and administrative expenses of approximately $140 million, including $30 million of stock-based compensation.
- 2020 earnings guidance includes only acquisitions and joint ventures closed or announced year to date of $1.1 billion at a year 1 blended yield of 5.6%.
- Anticipates funding approximately $468 million of development in 2020 relating to projects underway on December 31, 2019.
- Expects pro rata disposition proceeds of $1.7 billion at a blended yield of 5.1% in 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income