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Dec 31, 2019
Welltower Q4 2019 Earnings Report
Announced fourth quarter 2019 results.
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
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com 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.