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Dec 31, 2020
Welltower Q4 2020 Earnings Report
Welltower reported results for the quarter ended December 31, 2020.
Key Takeaways
Welltower reported a net income of $0.39 per diluted share and normalized FFO of $0.84 per diluted share. They completed $657 million in pro rata acquisitions and $781 million in pro rata dispositions since the start of Q4 2020. Over 90% of assisted living and memory care facilities in their Seniors Housing Operating portfolio completed their first vaccination clinic.
Reported net income attributable to common stockholders of $0.39 per diluted share
Reported normalized FFO attributable to common stockholders of $0.84 per diluted share
Completed $657 million of pro rata acquisitions since the start of the fourth quarter 2020 at a blended, non-stabilized yield of 4.5%
Completed $781 million of pro rata dispositions since the start of the fourth quarter 2020 at a blended yield of 5.2%, resulting in near-term liquidity of $5.1 billion as of February 8, 2021
Welltower
Welltower
Welltower Revenue by Segment
Revenue by Segment
Seniors Housing Ops Revenue
CapyFin.com Forward Guidance
Welltower is only introducing earnings guidance for the quarter ended March 31, 2021 and expects to report net income attributable to common stockholders in a range of $0.24 to $0.29 per diluted share and normalized FFO attributable to common stockholders in a range of $0.71 to $0.76 per diluted share.
Positive Outlook
- Our first quarter guidance includes approximately $31 million of pro rata net Provider Relief Funds received to date.
- Our first quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
- We anticipate funding approximately $395 million of development in 2021 relating to projects underway on December 31, 2020.
- We expect pro rata disposition proceeds of $271 million at a blended yield of 4.7% in 2021 related primarily to properties classified as held-for-sale as of December 31, 2020, substantially all of which are expected to close during the first quarter.
- To date in 2021, we have completed pro rata acquisitions of $151 million at a blended yield of 7.7%.
Challenges Ahead
- The extent to which the COVID-19 pandemic impacts our operations and those of our operators and tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence
- We anticipate total SHO portfolio average occupancy to decline 275 to 375 basis points in the first quarter relative to fourth quarter average occupancy.
- We anticipate full year general and administrative expenses to be approximately $135 million to $140 million and stock-based compensation expense to be approximately $21 million.
- Our guidance does not include any additional investments, dispositions or capital transactions beyond those we have announced
- No transitions or restructures beyond those announced to date are included.