Welltower: Q3 Earnings Snapshot

Welltower Q3 2023 Earnings Snapshot

Financial Highlights

Welltower Inc. (NYSE: WELL), a real estate investment trust (REIT) specializing in healthcare properties, reported its third-quarter 2023 financial results on November 1, 2023. The company delivered solid financial performance, highlighted by a 6.7% year-over-year increase in revenue and a 10.5% growth in normalized funds from operations (FFO) per share.

For the quarter ended September 30, 2023, Welltower's total revenue amounted to $1.49 billion, representing a $95.5 million increase from $1.39 billion in Q3 2022. This growth was primarily driven by acquisitions, rental rate increases, and the contribution of properties acquired in the HCR ManorCare transaction completed in April 2023.

Welltower's normalized FFO, a key metric used by REITs to measure operating performance, reached $270.7 million in Q3 2023, marking a notable increase of $26.2 million compared to $244.5 million in the same period last year. On a per-share basis, normalized FFO increased by 10.5% from $0.82 in Q3 2022 to $0.91 in Q3 2023.

Portfolio Highlights

As of September 30, 2023, Welltower's diversified healthcare real estate portfolio comprised approximately 1,700 properties located across the United States, the United Kingdom, and Canada. The portfolio includes a mix of seniors housing, healthcare facilities, and medical office buildings.

During Q3 2023, Welltower continued to expand its portfolio through acquisitions and development projects. The company acquired 30 properties for a total investment of $1.3 billion, including 25 skilled nursing facilities, four seniors housing communities, and one medical office building.

Welltower also made significant progress in its development pipeline, with 14 projects totaling approximately $650 million currently under construction. These developments are expected to drive future growth for the company's portfolio.

Outlook

Welltower remains optimistic about its long-term growth prospects, supported by favorable demographic trends and the increasing demand for healthcare services. The company expects to continue expanding its portfolio through strategic acquisitions and development projects, with a focus on high-quality assets in growing markets.

For the full year 2023, Welltower projects normalized FFO per share to range between $3.48 and $3.52, representing an increase of 5.7% to 7.0% compared to 2022. The company also anticipates continued growth in its revenue and net operating income.

Conclusion

Welltower's strong Q3 2023 earnings performance reflects the company's commitment to delivering sustainable growth and value to its shareholders. Welltower's diversified portfolio, active acquisition strategy, and development pipeline position the company well for continued success in the evolving healthcare real estate landscape.