Welltower (WELL) Reports Q3 Earnings: What Key Metrics Have to Say

Revenue and FFO Miss Estimates

Welltower (WELL) reported its third-quarter earnings on November 3, missing analysts' estimates for both revenue and funds from operations (FFO).

Revenue came in at $1.34 billion, below the consensus estimate of $1.36 billion. FFO was $0.91 per share, below the consensus estimate of $0.93 per share.

Occupancy and Rent Growth

Occupancy declined to 88.8% from 89.6% in the prior quarter. Rent growth was 2.7%, in line with the company's guidance for the year.

The decline in occupancy was driven by the company's senior housing portfolio, which saw occupancy decline to 83.4% from 84.6% in the prior quarter.

Same-Store NOI Growth

Same-store net operating income (NOI) growth was 2.4%, in line with the company's guidance for the year.

The growth was driven by rent growth and expense control. The company expects same-store NOI growth to be in the range of 2.5% to 3.0% for the full year.

Outlook

Welltower reaffirmed its guidance for the full year, expecting FFO per share to be in the range of $3.70 to $3.74.

The company also announced that it has entered into a definitive agreement to sell its non-core portfolio for $1.2 billion.

Conclusion

Welltower's third-quarter results were mixed, as the company missed analysts' estimates for revenue and FFO. However, the company reaffirmed its guidance for the full year and announced a sale of its non-core portfolio.

Investors should continue to monitor the company's progress in improving occupancy and rent growth, particularly in its senior housing portfolio.