NYSE$WELL

Welltower Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Welltower's financial performance for Q1 2021 was reported, featuring key strategic moves and operational updates.

Welltower reported a net income of $0.17 per diluted share and normalized FFO of $0.80 per diluted share. The company saw an increase in Seniors Housing Operating (SHO) portfolio occupancy and completed significant investments and dispositions, including a substantial exit from its operating relationship with Genesis Healthcare.

  • Net income attributable to common stockholders was reported at $0.17 per diluted share.
  • Normalized FFO attributable to common stockholders was reported at $0.80 per diluted share.
  • SHO portfolio occupancy increased by approximately 60 bps from the pandemic low on March 12, 2021.
  • Completed $368 million of pro rata gross investments and $216 million in pro rata property dispositions during the quarter.

Headline financials

Total Revenue

$1.05B

Previous: $1.26B-16.4%
EPS (adj)

$0.80

Previous: $1.02-21.6%
Capital Expenditures

-$671M

Previous: -$720M+6.8%
Free Cash Flow

-$599M

Previous: -$391M-53.3%
Net Income

$72.2M

Previous: $329M-78.1%
Operating Income

$371M

Previous: $225M+64.7%
Gross Profit

$435M

Previous: $577M-24.6%
Cash & Equivalents

$2.13B

Previous: $303M+602.6%
Total Assets

$33B

Previous: $32.9B+0.2%
Stock-Based Comp

$5.58M

Previous: $7.08M-21.3%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.05B

Q1 2021-16.4%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Welltower · $723M total across 1 segment · Q1 2021

  • Resident fees and services
    $723M-14.9%

Forward guidance

Welltower anticipates net income per share to be between $0.31 and $0.36, and normalized FFO per share to be between $0.72 and $0.77 for the second quarter of 2021.

Tailwinds

  • Guidance assumes a continuation of recent trends resulting in an approximate increase of 130 bps in SHO Portfolio Occupancy through the second quarter.
  • Full year general and administrative expenses are anticipated to be approximately $135 million to $140 million.
  • Stock-based compensation expense is expected to be approximately $21 million.
  • Second quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
  • Approximately $320 million of development funding is anticipated in 2021 relating to projects underway on March 31, 2021.

Headwinds

  • The extent to which the COVID-19 pandemic impacts operations depends on future developments, which are highly uncertain.
  • Second quarter guidance does not include the recognition of any Provider Relief Funds which may be received during the quarter.
  • Guidance does not include any additional investments, dispositions or capital transactions beyond those announced.
  • Guidance does not include any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items.
  • Expects pro rata disposition proceeds of $1.1 billion at a blended yield of 7.9% in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.7%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.0%

Avg return

30 days after

61%

43 / 70 earnings

Positive

+9.1%

Q3 2022

Best reaction

-12.9%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%+1.4%-3.9%
Q4 2025+3.5%+4.9%+3.5%
Q3 2025-1.6%-0.9%+12.9%
Q2 2025+0.6%+2.5%+4.5%
Q1 2025+1.6%+1.1%+2.7%
Q4 2024+2.2%+4.6%+3.1%
Q3 2024+5.5%+2.4%+7.0%
Q2 2024+2.2%+2.7%+10.3%
Q1 2024+1.0%+1.6%+6.7%
Q4 2023+6.6%+6.4%+4.7%
Q3 2023+2.8%+8.7%+8.4%
Q2 2023+4.4%+1.7%+2.3%
Q1 2023-0.9%+0.6%-4.7%
Q4 2022+3.0%+2.2%-9.2%
Q3 2022+9.1%+17.4%+6.6%
Q2 2022+2.1%+1.3%-6.4%
Q1 2022-0.1%+1.5%-4.4%
Q4 2021+5.3%+4.0%+15.5%
Q3 2021+2.1%+3.1%-2.9%
Q2 2021-0.6%-0.3%-2.0%
Q1 2021-0.5%+0.0%-2.2%
Q4 2020+2.7%+6.8%+16.1%
Q3 2020+1.1%+5.0%+19.5%
Q2 2020+5.9%+7.8%+14.7%
Q1 2020-12.9%-12.7%+27.8%
Q4 2019+3.3%+5.2%-39.6%
Q3 2019+1.7%+2.4%-2.4%
Q2 2019-0.3%+1.1%+6.7%
Q1 2019+2.6%+4.7%+10.6%
Q4 2018+0.2%+0.2%+0.6%
Q3 2018+0.1%-0.2%+8.3%
Q2 2018-4.1%-2.1%+2.5%
Q1 2018+4.7%+8.6%+12.6%
Q4 2017+0.8%-3.3%-3.6%
Q3 2017+1.1%+0.2%-2.7%
Q2 2017+0.8%-0.5%-1.2%
Q1 2017-0.2%+0.2%+5.6%
Q4 2016+2.9%+4.6%+4.1%
Q3 2016-2.1%-1.7%-6.9%
Q2 2016-2.7%-4.1%-4.0%
Q1 2016+5.8%
Q4 2015+4.7%
Q3 2015-1.6%
Q2 2015-1.8%
Q1 2015-1.0%
Q4 2014+3.2%
Q3 2014+0.4%
Q2 2014+1.7%
Q1 2014+1.2%
Q4 2013-0.7%
Q3 2013-2.8%
Q2 2013-0.9%
Q1 2013-1.3%
Q4 2012-2.0%
Q3 2012+1.5%
Q2 2012-3.3%
Q1 2012-1.2%
Q4 2011-2.6%
Q3 2011-4.3%
Q2 2011+5.6%
Q1 2010+0.2%
Q1 2011-0.2%
Q4 2009+1.7%
Q4 2010+1.7%
Q1 2009+1.7%
Q4 2008+1.7%
Q3 2009-4.4%
Q3 2010-4.4%
Q2 2010+0.2%
Q2 2009+0.2%

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