NYSE$WELL

Welltower Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Welltower's financial performance in Q1 2023 showed positive trends, marked by growth in revenue, normalized FFO, and same-store NOI, alongside strategic capital deployment and portfolio optimization.

Welltower reported a solid first quarter in 2023, with net income of $0.05 per diluted share and normalized FFO of $0.85 per diluted share. The company saw strong same-store NOI growth, particularly in its Seniors Housing Operating portfolio, and completed significant investment and capital activity to strengthen its liquidity and fund future growth.

  • Net income attributable to common stockholders was reported at $0.05 per diluted share.
  • Normalized FFO attributable to common stockholders was reported at $0.85 per diluted share.
  • Total portfolio year-over-year same store NOI grew by 11.0%, driven by a 23.4% increase in the Seniors Housing Operating portfolio.
  • Approximately $785 million of pro rata gross investments were completed during the quarter.

Headline financials

Total Revenue

$1.56B

Previous: $1.4B+11.8%
EPS (adj)

$0.85

Previous: $0.82+3.7%
Normalized FFO per diluted share

$420M

Previous: $368M+13.9%
Capital Expenditures

-$720M

Previous: -$830M+13.2%
Free Cash Flow

-$692M

Previous: -$764M+9.5%
Net Income

$28.6M

Previous: $65.8M-56.4%
Operating Income

$183M

Previous: $175M+4.8%
Gross Profit

$603M

Previous: $542M+11.2%
Cash & Equivalents

$572M

Previous: $301M+89.9%
Total Assets

$38.5B

Previous: $35.5B+8.5%
Stock-Based Comp

$9.46M

Previous: $7.45M+27.0%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.56B

Q1 2023+11.8%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Welltower · $1.13B total across 1 segment · Q1 2023

  • Resident fees and services
    $1.13B+13.8%

Forward guidance

Welltower has revised its full year 2023 net income attributable to common stockholders outlook to a range of $0.57 to $0.72 per diluted share and increased the midpoint of its normalized FFO attributable to common stockholders guidance to a range of $3.39 to $3.54 per diluted share.

Tailwinds

  • Expect average blended SSNOI growth of 9% to 13%.
  • Seniors Housing Operating SSNOI growth approximately 17% to 24%.
  • Seniors Housing Triple-net SSNOI growth approximately 1% to 3%.
  • Outpatient Medical SSNOI growth approximately 2% to 3%.
  • Long-Term/Post-Acute Care SSNOI growth approximately 3% to 4%.

Headwinds

  • Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO by approximately $0.19 per diluted share.
  • A strengthening U.S. Dollar relative to the British Pound and Canadian Dollar are expected to reduce 2023 normalized FFO by approximately $0.19 per diluted share.
  • General and administrative expenses are anticipated to be approximately $166 million to $174 million.
  • Stock-based compensation expense is expected to be approximately $31 million.
  • Expect pro rata disposition proceeds of $393 million at a blended yield of 5.7% in the next twelve months.

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 2023

Historical avgQ1 2023

+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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