NYSE$WELL

Welltower Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Welltower's financial performance was impacted by the COVID-19 pandemic, particularly affecting the seniors housing and post-acute care businesses, but showed signs of recovery towards the end of the quarter.

Welltower reported a net income of $0.42 per diluted share and normalized FFO of $0.86 per diluted share for the second quarter of 2020. The company faced challenges in its seniors housing and post-acute care businesses due to the COVID-19 pandemic, but saw sequential improvement in seniors housing occupancy trends towards the end of the quarter. Welltower prioritized its balance sheet strength and completed strategic dispositions.

  • Net income attributable to common stockholders was $0.42 per diluted share.
  • Normalized FFO attributable to common stockholders was $0.86 per diluted share.
  • Completed $949 million of pro rata Seniors Housing Operating and Outpatient Medical dispositions at a blended yield of 5.7%.
  • Enhanced near-term liquidity profile to $4.3 billion, including $1.3 billion of cash and cash equivalents as of July 31, 2020.

Headline financials

Total Revenue

$1.19B

Previous: $1.32B-10.0%
EPS (adj)

$0.86

Previous: $1.05-18.1%
Normalized FFO per diluted share

$361M

No prior period
Capital Expenditures

-$856M

Previous: -$2.72B+68.5%
Free Cash Flow

-$697M

Previous: -$2.57B+72.9%
Net Income

$159M

Previous: $150M+6.1%
Operating Income

$125M

Previous: -$560M+122.3%
Gross Profit

$528M

Previous: $619M-14.7%
Cash & Equivalents

$285M

Previous: $269M+6.0%
Total Assets

$33.2B

Previous: $33.1B+0.0%
Stock-Based Comp

$7.29M

Previous: $7.66M-4.9%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.19B

Q2 2020-10%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Welltower · $770M total across 1 segment · Q2 2020

  • Resident fees and services
    $770M

Forward guidance

Welltower faces continued uncertainty due to the COVID-19 pandemic, but anticipates gradual recovery and remains focused on balance sheet strength and strategic capital deployment.

Tailwinds

  • Sequential improvement in seniors housing occupancy trends observed in June and July.
  • High rent collection rates from operators under Triple-net lease agreements.
  • Continued strong demand and liquidity within the seniors housing and outpatient medical asset classes as demonstrated by completed dispositions.
  • Enhanced near-term liquidity profile providing financial flexibility.
  • Proactive measures to address the challenges posed by the COVID-19 pandemic.

Headwinds

  • The COVID-19 pandemic had a pronounced impact on the second quarter financial results.
  • Seniors housing and post-acute care businesses endured significant challenges, resulting in steep occupancy declines.
  • Move-out activity continued to outpace move-ins, resulting in occupancy losses.
  • Elevated expenses associated with the COVID-19 pandemic, including higher labor costs and procurement of personal protective equipment.
  • Total occupancy losses are expected to range from 125 to 175 basis points in the third quarter.

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 Q2 2020

Historical avgQ2 2020

+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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