NYSE$WELL

Welltower Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Welltower reported second quarter 2021 results.

Welltower reported a net income of $0.06 per diluted share and normalized FFO of $0.79 per diluted share. The Seniors Housing Operating portfolio occupancy increased by approximately 190 bps during the second quarter. The company completed $1.5 billion of pro rata gross investments and announced the acquisition of an 86 property seniors housing portfolio operated by Holiday Retirement for $1.58 billion.

  • Reported net income attributable to common stockholders of $0.06 per diluted share
  • Reported normalized FFO attributable to common stockholders of $0.79 per diluted share
  • Seniors Housing Operating ("SHO") portfolio occupancy increased approximately 190 basis points ("bps") during the second quarter, exceeding our guidance of an approximate gain of 130 bps
  • Completed $1.5 billion of pro rata gross investments during the second quarter

Headline financials

Total Revenue

$1.14B

Previous: $1.19B-4.0%
EPS (adj)

$0.79

Previous: $0.86-8.1%
Normalized FFO per diluted share

$330M

Previous: $361M-8.5%
Capital Expenditures

-$1.17B

Previous: -$856M-36.7%
Free Cash Flow

-$1.12B

Previous: -$697M-61.4%
Net Income

$45.8M

Previous: $159M-71.3%
Operating Income

$183M

Previous: $125M+46.2%
Gross Profit

$498M

Previous: $528M-5.6%
Cash & Equivalents

$514M

Previous: $285M+80.3%
Total Assets

$32.2B

Previous: $33.2B-3.0%
Stock-Based Comp

$4.76M

Previous: $7.29M-34.7%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.14B

Q2 2021-4%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Welltower · $1.2B total across 1 segment · Q3 2023

  • Resident fees and services
    $1.2B+12.7%

Forward guidance

Welltower expects to report net income attributable to common stockholders in a range of $0.44 to $0.49 per diluted share and normalized FFO attributable to common stockholders in a range of $0.78 to $0.83 per diluted share for the quarter ended September 30, 2021.

Tailwinds

  • Midpoint of normalized FFO guidance assumes a continuation of recent trends resulting in an approximate increase of 190 bps through the third quarter in SHO Portfolio Occupancy.
  • Anticipate full year general and administrative expenses to be approximately $132 million to $137 million and stock-based compensation expense to be approximately $21 million.
  • Third quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
  • Anticipate funding approximately $288 million of development in 2021 relating to projects underway on June 30, 2021.
  • Expect pro rata disposition proceeds of $1.5 billion at a blended yield of 8.1% in 2021.

Headwinds

  • The degree to which the COVID-19 pandemic continues to impact our operations and those of our operators and tenants, including the variability in the timing of recovery, is dependent on a variety of factors and remains highly uncertain.
  • Third quarter guidance does not include the recognition of any Provider Relief Funds which may be received during the quarter.
  • No transitions or restructures beyond those announced to date are included.
  • Guidance does not include any additional investments, dispositions or capital transactions beyond those we have announced.
  • Guidance does not include any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items.

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 2021

Historical avgQ2 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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