NYSE$WELL

Welltower Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Welltower reported mixed results for Q2 2023, with strong SSNOI growth offset by a net income decrease.

Welltower's Q2 2023 results showed a net income of $0.20 per diluted share and normalized FFO of $0.90 per diluted share. The company experienced a 12.7% year-over-year same-store NOI growth, driven by a 24.2% increase in the Seniors Housing Operating portfolio. Welltower revised its full-year net income outlook to $0.73 to $0.84 per diluted share and normalized FFO guidance to $3.48 to $3.59 per diluted share.

  • Net income attributable to common stockholders was $0.20 per diluted share.
  • Normalized FFO attributable to common stockholders was $0.90 per diluted share.
  • Total portfolio year-over-year same store NOI grew by 12.7%, with Seniors Housing Operating portfolio growth of 24.2%.
  • The company closed or is under contract to close 26 new transactions representing pro rata acquisition and loan funding of approximately $2.3 billion since the beginning of Q2.

Headline financials

Total Revenue

$1.67B

Previous: $1.47B+13.1%
EPS (adj)

$0.90

Previous: $0.86+4.7%
Normalized FFO per diluted share

$0.90

Previous: $395M-100.0%
Capital Expenditures

-$1.1B

Previous: -$1.96B+43.7%
Free Cash Flow

-$997M

Previous: -$1.86B+46.5%
Net Income

$106M

Previous: $95.7M+11.2%
Operating Income

$306M

Previous: $295M+3.8%
Gross Profit

$707M

Previous: $618M+14.3%
Cash & Equivalents

$2.2B

Previous: $363M+506.5%
Total Assets

$40.1B

Previous: $36.6B+9.5%
Stock-Based Comp

$10.5M

Previous: $6.02M+74.5%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.67B

Q2 2023+13.1%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Welltower · $1.16B total across 1 segment · Q2 2023

  • Resident fees and services
    $1.16B+14.8%

Forward guidance

Welltower revised its full-year 2023 outlook, increasing the midpoint of the normalized FFO attributable to common stockholders guidance range and updating assumptions for same-store NOI growth, interest rates, and other factors.

Tailwinds

  • Average blended SSNOI growth is expected to be 10% to 13%.
  • Seniors Housing Operating SSNOI is projected to grow approximately 20% to 25%.
  • The company anticipates funding an additional $441 million of development in 2023 related to projects underway on June 30, 2023.
  • Pro rata disposition proceeds are expected to be $966 million at a blended yield of 5.0% in the next twelve months.
  • Net income attributable to common stockholders guidance has been revised to a range of $0.73 to $0.84 per diluted share.

Headwinds

  • Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO attributable to common stockholders by approximately $0.20 per diluted share versus 2022.
  • Earnings guidance includes only those acquisitions closed to date, with no transitions or restructures beyond those announced.
  • Updated guidance does not include any additional Provider Relief Funds in 2023.
  • Guidance does not include any additional investments, dispositions or capital transactions beyond those announced.
  • The company expects pro rata disposition proceeds of $966 million at a blended yield of 5.0% 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 Q2 2023

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro