NYSE$WELL

Welltower Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Welltower's Q3 2021 performance was marked by strategic investments, portfolio growth, and a positive shift in seniors housing fundamentals, despite increased operating expenses.

Welltower reported a net income of $0.42 per diluted share and normalized FFO of $0.80 per diluted share. The Seniors Housing Operating portfolio saw occupancy gains and revenue growth, with positive trends in the US and UK. The company completed significant investments and dispositions, and Moody's and S&P revised their ratings outlook to Stable.

  • Net income attributable to common stockholders was $0.42 per diluted share.
  • Normalized FFO attributable to common stockholders was $0.80 per diluted share.
  • Seniors Housing Operating portfolio occupancy increased by approximately 210 bps during the third quarter.
  • Completed $2.2 billion of pro rata gross investments during the third quarter.

Headline financials

Total Revenue

$1.24B

Previous: $1.04B+19.6%
EPS (adj)

$0.80

Previous: $0.84-4.8%
Normalized FFO per diluted share

$342M

Previous: $353M-2.9%
Capital Expenditures

-$3.16B

Previous: -$989M-220.0%
Free Cash Flow

-$2.97B

Previous: -$594M-400.8%
Net Income

$190M

Previous: $395M-51.8%
Operating Income

$198M

Previous: $330M-40.0%
Gross Profit

$510M

Previous: $402M+26.9%
Cash & Equivalents

$304M

Previous: $1.6B-81.0%
Total Assets

$33.5B

Previous: $32.5B+2.9%
Stock-Based Comp

$4.54M

Previous: $6.57M-30.9%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.24B

Q3 2021+19.6%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Welltower · $836M total across 1 segment · Q3 2021

  • Resident fees and services
    $836M+12.8%

Forward guidance

Welltower anticipates net income per share between $0.20 and $0.25 and normalized FFO per share between $0.78 and $0.83 for Q4 2021. The guidance assumes a sequential increase in average pro rata occupancy of 140 bps in the fourth quarter for the SHO Portfolio.

Tailwinds

  • Midpoint of normalized FFO guidance assumes a sequential increase in average pro rata occupancy of 140 bps in the fourth quarter.
  • Full year general and administrative expenses to be approximately $129 million to $131 million.
  • Stock-based compensation expense to be approximately $19 million.
  • Fourth quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
  • Anticipate funding approximately $221 million of development in 2021 relating to projects underway on September 30, 2021.

Headwinds

  • Guidance does not include the recognition of any Provider Relief Funds which may be received during the quarter.
  • Guidance includes only those acquisitions closed or announced to date.
  • No transitions or restructures beyond those announced to date are included.
  • 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.

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 Q3 2021

Historical avgQ3 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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