NYSE$WELL

Welltower Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong third quarter results driven by SSNOI growth and strategic capital deployment.

Welltower reported a strong third quarter with normalized FFO of $0.92 per share and same-store NOI growth of 14.1%, driven by its Seniors Housing Operating portfolio. The company completed $1.4 billion in pro rata acquisitions and loan funding during the quarter and revised its full-year outlook upward.

  • Net income attributable to common stockholders was $0.24 per diluted share.
  • Normalized FFO attributable to common stockholders was $0.92 per diluted share.
  • Total portfolio year-over-year same store NOI grew by 14.1%, driven by Seniors Housing Operating portfolio growth of 26.1%.
  • Completed $1.4 billion of pro rata acquisitions and loan funding during the third quarter.

Headline financials

Total Revenue

$1.66B

Previous: $1.47B+12.8%
EPS (adj)

$0.92

Previous: $0.84+9.5%
Normalized FFO per diluted share

$486M

Previous: $391M+24.1%
Capital Expenditures

-$2.14B

Previous: -$3.07B+30.4%
Free Cash Flow

-$2B

Previous: -$3.07B+34.8%
Net Income

$135M

Previous: -$2.65M+5178.1%
Operating Income

$232M

Previous: $211M+9.6%
Gross Profit

$667M

Previous: $562M+18.7%
Cash & Equivalents

$2.58B

Previous: $343M+651.8%
Total Assets

$41.7B

Previous: $37.4B+11.3%
Stock-Based Comp

$8.82M

Previous: $5.99M+47.3%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.66B

Q3 2023+12.8%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

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

  • Resident fees and services
    $1.2B+12.7%

Forward guidance

Welltower revised its full year 2023 net income attributable to common stockholders outlook to a range of $0.91 to $0.95 per diluted share and full year normalized FFO attributable to common stockholders guidance to a range of $3.59 to $3.63 per diluted share.

Tailwinds

  • Expect average blended SSNOI growth of 11.5% to 13.5%.
  • Seniors Housing Operating SSNOI growth of approximately 23% to 26%.
  • Seniors Housing Triple-net SSNOI growth of approximately 1.5% to 2.5%.
  • Outpatient Medical SSNOI growth of approximately 2.5% to 3%.
  • Long-Term/Post-Acute Care SSNOI growth of approximately 4% to 5%.

Headwinds

  • Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO by approximately $0.20 per diluted share versus 2022.
  • Strengthening U.S. Dollar relative to the British Pound and Canadian Dollar are expected to reduce 2023 normalized FFO by approximately $0.20 per diluted share versus 2022.
  • Anticipate general and administrative expenses to be approximately $176 million to $180 million.
  • Anticipate stock-based compensation expense to be approximately $35 million.
  • Expect pro rata disposition proceeds of $624 million at a blended yield of 5.5% 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 Q3 2023

Historical avgQ3 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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