NYSE$WELL

Welltower Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced fourth quarter 2019 results.

Welltower reported strong fourth-quarter results, driven by growth in normalized FFO and same-store NOI. The company completed significant investments and continued to redefine healthcare infrastructure.

  • Net income attributable to common stockholders was $0.55 per diluted share, compared to $0.27 per diluted share in 2018.
  • Normalized FFO attributable to common stockholders was $1.05 per diluted share, compared to $1.01 per diluted share in 2018, representing 4% normalized FFO growth.
  • Total portfolio same store NOI grew by 2.2%, driven by consistent performance across all property types.
  • Completed over $1.4 billion of pro rata gross investments.

Headline financials

Total Revenue

$1.26B

Previous: $1.24B+1.8%
EPS (adj)

$1.05

Previous: $1.01+4.0%
Normalized FFO per diluted share

$426M

No prior period
Net Income

$240M

No prior period
Operating Income

$166M

No prior period
Gross Profit

$600M

Previous: $591M+1.6%
Cash & Equivalents

$285M

Previous: $215M+32.3%
Total Assets

$33.4B

Previous: $30.3B+10.0%
Stock-Based Comp

$4.55M

Previous: $4.85M-6.2%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.26B

Q4 2019+1.8%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Welltower · $832M total across 1 segment · Q4 2019

  • Resident fees and services
    $832M

Forward guidance

Welltower introduced its 2020 earnings guidance, anticipating net income per share between $2.96 and $3.06 and normalized FFO per share between $4.20 and $4.30.

Tailwinds

  • Expects average blended SSNOI growth of 1.5% to 2.5%.
  • Seniors housing operating SSNOI growth approximately 1.00% to 2.50%.
  • Seniors housing triple-net SSNOI growth approximately 2.25% to 2.75%.
  • Outpatient medical SSNOI growth approximately 2.25% to 2.75%.
  • Health system SSNOI growth approximately 1.95%.

Headwinds

  • Long-term/post-acute care SSNOI growth approximately 2.0% to 2.5%.
  • Anticipates annual general and administrative expenses of approximately $140 million, including $30 million of stock-based compensation.
  • 2020 earnings guidance includes only acquisitions and joint ventures closed or announced year to date of $1.1 billion at a year 1 blended yield of 5.6%.
  • Anticipates funding approximately $468 million of development in 2020 relating to projects underway on December 31, 2019.
  • Expects pro rata disposition proceeds of $1.7 billion at a blended yield of 5.1% in 2020.

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 Q4 2019

Historical avgQ4 2019

+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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