NYSE$WELL

Welltower Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Welltower reported results for the quarter ended December 31, 2020.

Welltower reported a net income of $0.39 per diluted share and normalized FFO of $0.84 per diluted share. They completed $657 million in pro rata acquisitions and $781 million in pro rata dispositions since the start of Q4 2020. Over 90% of assisted living and memory care facilities in their Seniors Housing Operating portfolio completed their first vaccination clinic.

  • Reported net income attributable to common stockholders of $0.39 per diluted share
  • Reported normalized FFO attributable to common stockholders of $0.84 per diluted share
  • Completed $657 million of pro rata acquisitions since the start of the fourth quarter 2020 at a blended, non-stabilized yield of 4.5%
  • Completed $781 million of pro rata dispositions since the start of the fourth quarter 2020 at a blended yield of 5.2%, resulting in near-term liquidity of $5.1 billion as of February 8, 2021

Headline financials

Total Revenue

$1.12B

Previous: $1.26B-11.2%
EPS (adj)

$0.84

Previous: $1.05-20.0%
Normalized FFO per diluted share

$351M

Previous: $426M-17.6%
Net Income

$155M

Previous: $240M-35.3%
Operating Income

-$30.2M

Previous: $166M-118.2%
Gross Profit

$501M

Previous: $600M-16.5%
Cash & Equivalents

$1.55B

Previous: $285M+442.3%
Total Assets

$32.5B

Previous: $33.4B-2.7%
Stock-Based Comp

$7.38M

Previous: $4.55M+62.3%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.12B

Q4 2020-11.2%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Welltower · $714M total across 1 segment · Q4 2020

  • Resident fees and services
    $714M-14.2%

Forward guidance

Welltower is only introducing earnings guidance for the quarter ended March 31, 2021 and expects to report net income attributable to common stockholders in a range of $0.24 to $0.29 per diluted share and normalized FFO attributable to common stockholders in a range of $0.71 to $0.76 per diluted share.

Tailwinds

  • Our first quarter guidance includes approximately $31 million of pro rata net Provider Relief Funds received to date.
  • Our first quarter 2021 earnings guidance includes only those acquisitions closed or announced to date.
  • We anticipate funding approximately $395 million of development in 2021 relating to projects underway on December 31, 2020.
  • We expect pro rata disposition proceeds of $271 million at a blended yield of 4.7% in 2021 related primarily to properties classified as held-for-sale as of December 31, 2020, substantially all of which are expected to close during the first quarter.
  • To date in 2021, we have completed pro rata acquisitions of $151 million at a blended yield of 7.7%.

Headwinds

  • The extent to which the COVID-19 pandemic impacts our operations and those of our operators and tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence
  • We anticipate total SHO portfolio average occupancy to decline 275 to 375 basis points in the first quarter relative to fourth quarter average occupancy.
  • We anticipate full year general and administrative expenses to be approximately $135 million to $140 million and stock-based compensation expense to be approximately $21 million.
  • Our guidance does not include any additional investments, dispositions or capital transactions beyond those we have announced
  • No transitions or restructures beyond those announced to date are included.

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 2020

Historical avgQ4 2020

+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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