NYSE$WELL

Welltower Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced results for the quarter ended December 31, 2021.

Welltower reported a net income of $0.13 per diluted share and normalized FFO of $0.83 per diluted share for Q4 2021. The SHO portfolio spot occupancy increased by approximately 70 bps during the quarter to 77.7%, and same store revenue growth accelerated to 4.8% compared to the prior year.

  • Reported net income attributable to common stockholders of $0.13 per diluted share
  • Reported normalized FFO attributable to common stockholders of $0.83 per diluted share
  • Seniors Housing Operating ("SHO") portfolio spot occupancy increased approximately 70 basis points ("bps") during the quarter to 77.7%, while average pro rata occupancy growth exceeded guidance of 140 bps
  • SHO same store revenue growth accelerated 4.8% in the fourth quarter compared to the prior year

Headline financials

Total Revenue

$1.31B

Previous: $1.12B+16.7%
EPS (adj)

$0.83

Previous: $0.84-1.2%
Net Income

$58.7M

Previous: $155M-62.2%
Gross Profit

$524M

Previous: $501M+4.5%
Cash & Equivalents

$269M

Previous: $1.55B-82.6%
Total Assets

$34.9B

Previous: $32.5B+7.5%
Stock-Based Comp

$2.94M

Previous: $7.38M-60.1%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.31B

Q4 2021+16.7%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Welltower · $897M total across 1 segment · Q4 2021

  • Resident fees and services
    $897M+25.7%

Forward guidance

The company expects to report net income attributable to common stockholders in a range of $0.17 to $0.22 per diluted share and normalized FFO attributable to common stockholders in a range of $0.79 to $0.84 per diluted share for Q1 2022.

Tailwinds

  • Expect average blended SSNOI growth of 7.0%
  • Seniors Housing Operating approximately 15.0%
  • Seniors Housing Triple-net approximately 5.0% to 6.0%
  • Outpatient Medical approximately 1.0% to 2.0%
  • Health System approximately 2.75%

Headwinds

  • The degree to which the COVID-19 pandemic continues to impact our operations and those of our operators and tenants, including the variability in the timing of recovery, is dependent on a variety of factors and remains highly uncertain.
  • Our first quarter guidance includes approximately $6 million of Provider Relief Funds which are expected to be received during the quarter.
  • We anticipate first quarter general and administrative expenses to be approximately $35 million to $37 million and stock-based compensation expense to be approximately $7 million.
  • Our earnings guidance includes only those acquisitions closed or announced to date. Furthermore, no transitions or restructures beyond those announced to date are included.
  • We anticipate funding approximately $728 million of development in 2022 relating to projects underway on December 31, 2021.

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 2021

Historical avgQ4 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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