NYSE$WELL

Welltower Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced Q4 2022 results, highlighted by significant SSNOI growth and strategic portfolio transitions.

Welltower reported a net loss of $0.01 per diluted share and normalized FFO of $0.83 per diluted share for Q4 2022. The company experienced strong same-store NOI growth, particularly in its Seniors Housing Operating portfolio, and made strategic moves to optimize its portfolio, including forming a joint venture with Integra Healthcare Properties.

  • Net loss attributable to common stockholders was $0.01 per diluted share.
  • Normalized FFO attributable to common stockholders was $0.83 per diluted share.
  • Total portfolio year-over-year same-store NOI grew by 12.9%, driven by a 28.1% increase in the Seniors Housing Operating portfolio.
  • Formed a joint venture with Integra Healthcare Properties and transitioned operations for skilled nursing assets previously managed by ProMedica.

Headline financials

Total Revenue

$1.52B

Previous: $1.31B+16.0%
EPS (adj)

$0.83

Previous: $0.83+0.0%
Normalized FFO per diluted share

$404M

No prior period
Net Income

$1.8M

Previous: $58.7M-96.9%
Operating Income

$6.78M

No prior period
Gross Profit

$580M

Previous: $524M+10.6%
Cash & Equivalents

$632M

Previous: $269M+134.6%
Total Assets

$37.9B

Previous: $34.9B+8.5%
Stock-Based Comp

$6.69M

Previous: $2.94M+127.3%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.52B

Q4 2022+16%vs Q4 2021
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 introduced its 2023 earnings guidance, projecting net income per share between $0.57 and $0.75 and normalized FFO per share between $3.35 and $3.53. The guidance assumes blended SSNOI growth of 8% to 13%.

Tailwinds

  • Expect average blended SSNOI growth of 8% to 13%.
  • Seniors Housing Operating SSNOI growth approximately 15% to 24%.
  • Seniors Housing Triple-net SSNOI growth approximately 1% to 3%.
  • Outpatient Medical SSNOI growth approximately 2% to 3%.
  • Long-Term/Post-Acute Care SSNOI growth approximately 2% to 3%.

Headwinds

  • Increased interest rates on floating rate debt.
  • Strengthening U.S. Dollar relative to the British Pound and Canadian Dollar are expected to reduce 2023 normalized FFO attributable to common stockholders by approximately $0.19 per diluted share versus 2022.
  • Earnings 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 the recognition of any Provider Relief Funds or other government grants which may be received during the year.

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 2022

Historical avgQ4 2022

+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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