NYSE$WELL

Welltower Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter 2023 results, demonstrating strong growth in normalized FFO and same store NOI, driven by Seniors Housing Operating portfolio performance.

Welltower reported a strong fourth quarter in 2023, with net income attributable to common stockholders of $0.15 per diluted share and normalized FFO of $0.96 per diluted share, a 15.7% increase year-over-year. The company's total portfolio same store NOI grew by 12.5%, driven by a 23.7% increase in the Seniors Housing Operating portfolio. Welltower completed $3.0 billion in pro rata gross investments during the quarter and maintained a robust liquidity profile.

  • Reported net income attributable to common stockholders of $0.15 per diluted share.
  • Reported quarterly normalized funds from operations (FFO) attributable to common stockholders of $0.96 per diluted share, a 15.7% increase over the prior year.
  • Reported total portfolio year-over-year same store NOI (SSNOI) growth of 12.5%, driven by SSNOI growth in the Seniors Housing Operating (SHO) portfolio of 23.7%.
  • Completed $3.0 billion of pro rata gross investments, including $2.8 billion in acquisitions and loan funding and $277 million in development funding.

Headline financials

Total Revenue

$1.75B

Previous: $1.52B+15.2%
EPS (adj)

$0.96

Previous: $0.83+15.7%
Normalized FFO per diluted share

$530M

Previous: $404M+31.0%
Net Income

$88.4M

Previous: $1.8M+4818.8%
Operating Income

$87.5M

Previous: $6.78M+1189.4%
Gross Profit

-$530M

Previous: $580M-191.4%
Stock-Based Comp

$8.42M

Previous: $6.69M+25.8%

Revenue & EPS history

Welltower · Revenue · Quarterly

$1.75B

Q4 2023+15.2%vs Q4 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 is introducing its 2024 earnings guidance and expects to report net income attributable to common stockholders in a range of $1.21 to $1.37 per diluted share and normalized FFO attributable to common stockholders in a range of $3.94 to $4.10 per diluted share.

Tailwinds

  • Expect average blended SSNOI growth of 8.25% to 11.50%.
  • Seniors Housing Operating approximately 15% to 21%
  • Seniors Housing Triple-net approximately 2.5% to 4.0%
  • Outpatient Medical approximately 2% to 3%
  • Long-Term/Post-Acute Care approximately 2% to 3%

Headwinds

  • Our earnings guidance includes only those acquisitions announced or closed to date.
  • No transitions or restructures beyond those announced to date are included.
  • We anticipate general and administrative expenses to be approximately $195 million to $205 million and stock-based compensation expense to be approximately $37 million.
  • We anticipate funding an additional $819 million of development in 2024 relating to projects underway on December 31, 2023.
  • Our 2024 earnings guidance does not include the recognition of any pandemic relief funds 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 2023

Historical avgQ4 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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