Welltower Inc. Reports Strong Q3 Earnings

NEW YORK – Welltower Inc. (NYSE: WELL) reported third-quarter earnings exceeding analyst expectations and raised its full-year guidance, resulting in a 2% increase in after-hours trading.

The healthcare real estate investment trust posted adjusted earnings per share of $0.73 for the quarter ending September 30, 2024, significantly surpassing the analyst consensus of $0.38. Revenue reached $2.06 billion, exceeding estimates of $1.95 billion, and showed growth compared to the same period last year.

Welltower's performance was bolstered by significant growth in its Seniors Housing Operating (SHO) portfolio, which experienced same-store net operating income (SSNOI) growth of 23% YoY. The total portfolio SSNOI also grew 12.6% compared to the previous year.

“Our solid financial performance reflects the strength of our diversified portfolio and the continued recovery in the seniors housing sector,” said Shankh Mitra, Welltower's CEO. “We’re particularly pleased with the significant margin expansion in our SHO portfolio, driven by strong revenue growth that outpaced expense growth.”

The company has raised its full-year 2024 earnings guidance to $1.75-$1.81 per share, an increase from its previous forecast of $1.52-$1.60 and well above the analyst consensus of $1.34.

During the quarter, Welltower completed $2.4 billion in investments, including $2.2 billion in acquisitions and loan funding. The company improved its net debt to Adjusted EBITDA ratio to 3.73x, down from 5.14x a year ago.

The board of directors approved a 10% increase in the quarterly dividend, citing strong financial performance and growth prospects.

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