Welltower Inc. Reports Third Quarter 2024 Financial Results
TOLEDO, Ohio — Welltower Inc. (NYSE: WELL) has announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Consensus Estimates (Q3 2024) |
|---|---|---|
| Earnings Per Share (EPS) | $0.73 | $0.38 |
| Normalized Funds From Operations (FFO) per Share | $1.11 | Not provided |
Welltower exceeded Wall Street expectations for both earnings per share and normalized FFO per share. The strong performance was driven by significant improvements in their Seniors Housing Operating (SHO) portfolio.
Segment Revenue Performance
| Segment | Q3 2024 Year-over-year Growth |
|---|---|
| Seniors Housing Operating (SHO) Portfolio | 8.9% |
| Seniors Housing Operating (SHO) SSNOI | 23.0% |
Welltower's SHO portfolio demonstrated substantial growth, attributed to a 310 basis point increase in year-over-year average occupancy and a 4.9% rise in Revenue Per Occupied Room. The SSNOI margin also expanded by 300 basis points, indicating enhanced operational efficiency.
Key Developments and Operational Highlights
- Completed $2.4 billion in pro rata gross investments, encompassing $2.2 billion in acquisitions and loan funding alongside $203 million in development funding.
- Achieved a $691 million acquisition of 20 Affinity Living Communities properties, with a full acquisition expected by year-end.
- Transitioned 41 properties from triple-net leases to Seniors Housing Operating structures in Q3.
- Awarded the GRESB Green Star recognition for industry-leading ESG performance for the fourth consecutive year.
Comments from Company Officers
Welltower's senior officers remarked on the company's robust growth trajectory and efficient capital allocation. The strategic conversion to RIDEA structures has strengthened partnerships and ensured Welltower remains competitive within the real estate investment trust sector. The officers reiterated their confidence in achieving the revised earnings guidance.
Dividends and Share Repurchase Program
The Board of Directors declared a 10% increase in the quarterly dividend, now at $0.67 per share, reflecting the company's solid financial performance and future growth potential. This marks the 214th consecutive quarterly dividend distribution.
Forward Guidance
Welltower updated its full-year 2024 guidance with projected net income attributable to common stockholders revised to $1.75 - $1.81 per share. The guidance for full-year normalized FFO per share has been increased to $4.27 - $4.33.
Stock Price Movement
Following the earnings release, Welltower's stock saw a modest increase of approximately 0.28%, indicating positive investor sentiment around the company's performance and future outlook.
In summary, Welltower's Q3 2024 results highlight strong operational performance driven by strategic investments and enhancements in the Seniors Housing Operating portfolio, alongside a positive outlook for sustained growth.
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