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Welltower (WELL) Q2 FFO Beat Estimates, Same Store NOI Rises
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Welltower Inc.’s (WELL - Free Report) second-quarter 2024 normalized funds from operations (FFO) per share of $1.05 surpassed the Zacks Consensus Estimate of $1.00. The reported figure improved 16.7% year over year.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company also raised its guidance for 2024.
WELL recorded revenues of $1.82 billion in the quarter, missing the Zacks Consensus Estimate of $1.87 billion. However, the top line increased 9.6% year over year.
Quarter in Detail
The SHO portfolio’s same-store revenues increased 8.6% year over year, backed by a 280-basis point uptick in occupancy and Revenue per Occupied Room (’RevPOR’) growth of 5.3%.
In the second quarter, property operating expenses increased 15.9% to $1.11 billion year over year.
The company’s total portfolio SSNOI grew 11.3% year over year, supported by SSNOI growth in its SHO portfolio of 21.7%.
WELL’s pro-rata gross investments in the second quarter totaled $1.7 billion. This included $1.4 billion in acquisitions and loan funding and $251 million in development funding. It opened 13 development projects for a pro-rata investment amount of $214 million. Welltower also completed pro-rata property dispositions and loan payoffs of $578 million in the quarter.
Balance Sheet Position
As of Jun 30, 2024, WELL had $6.9 billion of available liquidity, comprising $2.9 billion of available cash and restricted cash, and full capacity under its $4 billion line of credit.
Dividend Update
On Jul 29, concurrent with its second-quarter 2024 earnings release, Welltower announced a cash dividend for the second quarter of 67 cents per share, reflecting a 10% rise from the previous quarter. The dividend will be paid out on Aug 21 to stockholders of record as of Aug 12, 2024. This will mark the company’s 213th consecutive quarterly cash dividend payout.
2024 Guidance Raised
Welltower now projects 2024 normalized FFO per share of $4.13-$4.21, up from the prior-guided range of $4.05-$4.17. The Zacks Consensus Estimate for the same is pegged at $4.13, which lies within the company's guided range.
WELL’s guidance now assumes the average blended SSNOI growth of 10.0-12.5%, comprising 19.0-23.0% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.
Welltower expects to fund an additional $328 million of development in 2024 relating to projects underway as of Jun 30, 2024.
Cousins Properties’ (CUZ - Free Report) second-quarter 2024 FFO per share of 68 cents beat the Zacks Consensus Estimate of 66 cents. The figure remained unchanged on a year-over-year basis.
Results reflect decent leasing activity and better-than-anticipated revenues. However, rental property operating and interest expenses increased year over year. CUZ also raised its 2024 outlook for FFO per share.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflect better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. DOC also revised its 2024 outlook.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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Welltower (WELL) Q2 FFO Beat Estimates, Same Store NOI Rises
Welltower Inc.’s (WELL - Free Report) second-quarter 2024 normalized funds from operations (FFO) per share of $1.05 surpassed the Zacks Consensus Estimate of $1.00. The reported figure improved 16.7% year over year.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company also raised its guidance for 2024.
WELL recorded revenues of $1.82 billion in the quarter, missing the Zacks Consensus Estimate of $1.87 billion. However, the top line increased 9.6% year over year.
Quarter in Detail
The SHO portfolio’s same-store revenues increased 8.6% year over year, backed by a 280-basis point uptick in occupancy and Revenue per Occupied Room (’RevPOR’) growth of 5.3%.
In the second quarter, property operating expenses increased 15.9% to $1.11 billion year over year.
The company’s total portfolio SSNOI grew 11.3% year over year, supported by SSNOI growth in its SHO portfolio of 21.7%.
WELL’s pro-rata gross investments in the second quarter totaled $1.7 billion. This included $1.4 billion in acquisitions and loan funding and $251 million in development funding. It opened 13 development projects for a pro-rata investment amount of $214 million. Welltower also completed pro-rata property dispositions and loan payoffs of $578 million in the quarter.
Balance Sheet Position
As of Jun 30, 2024, WELL had $6.9 billion of available liquidity, comprising $2.9 billion of available cash and restricted cash, and full capacity under its $4 billion line of credit.
Dividend Update
On Jul 29, concurrent with its second-quarter 2024 earnings release, Welltower announced a cash dividend for the second quarter of 67 cents per share, reflecting a 10% rise from the previous quarter. The dividend will be paid out on Aug 21 to stockholders of record as of Aug 12, 2024. This will mark the company’s 213th consecutive quarterly cash dividend payout.
2024 Guidance Raised
Welltower now projects 2024 normalized FFO per share of $4.13-$4.21, up from the prior-guided range of $4.05-$4.17. The Zacks Consensus Estimate for the same is pegged at $4.13, which lies within the company's guided range.
WELL’s guidance now assumes the average blended SSNOI growth of 10.0-12.5%, comprising 19.0-23.0% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.
Welltower expects to fund an additional $328 million of development in 2024 relating to projects underway as of Jun 30, 2024.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Welltower Inc. Price, Consensus and EPS Surprise
Welltower Inc. price-consensus-eps-surprise-chart | Welltower Inc. Quote
Performance of Other REITs
Cousins Properties’ (CUZ - Free Report) second-quarter 2024 FFO per share of 68 cents beat the Zacks Consensus Estimate of 66 cents. The figure remained unchanged on a year-over-year basis.
Results reflect decent leasing activity and better-than-anticipated revenues. However, rental property operating and interest expenses increased year over year. CUZ also raised its 2024 outlook for FFO per share.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflect better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. DOC also revised its 2024 outlook.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.