Back to top

Image: Bigstock

Welltower (WELL) Q2 FFO Surpasses Estimate, Revenue up Y/Y

Read MoreHide Full Article

Have you been eager to see how Welltower Inc. (WELL - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Toledo, OH-based, healthcare real estate investment trust’s (REIT) earnings release this morning.

FFO Beat

Welltower came out with normalized funds from operations (FFO) per share of $1, beating the Zacks Consensus Estimate of 99 cents.

How Was the Earnings Surprise Trend?

Welltower has a mixed earnings surprise history. Before posting a beat in Q2, the company delivered positive surprise in two out of prior four quarters, missed in other two occasions, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.22% in the trailing four quarters.

Welltower Inc. Price and EPS Surprise
 

Welltower Inc. Price and EPS Surprise | Welltower Inc. Quote

Revenue Came In Higher Than Expected

Welltower posted revenues of nearly $1.13 billion, which beat the Zacks Consensus Estimate of $1.10 billion. It also compared favorably with the year-ago number of $1.06 billion.

Developments to Note

Welltower announced comprehensive restructuring of its Brookdale portfolio that enabled it to reduce its Brookdale concentration and increase lease coverage of its portfolio.

The company placed four development projects into service amounting to $89 million.

 As such, the company raised its normalized FFO per share outlook to the range of $3.99-$4.06 from the previous range of $3.95-$4.05 for 2018. Also, the company anticipates its 2018 average blended same store net operating income growth of around 1-2%. Further, the company has increased its 2018 disposition proceeds projection to $2.4 billion from $1.9 billion guided earlier.

What Zacks Rank Says

Welltower has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Check back later for our full write up on this WELL earnings report!

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Welltower Inc. (WELL) - free report >>

Published in