Welltower Surpasses Third Quarter Expectations, Raises Year-End Outlook; Shares Climb

NEW YORK - Welltower Inc. (NYSE:WELL) reported third-quarter earnings that exceeded analyst expectations and raised its year-end guidance, leading to a 2% increase in shares during after-hours trading.
The healthcare real estate investment trust (REIT) reported adjusted earnings of $0.73 per share for the quarter ending September 30, 2024, significantly surpassing the analyst consensus of $0.38. Revenue came in at $2.06 billion, exceeding forecasts of $1.95 billion and achieving growth compared to the same period last year.
Welltower’s strong performance stemmed from robust growth in its Senior Housing Operating (SHO) portfolio, which showed a 23% year-over-year increase in same-store net operating income (SSNOI). The company reported an overall portfolio SSNOI growth of 12.6% year-over-year.
Welltower’s CEO, Shankh Mitra, stated, "Our solid financial performance reflects the strength of our diversified portfolio and the ongoing recovery in the senior housing sector." He added, "We are particularly pleased with the significant margin expansion in our SHO portfolio, driven by strong revenue growth that outpaces expense increases."
The company raised its earnings guidance for the end of 2024 to a range of $1.75 to $1.81 per share, well above the previous forecast of $1.52 to $1.60 and the $1.34 analyst consensus.
Welltower made $2.4 billion in investments during the quarter, with $2.2 billion coming from acquisitions and debt financing. The company also improved its net debt/Adjusted EBITDA ratio, reducing it from 5.14x a year ago to 3.73x.
The board approved a 10% increase in the quarterly dividend, citing strong financial performance and growth expectations.