Maskot Introduction Shares of Welltower Inc. (NYSE:WELL) have performed exceptionally well for investors who've been able to hold on over the most recent one year period. Over the last twelve months, shares are up 49% on top of the steady 2% dividend the company pays to shareholders. While a large part of this total return is due to the overall market moving higher as well as lower interest rates expected going forward (a factor that's generally seen as a positive tailwind for REIT and other real estate rel ...

Shares of Welltower Inc. (WELL) have gained 29.3% in the year-to-date period compared with the industry's growth of 1.6%. This Toledo, OH-based healthcare real estate investment trust (REIT) owns a well-diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. Its portfoliorestructuring initiatives and capital-recycling activities have aided Welltower in riding the growth curve so far. A healthy balance sheet position will likely support its growth e ...

Financial Data and Key Metrics - The company reported a 17% year-over-year increase in normalized FFO per share, or over 19% adjusted for prior year subsidies [45] - Same-store NOI growth for the Senior Housing portfolio was 21.7%, marking the 7th consecutive quarter of over 20% growth [37][62] - RevPOR (unit revenue growth) came in at 5.3%, while ExpPOR (unit expense growth) was up just 1%, a near record low for the company [37] - The company updated its full-year 2024 outlook for net income attributable to common stockholders to $1.52 to $1.60 per diluted share and normalized FFO of $4.13 to $4.21 per diluted share [29] Business Line Data and Key Metrics - The development pipeline is 75% Senior Housing and 25% Outpatient Medical, with a focus on Wellness Housing, which is age-restricted or age-targeted product [9] - The Outpatient Medical business reported 2.1% year-over-year same-store growth, with a retention rate of 93% and occupancy stable at 94.3% [61] - The Senior Housing portfolio posted same-store revenue growth of 8.6%, with same-store occupancy increasing 280 basis points [63] Market Data and Key Metrics - The company closed or contracted $5 billion of transactions year-to-date, primarily in the Senior Housing space in the U.S. and UK [42][70] - The company has seen inbound inquiries from Asian and continental European investors looking to acquire senior housing assets [86] - The second quarter construction starts were negligible, falling well below trough levels seen during the GFC, due to challenges in securing construction financing [40] Company Strategy and Industry Competition - The company focuses on building regional density and growing with its operating platforms, making strategic, deliberate decisions on acquisitions [23] - The company is transitioning 89 Holiday by Atria assets to six of its strongest operating partners, expecting over $70 million of additional NOI upside [58] - The company is converting 47 triple-net leased properties to RIDEA structure, allowing direct participation in the growth of these properties [59] Management Commentary on Operating Environment and Future Prospects - The company is optimistic about the future prospects of the Senior Housing business, citing strong end-market demand as baby boomers enter their eighties [39] - The company believes it is in the early innings of an exceptional multiyear growth for the industry, driven by demographic shifts and challenges in new construction [99] - The company is focused on driving the delta between RevPOR and ExpPOR substantially higher as part of its platform initiatives [52] Other Important Information - The company recast and upsized its revolving credit facility to $5 billion, bringing near-term liquidity to nearly $9 billion [49] - The company's balance sheet leverage has declined to 3.68 times, a record low, with Moody's and S&P revising the credit rating outlook to positive [44] - The company is leveraging technology to improve the overall resident experience and enable employees to focus more on residents [69] Q&A Session Summary Question: Investment environment and acquisition opportunities - The company sees motivated counterparties looking to solve debt problems and is happy to help, focusing on basis and staying power rather than just availability of debt [3][6] Question: Development pipeline and mix between Senior Housing and Outpatient Medical - The development pipeline is predominantly Wellness Housing, with barely any traditional Senior Housing in the U.S., as the company has not been able to make Seniors Housing developments spend [9] Question: Long-term growth potential of Senior Housing - The company believes that the last mile of occupancy is harder than the first mile, with operational leverage increasing as occupancy goes up [15][16] Question: Focus on lower acuity customers and RevPOR, ExpPOR spread - The company is focusing on lower acuity assisted living residents, which consume fewer resources and tend to stay longer, leading to higher NOI [65] Question: Senior Housing guidance and occupancy growth - The company is confident in achieving its NOI growth guidance, despite some near-term disruption from renovations, and expects occupancy growth to augment 2025 growth [117] Question: Operating margin and path to pre-pandemic highs - The company needs higher occupancy to achieve pre-pandemic margins and is excited about occupancy growth this year and next [159] Question: Timeline to stabilize Wellness Housing developments - The company expects stabilization to take about 12 to 18 months, with falling lumber prices helping but overall development costs still higher than a couple of years ago [120][161] Question: Balance sheet and future growth - The company has significant capacity to tap into its balance sheet to drive partial growth, with organic deleveraging and free cash flow generation picking up [137] Question: Foreign counterparties and seniors housing exposure - Foreign counterparties are looking to exit due to debt pressure, similar to domestic counterparties, and the company is looking to do simple asset acquisitions [28] Question: Platform investments and growth contributions in 2025 - The company is pleased with occupancy growth and expects platform initiatives to enhance growth in 2025 [154] Question: Organic growth profile of Wellness Housing - The Wellness Housing segment has compounded at 8% to 10% since 2018, with highly occupied communities [142] Question: Distressed housing opportunities - The company is not designed to buy distressed assets but to invest capital and build regional density, making decisions on one asset at a time [150]

Welltower Inc.'s (WELL) 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. 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. 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 Ro ...

Debt Issuance and Repayment - Issued $1.035 billion of 2.75% exchangeable senior unsecured notes in May 2023, maturing May 15, 2028[22] - Repaid $400 million of 4.5% senior unsecured notes in January 2024 and $950 million of 3.625% senior unsecured notes in March 2024[22] - Issued $1.035 billion of 3.125% exchangeable senior unsecured notes in July 2024, maturing July 15, 2029[22] - Expanded unsecured revolving credit facility to $5 billion in July 2024, replacing the previous $4 billion facility[22] - The company issued $1.04 billion aggregate principal amount of 3.125% exchangeable senior unsecured notes maturing July 15, 2029, in July 2024[108] Capital Expenditures and Investments - Total capital expenditures for the six months ended June 30, 2024, were $756.724 million, an 11% increase from $679.093 million in the same period in 2023[26] - Recurring capital expenditures, tenant improvements, and lease commissions increased by 53% to $118.964 million for the six months ended June 30, 2024[26] - Renovations, redevelopments, and other capital improvements increased by 40% to $178.638 million for the six months ended June 30, 2024[26] - Development projects in the Seniors Housing Operating segment amounted to $194.012 million for the six months ended June 30, 2024, up from $140.865 million in 2023[52] - Total construction in progress conversions for the six months ended June 30, 2024, were $320.837 million, slightly down from $329.305 million in 2023[52] - Construction in progress additions amounted to $499.79 million in the first half of 2024, compared to $510.93 million in the same period in 2023[57] - Capital improvements to existing properties totaled $297.6 million in the first half of 2024, up from $204.98 million in the same period in 2023[57] - Total cash invested in real property, net of cash acquired, reached $1.36 billion in the first half of 2024, compared to $1.1 billion in the same period in 2023[57] - The company had outstanding construction in progress of $1,474,024,000 and committed to providing additional funds of approximately $697,515,000 to complete construction as of June 30, 2024[116] Financial Performance and Metrics - Net income for the six months ended June 30, 2024, was $392.304 million, compared to $134.977 million in the same period in 2023[8] - Total comprehensive income attributable to common stockholders for the six months ended June 30, 2024, was $345.637 million, compared to $165.512 million in the same period in 2023[8] - Net income for the six months ended June 30, 2024, increased by 191% to $392.3 million compared to $134.98 million in the same period in 2023[32] - FFO (Funds From Operations) for the six months ended June 30, 2024, rose by 23% to $1.05 billion compared to $852.24 million in the same period in 2023[32] - EBITDA for the six months ended June 30, 2024, increased by 28% to $1.43 billion compared to $1.12 billion in the same period in 2023[32] - NOI (Net Operating Income) for the six months ended June 30, 2024, grew by 13% to $1.48 billion compared to $1.31 billion in the same period in 2023[32] - Resident fees and services revenue for the six months ended June 30, 2024, increased by 20% to $2.75 billion compared to $2.29 billion in the same period in 2023[38] - Interest income for the six months ended June 30, 2024, surged by 354% to $21.1 million compared to $4.65 million in the same period in 2023[38] - Property operating expenses for the six months ended June 30, 2024, increased by 16% to $2.05 billion compared to $1.77 billion in the same period in 2023[38] - Depreciation and amortization expenses for the six months ended June 30, 2024, rose by 11% to $490.33 million compared to $440.84 million in the same period in 2023[38] - Interest expense for the six months ended June 30, 2024, decreased by 33% to $18.51 million compared to $27.62 million in the same period in 2023[38] - Total revenues for the six months ended June 30, 2024, increased by 21% to $2.78 billion compared to $2.3 billion in the same period in 2023[38] - Net income for Q2 2024 was $260,670K, a 145.1% increase from $106,342K in Q2 2023[231] - Depreciation and amortization expenses for Q2 2024 were $382,045K, an 11.7% increase from $341,945K in Q2 2023[231] - Adjusted EBITDA for Q2 2024 was $2,816,379 thousand, showing an increase from $2,669,153 thousand in Q1 2024[234] - Net income for Q2 2024 was $615,466 thousand, up from $461,138 thousand in Q1 2024[234] - Interest expense for Q2 2024 was $591,848 thousand, slightly lower than $610,761 thousand in Q1 2024[234] - Depreciation and amortization for Q2 2024 was $1,467,952 thousand, compared to $1,427,852 thousand in Q1 2024[234] - Adjusted interest coverage ratio for Q2 2024 was 4.56x, up from 4.19x in Q1 2024[234] - Adjusted fixed charge coverage ratio for Q2 2024 was 4.23x, compared to 3.88x in Q1 2024[234] - FFO (Funds From Operations) for the six months ended June 30, 2024, was $1,050,476,000, compared to $852,244,000 for the same period in 2023[222] - Net income attributable to common stockholders for the six months ended June 30, 2024, was $381,860,000, compared to $128,713,000 for the same period in 2023[222] - Net income attributable to common stockholders for Q2 2024 was $254.7 million, a significant increase from $103.0 million in Q2 2023[134] Occupancy and Property Performance - Occupancy rate increased to 82.8% in June 2024, up from 79.6% in June 2023[34] - Consolidated NOI for Seniors Housing Operating increased to $376,544K in Q2 2024, up from $279,252K in Q2 2023, representing a 34.8% growth[229] - Total SSNOI at Welltower Share for Q2 2024 reached $532,202K, a 8.3% increase compared to $491,584K in Q2 2023[229] - Outpatient Medical SSNOI at Welltower Share grew to $239,445K in the first half of 2024, up 1.7% from $235,495K in the same period of 2023[229] - Triple-net SSNOI at Welltower Share increased to $299,290K in the first half of 2024, a 4.0% rise compared to $287,907K in the same period of 2023[229] - Average occupancy for Seniors Housing Operating properties increased steadily, with SSNOI (Same Store Net Operating Income) at Welltower's share rising to $257,009K for Q2 2024, a 15.1% increase from $223,244K in Q2 2023[266][267] - SSNOI for the six months ended June 30, 2024, was $501,642K, a 20.0% increase from $417,923K in the same period in 2023[267] Acquisitions and Dispositions - The company announced the acquisition of 25 Seniors Housing Operating properties for $969 million, expected to close in the second half of 2024, with $521 million in secured debt assumed[58] - The company entered into a definitive agreement to acquire a seniors housing portfolio for approximately $0.9 billion in July 2024, expected to close later in the year[58] - Cash disbursed for acquisitions totaled $607.53 million in the first half of 2024, a significant increase from $424.09 million in the same period in 2023[57] - Total net real estate assets increased to $666.9 million as of June 30, 2024, compared to $493.96 million in the same period in 2023, reflecting significant growth in property investments[57] - The company classified eight Seniors Housing Operating properties and one Outpatient Medical property as held for sale, with an aggregate real estate balance of $81.03 million and expected gross sales proceeds of $95.25 million[60] - Impairment charges of $41.16 million were recorded for nine Seniors Housing Operating properties classified as held for sale or disposed of, as their carrying value exceeded the estimated fair value[60] - The company recorded a loss from continuing operations before income taxes of $(47.06 million) for properties sold or classified as held for sale in the first half of 2024, compared to a gain of $46.85 million in the same period in 2023[60] - The company acquired the remaining interests in 29 properties in the U.K. from Revera, with total proceeds related to the four properties disposed amounting to $222,521 thousand[68] - In the U.S., the company acquired the remaining interests in ten properties and recorded net real estate investments of $479,525 thousand[68] - The Canadian portfolio transaction involved the acquisition of the remaining interests in 71 properties, with total net proceeds related to the 14 properties disposed amounting to $430,898 thousand[68] - Total real estate dispositions for the six months ended June 30, 2024, amounted to $393,027 thousand, with a net gain of $171,150 thousand[77] Debt and Credit Facilities - Long-term debt obligations decreased to $14,027,128 as of June 30, 2024, compared to $14,285,686 on March 31, 2024[239] - Total net debt decreased to $11,163,530 as of June 30, 2024, from $11,807,351 on March 31, 2024[239] - Net debt to book capitalization ratio improved to 27% as of June 30, 2024, down from 29% on March 31, 2024[239] - Common equity market capitalization increased to $63,399,742 as of June 30, 2024, up from $55,216,873 on March 31, 2024[239] - Consolidated enterprise value rose to $75,275,425 as of June 30, 2024, compared to $68,024,189 on March 31, 2024[239] - Net debt to consolidated enterprise value ratio decreased to 15% as of June 30, 2024, from 17% on March 31, 2024[239] - The company closed on an expanded $5,000,000,000 unsecured revolving credit facility in July 2024, replacing the previous $4,000,000,000 line of credit[88] - Total principal balance of debt obligations as of June 30, 2024, was $14,124,813 thousand, with annual principal payments due starting from $106,622 thousand in 2024[90] - The company has a primary unsecured credit facility totaling $5.25 billion, including a $4 billion unsecured revolving credit facility, a $1 billion unsecured term credit facility, and a $250 million Canadian-denominated unsecured term credit facility[96] - The unsecured revolving credit facility bears interest at 0.775% over the adjusted SOFR rate as of June 30, 2024, with a facility fee of 0.15%[96] - The company's commercial paper program allows for the issuance of up to $1 billion in unsecured commercial paper notes, with none outstanding as of June 30, 2024[96] - The weighted average interest rate for borrowings under the unsecured revolving credit facility and commercial paper program was 5.05% for the six months ended June 30, 2023[96] - The ending weighted average interest rate, after considering the effects of interest rate swaps, was 3.94% as of June 30, 2024, compared to 4.00% as of June 30, 2023[97] - The gross real property value securing the debt totaled $4.97 billion as of June 30, 2024[97] Market Risks and Hedging - The company is exposed to market risks, including interest rate and foreign currency exchange rate fluctuations, which are mitigated through hedging strategies[243] - The majority of the company's borrowings are subject to limitations on the amount of indebtedness that can be incurred, potentially impacting future acquisitions[243] - Senior unsecured notes principal balance increased from $12,800,253 to $11,631,434, while secured debt decreased from $1,625,364 to $1,436,784 as of June 30, 2024[244] - Variable rate debt outstanding decreased from $1,496,447,000 to $1,056,595,000, resulting in a reduced annual interest expense impact of $10,566,000 per 1% interest rate increase[244] - A 10% fluctuation in Canadian Dollar or British Pounds Sterling exchange rates could impact annualized net income by less than $19,000,000[244] - Foreign currency exchange contracts carrying value increased from $10,811 to $35,763, with a change in fair value from $5,087 to $471[244] - Debt designated as hedges carrying value decreased from $1,527,380 to $1,509,895, with a change in fair value from $15,274 to $15,099[244] - Total financial instruments carrying value increased from $1,538,191 to $1,545,658, with a change in fair value from $20,361 to $15,570[244] - The company terminated a $550 million fixed to floating swap in January 2024, resulting in a loss of $59.56 million, with an unamortized loss amount of $56.49 million as of June 30, 2024[101] - The company entered into a $550 million forward-starting fixed to floating swap in January 2024, effective from June 2025 to December 2030, with a fair value of $(8.13) million as of June 30, 2024[101] - The company settled certain net investment hedges, generating cash proceeds of $5.13 million for the six months ended June 30, 2024, compared to $1.99 million for the same period in 2023[101] - The notional amount of derivatives designated as net investment hedges in Canadian Dollars increased from $2,025,000 in December 2023 to $2,700,000 in June 2024[115] - The notional amount of interest rate swaps designated as fair value hedges remained constant at $550,000 from December 2023 to June 2024[115] - The gain on derivative instruments designated as hedges recognized in income increased from $4,759 in Q2 2023 to $5,833 in Q2 2024[116] - The gain on equity warrants recognized in income increased from a loss of $1,242 in Q2 2023 to a gain of $5,825 in Q2 2024[116] Stock Repurchase and Dividends - The company redeemed 2,199 OP Units for common shares during Q2 2024[237] - The company has a $3,000,000,000 stock repurchase program approved on November 7, 2022, but no shares were repurchased in Q2 2024[237] - The company repurchased 7,516 shares of common stock at an average price of $102.31 per share during the three months ended June 30, 2024[255] - The maximum dollar value of shares that may yet be purchased under the repurchase program is $3,000,000,000 as of June 30, 2024[255] - The company declared a cash dividend of $0.67 per share for Q2 2024, representing a 10% increase from the prior quarter[121] - Stock-based compensation expense totaled $10,350,000 for Q2 2024, compared to $10,504,000 for the same period in 2023[132] - The company had $2,469,193,000 of remaining capacity under its ATM Program as of June 30, 2024[120] - The company issued 43,315,945 shares of common stock under its ATM Program in 2024, generating gross proceeds of $4,041,776,000[124] Financial Statements and Disclosures - The company's unaudited consolidated financial statements are prepared in accordance with U.S. GAAP, requiring significant estimates and assumptions[240] - The company's disclosure controls and procedures were deemed effective by the Chief Executive Officer and Chief Financial Officer[245] - FFO, NOI, SSNOI, EBITDA, and Adjusted EBITDA are used as supplemental measures of operating performance, excluding historical cost depreciation and gains/losses from real estate sales[249] - SSNOI evaluates property performance using a consistent portfolio, excluding acquisitions, redevelopments, and properties impacted by extraordinary events for five to six quarters[249] - EBITDA and Adjusted EBITDA are used to assess interest coverage and fixed charge coverage ratios, with leverage ratios based on net debt to total capitalization[249] - The company is evaluating the impact of new accounting standards, including ASU

For the quarter ended June 2024, Welltower (WELL) reported revenue of $1.82 billion, up 9.6% over the same period last year. EPS came in at $1.05, compared to $0.20 in the year-ago quarter. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. View all Key Company Metrics for Welltower here>>> While investors closely watch year-over-year changes in headline numbers - ...

Welltower (WELL) came out with quarterly funds from operations (FFO) of $1.05 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to FFO of $0.90 per share a year ago. These figures are adjusted for non-recurring items. Welltower, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $1.82 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.61%. This compares to year-ago revenues of $1.67 billion. The company has toppe ...

2Q24 Investment6 Overview (1) Includes land parcels and properties under development. (2) Indicates the total square footage of Outpatient Medical properties. (3) See pages 18 and 19 for reconciliation. (4) Excludes land parcels, loans, developments and investments held for sale. See page 18 for reconciliation. (5) Data as of June 30, 2024 for Seniors Housing Operating and Outpatient Medical and March 31, 2024 for remaining asset types. (6) Represents trailing twelve month coverage metrics. (7) Represents v ...

Mr. Gundlach has been a key figure at First Eagle Investment Management, where he has served on the board since 2004. Bleichroeder was spun out from First Eagle after funds controlled by Blackstone and Corsair bought majority control in 2015, a transaction initiated by Mr. Gundlach. Earlier in his career, Mr. Gundlach held roles in the corporate finance and M&A departments at Morgan Stanley and J.P. Morgan. Mr. Gundlach earned a B.S in International Relations and Affairs and an M.S. from Georgetown Universi ...

The Revolving Facility is comprised of an amended $3.0 billion tranche ("RCF A") that matures on July 24, 2028 and an amended $2.0 billion tranche ("RCF B") that matures on July 24, 2029. RCF A will replace the Company's existing $3.0 billion tranche that was scheduled to mature on June 4, 2025, while RCF B will replace the Company's existing $1.0 billion tranche that was scheduled to mature on June 4, 2026. At the Company's option, RCF A may be extended for two successive terms of six months each. Based on ...