Core Insights - Welltower Inc. reported third-quarter 2025 normalized funds from operations (FFO) per share of $1.34, exceeding the Zacks Consensus Estimate of $1.30, and reflecting a year-over-year increase of 20.7% [1][9] - The company achieved revenues of $2.69 billion, surpassing the Zacks Consensus Estimate of $2.65 billion, with a year-over-year growth of 30.6% [2] - Welltower increased its guidance for 2025 normalized FFO per share to a range of $5.24-$5.30, up from the previous range of $5.06-$5.14 [8][9] Financial Performance - The total portfolio same-store net operating income (SSNOI) grew by 14.5% year over year, driven by a 20.3% increase in the seniors housing operating (SHO) portfolio [3][9] - The SHO portfolio's same-store revenues rose by 9.7% year over year, supported by a 400 basis-point increase in average occupancy and a 4.8% growth in Revenue per Occupied Room (RevPOR) [3] Investments and Acquisitions - Welltower's pro-rata gross investments in the third quarter totaled $1.9 billion, which included $1.8 billion in acquisitions and loan funding [4] - In October 2025, Welltower acquired a real estate portfolio in the U.K. for nearly £5.2 billion operated by Barchester and 100% equity ownership of another portfolio operated by HC-One for £1.2 billion [2] Operating Expenses - Property operating expenses increased by 30% year over year to $1.58 billion [5] Balance Sheet and Liquidity - As of September 30, 2025, Welltower had $11.9 billion of available liquidity, which included $6.9 billion in cash and restricted cash, along with full capacity under its $5 billion line of credit [6] Dividend Information - Welltower announced a cash dividend of 74 cents per share for the third quarter of 2025, marking the company's 218th consecutive quarterly cash dividend payout [7] Future Development - The company expects to fund an additional $80 million of development in 2025 for ongoing projects as of September 30, 2025 [10]

Financial Data and Key Metrics Changes - Welltower reported a net income attributable to common stockholders of $0.41 per diluted share and normalized funds from operations (FFO) of $1.34 per diluted share, representing a year-over-year growth of 20.7% [23] - The total portfolio same-store net operating income (NOI) growth was 14.5% year-over-year [23] - Year-over-year organic revenue growth remained at approximately 10%, driven by a 400 basis point occupancy gain and strong pricing power [13] Business Line Data and Key Metrics Changes - The senior housing portfolio achieved same-store NOI growth exceeding 20% for the 12th consecutive quarter, marking an exceptional performance [12] - Operating margins across the same-store portfolio increased by 260 basis points, with growth in unit revenue (RevPor) outpacing unit expense growth (ExPor) [13] - The seniors housing triple-net portfolio's same-store NOI increased by 3.1% year-over-year, with trailing 12-month EBITDA coverage at 1.21x [24] Market Data and Key Metrics Changes - The U.K. portfolio saw a 550 basis point year-over-year increase in occupancy, leading to a 10.4% revenue increase [13] - The backdrop for growth in 2026 and beyond remains favorable, with senior housing demand expected to grow stronger while supply remains dormant [14] Company Strategy and Development Direction - Welltower is transitioning to a pure-play rental housing platform for the aging population, focusing on technology-driven transformation and operational excellence [5][14] - The company is exiting the outpatient property management business to concentrate on senior living, which is seen as a high-growth opportunity [6][14] - The launch of Welltower 3.0 emphasizes operations and technology, aiming to enhance customer experience and employee satisfaction [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and the potential for significant growth and cash flow compounding over time [44] - The company is focused on aligning interests across its ecosystem to enhance long-term value creation [43] - Management acknowledged the uncertainty in the broader economy but highlighted the strength of their business model driven by needs-based and private pay nature [11] Other Important Information - Welltower's year-to-date transaction activity reached $33 billion, with $23 billion in incremental transactions reported [5][16] - The company announced the acquisition of the Barchester Senior Living portfolio for $5.2 billion, which is expected to be accretive to FFO per share in 2026 [9][20] - A new compensation plan was introduced to align management and operating partners' interests with shareholders [36] Q&A Session Summary Question: What is the goal behind the changes and how should growth be viewed? - Management clarified that the focus is on aligning interests across the ecosystem rather than proving anything, emphasizing the importance of duration in growth [43][44] Question: Was the new compensation plan presented as a team package? - The board spent significant time developing the plan, which aligns with the company's incentive design principles [48] Question: Why not issue equity for acquisitions instead of asset sales? - Management explained that the cost of equity was viewed as higher than the cost of asset sales, emphasizing long-term value creation over short-term gains [52][54] Question: How do the new care home deals compare to the current portfolio? - The new portfolios are similar in asset quality and private pay percentage, maintaining a consistent growth outlook [56] Question: How is execution risk managed for the announced changes? - Management highlighted the importance of a strong team with extensive transaction experience and a focus on attracting and retaining top talent to mitigate risks [76]

Financial Data and Key Metrics Changes - Welltower reported a net income attributable to common stockholders of $0.41 per diluted share and normalized funds from operations (FFO) of $1.34 per diluted share, representing a 20.7% year-over-year growth [22] - The total portfolio same-store net operating income (NOI) growth was 14.5% year-over-year [22] - Year-over-year organic revenue growth remained at approximately 10%, driven by a 400 basis point occupancy gain [11] Business Line Data and Key Metrics Changes - The senior housing portfolio achieved same-store NOI growth exceeding 20% for the 12th consecutive quarter [10] - In the UK portfolio, a 550 basis point year-over-year ramp in occupancy drove a 10.4% increase in revenue [11] - Operating margins across the same-store portfolio rose by 260 basis points, with growth in unit revenue (RevPor) outpacing unit expense (ExPor) [11] Market Data and Key Metrics Changes - The demand for senior housing is expected to grow stronger while supply remains dormant, indicating a favorable backdrop for growth in 2026 and beyond [12] - The company has expanded its year-to-date transaction activity by $23 billion, including $14 billion of acquisitions and $9 billion of dispositions and loan payoffs [15] Company Strategy and Development Direction - Welltower is transitioning to a pure-play rental housing platform for the aging population, focusing on technology-driven transformation [4] - The company is exiting the outpatient property management business to concentrate on senior living, enhancing operational excellence through digital transformation [5][12] - The launch of Welltower 3.0 emphasizes operations and technology first, aiming to delight customers and prioritize site-level employee satisfaction [28][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the broader economy but emphasizes the strength of their business model, which is needs-based and private pay [10] - The company is focused on aligning interests across the ecosystem to enhance long-term growth and cash flow compounding [42][43] - Management believes that disrupting the organization from within is essential to adapt to future market conditions and maintain competitive advantage [43] Other Important Information - Welltower's capital allocation decisions are viewed through an opportunity cost lens, evaluating the long-term implications of each decision [4] - The company has structured its recent transactions to retain significant profit interests while protecting downside risks [6][8] Q&A Session Summary Question: What is the goal behind the changes outlined, and how should growth be viewed from a cash flow standpoint? - Management clarified that they are not trying to prove anything but rather align interests across the ecosystem to enhance long-term growth and cash flow compounding [42][43] Question: Was the new compensation plan presented as an all-or-nothing proposal? - Management indicated that the board spent significant time developing the plan, which aligns with the five tenets of incentive design [47] Question: Why not issue equity to fund acquisitions instead of asset sales? - Management explained that the cost of equity was viewed as higher than the cost of capital from asset sales, emphasizing long-term value creation over short-term gains [49][51] Question: How do the new acquisitions compare to Welltower's current portfolio in terms of asset quality? - Management stated that the new acquisitions are similar in quality and metrics to the existing portfolio, maintaining a consistent growth outlook [54] Question: How does Welltower manage execution risk with the announced changes? - Management emphasized the importance of attracting and retaining top talent and building a vibrant culture to mitigate risks associated with operational changes [70][71]

Financial Performance - For the nine months ended September 30, 2025, resident fees and services and rental income represented 77% and 19% of total revenues, respectively [183]. - For the three months ended September 30, 2025, net income was $282,186 thousand, a decrease of 7.3% from $304,618 thousand in the previous quarter [195]. - Funds from Operations (FFO) for the same period was $824,375 thousand, remaining relatively stable compared to $825,717 thousand in the prior quarter [195]. - Net income for the three months ended September 30, 2025, was $282,186,000, a decrease of 38% compared to $456,800,000 in the same period of 2024 [225]. - Funds from Operations (FFO) increased by 30% to $824,375,000 for the three months ended September 30, 2025, compared to $635,817,000 in 2024 [225]. - Consolidated Net Operating Income (NOI) for the nine months ended September 30, 2025, was $3,102,874, up 33.7% from $2,319,377 in 2024 [257]. - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $840,404, compared to $831,709 for the same period in 2024, reflecting a slight increase of 0.83% [256]. Property Acquisitions and Sales - Welltower completed property acquisitions totaling $5.28 billion across 239 properties, with an average capitalization rate of 7.1% [188]. - A definitive agreement was announced to acquire a portfolio of 38 seniors housing communities for C$4.6 billion, expected to close in early 2026 [189]. - Subsequent to September 30, 2025, Welltower entered into agreements to acquire a U.K. portfolio of seniors housing real estate for £5.2 billion and the HC-One Group portfolio for £1.2 billion [190]. - A definitive agreement was made to sell a portfolio of 319 outpatient medical properties for approximately $7.2 billion, with net proceeds expected to be around $6.0 billion [196]. Debt and Liquidity - The company extinguished $288.5 million of secured debt at an average interest rate of 5.37% and assumed $469.1 million of secured debt at an average interest rate of 4.45% during the nine months ended September 30, 2025 [187]. - As of September 30, 2025, Welltower had $6.81 billion in cash and cash equivalents and $5 billion in available borrowing capacity under its unsecured revolving credit facility [186]. - The company maintains sufficient liquidity to fund its cash uses for the next twelve months, supported by various sources including resident fees and investment dispositions [201]. - The company plans to manage its capital structure to maintain compliance with debt covenants and mitigate risks associated with potential downgrades in credit ratings [213]. - The net debt to book capitalization ratio improved to 20% as of September 30, 2025, down from 24% in the previous quarter [197]. Revenue and Income Growth - Total revenues for the Seniors Housing Operating segment increased by 37% to $2,070,115,000 for the three months ended September 30, 2025, compared to $1,514,022,000 in 2024 [226]. - Average occupancy in the Seniors Housing Operating segment increased to 86.9% as of September 30, 2025, up from 83.8% in the same period of 2024 [226]. - Total revenues for the Triple-net segment increased by 25% to $286,637,000 for the three months ended September 30, 2025, compared to $228,649,000 for the same period in 2024 [232]. - Rental income for the Triple-net segment rose by 26% to $286,353,000 for the three months ended September 30, 2025, up from $227,531,000 in the prior year [232]. Operational Metrics - The property mix for Seniors Housing Operating increased to 57% in Q3 2025, compared to 51% in Q3 2024 [198]. - Operating lease expirations indicate that 68.4% of base rent is due thereafter, highlighting long-term revenue stability [199]. - The company recorded impairment charges of $36,922,000 related to nine properties during the nine months ended September 30, 2025, compared to $65,996,000 for 14 properties in the same period of 2024 [227]. - The company completed 22 construction projects with an anticipated remaining funding of $430,287,000 as of September 30, 2025 [229]. Shareholder Returns - The company declared a cash dividend of $0.74 per share for the quarter ended September 30, 2025, marking the 218th consecutive quarterly cash dividend [192]. - The company has a Stock Repurchase Program approved for up to $3,000,000,000 of common stock, with no shares repurchased during the three months ended September 30, 2025 [286]. Market and Economic Factors - The company is exposed to currency fluctuations, with a potential impact of less than $28,000,000 on annualized net income from a 10% change in exchange rates for investments in Canada and the UK [276]. - A 1% increase in interest rates would result in an increased annual interest expense of $20,550,000 for variable rate debt outstanding of $2,055,045,000 as of September 30, 2025 [275].

October 27, 2025 Forward Looking Statements and Risk Factors This document contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. These statements include, among others, management's expectations regard ...

Core Insights - Welltower reported a revenue of $2.69 billion for the quarter ended September 2025, marking a 30.7% increase year-over-year, with an EPS of $1.34 compared to $0.73 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.65 billion, resulting in a surprise of +1.36%, while the EPS also surpassed the consensus estimate of $1.30 by +3.08% [1] Revenue Breakdown - Interest income was reported at $67.22 million, slightly above the average estimate of $66.07 million, reflecting a year-over-year decline of -2.7% [4] - Other income reached $57.63 million, significantly exceeding the average estimate of $39.93 million, with a year-over-year increase of +29.2% [4] - Rental income amounted to $499.48 million, surpassing the average estimate of $473.42 million, showing a year-over-year growth of +16% [4] - Resident fees and services generated $2.06 billion, slightly above the average estimate of $2.05 billion, with a year-over-year increase of +36.4% [4] Stock Performance - Over the past month, Welltower's shares have returned +1.7%, compared to a +2.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Welltower reported quarterly funds from operations (FFO) of $1.34 per share, exceeding the Zacks Consensus Estimate of $1.3 per share, and up from $1.11 per share a year ago [1][2] - The company achieved revenues of $2.69 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.36%, compared to $2.06 billion in the same quarter last year [3] - Welltower's stock has increased by approximately 41.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.5% [4] Financial Performance - The FFO surprise for the recent quarter was +3.08%, and the company has consistently surpassed consensus FFO estimates over the last four quarters [2] - The current consensus FFO estimate for the upcoming quarter is $1.34, with projected revenues of $2.71 billion, and for the current fiscal year, the estimate is $5.12 on revenues of $10.27 billion [8] Market Outlook - The estimate revisions trend for Welltower was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] - The REIT and Equity Trust - Other industry is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [9]

Market Performance - Major U.S. stock indices, including the S&P 500, Nasdaq, and Dow Jones, closed at record highs for the second consecutive day, reflecting robust market performance [2][9] - The Dow Jones surged 324 points, or 0.69%, closing at 47,531.10, while the Nasdaq climbed 439 points, or 1.89%, reaching 23,644.20, and the S&P 500 advanced 83.72 points, or 1.23%, closing at 6,875.41 [2][9] Corporate Earnings - Cadence Design Systems (CDNS) reported strong Q3 results with adjusted earnings per share of $1.93, exceeding analyst estimates of $1.79, and revenue of $1.34 billion, surpassing expectations of $1.32 billion [3][9] - NXP Semiconductors (NXP) presented a mixed Q3 earnings report, with reported EPS of $2.48 lower than last year's $2.79, while revenue of $3.17 billion slightly exceeded the estimated $3.16 billion [4][9] - Welltower (WELL) announced solid Q3 results, with rental income reaching $499.48 million and declared a dividend of $0.74 per share, reaffirming its full-year adjusted FFO per share guidance between $5.24 and $5.30 [5][9] Strategic Developments - IBM (IBM) launched a new platform aimed at supporting financial institutions in navigating the evolving digital asset economy, positioning itself to capitalize on the growing interest in blockchain and digital currencies [6][9]

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Financial Performance - The total NOI for the same store in-place portfolio increased by 14.5% from $527,414 in Q3 2024 to $603,852 in Q3 2025[5] - Total revenues for Q3 2024 reached $2,104,073,000, with a projected increase to $2,735,813,000 by Q3 2025, representing a growth of approximately 30%[49] - Net operating income (NOI) for Q3 2024 was $857,673,000, expected to rise to $1,125,701,000 by Q3 2025, indicating a growth of about 31%[49] - Consolidated net operating income (NOI) for Q3 2024 was $842.9 million, expected to rise to $1.1 billion by Q3 2025[85] - The company reported an annualized In-Place NOI of $3.3 billion, indicating strong operational performance[86] - Total NOI reached $1,125,701, with a significant increase from $857,673 in the previous quarter[1] - The total stabilized NOI is reported at $3,445,505,000, with obligations totaling $17,869,897,000[44] Revenue Growth - Total revenues for the Seniors Housing Operating segment are projected to increase from $1,556,957 in Q3 2024 to $2,109,690 in Q3 2025, representing a growth of approximately 35.4%[11] - Same store revenues are forecasted to grow from $1,284,544 in Q3 2024 to $1,409,613 in Q3 2025, reflecting a year-over-year growth rate of 9.7%[11] - Rental income from Seniors Housing Operating increased from $1,554,263,000 in Q3 2024 to a projected $2,100,724,000 in Q3 2025, reflecting a growth of approximately 35%[49] - Consolidated SHO revenues increased from $1,256,831 in Q3 2024 to $1,507,666 in Q3 2025, representing a growth of approximately 19.8%[95] Occupancy Rates - The occupancy rate for Seniors Housing Operating properties was reported at 88.4%[6] - Total occupancy in the Seniors Housing Operating segment is expected to rise from 83.8% in Q3 2024 to 86.9% in Q3 2025, indicating an increase of 3.1 percentage points[11] - The occupancy rate for the Outpatient Medical segment is expected to remain stable around 94% over the same period[17] - The occupancy rate increased from 97.0% in Q3 2024 to 97.5% in Q3 2025[18] Property Portfolio - The total number of properties in the portfolio is 1,965, with a total NOI of $3,294,832[10] - The total number of properties in the Seniors Housing Operating segment is expected to increase from 1,029 in Q3 2024 to 1,199 in Q3 2025, a growth of 16.5%[11] - The total number of properties in the Outpatient Medical segment is projected to grow from 426 in Q3 2024 to 437 in Q3 2025[17] - The company has 3,187 units in development across 20 projects, with a projected stable yield of 7.7%[40] Capital Expenditures and Investments - The company completed 62 acquisitions and loan funding in Q3 2025, totaling $1,762,111,000 with a yield of 7.8%[29] - Year-to-date 2025 gross investments amounted to $5,817,879,000, with a yield of 7.3%[34] - Total development funding for 2025 was $351,103,000, with a yield of 7.4%[34] - Total development commitment amount is $875,805,000 with future funding of $297,822,000[38] Debt and Financial Ratios - The company reported a net debt of $10,019,435,000, resulting in a net debt to EBITDA ratio of 2.62x[51] - The company’s total debt as a percentage of gross asset value is 24.36%, with total debt reported at $16,960,008,000[53] - The average interest rate on combined debt is 4.03%, with a weighted average maturity of 5.7 years[58] - The company’s secured debt totals $2,629,981,000, with a significant portion in senior unsecured notes[58] Strategic Focus and Market Position - The company is focusing on expanding its portfolio in key metropolitan areas, including Los Angeles and New York/New Jersey, which contribute significantly to the overall revenue[10] - The company anticipates continued growth driven by strategic investments and market expansion in the senior housing sector[100] - Welltower's focus on data science and operational excellence aims to enhance long-term shareholder value through disciplined capital allocation[103] - The company is positioned to navigate macroeconomic challenges while capitalizing on opportunities within the healthcare and seniors housing industries[100]