Welltower(WELL) - 2024 Q3 - Quarterly Results

Financial Performance - Total NOI for 3Q24 increased to $541,128, representing a 12.6% change from the same period in 3Q23[10] - Seniors Housing Operating properties generated a NOI of $278,849, a 23.0% increase year-over-year[10] - Outpatient Medical properties reported a NOI of $127,766, reflecting a 2.2% growth compared to 3Q23[10] - Total revenues for the seniors housing operating segment reached $1,572,923 in Q3 2024, with operating expenses of $1,167,375[16] - Total revenues for 3Q24 reached $209,602,000, reflecting an increase from $202,352,000 in 2Q24[22] - NOI for 3Q24 was $144,807,000, with an NOI margin of 69.1%[22] - Same store revenues for Q3 2023 were $966,636, with a year-over-year revenue growth rate of 8.9%[15] - Total revenues for Q3 2023 reached $1,684,899,000, an increase from $1,221,753,000 in Q3 2022, representing a growth of approximately 38%[46] - Net operating income for Q3 2023 was $673,390,000, compared to $288,290,000 in Q3 2022, reflecting a significant increase of about 134%[46] - The company reported a total property operating expense of $1,011,509,000 for Q3 2023, which is an increase from $933,463,000 in Q3 2022, marking an increase of about 8%[46] Occupancy and Property Metrics - The occupancy rate for Seniors Housing Operating reached 84.3%, while Outpatient Medical achieved 94.4%[11] - Total occupancy across the seniors housing operating portfolio improved to 83.8% by Q3 2024, up from 80.7% in Q3 2023[16] - The company operates 620 properties with a total of 64,761 units, reflecting stable unit counts across the quarters[15] - The average age of properties in the portfolio is 20 years, indicating a mature asset base[9] - The total portfolio consists of 426 properties with a total square footage of 21,320,290[22] - Average occupied units per month reached 91,281, with 70,424 in the United States, 4,147 in the United Kingdom, and 16,710 in Canada[73] Revenue Sources and Mix - The revenue mix for Medicare in Long-Term/Post-Acute Care was 28.1%, highlighting reliance on government programs[11] - The remaining properties accounted for 54.5% of total NOI, highlighting a diversified revenue stream[13] - The company has a diversified rental income portfolio, with Kelsey-Seybold contributing $52,616,000, accounting for 8.9% of total rental income[23] - Health system affiliated properties account for 89.7% of NOI[24] - Investment grade tenants represent 57.4% of rental income[24] Future Outlook and Development - Future outlook includes continued focus on market expansion and potential acquisitions to enhance portfolio diversity[8] - The company has 40 development projects with a total investment of $672,760,000[31] - Future funding projections for seniors housing amount to $365,510,000, with unfunded commitments of $519,223,000[38] - The company anticipates future funding of $693,262,000 for total development projects[38] - The company is focused on market expansion and new product development, although specific details were not disclosed in the call[58] Debt and Financial Health - The total debt of the company amounts to $16,944,442[43] - The company has a net obligation of $13,880,565[43] - Total consolidated secured debt amounts to $2,581,878,000, with a weighted average interest rate of 4.34%[59] - The weighted average maturity of the debt is 5.5 years, with 12.93% of the total debt maturing thereafter[59] - The leverage ratio indicates a focus on managing long-term debt relative to total capitalization, essential for financial health[67] Adjusted Metrics and Ratios - Adjusted EBITDA for the twelve months ended September 30, 2024, was $3,042,145,000, with a net debt to EBITDA ratio of 3.73x[50] - Interest expense for the twelve months ended September 30, 2024, was $574,366,000, with a corresponding interest coverage ratio of 5.07x[50] - EBITDAR coverage for Long-Term/Post-Acute Care was reported at 1.74, indicating strong financial health[11] - The company expects to maintain capitalization ratios consistent with its current profile, indicating a stable financial outlook[67] Challenges and Adjustments - Significant adjustments in NOI include impairment of assets totaling $43,331,000 for Q1 2024[67] - The company reported a loss on real estate dispositions of $272,266,000 for Q3 2024, highlighting challenges in asset management[67] - Non-cash NOI on same store properties for Q3 2023 was $(26,713,000), indicating adjustments made for financial reporting[71] - NOI attributable to non-same store properties was $(165,506,000) for Q3 2023, reflecting challenges in that segment[71] Strategic Focus - Welltower's focus on expanding its presence in high-growth markets in the U.S., Canada, and the U.K. continues to drive its investment strategy[78] - The company emphasizes the importance of innovative care delivery models to enhance wellness and healthcare experiences[78] - Welltower remains committed to maintaining its REIT qualification amidst various market challenges and regulatory changes[75]