Welltower(US:WELL)2026-02-10 21:05Portfolio Overview - The total properties in the portfolio amount to 2,534, with a total annualized In-Place NOI of $4,160,088,000[9]. - The total annualized In-Place NOI for the Seniors Housing Triple-net segment is $612,740,000, with a 2.6% increase projected for 4Q25[5]. - The total annualized In-Place NOI for the Seniors Housing Operating segment is projected to increase to $469,183,000 in 4Q25, reflecting a 20.4% change[5]. - The total number of properties in the seniors housing operating portfolio is projected to grow from 1,085 in 4Q24 to 1,659 by 4Q25[10]. - The company operates a total of 2,900 properties, with 1,410 classified as same store properties[82]. Occupancy Rates - The overall occupancy rate for the Seniors Housing Operating segment is 88.9%, with a private pay revenue mix of 93.2%[6]. - Total occupancy increased to 87.4% by 4Q25, up from 84.8% in 4Q24[10]. - The occupancy rate for outpatient medical properties was 95.5% in 4Q25, indicating strong demand in this segment[15]. - The occupancy rate for properties is expected to progress, with 32 properties currently at 0%-50% occupancy and 23 properties at 70%+ occupancy by 12/31/2025[35]. - The occupancy rate remained stable at 97.5% for Q4 2025, with an NOI margin of 86.6%[16]. Financial Performance - Total revenues for 4Q25 reached $2,607,559, reflecting a year-over-year growth rate of 9.6%[10]. - Total revenues for the company reached $3,223,960,000, with property operating expenses at $1,961,614,000, resulting in an NOI of $1,262,346,000[81]. - Consolidated net operating income (NOI) for 4Q25 is projected at $1,247,079,000, up from $841,530,000 in 4Q24, representing a significant growth[80]. - Same store NOI for 4Q25 is expected to be $643,341,000, reflecting a year-over-year growth of 15.0%[86]. - The company reported a total of 64 unstabilized properties as of 9/30/2025, with 68 properties expected by 12/31/2025[35]. Revenue Mix - The company has a diverse revenue mix, with 88.6% from private pay sources across the portfolio[6]. - Total revenues from Seniors Housing Operating are expected to grow from $1,805,306,000 in 4Q24 to $2,588,078,000 in 4Q25[44]. - The company anticipates continued growth in the silver economy, focusing on rental housing for aging seniors across the United States, United Kingdom, and Canada[99]. Investments and Acquisitions - The company completed 276 acquisitions from 2021 to 2025, totaling $35,314,348,000[22]. - In Q4 2025, the company made gross investments of $13,921,726,000 with a yield of 7.8%[25]. - Year-to-date 2025 gross investments amounted to $19,739,604,000, maintaining a yield of 7.4%[29]. - The company has made strategic adjustments to reflect consistent property ownership percentages, impacting the overall financial metrics positively[87]. Debt and Equity - The total debt stands at $20,560,581,000, with senior unsecured notes amounting to $16,451,346,000[38]. - Total debt as of December 31, 2025, was $19,737,446,000, representing 25.42% of the gross asset value of $77,653,668,000[48]. - The total equity and noncontrolling interests were $43,202,939,000, making up 74.84% of the consolidated book capitalization[48]. - The company has scheduled principal amortization and debt maturities totaling $19,636,968,000, with a weighted average interest rate of 4.01%[52]. Operational Metrics - The average maturity of rental income agreements is approximately 15 years, with 65.0% of total revenues coming from agreements maturing thereafter[13]. - The average remaining lease term across the portfolio is 11.8 years, with an average building size of 70,997 square feet[17]. - The average age of properties in the portfolio is 19 years, indicating a mature asset base[17]. - The company measures credit strength using leverage ratios and coverage ratios, with a focus on maintaining capitalization ratios consistent with its current profile[77]. Earnings and Profitability - Net income for the twelve months ended December 31, 2025, was $961,837,000, with a quarterly net income of $117,767,000[46]. - EBITDA for the twelve months ended December 31, 2025, reached $3,691,544,000, while the quarterly EBITDA was $910,717,000[46]. - Adjusted EBITDA for the twelve months was $4,169,347,000, with a quarterly adjusted EBITDA of $1,200,564,000[46]. - The interest coverage ratio was 5.82x for the twelve months and 4.63x for the quarter[46]. Future Projections - Projected future funding for Seniors Housing Operating is estimated at $370,374,000 for 2026, with total unfunded commitments of $566,137,000[33]. - The company anticipates a projected yield of 10.4% on committed balances of $1,360,100,000 for development properties[38]. - The company has 75 properties with a total of 10,427 beds/units projected by 12/31/2025, reflecting a net increase[35].