Welltower's (WELL) Stock Rises 29.3% YTD: Will the Trend Last?

Company Overview - Welltower Inc. (WELL) has experienced a stock price increase of 29.3% year-to-date, significantly outperforming the industry growth of 1.6% [1] - The company is a healthcare real estate investment trust (REIT) based in Toledo, OH, with a diversified portfolio across the U.S., Canada, and the U.K. [2] Financial Performance - For Q2 2024, Welltower reported normalized funds from operations (FFO) per share of $1.05, exceeding the Zacks Consensus Estimate of $1, marking a 16.7% year-over-year improvement [3] - The REIT has raised its 2024 normalized FFO per share guidance to a range of $4.13-$4.21, up from the previous estimate of $4.05-$4.17 [4] Market Dynamics - The senior housing industry is benefiting from an aging population and increased healthcare spending, leading to strong demand for Welltower's seniors housing operating (SHO) portfolio [5] - A supply-demand imbalance is expected to sustain occupancy growth in Welltower's portfolio, with management projecting same-store NOI growth for the SHO portfolio to be between 19% and 21% in 2024 [6] Strategic Initiatives - Welltower is optimizing its outpatient medical (OM) portfolio and enhancing relationships with health system partners to capitalize on favorable trends in outpatient visits [7] - The company has engaged in strategic portfolio restructuring and capital-recycling activities, completing $1.67 billion in pro-rata gross investments in Q2 2024, including $1.42 billion in acquisitions [8] Financial Health - Welltower maintains a strong balance sheet with $8.7 billion in available liquidity as of July 26, 2024, and holds investment-grade credit ratings of BBB+ and Baa1 [9]