Welltower Reports Third Quarter 2024 Results

Core Insights - Welltower Inc. reported a net income attributable to common stockholders of $0.73 per diluted share for the quarter ended September 30, 2024, with a normalized funds from operations (FFO) of $1.11 per diluted share, reflecting a 20.7% increase year-over-year [2][4] - The total portfolio's same store net operating income (SSNOI) grew by 12.6% year-over-year, primarily driven by a 23.0% growth in the Seniors Housing Operating (SHO) portfolio [2][4] - The company completed $2.4 billion in pro rata gross investments during the third quarter, including $2.2 billion in acquisitions and loan funding [2][4] Financial Performance - The company achieved a year-over-year same store revenue increase of 8.9% in the SHO portfolio, supported by a 310 basis points increase in average occupancy and a 4.9% growth in Revenue Per Occupied Room (RevPOR) [2][4] - The SSNOI margin for the SHO portfolio expanded by 300 basis points in the third quarter, driven by strong RevPOR growth outpacing Expense per Occupied Room (ExpPOR) growth [2][4] - The net debt to Adjusted EBITDA ratio improved to 3.73x as of September 30, 2024, down from 5.14x a year earlier [2][3] Capital Activity and Liquidity - Welltower sourced over $3.6 billion of attractively priced capital during the third quarter, enhancing its liquidity profile [3] - The company closed on an expanded $5.0 billion senior unsecured revolving credit facility, replacing a $4.0 billion line of credit [3] - As of September 30, 2024, Welltower had approximately $8.8 billion in available liquidity, including $3.8 billion in cash and restricted cash [2][3] Portfolio Activity - The company opened nine development projects with a total pro rata investment of $294 million during the third quarter [4] - Welltower entered into a definitive agreement to acquire a portfolio of 25 age-restricted active adult communities for $969 million [4] - Agreements were reached to convert 52 triple-net leased properties to Seniors Housing Operating structures, with 41 conversions completed in the third quarter [4] Environmental, Social and Governance (ESG) - Welltower received the GRESB Green Star recognition for the fourth consecutive year, indicating above-average performance in energy efficiency, social commitments, and governance practices [5] Dividend and Outlook - The Board of Directors approved a 10% increase in the quarterly dividend per share, reflecting strong financial performance and confidence in growth prospects [2][5] - The guidance for net income attributable to common stockholders was revised to a range of $1.75 to $1.81 per diluted share, and the normalized FFO guidance was increased to a range of $4.27 to $4.33 per diluted share [5][15]