Welltower's Q4 FFO & Revenues Beat Estimates, Same Store NOI Rises

Core Insights - Welltower Inc. (WELL) reported a fourth-quarter 2024 normalized funds from operations (FFO) per share of $1.13, exceeding the Zacks Consensus Estimate by a penny and reflecting a year-over-year improvement of 17.7% [1] - The company achieved total revenues of $2.25 billion in the quarter, surpassing the Zacks Consensus Estimate of $2.12 billion, and marking a year-over-year increase of 28.6% [2] - For the full year 2024, normalized FFO per share was reported at $4.32, up from $3.64 in the previous year, although total revenues of $7.79 billion fell short of the consensus estimate of $7.91 billion, despite a year-over-year growth of 20.4% [3] Financial Performance - The same-store net operating income (SSNOI) for the total portfolio increased year over year, driven by a 23.9% growth in the seniors housing operating (SHO) portfolio [5] - The SHO portfolio's same-store revenues rose by 8.8% year over year, supported by a 310-basis point increase in average occupancy and a 5.0% growth in Revenue per Occupied Room (RevPOR) [5] - Pro-rata gross investments in the fourth quarter totaled $2.4 billion, including $2.19 billion in acquisitions and loan funding, and $233.4 million in development funding [6] Strategic Initiatives - In January 2025, the company launched a private funds management business, forming its first fund capable of sourcing up to $2 billion for investment in stable or near-stable senior housing properties in the U.S. [4] - Welltower plans to fund an additional $461 million in development for projects underway as of December 31, 2024 [10] Guidance and Outlook - For 2025, Welltower projects normalized FFO per share in the range of $4.79 to $4.95, aligning with the Zacks Consensus Estimate of $4.79 [9] - The guidance assumes an average blended SSNOI growth of 9.25-13.00%, with specific growth expectations for various segments including 15.0-21.0% in Seniors Housing Operating [9] Dividend Information - Welltower announced a cash dividend of 67 cents per share for the fourth quarter of 2024, marking the company's 215th consecutive quarterly cash dividend payout [8] Balance Sheet Position - As of December 31, 2024, Welltower had $8.7 billion in available liquidity, which includes $3.7 billion in available cash and restricted cash, along with full capacity under its $5 billion line of credit [7]