4 Reasons to Add Welltower Stock to Your Portfolio Right Now

Core Insights - Welltower Inc. has a diversified portfolio of healthcare real estate assets in the U.S., Canada, and the U.K., benefiting from a favorable senior housing industry, capital-recycling efforts, and a strong balance sheet [1][10] Company Developments - Welltower is under contract to acquire Amica Senior Lifestyles' senior housing portfolio in Canada for C$4.6 billion, expected to close in Q4 2025, pending regulatory approvals [2] - The Zacks Consensus Estimate for Welltower's 2025 FFO per share has increased by 1.9$4.88, with shares gaining 22.8% over the past six months compared to a 4.2% decline in the industry [3] Market Dynamics - The aging population and rising healthcare expenditures among senior citizens position Welltower's seniors' housing operating (SHO) portfolio for growth [4] - A supply-demand imbalance is anticipated to sustain occupancy growth in Welltower's portfolio through 2025 and beyond [5] Financial Performance - In Q4 2024, the same-store net operating income (NOI) for the SHO portfolio grew by 23.9%, marking the ninth consecutive quarter of over 20% growth, with expectations for continued solid growth in 2025 [6] - The company completed pro-rata gross investments of $2.4 billion in Q4 2024, including$2.2 billion in acquisitions and loan funding [9] Strategic Initiatives - Welltower is optimizing its outpatient medical (OM) portfolio and strengthening relationships with health system partners to enhance long-term growth [7] - The company's capital-recycling efforts are aimed at financing near-term investments and development opportunities, reflecting prudent capital management [8] Balance Sheet Strength - As of December 31, 2024, Welltower had $8.7 billion in available liquidity and holds investment-grade credit ratings of BBB+ and Baa1, allowing access to debt markets at favorable rates [10]