Group 1 - The company, Welltower, forecasts annual funds from operations above estimates due to strong demand for its assisted living and senior housing properties [1]

Portfolio 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].

Core Insights - Welltower Inc. reported strong financial results for Q4 2025, with significant growth in revenue and investments, reflecting a robust operational performance in the seniors housing sector [1][2][3] Financial Performance - Reported normalized funds from operations (FFO) attributable to common stockholders of $1.45 per diluted share, an increase of 28.3% year-over-year [1] - Total portfolio year-over-year same store net operating income (SSNOI) growth of 15.0%, driven by a 20.4% increase in the Seniors Housing Operating (SHO) portfolio [1] - Quarterly net income attributable to common stockholders was $0.14 per diluted share [1] Investment Activity - Completed $13.9 billion of pro rata gross investments in Q4 2025, including $1.2 billion in loan funding and $112 million in development funding [2] - Closed the inaugural private fund vehicle, Seniors Housing Fund I, securing approximately $2.5 billion in total equity commitments [1][2] - Acquired a real estate portfolio in the U.K. for approximately £5.2 billion, enhancing growth potential with a blended portfolio occupancy in the high 70%s [2] Disposition Activity - Completed $7.5 billion of pro rata dispositions and loan payoffs in Q4 2025, exceeding prior expectations [1][2] - Total disposition activity for 2025 is expected to reach $11.8 billion, compared to $9.8 billion as of September 30, 2025 [2] Liquidity and Capital Structure - As of December 31, 2025, reported net debt to adjusted EBITDA of 3.03x and approximately $10.2 billion of available liquidity [1] - S&P and Moody's upgraded Welltower's credit ratings to "A-" and "A3" respectively, reflecting improved financial metrics and strong operating performance [1][2] Dividend and Shareholder Returns - The Board of Directors approved a 10.4% increase in the quarterly dividend per share, supported by solid financial performance and a low payout ratio [1] - Declared a cash dividend of $0.74 per share for the quarter ended December 31, 2025, marking the 219th consecutive quarterly cash dividend [2] Outlook for 2026 - Introduced earnings guidance for 2026, expecting net income attributable to common stockholders in the range of $3.11 to $3.27 per diluted share and normalized FFO in the range of $6.09 to $6.25 per diluted share [3]

Core Viewpoint - Ventas, Inc. is a leading real estate investment trust (REIT) focusing on senior housing and healthcare properties, with a diverse portfolio that includes senior housing communities, medical office buildings, and hospitals [1] Group 1: Financial Performance - Ventas reported an "outstanding year" in 2025, driven by its senior housing segment, with a 9% increase in normalized funds from operations (FFO) per share and a 15% growth in same-store SHOP cash net operating income (NOI) [3] - The company's enterprise value exceeded $50 billion, with fourth-quarter annualized NOI and SHOP NOI reaching $2.5 billion and $1.3 billion, respectively [4] Group 2: Market Position and Strategy - Ventas competes with other REITs like Welltower and Healthpeak Properties in the healthcare real estate sector [1] - The company employs a "1, 2, 3 strategy" focusing on senior housing growth, value-creating investments, and portfolio cash flow, which has contributed to its financial success [3] Group 3: Stock Performance and Analyst Insights - On February 10, 2026, RBC Capital set a new price target of $91 for VTR, suggesting a potential increase of about 9.92% from its trading price of $82.79 at that time [2] - The stock's current price is $82.87, showing a slight increase of 0.15% from the previous day, with fluctuations between $82.67 and $83.14 during the trading day [2] Group 4: Future Outlook - Ventas has increased its quarterly dividend and expects continued growth in 2026, led by its Senior Housing Operating Portfolio (SHOP) [4]

Core Viewpoint - Welltower Inc. will release its fourth quarter 2025 financial results on February 10, 2026, and will host a conference call on February 11, 2026, to discuss these results [1][2]. Company Overview - Welltower Inc. is an S&P 500 company focused on rental housing for aging seniors in the United States, United Kingdom, and Canada, with a portfolio of over 2,000 seniors and wellness housing communities [3]. - The company positions itself at the intersection of housing and hospitality, aiming to create vibrant communities for mature renters and older adults [3]. - Welltower views itself as an operating company within a real estate framework, emphasizing partnerships and a unique culture [3]. - The company employs a disciplined approach to capital allocation, supported by a Data Science platform and the Welltower Business System, to achieve long-term growth for its investors [3].

Core Insights - Welltower (WELL) shares have increased by 19.4% over the past six months, significantly outperforming the industry average gain of 2.9% [1][8] - The company has a well-diversified portfolio of healthcare real estate assets across key markets in the United States, Canada, and the U.K. [1] Industry Trends - The aging population and rising healthcare expenditures among senior citizens are expected to drive solid demand for Welltower's seniors housing operating portfolio (SHOP) [2][4] - Favorable trends in outpatient medical visits compared to inpatient admissions are anticipated to benefit the outpatient medical (OM) segment [5] Company Strategy - Welltower is focused on enhancing its SHO portfolio through strategic property additions and capital recycling via asset dispositions [6] - From the beginning of the year through October 27, 2025, Welltower completed $5.82 billion in pro-rata gross investments, including $5.47 billion in acquisitions and loan funding [6] Financial Position - As of September 30, 2025, Welltower had $11.9 billion in available liquidity, including $6.9 billion in cash and restricted cash, and full capacity under a $5 billion line of credit [9] - The company's net debt to adjusted EBITDA ratio stands at 2.36X, with a well-laddered debt maturity profile averaging 5.7 years [9]

Core Viewpoint - Welltower Inc (NYSE: WELL) is currently experiencing a rebound from its 20-week moving average and December 2025 lows, with the price maintaining a +50% year-over-year increase, indicating a favorable entry point for bullish investors [1][4]. Group 1: Stock Performance - The stock is bouncing off the 20-week moving average and its December 2025 lows, suggesting a potential upward trend [1][4]. - The price is holding steady at a +50% year-over-year level, which may attract bullish investors [1][4]. Group 2: Options Trading Activity - Short-term options traders are increasingly favoring puts, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.35, ranking in the 96th percentile of its annual range [3]. - The options appear affordable, with a Schaeffer's Volatility Index (SVI) of 25%, which is higher than just 25% of all other readings from the past year [3]. - A recommended March call option has a leverage ratio of 9.4, which could double with a 10.4% rise in the underlying equity [3].

Core Insights - The Schwab U.S. REIT ETF (SCHH) has experienced a slight decline of approximately 2% over the past year as investors await favorable interest rate conditions [1] - The 10-year Treasury yield is a significant factor influencing SCHH's performance, with expectations of a decline to the 3.0% to 3.5% range by late 2026, making REIT dividends more attractive [2] Interest Rate Impact - Lower long-term interest rates lead to cap rate compression, increasing property values as the discount rate for future cash flows decreases [3] - A warehouse's value increases when financing costs drop from 6% to 4%, directly benefiting SCHH's net asset value due to its holdings in industrial REITs [3] Commercial Real Estate Maturity Wall - Approximately $162 billion in commercial real estate loans are set to mature in 2026, a 56% increase from $104 billion in 2025, with many loans needing refinancing at potentially higher rates [4] - The refinancing environment is critical for SCHH, as elevated rates near 6% could lead to dividend cuts, while a drop toward 4% would ease the crisis [4][5] Performance of Holdings - Welltower has seen a rise of over 50% year-to-date, while Digital Realty has declined by 14% due to cooling demand for AI infrastructure [5] - The relationship between Treasury yields and property values indicates that lower rates enhance the attractiveness of REITs [5]

Core Insights - The current hottest sector in commercial real estate is not data centers, contrary to popular belief [1] Group 1 - The term "hottest" does not refer to the most discussed sector but rather to performance metrics [1]

Core Viewpoint - Welltower Inc. is a leading healthcare-focused real estate investment trust (REIT) poised to benefit from the growing demand for healthcare services driven by an aging population [1] Group 1: Stock Performance and Market Position - Jefferies upgraded Welltower's stock to a "Buy" rating with a new price target of $231, up from $210, reflecting confidence in the company's strategic initiatives [2][6] - Welltower's stock has surged by 48.1% year-to-date, significantly outperforming the healthcare REIT industry's average gain of 5.2% [3][6] - The company's market capitalization is approximately $130.72 billion, with a trading volume of 3,061,872 shares, indicating strong market presence and investor interest [5] Group 2: Strategic Focus and Financial Health - Welltower's seniors housing operating portfolio (SHOP) is expected to see robust demand, while the outpatient medical (OM) segment is set to benefit from favorable outpatient visit trends [4] - The company has a strong balance sheet with $11.9 billion in liquidity, enhancing its cash flows and market position [4]