On July 29, 2024, Welltower Inc (WELL, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Welltower Inc, a leading real estate investment trust (REIT) specializing in healthcare infrastructure, reported impressive financial results, surpassing analyst expectations.
Company Overview
Welltower Inc (WELL, Financial) owns a diversified healthcare portfolio of 2,096 in-place properties across senior housing, medical office, and skilled nursing/post-acute care sectors. The company also holds over 100 properties in Canada and the United Kingdom, seeking additional investment opportunities in countries with mature healthcare systems similar to the United States.
Financial Highlights
Welltower Inc (WELL, Financial) reported net income attributable to common stockholders of $0.42 per diluted share, significantly exceeding the analyst estimate of $0.33 per share. The company also reported quarterly normalized funds from operations (FFO) attributable to common stockholders of $1.05 per diluted share, marking a 16.7% increase over the prior year, or 19.3% exclusive of government subsidies.
Key Metrics and Achievements
Welltower Inc (WELL, Financial) achieved a total portfolio year-over-year same store net operating income (SSNOI) growth of 11.3%, driven by a remarkable 21.7% growth in the Seniors Housing Operating (SHO) portfolio. The company completed $1.7 billion of pro rata gross investments during the quarter, including $1.4 billion in acquisitions and loan funding, and $251 million in development funding.
Additionally, Welltower Inc (WELL, Financial) reported further balance sheet strengthening with net debt to Adjusted EBITDA of 3.68x and approximately $6.9 billion of available liquidity, inclusive of $2.9 billion of available cash and restricted cash and full capacity under its $4.0 billion line of credit. The company's credit rating outlook was revised to positive from stable by both S&P Global and Moody's, citing strong seniors housing industry tailwinds and a materially improved balance sheet.
Income Statement and Balance Sheet Analysis
Welltower Inc (WELL, Financial) reported the following key financial metrics:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Income per Share | $0.42 | $0.36 | 16.7% |
| Normalized FFO per Share | $1.05 | $0.90 | 16.7% |
| SSNOI Growth | 11.3% | 9.5% | 1.8% |
Strategic Initiatives and Future Outlook
During the second quarter, Welltower Inc (WELL, Financial) converted or reached agreements to convert 47 triple-net leased properties to SHO (RIDEA) structures, allowing the company to directly participate in the underlying cash flow growth of the communities. The company also closed on a new expanded $5.0 billion senior unsecured revolving credit facility, which incorporates a maturity extension to 2029 and a 7.5 basis points improvement in pricing from the previous $4.0 billion facility.
Welltower Inc (WELL, Financial) announced a 10% increase in the quarterly dividend per share, reflecting its solid financial performance and the Board's confidence in the company's strong growth prospects. The Board of Directors declared a cash dividend for the quarter ended June 30, 2024, of $0.67 per share, to be paid on August 21, 2024, to stockholders of record as of August 12, 2024.
Conclusion
Welltower Inc (WELL, Financial) has demonstrated robust financial performance in Q2 2024, driven by strategic investments and portfolio growth. The company's ability to exceed analyst estimates and strengthen its balance sheet positions it well for future growth. Investors and stakeholders can find more detailed information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Welltower Inc for further details.
