Welltower Inc (WELL) Reports Q3 2023 Earnings, Raises Full Year Outlook
Welltower Inc (NYSE:WELL) reported a net income attributable to common stockholders of $0.24 per diluted share.
The company's normalized funds from operations (FFO) attributable to common stockholders stood at $0.92 per diluted share.
Welltower reported a significant 14.1% growth in total portfolio year-over-year same store NOI (SSNOI).
The company revised its full year 2023 net income outlook to a range of $0.91 to $0.95 per diluted share, up from the previous guidance of $0.75 to $0.84 per diluted share.
Welltower Inc (NYSE:WELL) released its third quarter 2023 earnings report on October 30, 2023. The company reported strong performance with a net income attributable to common stockholders of $0.24 per diluted share. The normalized funds from operations (FFO) attributable to common stockholders stood at $0.92 per diluted share.
Financial Highlights
The company reported a significant 14.1% growth in total portfolio year-over-year same store NOI (SSNOI), driven by a 26.1% SSNOI growth in the Seniors Housing Operating (SHO) portfolio. The SHO portfolio also saw a 9.8% increase in year-over-year same store (SS) revenue in the third quarter, driven by a 220 basis point growth in year-over-year average occupancy and a 6.9% growth in Revenue Per Occupied Room (RevPOR).
Welltower completed $1.4 billion of pro rata acquisitions and loan funding during the third quarter, bringing the year-to-date total to $3.0 billion of pro rata gross investments exclusive of development funding. As of September 30, 2023, the company had approximately $6.7 billion of available liquidity, inclusive of $2.7 billion of available cash and restricted cash and full capacity under its $4.0 billion line of credit.
Improved Financial Position
The company improved its net debt to Adjusted EBITDA to 5.14x at September 30, 2023, down from 6.93x at September 30, 2022. The net debt to consolidated enterprise value also improved to 22.9% at September 30, 2023, from 29.5% at December 31, 2022.
Investment Activity and Outlook
Welltower completed $1.6 billion of pro rata gross investments in the third quarter, including $1.4 billion in acquisitions and loan funding and $270 million in development funding. The company revised its full year 2023 net income outlook to a range of $0.91 to $0.95 per diluted share, up from the previous guidance of $0.75 to $0.84 per diluted share. The full year normalized FFO attributable to common stockholders guidance has been revised to a range of $3.59 to $3.63 per diluted share, up from the previous guidance of $3.51 to $3.60 per diluted share.
Welltower's strong Q3 performance and improved financial position reflect its strategic investments and operational efficiency. The company's revised full-year outlook indicates confidence in its continued growth trajectory.
Explore the complete 8-K earnings release (here) from Welltower Inc for further details.
This article first appeared on GuruFocus.
