Back to top

Image: Bigstock

Welltower's (HCN) Q3 FFO & Revenues Beat Estimates

Read MoreHide Full Article

Have you been eager to see how Welltower Inc. performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Toledo, OH-based, real estate investment trust’s (“REIT”) earnings release this morning:

A FFO Beat

Welltower came out with normalized funds from operations (“FFO”) per share of $1.16, beating the Zacks Consensus Estimate by a penny.

Results were positively impacted by robust average same store NOI growth in the trailing four quarters and investments activities.

WELLTOWER INC Price and EPS Surprise

 

WELLTOWER INC Price and EPS Surprise | WELLTOWER INC Quote

How Was the Earnings Surprise Trend?

Welltower has a decent earnings surprise history. Before posting a beat in Q3, the company delivered positive surprises in all four trailing quarters, with an average positive surprise of 1.1%.

Revenue Beat

Welltower posted revenues of around $1.08 billion, which beat the Zacks Consensus Estimate of $1.05 billion. Further, it compared favorably with the year-ago number of $979 million.

Key Developments to Note

For 2016, Welltower revises down its normalized FFO per share in a range of $4.50–$4.56 from the previous range of $4.50–$4.60.However, the company raised its 2016 same store cash NOI growth guidance to 3.0–3.25% from the previous guidance of 2.75–3.25%.

Further, in sync with its strategic repositioning of its premier health care portfolio, the company raised its 2016 disposition guidance from $1.3 billion to $4.1 billion of proceeds

What Zacks Rank Says

Welltower currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

Check back later for our full write up on this Welltower earnings report later!

Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Published in