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Welltower (WELL) Invests in Monarch Communities, Stock Up
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Shares of Welltower Inc. (WELL - Free Report) appreciated marginally during Friday’s regular trading session after the healthcare REIT announced investing in Monarch Communities in an effort to strengthen its development and operating platforms. Notably, Monarch Communities is a vertically-integrated senior living provider with expertise in development, design-build, management and long-term ownership.
With investment in Monarch, Welltower will be able to tap Monarch's expertise in the developing and operating senior living communities in premium micro markets throughout the United States. This new relationship is particularly aimed at developing, re-developing, and managing next-generation integrated independent and assisted living communities.
According to Shankh Mitra, Welltower's CEO, "Monarch's turnkey business model will create a vertically integrated solution for all aspects of the senior living space—from sourcing opportunities, to design and construction, to operations and long-term ownership.”
Last week, Welltower also raised its guidance for second-quarter 2021. This healthcare REIT now expects to achieve normalized funds from operations (FFO) per share in a range of 75-79 cents, marking a 2.5-cent increase at the mid-point from the prior guidance of 72-77 cents.
In its business update, the REIT noted that its seniors housing operating (“SHO”) portfolio is seeing a recovery with occupancy trending ahead of expectations. In fact, quarter to date through Jun 4, spot occupancy expanded 120 basis points (bps) compared with the initial guidance of around 130 bps gain for the full quarter.
Moreover, the outlook looks encouraging, as historically, the months of June through October denote the seasonally strongest period of lead generation and occupancy gain for the seniors housing industry. Also, the reopening of certain states where the company has considerable presence, including California and Washington, is raising hopes.
Notably, acceleration in vaccination drives has reduced resident cases, while the relaxation of restrictions has enabled the majority of the company’s communities to restart accepting residents, resulting in higher move-in activity and occupancy growth in recent weeks. The resumption of in-person tours, indoor visitation, communal dining and social activities at Welltower’s communities is also encouraging.
In addition, in the wake of aging baby boomers, we expect Welltower’s communities to absorb vacancy at a faster pace. Amid such encouraging prospects for recovery, the company’s efforts to magnify focus on seniors living asset class are strategic fits. Further, Welltower is focusing on portfolio optimization and synergistic collaborations with health systems to invest in the next-generation assets of health and wellness care delivery.
However, expenses might continue being high due to additional health and safety measures adopted in light of the pandemic. Hence, amid such rising expenses, the company is likely to witness pressure on margins in the near term.
Industrial Logistics Properties Trust’s (ILPT - Free Report) Zacks Consensus Estimate for 2021 FFO per share for the current year moved up marginally to $1.88 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
Public Storage’s (PSA - Free Report) estimate for the current-year FFO per share has marginally north to $11.66 in a week’s time. Currently, the company carries a Zacks Rank of 2.
Braemar Hotels & Resorts Inc. (BHR - Free Report) holds a Zacks Rank of 2, at present. The consensus estimate for the ongoing year’s FFO per share has been revised 37.5% upward to 44 cents over the past two months.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Image: Bigstock
Welltower (WELL) Invests in Monarch Communities, Stock Up
Shares of Welltower Inc. (WELL - Free Report) appreciated marginally during Friday’s regular trading session after the healthcare REIT announced investing in Monarch Communities in an effort to strengthen its development and operating platforms. Notably, Monarch Communities is a vertically-integrated senior living provider with expertise in development, design-build, management and long-term ownership.
With investment in Monarch, Welltower will be able to tap Monarch's expertise in the developing and operating senior living communities in premium micro markets throughout the United States. This new relationship is particularly aimed at developing, re-developing, and managing next-generation integrated independent and assisted living communities.
According to Shankh Mitra, Welltower's CEO, "Monarch's turnkey business model will create a vertically integrated solution for all aspects of the senior living space—from sourcing opportunities, to design and construction, to operations and long-term ownership.”
Last week, Welltower also raised its guidance for second-quarter 2021. This healthcare REIT now expects to achieve normalized funds from operations (FFO) per share in a range of 75-79 cents, marking a 2.5-cent increase at the mid-point from the prior guidance of 72-77 cents.
In its business update, the REIT noted that its seniors housing operating (“SHO”) portfolio is seeing a recovery with occupancy trending ahead of expectations. In fact, quarter to date through Jun 4, spot occupancy expanded 120 basis points (bps) compared with the initial guidance of around 130 bps gain for the full quarter.
Moreover, the outlook looks encouraging, as historically, the months of June through October denote the seasonally strongest period of lead generation and occupancy gain for the seniors housing industry. Also, the reopening of certain states where the company has considerable presence, including California and Washington, is raising hopes.
Notably, acceleration in vaccination drives has reduced resident cases, while the relaxation of restrictions has enabled the majority of the company’s communities to restart accepting residents, resulting in higher move-in activity and occupancy growth in recent weeks. The resumption of in-person tours, indoor visitation, communal dining and social activities at Welltower’s communities is also encouraging.
In addition, in the wake of aging baby boomers, we expect Welltower’s communities to absorb vacancy at a faster pace. Amid such encouraging prospects for recovery, the company’s efforts to magnify focus on seniors living asset class are strategic fits. Further, Welltower is focusing on portfolio optimization and synergistic collaborations with health systems to invest in the next-generation assets of health and wellness care delivery.
However, expenses might continue being high due to additional health and safety measures adopted in light of the pandemic. Hence, amid such rising expenses, the company is likely to witness pressure on margins in the near term.
Shares of this Zacks Rank #3 (Hold) company have gained 21% over the past six months compared with the industry's growth of 20.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Industrial Logistics Properties Trust’s (ILPT - Free Report) Zacks Consensus Estimate for 2021 FFO per share for the current year moved up marginally to $1.88 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
Public Storage’s (PSA - Free Report) estimate for the current-year FFO per share has marginally north to $11.66 in a week’s time. Currently, the company carries a Zacks Rank of 2.
Braemar Hotels & Resorts Inc. (BHR - Free Report) holds a Zacks Rank of 2, at present. The consensus estimate for the ongoing year’s FFO per share has been revised 37.5% upward to 44 cents over the past two months.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>