We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company issued its guidance for 2025.
WELL recorded revenues of $2.25 billion in the quarter, beating the Zacks Consensus Estimate of $2.12 billion. The top line increased 28.6% year over year.
For 2024, the company reported a normalized FFO per share of $4.32, up from the prior year’s $3.64. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $4.30. The total revenues of $7.79 billion improved 20.4% year over year. However, the metric missed the consensus mark of $7.91 billion.
In January 2025, the company launched its private funds management business to manage third-party capital and announced the formation of its first fund, which has the ability to source up to $2 billion to invest in stable or near-stable senior housing properties in the United States.
Quarter in Detail for WELL
The SHO portfolio’s same-store revenues increased 8.8% year over year, backed by 310-basis point year-over-year growth in average occupancy and Revenue per Occupied Room (’RevPOR’) growth of 5.0%.
The company’s total portfolio SSNOI grew 12.8% year over year, supported by SSNOI growth in its SHO portfolio of 23.9%.
WELL’s pro-rata gross investments in the fourth quarter totaled $2.4 billion. This included $2.19 billion in acquisitions and loan funding and $233.4 million in development funding. It opened 11 development projects for an aggregate pro-rata investment amount of $336 million. Welltower also completed pro-rata property dispositions and loan repayments of $464 million in the quarter.
In the fourth quarter, property operating expenses increased 36% to $1.41 billion year over year.
WELL’s Balance Sheet Position
As of Dec. 31, 2024, WELL had $8.7 billion of available liquidity, comprising $3.7 billion of available cash and restricted cash, and full capacity under its $5 billion line of credit.
WELL’s Dividend Update
On Feb. 11, Welltower announced a cash dividend for fourth-quarter 2024 of 67 cents per share. The dividend will be paid out on Mar. 6 to stockholders of record as of Feb. 25, 2025. This will mark the company’s 215th consecutive quarterly cash dividend payout.
WELL’s 2025 Guidance
Welltower projects 2025 normalized FFO per share of $4.79-$4.95. The Zacks Consensus Estimate for the same is pegged at $4.79, which lies within the company's guided range.
WELL’s guidance assumes the average blended SSNOI growth of 9.25-13.00%, comprising 15.0-21.0% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.
Welltower expects to fund an additional $461 million of development in 2025 relating to projects underway as of Dec. 31, 2024.
Currently, the company carries a Zacks Rank #2 (Buy).
SL Green Realty Corp. (SLG - Free Report) reported a fourth-quarter 2024 FFO per share of $1.45, which missed the Zacks Consensus Estimate of $1.53. The company had reported an FFO of 72 cents per share in the previous year.
Results reflected lower-than-anticipated revenues despite decent leasing activity in its Manhattan portfolio. Also, higher interest expenses and lower SSNOI acted as dampeners. Presently, SLG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Healthpeak Properties, Inc. (DOC - Free Report) reported fourth-quarter 2024 funds from operations (FFO) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. Currently, DOC carries a Zacks Rank #3 (Hold).
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Welltower's Q4 FFO & Revenues Beat Estimates, Same Store NOI Rises
Welltower Inc.’s (WELL - Free Report) fourth-quarter 2024 normalized funds from operations (FFO) per share of $1.13 surpassed the Zacks Consensus Estimate by a penny. The reported figure improved 17.7% year over year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company issued its guidance for 2025.
WELL recorded revenues of $2.25 billion in the quarter, beating the Zacks Consensus Estimate of $2.12 billion. The top line increased 28.6% year over year.
For 2024, the company reported a normalized FFO per share of $4.32, up from the prior year’s $3.64. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $4.30. The total revenues of $7.79 billion improved 20.4% year over year. However, the metric missed the consensus mark of $7.91 billion.
In January 2025, the company launched its private funds management business to manage third-party capital and announced the formation of its first fund, which has the ability to source up to $2 billion to invest in stable or near-stable senior housing properties in the United States.
Quarter in Detail for WELL
The SHO portfolio’s same-store revenues increased 8.8% year over year, backed by 310-basis point year-over-year growth in average occupancy and Revenue per Occupied Room (’RevPOR’) growth of 5.0%.
The company’s total portfolio SSNOI grew 12.8% year over year, supported by SSNOI growth in its SHO portfolio of 23.9%.
WELL’s pro-rata gross investments in the fourth quarter totaled $2.4 billion. This included $2.19 billion in acquisitions and loan funding and $233.4 million in development funding. It opened 11 development projects for an aggregate pro-rata investment amount of $336 million. Welltower also completed pro-rata property dispositions and loan repayments of $464 million in the quarter.
In the fourth quarter, property operating expenses increased 36% to $1.41 billion year over year.
WELL’s Balance Sheet Position
As of Dec. 31, 2024, WELL had $8.7 billion of available liquidity, comprising $3.7 billion of available cash and restricted cash, and full capacity under its $5 billion line of credit.
WELL’s Dividend Update
On Feb. 11, Welltower announced a cash dividend for fourth-quarter 2024 of 67 cents per share. The dividend will be paid out on Mar. 6 to stockholders of record as of Feb. 25, 2025. This will mark the company’s 215th consecutive quarterly cash dividend payout.
WELL’s 2025 Guidance
Welltower projects 2025 normalized FFO per share of $4.79-$4.95. The Zacks Consensus Estimate for the same is pegged at $4.79, which lies within the company's guided range.
WELL’s guidance assumes the average blended SSNOI growth of 9.25-13.00%, comprising 15.0-21.0% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.
Welltower expects to fund an additional $461 million of development in 2025 relating to projects underway as of Dec. 31, 2024.
Currently, the company carries a Zacks Rank #2 (Buy).
Welltower Inc. Price, Consensus and EPS Surprise
Welltower Inc. price-consensus-eps-surprise-chart | Welltower Inc. Quote
Performance of Other REITs
SL Green Realty Corp. (SLG - Free Report) reported a fourth-quarter 2024 FFO per share of $1.45, which missed the Zacks Consensus Estimate of $1.53. The company had reported an FFO of 72 cents per share in the previous year.
Results reflected lower-than-anticipated revenues despite decent leasing activity in its Manhattan portfolio. Also, higher interest expenses and lower SSNOI acted as dampeners. Presently, SLG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Healthpeak Properties, Inc. (DOC - Free Report) reported fourth-quarter 2024 funds from operations (FFO) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. Currently, DOC carries a Zacks Rank #3 (Hold).
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.