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Welltower Stock Rises 19.3% in 3 Months: Will It Continue to Gain?

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Key Takeaways

  • Welltower shares rose 19.3% on strong SHO demand supported by aging demographics and muted new supply.
  • The SHO portfolio posted its 12th straight quarter of 20% SSNOI growth and expanded via $2.52B in buyouts.
  • Major U.K. portfolio buys and $11.9B in liquidity strengthened Welltower's growth capacity and flexibility.

Shares of Welltower (WELL - Free Report) have gained 19.3% over the past three months, outperforming the industry’s upside of 3.5%.

The rising healthcare spending and an aging population are likely to aid Welltower’s seniors housing operating (SHO) portfolio. Portfolio-repositioning efforts and a healthy balance sheet bode well.

Last month, the company reported third-quarter 2025 normalized funds from operations (FFO) per share of $1.34, surpassing the Zacks Consensus Estimate of $1.30. The reported figure improved 20.7% year over year.

Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) surged year over year, driven by SSNOI growth in the SHO portfolio. The company increased its guidance for 2025 normalized FFO per share.

Analysts seem positive on this healthcare REIT, currently carrying a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its 2025 FFO per share has been revised marginally northward to $5.17 over the past week.

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Factors Behind WELL’s Stock Price Rise

Welltower boasts a well-diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. Given an aging population and an expected rise in senior citizens’ healthcare expenditure, its seniors housing operating portfolio is well-poised to experience solid demand. Muted new supply has also been a tailwind for this industry. Capitalizing on these positive aspects, WELL’s SHO portfolio is well-prepared for compelling multiyear revenue growth. The third quarter of 2025 marked the 12th consecutive quarter in which year-over-year SHO SSNOI growth exceeded 20%.

Welltower remains focused on improving its SHO portfolio through the addition of strategic properties and the recycling of capital through dispositions. With these prudent capital-allocation measures, the company has improved its SHO portfolio operator diversification and expanded geographic footprint in high-barrier-to-entry urban markets. From the beginning of the year through Oct. 27, 2025, Welltower carried out pro-rata acquisitions totaling $2.52 billion for 95 SHO properties.

The company has been actively banking on its growth opportunities through acquisitions. In October 2025, Welltower acquired a portfolio of seniors housing real estate in the U.K. for approximately £5.2 billion, operated by Barchester. In the same month, the company acquired 100% of the equity ownership of the portfolio in the U.K. operated by HC-One Group for £1.2 billion.

Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. As of Sept. 30, 2025, it had $11.9 billion of available liquidity, including $6.9 billion of cash and restricted cash and full capacity under its $5 billion line of credit. As of Sept. 30, 2025, the net debt to adjusted EBITDA was 2.36X. Moreover, Welltower’s debt maturities are well-laddered, with a weighted average maturity of 5.7 years, enhancing its financial flexibility.

Key Risks for WELL

A competitive landscape in the senior housing market and tenant concentration in its triple-net portfolio are likely to weigh on Welltower. A substantial debt burden adds to its concerns.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for DLR’s 2025 FFO per share is pegged at $7.35, which indicates year-over-year growth of 9.5%.

The Zacks Consensus Estimate for WPC’s full-year FFO per share is pinned at $4.92, which calls for an increase of 4.7% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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