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WELL vs. MPW: Which Healthcare REIT Stock is the Better Buy Now?
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Key Takeaways
WELL focuses on senior housing and outpatient medical assets, positioning the REIT toward growth.
MPW relies on long-term net-leased hospitals with CPI-linked rent escalations to support stable rental income.
MPW manages operator concentration risk while recycling capital to boost liquidity and financial flexibility.
Welltower, Inc. (WELL - Free Report) and Medical Properties (MPW - Free Report) are two key players operating in the healthcare real estate investment trust (REIT) industry that are similar in mission but structurally distinct in how they execute and scale.
Both companies follow disciplined capital recycling strategies and benefit from the strong demand in the healthcare sector. Yet, their approaches differ: Welltower leans heavily on senior housing and outpatient medical facilities, while Medical Property focuses on net-leased hospital facilities.
With healthcare REITs increasingly shaped by an aging population and healthcare expenditures, choosing between these two REITs is ultimately choosing between growth and stable income. Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Welltower
Welltower is a leading healthcare REIT that is focused on senior housing, outpatient medical, and post-acute care properties across the United States, the U.K. and Canada. With 2,000+ seniors and wellness housing communities, the company aims to bridge housing, healthcare and hospitality, creating a vibrant environment where older adults and mature renters can thrive.
With a supply-demand imbalance, the company’s senior housing operating (SHO) portfolio is expected to experience sustained occupancy growth in 2025 and the coming years. With this, the company’s SHO portfolio remains well-prepared for a compelling multi-year revenue growth. Moreover, there has been a favorable trend in outpatient visits compared with inpatient admissions. Banking on this, the company is optimizing its outpatient medical (OM) portfolio and growing relationships with health system partners.
Welltower usually leases its healthcare facilities under "triple net" leases, where tenants are responsible for paying property taxes, insurance and maintenance costs in addition to rent. The company also builds relationships with experienced healthcare operators that lease and manage these facilities on a long-term basis. These activities insulate the company from short-term market swings and drive steady top-line growth.
Welltower has resorted to capital-recycling activities to finance investment and development opportunities, paving the way for its long-term growth. Notably, the company has been actively banking on its growth opportunities through acquisitions.
Additionally, Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. Welltower’s debt maturities are well-laddered, thereby enhancing its financial flexibility. It also enjoys favorable investment-grade credit ratings from S&P Global Ratings and Moody's Investor Service, allowing it to access the debt market at favorable terms.
However, Welltower operates in a competitive healthcare real estate market and maintains a sizable, but manageable, debt load, yet these factors are balanced by robust demand drivers that support its growth outlook.
The Case for Medical Properties
Medical Properties, also known as MPT is a healthcare REIT that is engaged in the acquisition and development of net-leased healthcare facilities. Its portfolio consists of 388 properties and approximately 39,000 licensed beds leased to or mortgaged by 51 hospital operating companies in the key markets of the United States and other countries.
The company leases its facilities to healthcare operating companies. These facilities generally have initial fixed lease terms of at least 15 years, with most including five-year renewal options. More than 99% of its leases provide annual rent escalations based on increases in the Consumer Price Index.
MPT follows a disciplined capital-recycling strategy, through which it disposes of non-core assets and redeploys the proceeds in premium asset acquisitions and accretive development projects. Such efforts also help the company improve its financial position and address the concerns surrounding the tenant base.
Medical Properties has been making efforts to enhance its liquidity position and financial strength. Its access to diverse capital sources through capital recycling and internal cash flow provides ample financial flexibility and is likely to support its growth endeavors.
However, Medical Properties faces several challenges. The company faces operator concentration risk. Any changes in lease arrangements or tenant performance could affect its results, though the company continues to manage these relationships actively. While its debt levels remain significant, disciplined financial management supports ongoing operations.
How Do Estimates Compare for Welltower & Medical Properties?
The Zacks Consensus Estimate for Welltower’s 2025 sales and funds from operations (FFO) per share implies year-over-year growth of 29.8% and 21.5%, respectively. The estimates for both 2025 and 2026 FFO per share have been revised northward over the past 30 days.
For Welltower:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Medical Properties’ 2025 sales and FFO per share indicates a year-over-year decline of 5.1% and 31.3%, respectively. FFO per share estimates for 2025 and 2026 have been trending downward over the past 30 days.
For Medical Properties:
Image Source: Zacks Investment Research
Price Performance and Valuation of WELL & MPW
In the past three months, Welltower shares have gained 6.5%, while Medical Properties stock has gained 2%. In comparison, the Zacks REIT and Equity Trust - Other industry has decreased 1.4% in the same time frame.
Image Source: Zacks Investment Research
WELL is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 30.97X, which is above its three-year median. Meanwhile, MPW is presently trading at a forward 12-month price-to-FFO of 7.71X, which is above its three-year median.
Image Source: Zacks Investment Research
Conclusion: WELL Has the Edge
Welltower and Medical Properties both stand to benefit from the strong demand in the healthcare sector, but they offer distinct investment profiles. Welltower provides diversified exposure to SHO and OM facilities focused on growth, while Medical Properties specializes in net-leased hospital facilities. Both follow disciplined capital recycling strategies, but Welltower holds an edge due to its favorable demographic tailwinds, investment-grade credit ratings and healthy balance sheet.
For investors seeking stronger long-term upside rather than purely dependable income, Welltower stands out as the more compelling healthcare REIT to consider right now. Sales and earnings growth for 2025 also suggest that WELL stands out as the better REIT pick currently.
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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WELL vs. MPW: Which Healthcare REIT Stock is the Better Buy Now?
Key Takeaways
Welltower, Inc. (WELL - Free Report) and Medical Properties (MPW - Free Report) are two key players operating in the healthcare real estate investment trust (REIT) industry that are similar in mission but structurally distinct in how they execute and scale.
Both companies follow disciplined capital recycling strategies and benefit from the strong demand in the healthcare sector. Yet, their approaches differ: Welltower leans heavily on senior housing and outpatient medical facilities, while Medical Property focuses on net-leased hospital facilities.
With healthcare REITs increasingly shaped by an aging population and healthcare expenditures, choosing between these two REITs is ultimately choosing between growth and stable income. Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Welltower
Welltower is a leading healthcare REIT that is focused on senior housing, outpatient medical, and post-acute care properties across the United States, the U.K. and Canada. With 2,000+ seniors and wellness housing communities, the company aims to bridge housing, healthcare and hospitality, creating a vibrant environment where older adults and mature renters can thrive.
With a supply-demand imbalance, the company’s senior housing operating (SHO) portfolio is expected to experience sustained occupancy growth in 2025 and the coming years. With this, the company’s SHO portfolio remains well-prepared for a compelling multi-year revenue growth. Moreover, there has been a favorable trend in outpatient visits compared with inpatient admissions. Banking on this, the company is optimizing its outpatient medical (OM) portfolio and growing relationships with health system partners.
Welltower usually leases its healthcare facilities under "triple net" leases, where tenants are responsible for paying property taxes, insurance and maintenance costs in addition to rent. The company also builds relationships with experienced healthcare operators that lease and manage these facilities on a long-term basis. These activities insulate the company from short-term market swings and drive steady top-line growth.
Welltower has resorted to capital-recycling activities to finance investment and development opportunities, paving the way for its long-term growth. Notably, the company has been actively banking on its growth opportunities through acquisitions.
Additionally, Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. Welltower’s debt maturities are well-laddered, thereby enhancing its financial flexibility. It also enjoys favorable investment-grade credit ratings from S&P Global Ratings and Moody's Investor Service, allowing it to access the debt market at favorable terms.
However, Welltower operates in a competitive healthcare real estate market and maintains a sizable, but manageable, debt load, yet these factors are balanced by robust demand drivers that support its growth outlook.
The Case for Medical Properties
Medical Properties, also known as MPT is a healthcare REIT that is engaged in the acquisition and development of net-leased healthcare facilities. Its portfolio consists of 388 properties and approximately 39,000 licensed beds leased to or mortgaged by 51 hospital operating companies in the key markets of the United States and other countries.
The company leases its facilities to healthcare operating companies. These facilities generally have initial fixed lease terms of at least 15 years, with most including five-year renewal options. More than 99% of its leases provide annual rent escalations based on increases in the Consumer Price Index.
MPT follows a disciplined capital-recycling strategy, through which it disposes of non-core assets and redeploys the proceeds in premium asset acquisitions and accretive development projects. Such efforts also help the company improve its financial position and address the concerns surrounding the tenant base.
Medical Properties has been making efforts to enhance its liquidity position and financial strength. Its access to diverse capital sources through capital recycling and internal cash flow provides ample financial flexibility and is likely to support its growth endeavors.
However, Medical Properties faces several challenges. The company faces operator concentration risk. Any changes in lease arrangements or tenant performance could affect its results, though the company continues to manage these relationships actively. While its debt levels remain significant, disciplined financial management supports ongoing operations.
How Do Estimates Compare for Welltower & Medical Properties?
The Zacks Consensus Estimate for Welltower’s 2025 sales and funds from operations (FFO) per share implies year-over-year growth of 29.8% and 21.5%, respectively. The estimates for both 2025 and 2026 FFO per share have been revised northward over the past 30 days.
For Welltower:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Medical Properties’ 2025 sales and FFO per share indicates a year-over-year decline of 5.1% and 31.3%, respectively. FFO per share estimates for 2025 and 2026 have been trending downward over the past 30 days.
For Medical Properties:
Image Source: Zacks Investment Research
Price Performance and Valuation of WELL & MPW
In the past three months, Welltower shares have gained 6.5%, while Medical Properties stock has gained 2%. In comparison, the Zacks REIT and Equity Trust - Other industry has decreased 1.4% in the same time frame.
Image Source: Zacks Investment Research
WELL is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 30.97X, which is above its three-year median.
Meanwhile, MPW is presently trading at a forward 12-month price-to-FFO of 7.71X, which is above its three-year median.
Image Source: Zacks Investment Research
Conclusion: WELL Has the Edge
Welltower and Medical Properties both stand to benefit from the strong demand in the healthcare sector, but they offer distinct investment profiles. Welltower provides diversified exposure to SHO and OM facilities focused on growth, while Medical Properties specializes in net-leased hospital facilities. Both follow disciplined capital recycling strategies, but Welltower holds an edge due to its favorable demographic tailwinds, investment-grade credit ratings and healthy balance sheet.
For investors seeking stronger long-term upside rather than purely dependable income, Welltower stands out as the more compelling healthcare REIT to consider right now. Sales and earnings growth for 2025 also suggest that WELL stands out as the better REIT pick currently.
While WELL carries a Zacks Rank #2 (Buy), MPW has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.