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Welltower's Q1 FFO Beat Estimates on Strong SHO NOI Growth
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Key Takeaways
WELL beat Q1 estimates with $1.47 normalized FFO per share and $3.35 billion in revenues.
Welltower's SHO portfolio posted 22.1% SSNOI growth as occupancy climbed to 89.0%.
WELL raised 2026 normalized FFO guidance to $6.21-$6.35 and held $11.1 billion in liquidity.
Welltower Inc. (WELL - Free Report) reported first-quarter 2026 normalized funds from operations (FFO) of $1.47 per share, topping the Zacks Consensus Estimate of $1.45 by 1.38%. Total revenues of $3.35 billion beat the consensus mark of $3.23 billion by 3.68% and rose 38.3% year over year.
Results reflected continued strength in the seniors housing operating (SHO) portfolio, where same-store net operating income (SSNOI) growth remained robust and occupancy gains supported margin recovery. Total portfolio year-over-year SSNOI increased 16.4% in the quarter, led by SHO performance.
WELL’s Revenue Mix Tilted Toward Resident Fees
Welltower’s top line was driven primarily by resident fees and services, reflecting the scale of its operating exposure. Resident fees and services rose 49.1% year over year to $2.78 billion in the first quarter, forming the bulk of total revenues.
Other revenue lines were comparatively smaller and moved in a mixed fashion. Rental income slipped 1.7% year over year to $453.8 million, while interest income increased 13.5% to $70.9 million and other income rose 34% to $46.2 million.
WELL’s SHO Portfolio Drove Operating Leverage
Welltower’s SHO portfolio delivered another quarter of outsized SSNOI growth. Same-store revenues rose 9.5% year over year to $1.72 billion, supported by a 370-basis-point occupancy gain to 89.0% in the first quarter of 2026.
Operating leverage showed up in profitability and margins. Same-store operating expenses increased 4.7% to $1.19 billion, well below the pace of revenue growth, lifting SSNOI 22.1% to $531.8 million. SSNOI margin expanded to 30.9% from 27.7% a year ago, a 320-basis-point improvement.
WELL Expanded Capital Deployment While Recycling Assets
Capital allocation remained active. During the first quarter, Welltower completed $3.3 billion of pro rata gross investments and, year to date though April 28, 2026, closed or was under contract to close $10.5 billion of investment activity.
The company also continued to recycle capital through dispositions and loan repayments. In the quarter, it completed $2.8 billion of pro rata dispositions and loan repayments, including $1.4 billion of outpatient medical dispositions, $524 million of sales of long-term/post-acute care properties and $873 million of loan repayments.
WELL Ended Q1 With Low Leverage and Deep Liquidity
WELL’s balance sheet position remained a notable support for its external growth strategy. As of March 31, 2026, the company reported Net Debt to Adjusted EBITDA of 2.73x and approximately $11.1 billion of available liquidity, including $4.8 billion of cash and restricted cash plus full capacity under its $6.25 billion line of credit.
The company also highlighted recent financing actions that improved flexibility and reduced refinancing pressure, including the expansion of its senior unsecured revolving credit line and the repayment of $700 million of senior unsecured notes at maturity in April using free cash flow. With leverage low and liquidity substantial, Welltower appears positioned to pursue announced investment pipelines while maintaining balance sheet capacity for additional opportunities.
WELL Raised 2026 Outlook on NOI Momentum
Management lifted 2026 guidance following the first-quarter performance. The company raised its full-year normalized FFO outlook to a range of $6.21-$6.35 per share from its prior range of $6.09-$6.25. The Zacks Consensus Estimate for the same is pegged at $6.22, which stands within the guided range.
WELL’s guidance assumes the average blended SSNOI growth of 12.25-16.00%, comprising 16.5-21.5% 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.
Ventas, Inc. (VTR - Free Report) delivered first-quarter 2026 normalized FFO per share of 94 cents, beating the Zacks Consensus Estimate of 91 cents by 3.3%. The metric increased 9.3% from 86 cents in the prior-year quarter.
VTR’s revenues came in at $1.66 billion, up 22% year over year and above the Zacks Consensus Estimate of $1.54 billion by 4.58%. Results were powered by the SHOP, while the company ended the quarter with $5.5 billion of liquidity.
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core FFO per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. PLD’s results were supported by robust leasing activity.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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Welltower's Q1 FFO Beat Estimates on Strong SHO NOI Growth
Key Takeaways
Welltower Inc. (WELL - Free Report) reported first-quarter 2026 normalized funds from operations (FFO) of $1.47 per share, topping the Zacks Consensus Estimate of $1.45 by 1.38%. Total revenues of $3.35 billion beat the consensus mark of $3.23 billion by 3.68% and rose 38.3% year over year.
Results reflected continued strength in the seniors housing operating (SHO) portfolio, where same-store net operating income (SSNOI) growth remained robust and occupancy gains supported margin recovery. Total portfolio year-over-year SSNOI increased 16.4% in the quarter, led by SHO performance.
WELL’s Revenue Mix Tilted Toward Resident Fees
Welltower’s top line was driven primarily by resident fees and services, reflecting the scale of its operating exposure. Resident fees and services rose 49.1% year over year to $2.78 billion in the first quarter, forming the bulk of total revenues.
Other revenue lines were comparatively smaller and moved in a mixed fashion. Rental income slipped 1.7% year over year to $453.8 million, while interest income increased 13.5% to $70.9 million and other income rose 34% to $46.2 million.
WELL’s SHO Portfolio Drove Operating Leverage
Welltower’s SHO portfolio delivered another quarter of outsized SSNOI growth. Same-store revenues rose 9.5% year over year to $1.72 billion, supported by a 370-basis-point occupancy gain to 89.0% in the first quarter of 2026.
Operating leverage showed up in profitability and margins. Same-store operating expenses increased 4.7% to $1.19 billion, well below the pace of revenue growth, lifting SSNOI 22.1% to $531.8 million. SSNOI margin expanded to 30.9% from 27.7% a year ago, a 320-basis-point improvement.
WELL Expanded Capital Deployment While Recycling Assets
Capital allocation remained active. During the first quarter, Welltower completed $3.3 billion of pro rata gross investments and, year to date though April 28, 2026, closed or was under contract to close $10.5 billion of investment activity.
The company also continued to recycle capital through dispositions and loan repayments. In the quarter, it completed $2.8 billion of pro rata dispositions and loan repayments, including $1.4 billion of outpatient medical dispositions, $524 million of sales of long-term/post-acute care properties and $873 million of loan repayments.
WELL Ended Q1 With Low Leverage and Deep Liquidity
WELL’s balance sheet position remained a notable support for its external growth strategy. As of March 31, 2026, the company reported Net Debt to Adjusted EBITDA of 2.73x and approximately $11.1 billion of available liquidity, including $4.8 billion of cash and restricted cash plus full capacity under its $6.25 billion line of credit.
The company also highlighted recent financing actions that improved flexibility and reduced refinancing pressure, including the expansion of its senior unsecured revolving credit line and the repayment of $700 million of senior unsecured notes at maturity in April using free cash flow. With leverage low and liquidity substantial, Welltower appears positioned to pursue announced investment pipelines while maintaining balance sheet capacity for additional opportunities.
WELL Raised 2026 Outlook on NOI Momentum
Management lifted 2026 guidance following the first-quarter performance. The company raised its full-year normalized FFO outlook to a range of $6.21-$6.35 per share from its prior range of $6.09-$6.25. The Zacks Consensus Estimate for the same is pegged at $6.22, which stands within the guided range.
WELL’s guidance assumes the average blended SSNOI growth of 12.25-16.00%, comprising 16.5-21.5% 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.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Welltower Inc. Price, Consensus and EPS Surprise
Welltower Inc. price-consensus-eps-surprise-chart | Welltower Inc. Quote
Performance of Other REITs
Ventas, Inc. (VTR - Free Report) delivered first-quarter 2026 normalized FFO per share of 94 cents, beating the Zacks Consensus Estimate of 91 cents by 3.3%. The metric increased 9.3% from 86 cents in the prior-year quarter.
VTR’s revenues came in at $1.66 billion, up 22% year over year and above the Zacks Consensus Estimate of $1.54 billion by 4.58%. Results were powered by the SHOP, while the company ended the quarter with $5.5 billion of liquidity.
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core FFO per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. PLD’s results were supported by robust leasing activity.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.