Welltower beats Q3 estimates, raises full-year outlook; shares rise

NEW YORK - Welltower Inc. (NYSE:WELL ) reported third-quarter earnings that surpassed analyst expectations and raised its full-year guidance, sending shares up 2% in after-hours trading.

The healthcare real estate investment trust posted adjusted earnings per share of $0.73 for the quarter ended September 30, 2024, significantly beating the analyst consensus of $0.38. Revenue came in at $2.06 billion, topping estimates of $1.95 billion and marking an increase from the same period last year.

Welltower's strong performance was driven by robust growth in its Seniors Housing Operating (SHO) portfolio, which saw same-store net operating income (SSNOI) growth of 23% YoY. The company reported total portfolio SSNOI growth of 12.6% compared to the previous year.

"Our solid financial performance reflects the strength of our diversified portfolio and the continued recovery in the seniors housing sector," said Shankh Mitra, Welltower's CEO. "We're particularly pleased with the significant margin expansion in our SHO portfolio, driven by strong revenue growth that outpaced expense growth."

The company raised its full-year 2024 earnings guidance to $1.75-$1.81 per share, up from its previous forecast of $1.52-$1.60 and well above the analyst consensus of $1.34.

Welltower completed $2.4 billion of investments during the quarter, including $2.2 billion in acquisitions and loan funding. The company also improved its net debt to Adjusted EBITDA ratio to 3.73x, down from 5.14x a year ago.

The board of directors approved a 10% increase in the quarterly dividend, citing strong financial performance and growth prospects.

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Source: Investing.com