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Welltower raises outlook as seniors housing income grows

Welltower raised its annual normalised funds-from-operations guidance after reporting third-quarter results. Operating income from the same seniors housing properties increased, supported by higher occupancy and revenue per occupied room. The company also reported a large investment programme, including completed purchases and transactions still subject to closing conditions, alongside a new quarterly dividend of 0.85 dollars per share.

Economics & Markets··Evening
An empty residential corridor with wooden doors and wall handrails leads to a sunlit lounge with rust-coloured armchairs, plants and small tables.

Seniors housing growth supports higher guidance

Welltower raised its full-year normalised funds-from-operations outlook following third-quarter results. The company, which invests in seniors housing, also reported growth in net operating income from the same seniors housing properties.[1], [2]

Normalised funds from operations, a supplemental accounting measure, reached 1.67 dollars per share, up 24.6 per cent from a year earlier. Net income totalled about 415 million dollars. Same-property net operating income across the portfolio rose 15.8 per cent. In operated seniors housing, it increased 21 per cent as average occupancy rose 320 basis points and revenue per occupied room increased 5.3 per cent.[1]

Purchases expand the investment programme

Investments completed or under contract since the start of the year totalled 21 billion dollars, excluding development funding. Of that, 13.3 billion dollars closed during the first nine months and 7.7 billion dollars closed or went under contract after quarter-end. Transactions awaiting completion remain subject to customary closing conditions. Quarterly investment, including development funding, was 4.1 billion dollars.[1]

Annual funds-from-operations range moves higher

Welltower lifted annual normalised funds-from-operations guidance from 6.36–6.44 dollars to 6.47–6.53 dollars per share. Its annual same-property operating income growth outlook is 15–16.25 per cent. The guidance includes acquisitions announced or completed by that date and excludes additional future investments and unannounced capital transactions. The board declared a dividend of 0.85 dollars per share.[1]

References

  1. News sourceWelltowerWelltower raises funds from operations outlook↩1↩2↩3↩4
  2. News source24/7 Wall St.Welltower lifts its full-year funds-from-operations outlook↩
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