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Welltower Inc.’s WELL first-quarter 2025 normalized funds from operations (FFO) per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15. The reported figure improved 18.8% year over year.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company increased its guidance for 2025 normalized FFO per share.
WELL recorded revenues of $2.42 billion in the quarter, beating the Zacks Consensus Estimate of $2.37 billion. The top line increased 30.3% year over year.
Quarter in Detail for WELL
The SHO portfolio’s same-store revenues increased 9.6% year over year, backed by 400 basis points year-over-year growth in average occupancy and Revenue per Occupied Room (’RevPOR’) growth of 5.9%.
The company’s total portfolio SSNOI grew 12.9% year over year, supported by SSNOI growth in its SHO portfolio of 21.7%.
WELL’s pro-rata gross investments in the first quarter totaled $2.8 billion. This included $2.7 billion in acquisitions and loan funding and $142 million in development funding. It completed and placed into service nine development projects for an aggregate pro rata investment amount of $475 million. Welltower also completed pro-rata property dispositions of $381 million and loan repayments of $123 million in the quarter.
In the first quarter, property operating expenses increased 33.3% to $1.46 billion year over year.
In March 2025, Welltower entered into a definitive agreement to acquire a portfolio of 38 ultra-luxury senior housing communities and nine development parcels for C$4.6 billion, which will be operated by a preeminent seniors housing owner, Amica Senior Lifestyles.
WELL’s Balance Sheet Position
As of March 31, 2025, WELL had $8.6 billion of available liquidity, comprising $3.6 billion of available cash and restricted cash, and full capacity under its $5 billion line of credit.
Credit Rating Upgrade for WELL
On March 31, 2025, S&P increased the company’s credit rating to "A-" with a stable outlook and Moody's increased its credit rating to "A3" with a stable outlook.
WELL’s Dividend Update
On April 28, Welltower announced a cash dividend for the first of quarter 2025 of 67 cents per share. The dividend will be paid out on May 22 to stockholders of record as of May 14, 2025. This will mark the company’s 216th consecutive quarterly cash dividend payout.
WELL’s 2025 Guidance
Welltower increased 2025 normalized FFO per share guidance range to $4.90-$5.04, up from the previous range of $4.79-$4.95. The Zacks Consensus Estimate for the same is pegged at $4.95, which lies within the company's guided range.