Welltower (WELL) Q2 2024 earnings summary

Executive summary

• Normalized FFO per diluted share rose 17% year-over-year to $1.05, or over 19% excluding prior year subsidies, with the full-year guidance midpoint raised to $4.17 per share, driven by strong Seniors Housing Operating performance and robust capital deployment.

• Net income for Q2 2024 was $260.7 million, up 145% year-over-year, with diluted EPS of $0.42, reflecting gains on real estate dispositions and higher resident fees.

• $4.9 billion in acquisitions/loan funding closed or under contract year-to-date, with a robust pipeline and focus on high-quality seniors and wellness housing assets.

• Board approved a 10% dividend increase to $0.67 per share for Q3 2024, marking the 213th consecutive quarterly dividend.

• Andrew Gundlach appointed to the Board of Directors, bringing nearly 30 years of investment experience.

Financial highlights

• Q2 2024 net income attributable to common stockholders was $254.7 million, up from $103.0 million in Q2 2023.

• Normalized FFO per diluted share reached $1.05, up 16.7% year-over-year, or 19.3% after adjusting for prior year relief funds.

• Total revenues for Q2 2024 were $1.82 billion, up from $1.67 billion in Q2 2023.

• Total portfolio same-store NOI grew 11.3% year-over-year, led by 21.7% growth in the Seniors Housing Operating portfolio.

• Margin expanded by 290 basis points year-over-year to 27.3%.

Outlook and guidance

• Full-year 2024 net income guidance raised to $1.52–$1.60 per diluted share; normalized FFO guidance increased to $4.13–$4.21 per diluted share, with a midpoint of $4.17.

• Guidance increase driven by improved NOI outlook in senior housing and accretive investment/financing activity.

• Estimated total portfolio same-store NOI growth for 2024 is 10%–12.5%, with Seniors Housing Operating growth of 19%–23%.

• Dividend increased to $0.67 per share for Q3 2024, reflecting confidence in future cash flows.

• $328 million in additional development funding and $643 million in expected disposition proceeds over the next 12 months.