Welltower (WELL) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly revenue surpassing $2 billion, with normalized FFO per share up 21% year-over-year and net income per diluted share at $0.73.

• Seniors Housing Operating portfolio led performance with 23% same-store NOI growth, strong occupancy, and margin recovery, marking the eighth consecutive quarter above 20%.

• Completed $6.1 billion in year-to-date transactions, including $2.85 billion in acquisitions and $1.2 billion in Q3, the highest in company history.

• Raised full-year guidance by $0.13 per share, reflecting strong operational and investment performance, with momentum expected to continue into 2025.

• Board approved a 10% increase in the quarterly dividend, marking the 214th consecutive quarterly dividend.

Financial highlights

• Net income for Q3 2024 was $456.8 million, up 239% year-over-year; diluted EPS was $0.73, and normalized FFO was $1.11 per diluted share, up 20.7% year-over-year.

• Q3 2024 revenues rose 24% year-over-year to $2.06 billion; same-store NOI grew 12.6% year-over-year.

• Annualized revenue exceeded $8.2 billion, a $3.2 billion increase since 2019, while net debt decreased by $2.7 billion.

• Net debt to Adjusted EBITDA improved to 3.7x, with available liquidity of $8.8 billion, including $3.8 billion in cash and a $5.0 billion credit facility.

• Quarterly dividend per share increased to $0.67 from $0.61 year-over-year.

Outlook and guidance

• 2024 net income guidance raised to $1.75–$1.81 per diluted share; full-year normalized FFO guidance increased to $4.27–$4.33 per diluted share.

• Same-store NOI growth expected at 11.5%–13% for the year, with SHO segment projected at 22%–24%.

• Outpatient Medical and Triple Net SSNOI growth guidance raised to 4–5%.

• Guidance increase driven by improved NOI outlook, favorable tax/FX, triple-net/OM performance, and accretive capital activity.

• Management anticipates further acquisitions and construction completions in Q4 2024, including a $1 billion UK seniors housing portfolio.