Welltower's Q1 FFO & Revenues Beat Estimates, Same Store NOI Rises

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.

WELL’s guidance assumes the average blended SSNOI growth of 10.00-13.25%, comprising 16.5-21.5% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.

Welltower expects to fund an additional $340 million of development in 2025 relating to projects underway as of March 31, 2025.

Currently, the company carries a Zacks Rank #2 (Buy).

Performance of Other REITs

SL Green Realty Corp. SLG reported first-quarter 2025 FFO per share of $1.40, which surpassed the Zacks Consensus Estimate of $1.27. The company had reported an FFO of $3.07 per share in the year-ago period.

Results reflected improved average rental rates on the Manhattan office leases signed in the period and higher same-store cash net operating income (NOI). However, elevated interest expenses undermined the results to some extent. Presently, SLG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Healthpeak Properties, Inc. DOC reported first-quarter 2025 FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. This compares to the FFO of 45 cents reported in the prior year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Results reflect better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. Currently, DOC carries a Zacks Rank #3.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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