Welltower (NYSE:WELL) shares advanced 2.2% in premarket trading on Tuesday after the healthcare real estate investment trust reported third-quarter 2026 revenue and normalized funds from operations above analyst expectations and raised its full-year earnings guidance.
The company reported normalized funds from operations (FFO) of $1.67 per diluted share, an increase of 24.6% from the previous year and above the analyst consensus estimate of approximately $1.64.
Quarterly revenue reached $3.72 billion, exceeding expectations of $3.66 billion and representing approximately 38% year-over-year growth.
Welltower also increased its full-year normalized FFO guidance to between $6.47 and $6.53 per share, compared with its previous forecast of $6.36 to $6.44.
The results included higher occupancy and operating income across its senior housing portfolio, alongside a quarterly dividend declaration of $0.85 per share.
Welltower reported third-quarter revenue of $3.72 billion, approximately 38% higher than the corresponding period of 2025.
Revenue exceeded the analyst consensus estimate of $3.66 billion by approximately $60 million.
Normalized FFO increased 24.6% year over year to $1.67 per diluted share, compared with market expectations of approximately $1.64.
However, GAAP net income of $0.54 per share was below analyst forecasts.
The difference between GAAP earnings and normalized FFO is relevant because FFO is a commonly used measure of operating performance for real estate investment trusts.
Welltower’s normalized FFO result exceeded expectations despite the shortfall in reported earnings per share.
Welltower increased its full-year normalized FFO forecast following its third-quarter financial and operating performance.
The company now expects normalized FFO of between $6.47 and $6.53 per share, compared with its previous guidance range of $6.36 to $6.44.
The midpoint of the revised range is $6.50 per share, representing an increase of $0.10 from the previous midpoint of $6.40.
The updated guidance also exceeds the analyst consensus referenced in the earnings report.
The revision follows growth in same-store net operating income, higher occupancy across senior housing properties and increased revenue per occupied room.
The guidance represents management’s expectations for the full year rather than confirmed future results.
Welltower reported a 15.8% increase in same-store net operating income across its total property portfolio during the third quarter.
Its Senior Housing Operating segment recorded a 21.0% increase in same-store net operating income.
The segment also reported occupancy growth of 320 basis points, equivalent to an improvement of 3.2 percentage points.
Revenue per occupied room increased 5.3% compared with the corresponding period of the previous year.
These operating metrics contributed to Welltower’s quarterly financial performance and supported the company’s revised full-year normalized FFO outlook.
The results indicate that both occupancy and revenue per occupied room contributed to growth in the senior housing business.
Welltower reported approximately $9.5 billion in available liquidity at the end of the reporting period.
The company also disclosed a net debt-to-EBITDA ratio of 3.02 times.
The ratio measures net debt relative to earnings before interest, taxes, depreciation and amortization and is commonly used to assess financial leverage.
The reported liquidity and leverage figures provide additional information about Welltower’s financial position alongside its earnings and operating results.
The company did not announce changes to its financing arrangements in the supplied earnings summary.
Welltower’s board of directors declared a quarterly dividend of $0.85 per share.
The declaration accompanied the company’s third-quarter financial results, including higher normalized FFO and growth in same-store net operating income.
The dividend represents a cash distribution to shareholders, separate from the company’s reported earnings and FFO performance.
No payment date or record date was provided in the supplied announcement.
Wells Fargo increased its price target for Welltower shares to $268 in the days preceding the company’s third-quarter earnings announcement.
The revised target was issued before the release of the latest financial results.
Following the earnings announcement, Welltower shares initially declined modestly in after-hours trading as investors assessed the GAAP earnings shortfall.
The stock subsequently advanced 2.2% in premarket trading, following the disclosure of normalized FFO above expectations and higher full-year guidance.
Welltower also scheduled its third-quarter earnings conference call for 9:00 a.m. Eastern Time on Tuesday.
The call is expected to provide additional information about the company’s financial results and operating outlook.
Welltower shares rose 2.2% in premarket trading following the third-quarter announcement.
The increase occurred while major U.S. equity indices showed relatively limited movement.
The S&P 500 was approximately unchanged, the Dow Jones Industrial Average recorded a marginal increase, and the Nasdaq Composite declined slightly.
The contrast indicates that Welltower’s share price movement occurred alongside company-specific developments, including the earnings release and revised guidance.
The reported market movements do not establish the precise contribution of individual factors to the stock’s increase.
Welltower’s third-quarter results highlighted several developments relevant to its financial performance, including normalized FFO growth, increased same-store net operating income and higher occupancy in its senior housing properties.
The company raised its full-year normalized FFO guidance to between $6.47 and $6.53 per share, following a quarterly result of $1.67 per diluted share.
Its Senior Housing Operating segment reported 21.0% growth in same-store net operating income, supported by occupancy expansion and higher revenue per occupied room.
Investors will be assessing subsequent financial reports for changes in occupancy, property operating income, normalized FFO and the company’s progress against its revised annual guidance.
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