Welltower Board of Directors Approves 10% Increase in Quarterly Dividend to 67c per Share

Rhea-AI Summary

Welltower announced a 10% increase in its quarterly dividend to $0.67 per share starting from Q2 2024. This marks the first dividend increase since 2017 and reflects the company's solid financial performance and growth prospects. CEO Shankh Mitra highlighted strong cash flow growth and a robust investment pipeline, with nearly $4.0 billion of investments closed or under contract in 2024, compared to $5.0 billion in 2023. The company has also strengthened its balance sheet, ensuring significant liquidity and financial flexibility.

Positive

• 10% increase in quarterly dividend to $0.67 per share, starting Q2 2024.
• First dividend increase since 2017, indicating strong financial health.
• Nearly $4.0 billion of investments closed or under contract in 2024.
• Robust investment pipeline with expanding opportunities across all regions.
• Strengthened balance sheet with significant liquidity and financial flexibility.

Negative

• Dividend increase and future payments remain subject to Board review and approval.
• Investment activity in 2024 ($4.0 billion) is slightly lower compared to 2023 ($5.0 billion).

Insights

Financial Analyst

The 10% increase in Welltower's quarterly dividend signals a robust financial health and confidence in future earnings. Increasing dividends is typically seen as a positive indicator of a company's stability and profitability. It shows that Welltower has strong cash flows and is committed to returning value to its shareholders. The fact that this is the first increase since 2017 highlights a significant improvement in the company's financial position, suggesting that prior struggles might have been addressed successfully.

Dividend increases can attract income-focused investors, potentially boosting the stock's demand. Moreover, a higher dividend can be a sign that the company is generating substantial free cash flow, which is worth noting given the challenging economic environment. However, investors should consider the sustainability of this dividend increase in the long term. While the current financial performance is solid, changes in market conditions could impact future cash flows.

Market Research Analyst

The decision to increase the dividend is supported by strong market conditions in the seniors housing sector, which Welltower primarily operates within. CEO Shankh Mitra's comments about 'strong secular tailwinds' suggest that demographic trends, such as an aging population, are contributing to the company's growth. These external factors are important for retail investors to consider, as they can offer some predictability in revenue streams.

Welltower's significant investment activity, nearly $4.0 billion year-to-date, also indicates aggressive expansion and a proactive approach to capital deployment. This can be a double-edged sword. While it can drive growth, it also comes with risks related to the execution of these investments. Investors should watch for how these new investments perform and contribute to the overall revenue.

TOLEDO, Ohio, June 3, 2024 /PRNewswire/ -- Welltower Inc. (NYSE: WELL) ("Welltower" or the "Company") announced today that it expects to increase its quarterly common stock dividend to $0.67 per share, beginning with the second quarter of 2024. The declaration and payment of any future dividend remains subject to further review and approval by the Board.

"We are pleased to report that our Board of Directors has approved the change in our dividend, reflecting the first increase since 2017. The approved plan for a 10% increase is indicative of Welltower's solid financial performance, low payout ratio owing to the outsized levels of cash flow growth we have achieved, and the Board's confidence in the Company's strong growth prospects going forward," stated Shankh Mitra, Welltower's Chief Executive Officer. He added, "While the strong secular tailwinds in seniors housing continue to propel our cash flow per share higher, we are also experiencing a once-in-a-generation capital deployment opportunity. We believe our investment pipeline remains robust, visible, and actionable, with an expanding opportunity set across all of our regions and up and down the capital stack. In fact, this morning we announced that we have closed or are under contract to close nearly $4.0 billion of investments year-to-date, which compares to approximately $5.0 billion of investment activity in 2023. We have also made significant strides to strengthen our balance sheet, which has never been as strongly positioned as it is today, and expect to maintain significant liquidity and financial flexibility in the future."

Forward-Looking Statement

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "plan," "expect," "believe" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower's reports filed from time to time with the Securities and Exchange Commission. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

About Welltower

Welltower Inc. (NYSE:WELL), a real estate investment trust ("REIT") and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at www.welltower.com.

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SOURCE Welltower Inc.

FAQ

What dividend increase did Welltower announce in June 2024?

Welltower announced a 10% increase in its quarterly dividend to $0.67 per share starting from the second quarter of 2024.

When will Welltower's increased dividend of $0.67 per share begin?

The increased dividend of $0.67 per share will begin with the second quarter of 2024.

Why did Welltower increase its dividend for 2024?

Welltower increased its dividend due to solid financial performance, strong cash flow growth, and confidence in its growth prospects.

How much investment activity has Welltower closed or contracted in 2024?

Welltower has closed or is under contract to close nearly $4.0 billion of investments in 2024.

How does Welltower's 2024 investment activity compare to 2023?

Welltower's 2024 investment activity of nearly $4.0 billion is slightly lower compared to approximately $5.0 billion in 2023.

What is Welltower's ticker symbol?

Welltower's ticker symbol is WELL.