Welltower Reports Third Quarter 2024 Results
Welltower (NYSE:WELL) reported strong Q3 2024 results with net income of $0.73 per diluted share and normalized FFO of $1.11 per share, up 20.7% year-over-year. The company achieved total portfolio same-store NOI growth of 12.6%, driven by 23.0% growth in Seniors Housing Operating portfolio. Key highlights include 8.9% year-over-year same-store revenue growth in SHO portfolio, with 310 basis points occupancy improvement and 4.9% RevPOR growth. During Q3, Welltower completed $2.4 billion in investments and improved net debt to Adjusted EBITDA to 3.73x. The company increased its quarterly dividend by 10% and raised its full-year 2024 normalized FFO guidance to $4.27-$4.33 per share.
Welltower (NYSE:WELL) ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di $0,73 per azione diluita e un FFO normalizzato di $1,11 per azione, in aumento del 20,7% rispetto all'anno precedente. L'azienda ha registrato una crescita del NOI totale del portafoglio in stessa sede del 12,6%, trainata da una crescita del 23,0% nel portafoglio Operativo di Housing per Anziani. Tra i punti salienti figurano una crescita del fatturato del 8,9% anno su anno nel portafoglio SHO, con un miglioramento dell'occupazione di 310 punti base e una crescita del RevPOR del 4,9%. Durante il terzo trimestre, Welltower ha completato investimenti per $2,4 miliardi e ha migliorato il rapporto debito netto su EBITDA regolato a 3,73x. L'azienda ha aumentato il suo dividendo trimestrale del 10% e ha rivisto al rialzo le stime per l'FFO normalizzato per l'intero anno 2024, portandole a $4,27-$4,33 per azione.
Welltower (NYSE:WELL) reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de $0.73 por acción diluida y un FFO normalizado de $1.11 por acción, un aumento del 20.7% en comparación con el año anterior. La compañía logró un crecimiento del NOI de portafolio de misma tienda del 12.6%, impulsado por un crecimiento del 23.0% en el portafolio de Viviendas para Ancianos. Los aspectos destacados incluyen un crecimiento del ingreso del 8.9% interanual en el portafolio de SHO, con una mejora en la ocupación de 310 puntos base y un crecimiento del RevPOR del 4.9%. Durante el tercer trimestre, Welltower completó inversiones por $2.4 mil millones y mejoró la relación de deuda neta a EBITDA ajustado a 3.73x. La empresa aumentó su dividendo trimestral en un 10% y elevó su guía de FFO normalizado para todo el año 2024 a $4.27-$4.33 por acción.
웰타워 (NYSE:WELL)는 2024년 3분기 강력한 실적을 발표했으며, 희석 주당 순이익은 $0.73, 정상화된 FFO는 주당 $1.11로 전년 대비 20.7% 증가했습니다. 회사는 동일 매장 NOI 포트폴리오에서 12.6%의 성장을 달성했으며, 이는 노인 주택 운영 포트폴리오에서 23.0%의 성장이 이끌었습니다. 주요 하이라이트로는 SHO 포트폴리오에서 전년 대비 8.9%의 동일 매장 매출 성장률, 310 베이시스 포인트 증가한 점유율, 그리고 4.9%의 RevPOR 성장이 포함됩니다. 3분기 동안 웰타워는 24억 달러의 투자를 완료하고 순 부채를 조정 EBITDA 대비 3.73배로 개선했습니다. 회사는 분기 배당금을 10% 인상했으며 2024년 전체 연도 정상화된 FFO 가이던스를 주당 $4.27-$4.33으로 상향 조정했습니다.
Welltower (NYSE:WELL) a annoncé de solides résultats pour le troisième trimestre 2024, avec un bénéfice net de 0,73 $ par action diluée et un FFO normalisé de 1,11 $ par action, soit une augmentation de 20,7 % par rapport à l'année précédente. L'entreprise a réalisé une croissance du NOI des mêmes magasins du portefeuille total de 12,6 %, soutenue par une croissance de 23,0 % du portefeuille d'Hébergement pour Personnes Âgées. Les points forts incluent une croissance du chiffre d'affaires de 8,9 % d'une année sur l'autre dans le portefeuille SHO, avec une amélioration de l'occupation de 310 points de base et une croissance du RevPOR de 4,9 %. Au cours du troisième trimestre, Welltower a réalisé 2,4 milliards de dollars d'investissements et a amélioré le rapport de la dette nette par rapport à l'EBITDA ajusté à 3,73x. L'entreprise a augmenté son dividende trimestriel de 10 % et a relevé ses prévisions de FFO normalisé pour l'année 2024 à 4,27 $ - 4,33 $ par action.
Welltower (NYSE:WELL) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit einem Nettogewinn von $0,73 pro verwässerter Aktie und einem normalisierten FFO von $1,11 pro Aktie, was einem Anstieg von 20,7 % im Jahresvergleich entspricht. Das Unternehmen erzielte ein Wachstum des NOI des gesamten Portfolios in gleichen Geschäften von 12,6 %, angetrieben durch ein Wachstum von 23,0 % im Betrieb von Seniorenwohnanlagen. Zu den wichtigsten Punkten gehören ein Umsatzwachstum von 8,9 % im Jahresvergleich im SHO-Portfolio, eine Verbesserung der Auslastung um 310 Basispunkte und ein Wachstum des RevPOR von 4,9 %. Im dritten Quartal hat Welltower Investitionen in Höhe von 2,4 Milliarden Dollar abgeschlossen und das Verhältnis von Nettoverschuldung zu bereinigtem EBITDA auf 3,73x verbessert. Das Unternehmen hat die vierteljährliche Dividende um 10 % erhöht und die Prognose für den normalisierten FFO für das gesamte Jahr 2024 auf $4,27-$4,33 pro Aktie angehoben.
- Normalized FFO increased 20.7% year-over-year to $1.11 per share
- Strong same-store NOI growth of 12.6%, with SHO portfolio up 23.0%
- SHO portfolio occupancy improved by 310 basis points year-over-year
- Completed $2.4 billion in investments during Q3
- Net debt to Adjusted EBITDA improved to 3.73x from 5.14x year-over-year
- 10% increase in quarterly dividend
- Raised full-year FFO guidance to $4.27-$4.33 per share
- None.
Insights
Strong Q3 2024 results showcase remarkable performance with normalized FFO of
Balance sheet strength improved significantly with net debt to Adjusted EBITDA dropping to 3.73x from 5.14x YoY. The
Management's increased 2024 guidance (normalized FFO
Recent Highlights
- Reported net income attributable to common stockholders of
per diluted share$0.73 - Reported quarterly normalized funds from operations attributable to common stockholders of
per diluted share, an increase of$1.11 20.7% over the prior year - Reported total portfolio year-over-year same store NOI ("SSNOI") growth of
12.6% , driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio of23.0% - SHO portfolio year-over-year same store revenue increased
8.9% in the third quarter, driven by 310 basis points ("bps") of year-over-year average occupancy growth and Revenue Per Occupied Room ("RevPOR") growth of4.9% - SHO portfolio year-over-year SSNOI margin expanded by 300 bps in the third quarter driven primarily by strong RevPOR growth, which continued to meaningfully outpace Expense per Occupied Room ("ExpPOR") growth
- During the third quarter, we completed
of pro rata gross investments, including$2.4 billion in acquisitions and loan funding and$2.2 billion in development funding$203 million - Since the beginning of the year, we have closed or have definitive agreements to close
in pro rata acquisitions and loan funding$6.1 billion - Improved net debt to Adjusted EBITDA to 3.73x at September 30, 2024 from 5.14x at September 30, 2023
- As of September 30, 2024, we had approximately
of available liquidity inclusive of$8.8 billion of available cash and restricted cash and full capacity under our$3.8 billion line of credit$5.0 billion - As previously announced, the Board of Directors approved a
10% increase in the quarterly dividend per share, reflecting our solid financial performance, low payout ratio owing to outsized levels of cash flow growth and the Board's confidence in the Company's strong growth prospects going forward
Capital Activity and Liquidity
Liquidity Update During the third quarter, net debt to consolidated enterprise value improved to
Expanded Senior Unsecured Revolving Credit Facility As previously reported, in July we closed on an expanded
Exchangeable Senior Unsecured Notes Issuance In July, Welltower OP issued
Notable Portfolio Activity
In the third quarter, we completed
Affinity Living Communities As previously announced, we entered into a definitive agreement to acquire a portfolio of 25 age-restricted active adult communities for
Triple-net to Seniors Housing Operating Transitions During the second and third quarters, we reached agreements to convert 52 triple-net leased properties to Seniors Housing Operating (RIDEA) structures, allowing us to directly participate in the underlying cash flow growth of the communities. The transition to highly-aligned RIDEA 4.0 structures will deepen our partnership with several leading managers, build on success within their existing portfolios, and ensure that both Welltower and our partners benefit from the communities' future growth potential. During the third quarter, we completed the conversion of 41 of these properties.
Environmental, Social and Governance ("ESG")
We received the GRESB Green Star recognition for the fourth consecutive year, highlighting our achievement of performing above the industry average in energy performance, social commitments and governance practices.
Dividend On October 28, 2024, the Board of Directors declared a cash dividend for the quarter ended September 30, 2024 of
Outlook for 2024 Net income attributable to common stockholders guidance has been revised to a range of
- Same Store NOI: We expect average blended SSNOI growth of
11.5% to13.0% , which is comprised of the following components:- Seniors Housing Operating approximately
22.0% to24.0% - Seniors Housing Triple-net approximately
4.0% to5.0% - Outpatient Medical approximately
2.0% to3.0% - Long-Term/Post-Acute Care approximately
2.0% to3.0%
- Seniors Housing Operating approximately
- Investments: Our earnings guidance includes only those acquisitions announced or closed to date. Furthermore, no transitions or restructures beyond those announced to date are included.
- General and Administrative Expenses: We anticipate general and administrative expenses to be approximately
to$205 million and stock-based compensation expense to be approximately$211 million , exclusive of approximately$40 million of expected expense related to the Special Performance Option Awards and the 2022-2025 OPP Awards.$33.5 million - Development: We anticipate funding an additional
of development in 2024 relating to projects underway as of September 30, 2024.$247 million - Dispositions: We expect pro rata disposition proceeds of
at a blended yield of$899 million 8.4% in the next twelve months. This includes approximately of consideration from expected property sales and$790 million of expected proceeds from loan repayments.$109 million - Pandemic Relief Funds: Our initial 2024 earnings guidance did not include the recognition of any pandemic relief funds which may be received during the year. During the nine months ended September 30, 2024, we recognized approximately
at our share related to Provider Relief Funds and similar programs in the$2 million United Kingdom andCanada . Our updated guidance does not include any additional funds in 2024. In 2023, we recognized approximately at our share relating to Provider Relief Funds and similar programs in the$13 million United Kingdom andCanada .
Our guidance does not include any additional investments, dispositions or capital transactions, nor any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items beyond those disclosed. Please see the Supplemental Reporting Measures section for further discussion and our definition of normalized FFO and SSNOI and Exhibit 3 for a reconciliation of the outlook for net income available to common stockholders to normalized FFO attributable to common stockholders. We will provide additional detail regarding our 2024 outlook and assumptions on the third quarter 2024 conference call.
Conference Call Information We have scheduled a conference call on Tuesday, October 29, 2024 at 9:00 a.m. Eastern Time to discuss our third quarter 2024 results, industry trends and portfolio performance. Telephone access will be available by dialing (888) 340-5024 or (646) 960-0135 (international). For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through November 5, 2024. To access the rebroadcast, dial (800) 770-2030 or (609) 800-9909 (international). The conference ID number is 8230248. To participate in the webcast, log on to www.welltower.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days.
Supplemental Reporting Measures We believe that net income and net income attributable to common stockholders ("NICS"), as defined by
Historical cost accounting for real estate assets in accordance with
We define NOI as total revenues, including tenant reimbursements, less property operating expenses. Property operating expenses represent costs associated with managing, maintaining and servicing tenants for our properties. These expenses include, but are not limited to, property-related payroll and benefits, property management fees paid to managers, marketing, housekeeping, food service, maintenance, utilities, property taxes and insurance. General and administrative expenses represent general overhead costs that are unrelated to property operations and unallocable to the properties. These expenses include, but are not limited to, payroll and benefits related to corporate employees, professional services, office expenses and depreciation of corporate fixed assets. SSNOI is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. As used herein, same store is generally defined as those revenue-generating properties in the portfolio for the relevant year-over-year reporting periods. Acquisitions and development conversions are included in the same store amounts five full quarters after acquisition or being placed into service. Land parcels, loans and sub-leases, as well as any properties sold or classified as held for sale during the period, are excluded from the same store amounts. Redeveloped properties (including major refurbishments of a Seniors Housing Operating property where
RevPOR represents the average revenues generated per occupied room per month and ExpPOR represents the average expenses per occupied room per month at our Seniors Housing Operating properties. These metrics are calculated as our pro rata share of total resident fees and services revenues or property operating expenses from the income statement, divided by average monthly occupied room days. SS RevPOR and SS ExpPOR are used to evaluate the RevPOR and ExpPOR performance of our properties under a consistent population, which eliminates changes in the composition of our portfolio. They are based on the same pool of properties used for SSNOI and include any revenue and expense normalizations used for SSNOI. We use RevPOR, ExpPOR, SS RevPOR and SS ExpPOR to evaluate the revenue-generating capacity and profit potential of our Seniors Housing Operating portfolio independent of fluctuating occupancy rates. They are also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our Seniors Housing Operating portfolio.
We measure our credit strength both in terms of leverage ratios and coverage ratios. The leverage ratios indicate how much of our balance sheet capitalization is related to long-term debt, net of cash and restricted cash. We expect to maintain capitalization ratios and coverage ratios sufficient to maintain a capital structure consistent with our current profile. The ratios are based on EBITDA and Adjusted EBITDA. EBITDA is defined as earnings (net income per income statement) before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding unconsolidated entities and including adjustments for stock-based compensation expense, provision for loan losses, gains/losses on extinguishment of debt, gains/losses on disposition of properties and acquisitions of controlling interests, impairment of assets, gains/losses on derivatives and financial instruments, other expenses, other impairment charges and other adjustments deemed appropriate in management's opinion. We believe that EBITDA and Adjusted EBITDA, along with net income, are important supplemental measures because they provide additional information to assess and evaluate the performance of our operations. Our leverage ratios include net debt to Adjusted EBITDA and consolidated enterprise value. Net debt is defined as total long-term debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash. Consolidated enterprise value represents the sum of net debt, the fair market value of our common stock and noncontrolling interests.
Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with
About Welltower Welltower Inc. (NYSE:WELL), a real estate investment trust ("REIT") and S&P 500 company headquartered in
Forward-Looking Statements and Risk Factors This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" 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: the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators'/tenants' difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; Welltower's ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters, health emergencies (such as the COVID-19 pandemic) and other acts of God affecting Welltower's properties; Welltower's ability to re-lease space at similar rates as vacancies occur; Welltower's ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting Welltower's properties; changes in rules or practices governing Welltower's financial reporting; the movement of
Welltower Inc.
Financial Exhibits
Consolidated Balance Sheets (unaudited) | ||||
(in thousands) | ||||
September 30, | ||||
2024 | 2023 | |||
Assets | ||||
Real estate investments: | ||||
Land and land improvements | $ 5,075,391 | $ 4,373,058 | ||
Buildings and improvements | 40,646,767 | 35,010,855 | ||
Acquired lease intangibles | 2,268,889 | 1,961,799 | ||
Real property held for sale, net of accumulated depreciation | 110,689 | 355,380 | ||
Construction in progress | 1,374,996 | 1,338,076 | ||
Less accumulated depreciation and intangible amortization | (10,276,509) | (8,868,627) | ||
Net real property owned | 39,200,223 | 34,170,541 | ||
Right of use assets, net | 358,160 | 338,693 | ||
Investments in sales-type leases, net | 469,260 | — | ||
Real estate loans receivable, net of credit allowance | 1,840,453 | 1,181,265 | ||
Net real estate investments | 41,868,096 | 35,690,499 | ||
Other assets: | ||||
Investments in unconsolidated entities | 1,742,836 | 1,568,096 | ||
Goodwill | 68,321 | 68,321 | ||
Cash and cash equivalents | 3,564,942 | 2,582,037 | ||
Restricted cash | 219,466 | 104,674 | ||
Straight-line rent receivable | 518,387 | 405,154 | ||
Receivables and other assets | 971,650 | 1,235,921 | ||
Total other assets | 7,085,602 | 5,964,203 | ||
Total assets | $ 48,953,698 | $ 41,654,702 | ||
Liabilities and equity | ||||
Liabilities: | ||||
Unsecured credit facility and commercial paper | $ — | $ — | ||
Senior unsecured notes | 13,295,096 | 13,453,985 | ||
Secured debt | 2,468,527 | 2,380,253 | ||
Lease liabilities | 392,360 | 365,115 | ||
Accrued expenses and other liabilities | 1,733,712 | 1,636,730 | ||
Total liabilities | 17,889,695 | 17,836,083 | ||
Redeemable noncontrolling interests | 270,182 | 244,793 | ||
Equity: | ||||
Common stock | 620,107 | 533,918 | ||
Capital in excess of par value | 37,949,035 | 30,056,076 | ||
Treasury stock | (114,876) | (112,313) | ||
Cumulative net income | 9,976,753 | 9,061,133 | ||
Cumulative dividends | (17,901,600) | (16,435,416) | ||
Accumulated other comprehensive income | (195,138) | (149,362) | ||
Total Welltower Inc. stockholders' equity | 30,334,281 | 22,954,036 | ||
Noncontrolling interests | 459,540 | 619,790 | ||
Total equity | 30,793,821 | 23,573,826 | ||
Total liabilities and equity | $ 48,953,698 | $ 41,654,702 |
Consolidated Statements of Income (unaudited) | |||||||||
(in thousands, except per share data) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Revenues: | |||||||||
Resident fees and services | $ 1,511,524 | $ 1,199,808 | $ 4,265,271 | $ 3,490,942 | |||||
Rental income | 430,486 | 384,507 | 1,183,949 | 1,152,005 | |||||
Interest income | 69,046 | 42,220 | 185,163 | 117,335 | |||||
Other income | 44,607 | 35,478 | 105,905 | 127,938 | |||||
Total revenues | 2,055,663 | 1,662,013 | 5,740,288 | 4,888,220 | |||||
Expenses: | |||||||||
Property operating expenses | 1,212,701 | 995,273 | 3,420,911 | 2,911,698 | |||||
Depreciation and amortization | 403,779 | 339,314 | 1,151,687 | 1,020,371 | |||||
Interest expense | 139,050 | 156,532 | 419,792 | 453,272 | |||||
General and administrative expenses | 77,901 | 46,106 | 186,784 | 134,764 | |||||
Loss (gain) on derivatives and financial instruments, net | (9,906) | 2,885 | (18,785) | 5,095 | |||||
Loss (gain) on extinguishment of debt, net | 419 | 1 | 2,130 | 7 | |||||
Provision for loan losses, net | 4,193 | 4,059 | 10,370 | 7,292 | |||||
Impairment of assets | 23,421 | 7,388 | 69,146 | 21,103 | |||||
Other expenses | 20,239 | 38,220 | 83,054 | 72,034 | |||||
Total expenses | 1,871,797 | 1,589,778 | 5,325,089 | 4,625,636 | |||||
Income (loss) from continuing operations before income taxes | |||||||||
and other items | 183,866 | 72,235 | 415,199 | 262,584 | |||||
Income tax (expense) benefit | 4,706 | (4,584) | (2,586) | (11,132) | |||||
Income (loss) from unconsolidated entities | (4,038) | (4,031) | (6,925) | (51,434) | |||||
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net | 272,266 | 71,102 | 443,416 | 69,681 | |||||
Income (loss) from continuing operations | 456,800 | 134,722 | 849,104 | 269,699 | |||||
Net income (loss) | 456,800 | 134,722 | 849,104 | 269,699 | |||||
Less: Net income (loss) attributable to noncontrolling interests(1) | 6,951 | 7,252 | 17,395 | 13,516 | |||||
Net income (loss) attributable to common stockholders | $ 449,849 | $ 127,470 | $ 831,709 | $ 256,183 | |||||
Average number of common shares outstanding: | |||||||||
Basic | 611,290 | 521,848 | 595,353 | 504,420 | |||||
Diluted | 618,306 | 525,138 | 600,191 | 507,353 | |||||
Net income (loss) attributable to common stockholders per share: | |||||||||
Basic | $ 0.74 | $ 0.24 | $ 1.40 | $ 0.51 | |||||
Diluted(2) | $ 0.73 | $ 0.24 | $ 1.39 | $ 0.50 | |||||
Common dividends per share | $ 0.67 | $ 0.61 | $ 1.89 | $ 1.83 | |||||
(1) Includes amounts attributable to redeemable noncontrolling interests. | |||||||||
(2) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units. |
FFO Reconciliations | Exhibit 1 | |||||||||
(in thousands, except per share data) | Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
Net income (loss) attributable to common stockholders | $ 449,849 | $ 127,470 | $ 831,709 | $ 256,183 | ||||||
Depreciation and amortization | 403,779 | 339,314 | 1,151,687 | 1,020,371 | ||||||
Impairments and losses (gains) on real estate dispositions and acquisitions of controlling interests, net | (248,845) | (63,714) | (374,270) | (48,578) | ||||||
Noncontrolling interests(1) | (5,801) | (8,789) | (24,145) | (34,957) | ||||||
Unconsolidated entities(2) | 36,835 | 24,843 | 101,312 | 78,349 | ||||||
NAREIT FFO attributable to common stockholders | 635,817 | 419,124 | 1,686,293 | 1,271,368 | ||||||
Normalizing items, net(3) | 52,285 | 66,404 | 224,549 | 84,557 | ||||||
Normalized FFO attributable to common stockholders | $ 688,102 | $ 485,528 | $ 1,910,842 | $ 1,355,925 | ||||||
Average diluted common shares outstanding | 618,306 | 525,138 | 600,191 | 507,353 | ||||||
Per diluted share data attributable to common stockholders: | ||||||||||
Net income (loss)(4) | $ 0.73 | $ 0.24 | $ 1.39 | $ 0.50 | ||||||
NAREIT FFO | $ 1.03 | $ 0.80 | $ 2.81 | $ 2.51 | ||||||
Normalized FFO | $ 1.11 | $ 0.92 | $ 3.18 | $ 2.67 | ||||||
Normalized FFO Payout Ratio: | ||||||||||
Dividends per common share | $ 0.67 | $ 0.61 | $ 1.89 | $ 1.83 | ||||||
Normalized FFO attributable to common stockholders per share | $ 1.11 | $ 0.92 | $ 3.18 | $ 2.67 | ||||||
Normalized FFO payout ratio | 60 % | 66 % | 59 % | 69 % | ||||||
Other items:(5) | ||||||||||
Net straight-line rent and above/below market rent amortization(6) | $ (48,093) | $ (32,340) | $ (120,201) | $ (96,060) | ||||||
Non-cash interest expenses(7) | 11,406 | 7,191 | 30,604 | 19,643 | ||||||
Recurring cap-ex, tenant improvements, and lease commissions | (81,196) | (50,026) | (200,160) | (127,633) | ||||||
Stock-based compensation(8) | 9,918 | 8,578 | 31,286 | 28,193 | ||||||
(1) Represents noncontrolling interests' share of net FFO adjustments. | ||||||||||
(2) Represents Welltower's share of net FFO adjustments from unconsolidated entities. | ||||||||||
(3) See Exhibit 2. | ||||||||||
(4) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units. | ||||||||||
(5) Amounts presented net of noncontrolling interests' share and including Welltower's share of unconsolidated entities. | ||||||||||
(6) Excludes normalized other impairment (see Exhibit 2). | ||||||||||
(7) Excludes normalized foreign currency loss (gain) (see Exhibit 2). | ||||||||||
(8) Excludes normalized stock compensation expense related to the Special Performance Options and OPP awards (see Exhibit 2). | ||||||||||
Normalizing Items | Exhibit 2 | |||||||
(in thousands, except per share data) | Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Loss (gain) on derivatives and financial instruments, net | $ (9,906) | (1) | $ 2,885 | $ (18,785) | $ 5,095 | |||
Loss (gain) on extinguishment of debt, net | 419 | (2) | 1 | 2,130 | 7 | |||
Provision for loan losses, net | 4,193 | (3) | 4,059 | 10,370 | 7,292 | |||
Income tax benefits | — | — | — | (246) | ||||
Other impairment | — | 12,309 | 97,674 | 12,309 | ||||
Other expenses | 20,239 | (4) | 38,220 | 83,054 | 72,034 | |||
Leasehold interest termination | — | — | — | (65,485) | ||||
Special Performance Options and OPP Awards | 29,838 | (5) | — | 29,838 | — | |||
Casualty losses, net of recoveries | 3,224 | (6) | 1,014 | 7,335 | 9,069 | |||
Foreign currency loss (gain) | (1,766) | (7) | 82 | (1,357) | (490) | |||
Normalizing items attributable to noncontrolling interests and unconsolidated entities, net | 6,044 | (8) | 7,834 | 14,290 | 44,972 | |||
Net normalizing items | $ 52,285 | $ 66,404 | $ 224,549 | $ 84,557 | ||||
Average diluted common shares outstanding | 618,306 | 525,138 | 600,191 | 507,353 | ||||
Net normalizing items per diluted share | $ 0.08 | $ 0.13 | $ 0.37 | $ 0.17 | ||||
(1) Primarily related to mark-to-market of the equity warrants received as part of the Safanad/HC-One transactions. | ||||||||
(2) Primarily related to the closing of the expanded senior unsecured revolving credit facility. | ||||||||
(3) Primarily related to reserves for loan losses under the current expected credit losses accounting standard. | ||||||||
(4) Primarily related to non-capitalizable transaction costs. | ||||||||
(5) Primarily related to true-up accruals from the one-time 2021 Special Performance Option Awards and 2022-2025 Outperformance Program ("OPP") Awards which were | ||||||||
(6) Primarily relates to casualty losses net of any insurance recoveries. | ||||||||
(7) Primarily relates to foreign currency gains and losses related to accrued interest on intercompany loans and third party debt denominated in a foreign currency. | ||||||||
(8) Primarily relates to hypothetical liquidation at book value adjustments related to in substance real estate investments. |
Outlook Reconciliation: Year Ending December 31, 2024 | Exhibit 3 | ||||||||
(in millions, except per share data) | Prior Outlook | Current Outlook | |||||||
Low | High | Low | High | ||||||
FFO Reconciliation: | |||||||||
Net income attributable to common stockholders | $ 918 | $ 966 | $ 1,067 | $ 1,104 | |||||
Impairments and losses (gains) on real estate dispositions and acquisitions of controlling interests, net(1,2) | (249) | (249) | (387) | (387) | |||||
Depreciation and amortization(1) | 1,650 | 1,650 | 1,691 | 1,691 | |||||
NAREIT FFO attributable to common stockholders | 2,319 | 2,367 | 2,371 | 2,408 | |||||
Normalizing items, net(1,3) | 172 | 172 | 228 | 228 | |||||
Normalized FFO attributable to common stockholders | $ 2,491 | $ 2,539 | $ 2,599 | $ 2,636 | |||||
Diluted per share data attributable to common stockholders: | |||||||||
Net income | $ 1.52 | $ 1.60 | $ 1.75 | $ 1.81 | |||||
NAREIT FFO | $ 3.84 | $ 3.92 | $ 3.90 | $ 3.96 | |||||
Normalized FFO | $ 4.13 | $ 4.21 | $ 4.27 | $ 4.33 | |||||
Other items:(1) | |||||||||
Net straight-line rent and above/below market rent amortization | $ (144) | $ (144) | $ (159) | $ (159) | |||||
Non-cash interest expenses | 44 | 44 | 45 | 45 | |||||
Recurring cap-ex, tenant improvements, and lease commissions | (251) | (251) | (257) | (257) | |||||
Stock-based compensation | 41 | 41 | 41 | 41 | |||||
(1) Amounts presented net of noncontrolling interests' share and Welltower's share of unconsolidated entities. | |||||||||
(2) Includes estimated gains on projected dispositions. | |||||||||
(3) See Exhibit 2. Also includes estimated stock compensation expense related to the one-time 2021 Special Stock Performance Option Awards |
SSNOI Reconciliation | Exhibit 4 | |||||||
(in thousands) | Three Months Ended | |||||||
September 30, | ||||||||
2024 | 2023 | % growth | ||||||
Net income (loss) | $ 456,800 | $ 134,722 | ||||||
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net | (272,266) | (71,102) | ||||||
Loss (income) from unconsolidated entities | 4,038 | 4,031 | ||||||
Income tax expense (benefit) | (4,706) | 4,584 | ||||||
Other expenses | 20,239 | 38,220 | ||||||
Impairment of assets | 23,421 | 7,388 | ||||||
Provision for loan losses, net | 4,193 | 4,059 | ||||||
Loss (gain) on extinguishment of debt, net | 419 | 1 | ||||||
Loss (gain) on derivatives and financial instruments, net | (9,906) | 2,885 | ||||||
General and administrative expenses | 77,901 | 46,106 | ||||||
Depreciation and amortization | 403,779 | 339,314 | ||||||
Interest expense | 139,050 | 156,532 | ||||||
Consolidated NOI | 842,962 | 666,740 | ||||||
NOI attributable to unconsolidated investments(1) | 32,043 | 29,488 | ||||||
NOI attributable to noncontrolling interests(2) | (17,332) | (22,838) | ||||||
Pro rata NOI | 857,673 | 673,390 | ||||||
Non-cash NOI attributable to same store properties | (24,835) | (26,713) | ||||||
NOI attributable to non-same store properties | (290,656) | (165,506) | ||||||
Currency and ownership adjustments(3) | (2,273) | 1,027 | ||||||
Normalizing adjustments, net(4) | 1,219 | (1,749) | ||||||
Same Store NOI (SSNOI) | $ 541,128 | $ 480,449 | 12.6 % | |||||
Seniors Housing Operating | 278,849 | 226,714 | 23.0 % | |||||
Seniors Housing Triple-net | 76,591 | 72,412 | 5.8 % | |||||
Outpatient Medical | 127,766 | 125,068 | 2.2 % | |||||
Long-Term/Post-Acute Care | 57,922 | 56,255 | 3.0 % | |||||
Total SSNOI | $ 541,128 | $ 480,449 | 12.6 % | |||||
(1) Represents Welltower's interests in joint ventures where Welltower is the minority partner. | ||||||||
(2) Represents minority partners' interests in joint ventures where Welltower is the majority partner. | ||||||||
(3) Includes adjustments to reflect consistent property ownership percentages and foreign currency exchange rates for properties in the | ||||||||
(4) Includes other adjustments described in the accompanying Supplement. | ||||||||
Net Debt to Adjusted EBITDA Reconciliation | Exhibit 5 | |||||
(in thousands) | Three Months Ended | |||||
September 30, | ||||||
2024 | 2023 | |||||
Net income (loss) | $ 456,800 | $ 134,722 | ||||
Interest expense | 139,050 | 156,532 | ||||
Income tax expense (benefit) | (4,706) | 4,584 | ||||
Depreciation and amortization | 403,779 | 339,314 | ||||
EBITDA | 994,923 | 635,152 | ||||
Loss (income) from unconsolidated entities | 4,038 | 4,031 | ||||
Stock-based compensation | 39,756 | 8,578 | ||||
Loss (gain) on extinguishment of debt, net | 419 | 1 | ||||
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net | (272,266) | (71,102) | ||||
Impairment of assets | 23,421 | 7,388 | ||||
Provision for loan losses, net | 4,193 | 4,059 | ||||
Loss (gain) on derivatives and financial instruments, net | (9,906) | 2,885 | ||||
Other expenses | 20,239 | 38,220 | ||||
Casualty losses, net of recoveries | 3,224 | 1,014 | ||||
Other impairment(1) | — | 12,309 | ||||
Adjusted EBITDA | $ 808,041 | $ 642,535 | ||||
Total debt(2) | $ 15,854,937 | $ 15,899,420 | ||||
Cash and cash equivalents and restricted cash | (3,784,408) | (2,686,711) | ||||
Net debt | $ 12,070,529 | $ 13,212,709 | ||||
Adjusted EBITDA annualized | $ 3,232,164 | $ 2,570,140 | ||||
Net debt to Adjusted EBITDA ratio | 3.73x | 5.14 x | ||||
(1) Represents the write-off of straight-line rent receivable and unamortized lease incentive balances for leases placed on cash recognition. | ||||||
(2) Amounts include unamortized premiums/discounts, other fair value adjustments and financing lease liabilities. Excludes operating lease liabilities related to ASC 842 of | ||||||
Net Debt to Consolidated Enterprise Value | Exhibit 6 | |||||
(in thousands, except share price) | ||||||
September 30, 2024 | December 31, 2023 | |||||
Common shares outstanding | 618,396 | 564,241 | ||||
Period end share price | $ 128.03 | $ 90.17 | ||||
Common equity market capitalization | $ 79,173,240 | $ 50,877,611 | ||||
Net debt | $ 12,070,529 | $ 13,739,143 | ||||
Noncontrolling interests(1) | 729,722 | 967,351 | ||||
Consolidated enterprise value | $ 91,973,491 | $ 65,584,105 | ||||
Net debt to consolidated enterprise value | 13.1 % | 20.9 % | ||||
(1) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests as reflected on our consolidated balance sheets. | ||||||
Reconciliation of SHO SS RevPOR Growth | Exhibit 7 | |||
(in thousands except SS RevPOR) | Three Months Ended | |||
September 30, | ||||
2024 | 2023 | |||
Consolidated SHO revenues | $ 1,530,350 | $ 1,203,899 | ||
Unconsolidated SHO revenues attributable to WELL(1) | 64,494 | 59,550 | ||
SHO revenues attributable to noncontrolling interests(2) | (21,921) | (41,696) | ||
SHO pro rata revenues(3) | 1,572,923 | 1,221,753 | ||
Non-cash and non-RevPOR revenues on same store properties | (2,559) | (2,391) | ||
Revenues attributable to non-same store properties | (513,653) | (254,327) | ||
Currency and ownership adjustments(4) | (5,363) | 426 | ||
SHO SS RevPOR revenues(5) | $ 1,051,348 | $ 965,461 | ||
Average occupied units/month(6) | 55,662 | 53,598 | ||
SHO SS RevPOR(7) | $ 6,245 | $ 5,955 | ||
SS RevPOR YOY growth | 4.9 % | |||
(1) Represents Welltower's interests in joint ventures where Welltower is the minority partner. | ||||
(2) Represents minority partners' interests in joint ventures where Welltower is the majority partner. | ||||
(3) Represents SHO revenues at Welltower pro rata ownership. | ||||
(4) Includes where appropriate adjustments to reflect consistent property ownership percentages, to translate Canadian properties at a USD/CAD rate of 1.36 and to translate | ||||
(5) Represents SS SHO RevPOR revenues at Welltower pro rata ownership. | ||||
(6) Represents average occupied units for SS properties on a pro rata basis. | ||||
(7) Represents pro rata SS average revenues generated per occupied room per month. |
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SOURCE Welltower Inc.
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