10-KPeriod: FY2015

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2015

Filed February 18, 2016For Securities:WELL

Summary

For the fiscal year ended December 31, 2015, Welltower Inc. (WELL) demonstrated strong operational performance with a significant increase in net income attributable to common stockholders, reaching $818.3 million, up from $446.7 million in 2014. This growth was driven by substantial investments in its core segments: triple-net, seniors housing operating, and outpatient medical properties, totaling approximately $4.8 billion in pro rata gross new investments. The company also successfully executed strategic capital raises, including a large common stock offering and significant senior unsecured note issuances, bolstering its liquidity and financing capacity. Welltower's strategic focus on driving the transformation of healthcare infrastructure through investments in leading seniors housing operators, post-acute providers, and health systems positions it well for future growth, particularly given favorable demographic trends for an aging population. The company's diversified portfolio across the U.S., Canada, and the UK, combined with its strong operator relationships, provides a solid foundation for continued value creation and dividend growth, despite the inherent risks associated with the healthcare real estate sector.

Financial Highlights

37 data points
Beta

Revenue

$3.86B

Net Income

$888.55M

23.0% Net Margin

EPS (Diluted)

$2.34

Total Assets

$29.02B

Cash & Equivalents

$422.69M

Free Cash Flow

$1.38B

Financial Statements
Beta
Revenue$3.86B
SG&A Expenses$147.42M
Operating Expenses$3.22B
Interest Expense$492.17M
Net Income$888.55M
EPS (Basic)$2.35
EPS (Diluted)$2.34
Shares Outstanding (Basic)348.24M
Shares Outstanding (Diluted)349.42M

Key Highlights

  • 1Net income attributable to common stockholders increased by 83% year-over-year to $818.3 million.
  • 2Funds From Operations (FFO) grew by 20% year-over-year to $1.4 billion.
  • 3Successfully raised approximately $3.3 billion in capital through equity and debt offerings, supporting $4.8 billion in new investments.
  • 4Portfolio diversification across triple-net (54% of NOI), seniors housing operating (31% of NOI), and outpatient medical (15% of NOI) segments.
  • 5Maintained strong relationships with key operators like Genesis Healthcare (17% of NOI) and Sunrise Senior Living (13% of NOI).
  • 6Increased quarterly cash dividend by approximately 4.2% to $0.86 per share, marking the 179th consecutive quarterly payment.
  • 7Managed credit strength with a Debt to Book Capitalization ratio of 46% and an Adjusted Interest Coverage Ratio of 4.57x.

Frequently Asked Questions

Welltower's growth in 2015 was primarily driven by significant new investments in its triple-net, seniors housing operating, and outpatient medical properties, totaling approximately $4.8 billion. This was supported by successful capital raises of about $3.3 billion, allowing the company to expand its portfolio and strengthen its financial position.

Welltower demonstrated substantial improvement in 2015. Net income attributable to common stockholders more than doubled, reaching $818.3 million from $446.7 million in 2014. Funds From Operations (FFO) also saw a healthy increase of 20%, reaching $1.4 billion, indicating strong operational performance and growth.

Welltower's strategy focuses on investing in healthcare and seniors housing real estate with leading operators and health systems. It aims to protect stockholder capital and enhance value by generating consistent cash dividends from portfolio growth and net operating income increases. The company actively manages its assets, diversifies its portfolio by property type, relationship, and geography, and uses a combination of master leases and loan structures to mitigate risk.

Welltower's primary sources of revenue are rental income from its triple-net and outpatient medical properties, and resident fees and services from its seniors housing operating properties. Interest income from real estate loans receivable also contributes to its revenue.