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10-KPeriod: FY2016

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2016

Filed February 22, 2017For Securities:WELL

Summary

Welltower Inc. (WELL) reported its annual results for the fiscal year ended December 31, 2016. As a leading real estate investment trust focused on healthcare infrastructure, the company continues to drive transformation in the sector by investing in seniors housing, post-acute care, and outpatient medical properties. The company's strategy prioritizes protecting stockholder capital and enhancing value through consistent cash dividends and portfolio growth, investing across a diversified portfolio in the U.S., Canada, and the United Kingdom. The company demonstrated solid performance with reported net income attributable to common stockholders of $1,012,397,000, an increase from $818,344,000 in 2015. Funds From Operations (FFO) also saw a healthy increase, reflecting the company's operational efficiency and strategic acquisitions. Welltower actively managed its capital structure, raising approximately $1.2 billion through equity and debt issuances to fund new investments totaling over $3 billion in 2016, underscoring its commitment to growth and shareholder returns.

Financial Statements
Beta
Revenue$4.28B
SG&A Expenses$155.24M
Operating Expenses$3.57B
Interest Expense$521.35M
Net Income$1.08B
EPS (Basic)$2.83
EPS (Diluted)$2.81
Shares Outstanding (Basic)358.27M
Shares Outstanding (Diluted)360.23M

Key Highlights

  • 1Welltower reported a net income attributable to common stockholders of $1,012,397,000 for the fiscal year ended December 31, 2016, up from $818,344,000 in 2015.
  • 2Funds From Operations (FFO) attributable to common stockholders increased to $1,593,143,000 from $1,409,640,000 in the prior year.
  • 3The company made significant investments in 2016, totaling $2,182,136,000 in acquisitions and joint ventures across its triple-net, seniors housing operating, and outpatient medical segments.
  • 4Welltower completed property dispositions totaling $2,368,511,000 in 2016, indicating active portfolio management.
  • 5The company raised approximately $1.24 billion in capital during 2016 through the issuance of common stock and senior unsecured notes.
  • 6A key strategic move was the closing on a new primary unsecured credit facility in May 2016, increasing borrowing capacity and providing financial flexibility.
  • 7The company's dividend payout demonstrates a commitment to shareholder returns, with a quarterly cash dividend rate increased to $0.87 per share commencing in February 2017.

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