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.

Frequently Asked Questions

Welltower Inc. is a leading real estate investment trust (REIT) focused on investing in healthcare infrastructure. Its primary focus is on seniors housing and post-acute care communities, as well as outpatient medical properties. They partner with leading operators and health systems to fund real estate and infrastructure needs.

In 2016, Welltower reported strong financial performance, with net income attributable to common stockholders reaching $1,012,397,000, an increase from $818,344,000 in 2015. Funds From Operations (FFO) also grew to $1,593,143,000. The company actively engaged in acquisitions and dispositions, deploying significant capital into its portfolio.

Welltower evaluates its business on three reportable segments: triple-net, seniors housing operating, and outpatient medical. Triple-net properties are primarily leased to operators under long-term triple-net leases. Seniors housing operating properties are held in consolidated joint ventures using a RIDEA structure, with the company relying on incentive-based management contracts with operators. Outpatient medical properties typically include outpatient medical buildings leased to multiple tenants, often affiliated with health systems.

In 2016, Welltower raised approximately $1.24 billion through capital markets activities, including the issuance of common stock and senior unsecured notes. These funds, combined with available cash and borrowing capacity under its credit facilities, supported its new investments, totaling over $3 billion in gross acquisitions and joint ventures.