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10-QPeriod: Q3 FY2016

WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2016

Filed November 2, 2016For Securities:WELL

Summary

Welltower Inc. (WELL) reported its third quarter 2016 financial results, demonstrating continued growth and strategic positioning within the healthcare real estate sector. The company's diversified portfolio, spanning triple-net, seniors housing operating, and outpatient medical properties across the U.S., Canada, and the UK, generated robust revenue streams. Significant increases in net income attributable to common stockholders and funds from operations highlight the company's operational efficiency and growth initiatives. The company's balance sheet reflects a solid foundation with substantial real estate investments and manageable debt levels. Welltower continued its active investment strategy, completing numerous acquisitions and development projects across its segments, funded through a combination of debt, equity, and cash flows from operations. Management emphasized its focus on protecting stockholder capital and enhancing value through consistent dividend payments and portfolio growth, supported by a proactive asset management approach and a favorable capital market outlook.

Financial Statements
Beta
Revenue$1.08B
SG&A Expenses$36.83M
Operating Expenses$885.30M
Interest Expense$129.70M
Net Income$354.74M
EPS (Basic)$0.93
EPS (Diluted)$0.93
Shares Outstanding (Basic)358.93M
Shares Outstanding (Diluted)361.24M

Key Highlights

  • 1Total revenues increased by approximately 10% year-over-year to $1,079.1 million for the third quarter of 2016.
  • 2Net income attributable to common stockholders significantly increased by 84% to $334.9 million for the third quarter of 2016, compared to $182.0 million in the prior year.
  • 3Funds From Operations (FFO) attributable to common stockholders also saw a healthy increase, growing by 2% to $401.9 million for the third quarter of 2016.
  • 4The company's real estate portfolio continues to grow, with substantial investments in acquisitions and development projects across its triple-net, seniors housing operating, and outpatient medical segments.
  • 5Welltower maintained strong credit metrics, with interest and fixed charge coverage ratios showing improvement.
  • 6The company declared and paid an increased common stock dividend of $0.86 per share for the quarter, reflecting confidence in its financial performance and commitment to returning value to shareholders.
  • 7Significant capital raising activities, including senior unsecured note issuances and equity offerings, provided ample liquidity to support strategic growth initiatives.

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