WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2017

Summary

Welltower Inc. (WELL) reported its third-quarter 2017 financial results, demonstrating resilience in its diversified healthcare real estate portfolio. While total revenues remained relatively stable year-over-year, driven by a significant increase in resident fees and services, rental income experienced a decline. The company successfully managed its expenses, leading to a decrease in net income primarily due to lower gains on property dispositions compared to the prior year's strong performance in that area. Key financial highlights indicate a prudent approach to capital management, with strategic debt reduction and ongoing investments in its core segments: triple-net, seniors housing operating, and outpatient medical properties. Looking ahead, Welltower remains focused on its strategy of investing in leading seniors housing operators, post-acute providers, and health systems. The company's strong liquidity position and access to capital markets provide a solid foundation for continued growth and value creation for shareholders. Investors should note the slight decrease in net income attributable to common stockholders, largely influenced by the comparison to a strong prior year quarter for property dispositions, while recognizing the underlying operational stability and strategic capital allocation.

Key Highlights

• 1Total revenues for the nine months ended September 30, 2017, were $3.21 billion, a slight increase from $3.20 billion in the same period of 2016, driven by growth in resident fees and services.
• 2Net income attributable to common stockholders decreased to $575.1 million for the nine months ended September 30, 2017, from $679.4 million in the prior year, primarily due to lower gains on real estate dispositions.
• 3Consolidated Net Operating Income (NOI) for the nine months ended September 30, 2017, was $1.68 billion, a decrease of 8% from $1.82 billion in the prior year, reflecting a strategic shift and property dispositions.
• 4Same Store NOI (SSNOI) showed positive growth, increasing by 1% to $1.37 billion for the nine months ended September 30, 2017, indicating underlying portfolio health.
• 5The company maintained a strong liquidity position, with $236.2 million in cash and cash equivalents and $2.55 billion in available borrowing capacity under its primary unsecured credit facility as of September 30, 2017.
• 6Welltower actively managed its capital structure, repaying $1.003 billion of secured debt and redeeming all Series J preferred stock during the nine months ended September 30, 2017.
• 7The company increased its quarterly cash dividend to $0.87 per common share, marking the 186th consecutive quarterly dividend payment.

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