Summary
For the first quarter of 2019, Welltower Inc. (WELL) demonstrated steady performance, driven by growth in its Seniors Housing Operating and Outpatient Medical segments, which together represented over 60% of consolidated Net Operating Income (NOI). Total revenues increased by approximately 16% year-over-year, reaching $1.27 billion, primarily fueled by higher resident fees and services and rental income. While net income decreased by 36% to $292.3 million, largely due to a significant gain on real estate dispositions in the prior year's quarter, Funds from Operations (FFO) remained robust, increasing by 1% to $358.4 million, indicating stable underlying operational cash flow. The company actively managed its capital structure during the quarter, establishing a commercial paper program, issuing new senior unsecured notes, and converting preferred stock to common stock. Investment activity remained strong with $258.7 million in property acquisitions and $293.3 million in book value of acquired assets. Dispositions also continued, with $602.7 million in proceeds from real estate sales, primarily in the Triple-net segment. Welltower maintained a healthy liquidity position with $249.1 million in cash and cash equivalents and significant available borrowing capacity under its credit facilities. The company also continued its commitment to shareholders with a quarterly dividend of $0.87 per common share. Overall, the report indicates a well-managed REIT with solid operational performance and strategic capital deployment, navigating a dynamic market.
Financial Highlights
39 data points| Revenue | $1.27B |
| Cost of Revenue | $670.81M |
| Gross Profit | $601.44M |
| SG&A Expenses | $35.28M |
| Operating Expenses | $1.14B |
| Interest Expense | $145.23M |
| Net Income | $292.30M |
| EPS (Basic) | $0.72 |
| EPS (Diluted) | $0.71 |
| Shares Outstanding (Basic) | 391.47M |
| Shares Outstanding (Diluted) | 393.45M |
Key Highlights
- 1Total revenues increased by 16% year-over-year to $1.27 billion, driven by growth in resident fees and services and rental income.
- 2Funds from Operations (FFO) remained stable, increasing by 1% to $358.4 million, signaling consistent operational cash flow.
- 3Net income saw a year-over-year decrease of 36% to $292.3 million, largely influenced by a significant gain on real estate dispositions in the prior year's quarter.
- 4The company established a $1 billion unsecured Commercial Paper Program and issued $1.04 billion in senior unsecured notes, while also converting all Series I Preferred Stock to common stock.
- 5Investment activity was robust, with $258.7 million in property acquisitions and $293.3 million in acquired asset book value.
- 6Welltower generated $602.7 million in proceeds from real estate dispositions, primarily in the Triple-net segment.
- 7The company maintained strong liquidity with $249.1 million in cash and cash equivalents and $2.58 billion in available borrowing capacity.