10-QPeriod: Q2 FY2019

WELLTOWER INC. Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 1, 2019For Securities:WELL

Summary

Welltower Inc. (WELL) reported its financial results for the quarter ended June 30, 2019. The company demonstrated revenue growth across its key segments, with Total Revenues reaching $1.32 billion for the quarter, an increase from $1.13 billion in the prior year period. Net income for the quarter was $150.04 million, a decrease from $167.27 million year-over-year, primarily impacted by changes in real estate dispositions and other factors. The company's balance sheet reflects continued investment in real estate, with total assets growing to $33.15 billion from $30.34 billion at the end of 2018. This growth is supported by increased borrowings under its credit facilities and senior unsecured notes. Welltower also highlighted its ongoing efforts in property acquisitions and development, with significant capital deployed across its Seniors Housing Operating, Triple-net, and Outpatient Medical segments.

Financial Highlights

40 data points
Beta

Revenue

$1.32B

46.9% Gross Margin

Net Income

$137.76M

10.4% Net Margin

EPS (Diluted)

$0.34

Total Assets

$33.15B

Cash & Equivalents

$268.67M

Free Cash Flow

$510.59M

Financial Statements
Beta
Revenue$1.32B
Cost of Revenue$701.13M
Gross Profit$618.98M
SG&A Expenses$33.74M
Operating Expenses$1.16B
Interest Expense$141.34M
Net Income$137.76M
EPS (Basic)$0.34
EPS (Diluted)$0.34
Shares Outstanding (Basic)404.61M
Shares Outstanding (Diluted)406.67M

Key Highlights

  • 1Total revenues increased to $1.32 billion for the three months ended June 30, 2019, up from $1.13 billion in the same period last year.
  • 2Net income attributable to common stockholders was $137.76 million for the quarter, a decrease from $154.43 million in the prior year quarter.
  • 3Total assets grew to $33.15 billion as of June 30, 2019, compared to $30.34 billion at December 31, 2018, driven by real estate investments and increased borrowings.
  • 4The company deployed $2.72 billion in acquisitions during the six months ended June 30, 2019, significantly higher than $595.6 million in the prior year period.
  • 5Welltower's debt levels increased, with total liabilities rising to $16.70 billion from $14.33 billion.
  • 6The company completed a significant disposition of its Benchmark Senior Living portfolio in July 2019 for a gross sale price of $1.8 billion, using proceeds to extinguish debt.
  • 7Welltower continues to invest in new development projects, with $155.4 million spent on construction in progress during the six months ended June 30, 2019.

Frequently Asked Questions

Welltower reported total revenues of $1.32 billion for the three months ended June 30, 2019, an increase from $1.13 billion in the same period of 2018. This growth was driven by increases in resident fees and services, and rental income across its operating segments.

Welltower's total assets increased to $33.15 billion as of June 30, 2019, from $30.34 billion at December 31, 2018. This increase is primarily due to continued investments in real estate, including acquisitions and construction in progress, as well as a rise in cash and cash equivalents.

Total liabilities increased to $16.70 billion as of June 30, 2019, from $14.33 billion at December 31, 2018, reflecting increased borrowings under credit facilities and senior unsecured notes. The company had $268.7 million in cash and cash equivalents and $1.13 billion in available borrowing capacity under its unsecured revolving credit facility, indicating adequate liquidity.

Welltower made substantial investments in acquisitions, deploying $2.72 billion in the first six months of 2019. Additionally, the company disposed of its Benchmark Senior Living portfolio for $1.8 billion in July 2019, which was used to pay down debt. The adoption of ASC 842 (Leases) effective January 1, 2019, also introduced right-of-use assets and lease liabilities onto the balance sheet.