Summary
Welltower Inc. reported its first quarter 2020 financial results on May 6, 2020, for the period ending March 31, 2020. The company experienced a slight decrease in total revenues to $1.258 billion compared to $1.272 billion in the prior year's quarter. Net income attributable to common stockholders increased by 11% to $310.3 million ($0.76 per diluted share) from $280.5 million ($0.72 per diluted share) in the same period last year, demonstrating resilience. However, the report also highlighted the significant impact and uncertainty posed by the COVID-19 pandemic, which was beginning to affect operations, occupancy rates, and potentially the ability of operators and tenants to meet their obligations. The company is taking steps to manage liquidity and maintain financial flexibility in light of the evolving economic conditions. The company's real estate portfolio remains substantial, with total assets of $32.92 billion at the end of the quarter. While the balance sheet shows a reduction in total liabilities, the company is actively managing its capital structure. The report indicated a decrease in cash provided from financing activities due to debt repayments and other financing costs. Despite the prevailing uncertainty, Welltower generated strong operating cash flow, underscoring the fundamental stability of its healthcare and seniors housing infrastructure investments.
Financial Highlights
40 data points| Revenue | $1.26B |
| Cost of Revenue | $681.78M |
| Gross Profit | $576.82M |
| SG&A Expenses | $35.48M |
| Operating Expenses | $1.18B |
| Interest Expense | $142.01M |
| Net Income | $310.28M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 410.31M |
| Shares Outstanding (Diluted) | 412.42M |
Key Highlights
- 1Net income attributable to common stockholders increased by 11% to $310.3 million ($0.76 per diluted share) for the three months ended March 31, 2020, compared to $280.5 million ($0.72 per diluted share) in the prior year's quarter.
- 2Total revenues slightly decreased by 1.1% to $1.258 billion from $1.272 billion for the three months ended March 31, 2019.
- 3The company recognized $27.8 million in impairment charges related to certain held-for-use properties.
- 4Total assets stood at $32.92 billion as of March 31, 2020, with total liabilities decreasing to $15.43 billion from $16.40 billion at December 31, 2019.
- 5Cash provided from operating activities was $411.9 million for the three months ended March 31, 2020, an increase from $343.9 million in the prior year.
- 6Welltower noted the significant uncertainty and potential adverse effects of the COVID-19 pandemic on its operations, occupancy rates, and tenants' ability to pay rent.
- 7The company secured a $1.0 billion unsecured term loan on April 1, 2020, to enhance liquidity and strengthen its balance sheet in response to market conditions.