Summary
Welltower Inc. (WELL) reported its financial results for the quarter and six months ended June 30, 2021. The company experienced a notable decline in net income compared to the prior year's period, primarily due to lower revenues from its Seniors Housing Operating segment, impacted by pandemic-related occupancy declines. However, there are signs of recovery, with occupancy rates showing improvement. The company also saw a significant increase in its real estate investments, driven by strategic acquisitions. Debt management remains a focus, with new credit facilities and note issuances aimed at optimizing the capital structure. While the COVID-19 pandemic continues to pose risks, Welltower is actively managing its portfolio and operations to navigate these challenges and position itself for future growth.
Financial Highlights
41 data pointsBeta
Financial Statements
Beta
| Revenue | $1.14B |
| Cost of Revenue | $642.66M |
| Gross Profit | $498.33M |
| SG&A Expenses | $31.44M |
| Operating Expenses | $1.13B |
| Interest Expense | $122.34M |
| Net Income | $26.26M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.06 |
| Shares Outstanding (Basic) | 417.45M |
| Shares Outstanding (Diluted) | 419.31M |
Key Highlights
- 1Net income attributable to common stockholders decreased significantly year-over-year, dropping from $179.2 million in Q2 2020 to $26.3 million in Q2 2021, and from $489.5 million for the six months ended June 30, 2020, to $97.8 million for the same period in 2021.
- 2Total revenues decreased by 4% for the quarter and 8% for the six-month period, largely driven by a 10% decline in resident fees and services within the Seniors Housing Operating segment due to lower occupancy.
- 3Seniors Housing Operating (SHO) segment's Same Store Net Operating Income (SSNOI) declined by 13.2% for the quarter and 18.6% for the six-month period, reflecting the pandemic's impact on occupancy, although occupancy rates have shown signs of recovery since March 2021.
- 4The company completed significant capital transactions, including issuing $1.25 billion in senior unsecured notes and closing a new $4.7 billion unsecured credit facility.
- 5Real estate investments increased by $701.6 million to $29.28 billion as of June 30, 2021, compared to December 31, 2020, driven by acquisitions.
- 6Welltower repaid a substantial amount of debt, approximately $1.53 billion in senior unsecured notes and $98 million in secured debt during the first six months of 2021.
- 7The company continues to manage its portfolio through property dispositions and strategic investments, with 44 property acquisitions and dispositions totaling $446.7 million completed in the first six months of 2021.
Frequently Asked Questions
Welltower experienced a decrease in net income attributable to common stockholders for both the quarter and the six-month period ended June 30, 2021, compared to the same periods in 2020. Total revenues also saw a decline, primarily due to lower resident fees and services in the Seniors Housing Operating segment, which was impacted by pandemic-related occupancy issues. However, there are indications of recovery in occupancy rates.
The COVID-19 pandemic has negatively impacted Welltower's results, particularly in its Seniors Housing Operating segment, leading to decreased occupancy and increased operating expenses for health and safety measures. While occupancy has shown improvement since early 2021, and Provider Relief Funds have provided some financial support, the pandemic continues to pose risks to operations and financial condition.
Welltower was active in managing its capital structure. Key financing activities included issuing new senior unsecured notes totaling $1.25 billion, repaying approximately $1.53 billion of existing senior unsecured notes and $98 million of secured debt, and establishing a new $4.7 billion unsecured credit facility. These actions were aimed at optimizing the company's debt profile and ensuring liquidity.
Welltower's real estate investments have grown, with total net real estate investments increasing to $29.28 billion by June 30, 2021. This growth was driven by strategic acquisitions of properties across its Seniors Housing Operating, Triple-net, and Outpatient Medical segments. The company also actively engaged in property dispositions.