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10-QPeriod: Q3 FY2021

WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 5, 2021For Securities:WELL

Summary

For the nine months ended September 30, 2021, Welltower Inc. reported total revenues of $3.43 billion, a slight decrease from $3.48 billion in the same period of 2020. Net income attributable to common stockholders was $277.5 million, significantly down from $815.1 million in the prior year. This decline is largely due to a substantial decrease in gains on real estate dispositions, which fell from $903 million to $224 million year-over-year. Despite the lower net income, the company's operational performance, as indicated by Funds From Operations (FFO), remained robust, increasing to $881.7 million from $876.7 million. The company's balance sheet shows total assets of $33.48 billion as of September 30, 2021, up from $32.48 billion at the end of 2020. This increase is primarily driven by growth in real estate investments and real estate loans receivable. Total liabilities remained relatively stable at $15.31 billion. Welltower actively managed its capital structure, issuing new senior unsecured notes and repaying existing debt, while also expanding its unsecured credit facility. The Seniors Housing Operating segment saw a revenue increase driven by acquisitions and recovering occupancy rates post-COVID-19, though it incurred property operating expenses related to pandemic safety measures. The Triple-net segment experienced strong growth in rental and interest income, partially offset by reserves for straight-line rent receivables. The Outpatient Medical segment showed a decrease in rental income due to dispositions in the prior year but maintained strong rent collection. Overall, the company is navigating the post-pandemic landscape by focusing on strategic investments and capital management.

Financial Statements
Beta
Revenue$1.24B
Cost of Revenue$729.40M
Gross Profit$510.40M
SG&A Expenses$32.26M
Operating Expenses$1.15B
Interest Expense$122.52M
Net Income$190.34M
EPS (Basic)$0.42
EPS (Diluted)$0.42
Shares Outstanding (Basic)428.03M
Shares Outstanding (Diluted)429.98M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2021, were $3.43 billion, a slight decrease from $3.48 billion in the prior year.
  • 2Net income attributable to common stockholders decreased to $277.5 million from $815.1 million, largely due to lower gains on real estate dispositions.
  • 3Funds From Operations (FFO) remained strong, increasing to $881.7 million from $876.7 million for the nine-month period.
  • 4Total assets grew to $33.48 billion as of September 30, 2021, driven by investments in real estate and loans receivable.
  • 5The company executed significant capital transactions, including issuing new debt, repaying existing debt, and expanding its credit facility.
  • 6Occupancy rates in the Seniors Housing Operating segment showed recovery, with spot occupancy reaching 76.7% by September 30, 2021.
  • 7Despite pandemic-related operating expenses, Seniors Housing Operating segment revenue increased due to acquisitions and recovering occupancy.

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