10-QPeriod: Q1 FY2022

WELLTOWER INC. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 10, 2022For Securities:WELL

Summary

Welltower Inc. reported solid financial results for the first quarter of 2022, demonstrating resilience and strategic execution. Total revenues increased significantly to $1.396 billion, up from $1.052 billion in the prior year period, driven by strong performance across its Seniors Housing Operating, Triple-net, and Outpatient Medical segments. Net income attributable to common stockholders was $61.9 million, or $0.14 per diluted share, a slight decrease from $71.5 million, or $0.17 per diluted share, in Q1 2021, reflecting increased operating expenses and depreciation, partially offset by higher revenues and gains on dispositions. The company's balance sheet remains robust with total assets of $35.47 billion. Welltower also successfully managed its capital structure, issuing $550 million in senior unsecured notes and maintaining compliance with debt covenants. The company continued its strategic investment in growth, with significant capital deployed into acquisitions and construction in progress across its key segments. Occupancy rates in the Seniors Housing Operating segment showed a positive trend, increasing from 73.0% to 77.5%, indicating a recovery from pandemic-related impacts. Overall, Welltower's Q1 2022 performance highlights its ability to navigate market dynamics while pursuing strategic growth initiatives.

Financial Highlights

40 data points
Beta

Revenue

$1.40B

38.8% Gross Margin

Net Income

$61.92M

4.4% Net Margin

EPS (Diluted)

$0.14

Total Assets

$35.47B

Cash & Equivalents

$301.09M

Free Cash Flow

$324.52M

Financial Statements
Beta
Revenue$1.40B
Cost of Revenue$853.67M
Gross Profit$542.03M
SG&A Expenses$37.71M
Operating Expenses$1.34B
Interest Expense$121.70M
Net Income$61.92M
EPS (Basic)$0.14
EPS (Diluted)$0.14
Shares Outstanding (Basic)447.38M
Shares Outstanding (Diluted)449.80M

Key Highlights

  • 1Total revenues increased by 32.7% year-over-year to $1.396 billion in Q1 2022.
  • 2Net income attributable to common stockholders was $61.9 million ($0.14 per diluted share) in Q1 2022, compared to $71.5 million ($0.17 per diluted share) in Q1 2021.
  • 3Seniors Housing Operating (SHO) segment revenues increased by 37% year-over-year, driven by rising occupancy rates which improved to 77.5% from 73.0%.
  • 4The company deployed $630.3 million in new property acquisitions and $138.1 million in construction in progress during Q1 2022.
  • 5Welltower issued $550 million in senior unsecured notes at a 3.85% interest rate in March 2022.
  • 6The company maintained strong liquidity with $301 million in cash and cash equivalents and $3.7 billion in available borrowing capacity under its credit facilities as of March 31, 2022.
  • 7A significant UPREIT reorganization was completed effective April 1, 2022, with the legal entity structure changing to Welltower Inc. (New Welltower) and Welltower OP Inc. (Old Welltower).

Frequently Asked Questions

Welltower Inc. reported a strong increase in total revenues to $1.396 billion for the first quarter of 2022, up from $1.052 billion in the prior year. While net income attributable to common stockholders saw a slight decrease to $61.9 million ($0.14 per diluted share) from $71.5 million ($0.17 per diluted share) in Q1 2021, this was influenced by increased operating expenses and depreciation. The company demonstrated healthy operational performance across its segments and continued strategic investments.

The SHO segment showed significant revenue growth of 37% year-over-year, with total revenues reaching $996.6 million. A key positive indicator is the increase in average occupancy rates from 73.0% in Q1 2021 to 77.5% in Q1 2022, signaling a recovery and improvement in demand. Property operating expenses also increased, partly due to elevated costs associated with COVID-19 safety measures.

Welltower maintained a strong financial position. Total assets stood at $35.47 billion as of March 31, 2022. The company issued $550 million in senior unsecured notes in March 2022 and continues to have substantial liquidity, with $301 million in cash and cash equivalents and $3.7 billion in available borrowing capacity. Leverage ratios remain within target ranges, and the company was in compliance with all debt covenants.

Yes, Welltower announced and completed a significant UPREIT reorganization effective April 1, 2022. The corporate structure was updated, with the former Welltower Inc. (Old Welltower) becoming Welltower OP Inc. and a new entity, Welltower Inc. (New Welltower), established as the parent company. This report pertains to the business of Old Welltower up to March 31, 2022.