Summary
Welltower Inc. (WELL) reported its financial results for the quarter ended June 30, 2022. The company experienced a significant increase in total revenues, driven by substantial growth in resident fees and services, reflecting ongoing recovery in occupancy rates across its Seniors Housing Operating portfolio. This top-line growth, combined with diligent expense management, led to a strong improvement in Net Income Attributable to Common Stockholders compared to the prior year's period. Financially, Welltower demonstrated robust liquidity and capital management. The company successfully raised capital through its At-The-Market (ATM) program and senior unsecured notes issuance, bolstering its cash position and providing flexibility for strategic investments and debt management. Despite a challenging interest rate environment, Welltower maintained compliance with its debt covenants and exhibited healthy coverage ratios. The company continues to strategically invest in its core segments—Seniors Housing Operating, Triple-net, and Outpatient Medical—with a focus on enhancing its portfolio and driving long-term shareholder value.
Financial Highlights
40 data points| Revenue | $1.47B |
| Cost of Revenue | $854.08M |
| Gross Profit | $618.45M |
| SG&A Expenses | $36.55M |
| Operating Expenses | $1.36B |
| Interest Expense | $127.75M |
| Net Income | $95.67M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 454.33M |
| Shares Outstanding (Diluted) | 457.08M |
Key Highlights
- 1Total revenues increased by 29% to $1.47 billion for the three months ended June 30, 2022, compared to $1.14 billion in the prior year, primarily driven by a 36% increase in resident fees and services.
- 2Net income attributable to common stockholders rose significantly to $89.8 million ($0.20 per diluted share) for the three months ended June 30, 2022, compared to $26.3 million ($0.06 per diluted share) in the same period last year.
- 3The company raised approximately $1.36 billion in gross proceeds from ATM program issuances during the six months ended June 30, 2022, and $1.04 billion from senior unsecured notes issuance.
- 4Total assets grew to $36.57 billion as of June 30, 2022, up from $34.91 billion as of December 31, 2021, with real estate investments forming the largest portion.
- 5Seniors Housing Operating segment saw a 19.9% increase in SSNOI for the quarter, indicating a strong recovery in operational performance.
- 6Welltower's net debt to book capitalization ratio remained stable at 43% as of June 30, 2022, demonstrating consistent leverage management.
- 7The company declared a quarterly cash dividend of $0.61 per share, continuing its history of consistent shareholder returns.