10-QPeriod: Q3 FY2022

WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 8, 2022For Securities:WELL

Summary

Welltower Inc. (WELL) reported its third-quarter 2022 financial results, showcasing robust growth in revenues and key operating metrics. Total revenues increased by 19% year-over-year to $4.34 billion for the nine months ended September 30, 2022. The company's Net Operating Income (NOI) also saw significant growth, increasing by 19% to $1.72 billion for the same period. This strong performance was driven by increases across all segments, particularly Seniors Housing Operating, which saw a 43% rise in NOI. The company maintained a solid balance sheet with total assets of $37.41 billion and total liabilities of $16.96 billion as of September 30, 2022. Welltower continued its strategic capital allocation, with significant investments in property acquisitions and capital improvements. For the nine months ended September 30, 2022, cash disbursed for acquisitions amounted to $2.29 billion, and capital improvements totaled $315.8 million. The company also successfully raised capital through various financing activities, including the issuance of senior unsecured notes and equity. Despite these investments and ongoing operational costs, Welltower maintained a healthy liquidity position, with $425.18 million in cash, cash equivalents, and restricted cash as of September 30, 2022. The company also demonstrated its commitment to shareholders by declaring a regular quarterly cash dividend.

Financial Highlights

40 data points
Beta

Revenue

$1.47B

38.1% Gross Margin

Net Income

-$6.77M

-0.5% Net Margin

EPS (Diluted)

$-0.01

Total Assets

$37.41B

Cash & Equivalents

$343.45M

Free Cash Flow

$355.99M

Financial Statements
Beta
Revenue$1.47B
Cost of Revenue$912.18M
Gross Profit$561.66M
SG&A Expenses$34.81M
Operating Expenses$1.47B
Interest Expense$139.68M
Net Income-$6.77M
EPS (Basic)$-0.01
EPS (Diluted)$-0.01
Shares Outstanding (Basic)463.37M
Shares Outstanding (Diluted)463.37M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2022, increased by 26.5% to $4.34 billion compared to $3.43 billion in the prior year.
  • 2Consolidated Net Operating Income (NOI) for the nine months ended September 30, 2022, grew by 19.0% to $1.72 billion, up from $1.44 billion in the prior year.
  • 3Seniors Housing Operating segment reported a 43% increase in NOI to $719.3 million for the nine months ended September 30, 2022.
  • 4Total assets grew to $37.41 billion as of September 30, 2022, up from $34.91 billion at December 31, 2021.
  • 5The company maintained a strong liquidity position with $425.18 million in cash, cash equivalents, and restricted cash as of September 30, 2022.
  • 6Welltower invested $2.29 billion in property acquisitions and $315.8 million in capital improvements during the nine months ended September 30, 2022.
  • 7A regular quarterly cash dividend of $0.61 per share was declared for the quarter ended September 30, 2022.

Frequently Asked Questions

For the three months ended September 30, 2022, Welltower reported total revenues of $1.47 billion, an increase from $1.24 billion in the same period of 2021. For the nine months ended September 30, 2022, total revenues increased to $4.34 billion from $3.43 billion in the prior year.

Consolidated Net Operating Income (NOI) for the three months ended September 30, 2022, increased to $561.7 million from $510.4 million in the prior year. For the nine months ended September 30, 2022, NOI grew by 19.0% to $1.72 billion, compared to $1.44 billion in the same period of 2021.

Revenue growth was driven by increases in resident fees and services, rental income, and interest income across its operating segments. The Seniors Housing Operating segment, in particular, showed strong performance with increased occupancy rates and a recovery in revenue, contributing significantly to the overall revenue growth.

Welltower continued to actively manage its capital structure. The company invested approximately $2.29 billion in property acquisitions and $315.8 million in capital improvements during the first nine months of 2022. It also secured capital through the issuance of senior unsecured notes and equity. As of September 30, 2022, the company maintained a healthy liquidity position with $425.18 million in cash, cash equivalents, and restricted cash, and had significant available borrowing capacity under its credit facilities.