10-QPeriod: Q2 FY2023

WELLTOWER INC. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 1, 2023For Securities:WELL

Summary

Welltower Inc. (WELL) reported its financial results for the quarter ending June 29, 2023. The company demonstrated growth in total revenues, driven by increases in resident fees and services and rental income across its Seniors Housing Operating, Triple-net, and Outpatient Medical segments. Despite an increase in property operating expenses and interest expense, the company managed to improve its Net Operating Income (NOI) and Funds From Operations (FFO) compared to the same period in the previous year. Key financial developments include strategic real estate transactions, such as the dissolution of Revera joint ventures and the acquisition of new properties, contributing to a growth in real estate investments. The company also successfully raised capital through equity issuances, including under its ATM Program and a significant issuance of exchangeable senior unsecured notes. Welltower maintained a strong liquidity position with substantial cash and cash equivalents and available borrowing capacity, underscoring its financial stability and capacity for future growth. The company reaffirmed its commitment to shareholder value through consistent dividend payments.

Financial Highlights

40 data points
Beta

Revenue

$1.67B

42.4% Gross Margin

Net Income

$103.04M

6.2% Net Margin

EPS (Diluted)

$0.20

Total Assets

$40.06B

Cash & Equivalents

$2.20B

Free Cash Flow

$416.25M

Financial Statements
Beta
Revenue$1.67B
Cost of Revenue$958.67M
Gross Profit$706.81M
SG&A Expenses$44.29M
Operating Expenses$1.51B
Interest Expense$152.34M
Net Income$103.04M
EPS (Basic)$0.21
EPS (Diluted)$0.20
Shares Outstanding (Basic)499.02M
Shares Outstanding (Diluted)501.97M

Key Highlights

  • 1Total revenues increased to $1.67 billion for the three months ended June 30, 2023, up from $1.47 billion in the prior year period.
  • 2Net Operating Income (NOI) grew to $706.8 million for the three months ended June 30, 2023, compared to $618.5 million in the prior year period.
  • 3Funds From Operations (FFO) attributable to common stockholders increased to $466.2 million ($0.93 per share) for the three months ended June 30, 2023, from $409.6 million ($0.90 per share) in the prior year period.
  • 4The company's real estate investments increased to $34.54 billion as of June 30, 2023, from $34.14 billion as of December 31, 2022, reflecting ongoing acquisitions and development.
  • 5Welltower raised significant capital through the issuance of $1.035 billion in exchangeable senior unsecured notes and $1.34 billion in common stock under its ATM Program during the six months ended June 30, 2023.
  • 6The company's balance sheet remains robust with total assets of $40.06 billion as of June 30, 2023, and a net debt to book capitalization ratio of 38%.
  • 7Welltower declared a quarterly dividend of $0.61 per share, continuing its history of consistent shareholder distributions.

Frequently Asked Questions

For the second quarter of 2023, Welltower reported total revenues of $1.67 billion, an increase from $1.47 billion in the prior year quarter. Net Operating Income (NOI) rose to $706.8 million from $618.5 million year-over-year. Funds From Operations (FFO) attributable to common stockholders increased to $466.2 million, or $0.93 per share, compared to $409.6 million, or $0.90 per share, in the second quarter of 2022.

Welltower's real estate investments grew to $34.54 billion as of June 30, 2023, up from $34.14 billion at the end of 2022. This growth reflects ongoing acquisitions and development activities, including strategic transactions like the dissolution of Revera joint ventures. The company continues to invest in Seniors Housing Operating, Triple-net, and Outpatient Medical properties.

During the first half of 2023, Welltower raised substantial capital. This included the issuance of $1.035 billion in 2.75% exchangeable senior unsecured notes due 2028 and approximately $1.34 billion in gross proceeds from the sale of common stock under its At-the-Market (ATM) Program. These activities strengthen the company's liquidity and provide resources for future investments.

Welltower maintains a strong liquidity position with $2.20 billion in cash and cash equivalents and $95.3 million in restricted cash as of June 30, 2023. The company had $4 billion in available borrowing capacity under its unsecured revolving credit facility. The net debt to book capitalization ratio was 38% as of June 30, 2023, indicating a well-managed debt structure. The company also continues to pay consistent quarterly dividends.