10-QPeriod: Q3 FY2023

WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 31, 2023For Securities:WELL

Summary

Welltower Inc. (WELL) reported its third-quarter 2023 financial results, demonstrating solid growth in revenues and net income compared to the prior year. Total revenues increased by 12.6% to $1.66 billion for the three months ended September 30, 2023, driven by growth in resident fees and services and rental income across its Seniors Housing Operating and Triple-net segments. Net income attributable to common stockholders saw a significant improvement, reaching $127.5 million, or $0.24 per diluted share, compared to a net loss of $6.8 million in the same period last year. Operationally, the company continued its strategic investment activities, acquiring new properties and advancing construction projects. Cash flow from operations remained robust, supporting dividend payments and strategic investments. The company maintained a strong liquidity position with substantial cash on hand and available credit facilities, positioning it to manage its capital structure and pursue growth opportunities. The report also highlights continued strength in rental income from the Triple-net and Outpatient Medical segments, supported by lease renewals and new acquisitions.

Financial Highlights

40 data points
Beta

Revenue

$1.66B

40.1% Gross Margin

Net Income

$127.47M

7.7% Net Margin

EPS (Diluted)

$0.24

Total Assets

$41.65B

Cash & Equivalents

$2.58B

Free Cash Flow

$439.06M

Financial Statements
Beta
Revenue$1.66B
Cost of Revenue$995.27M
Gross Profit$666.74M
SG&A Expenses$46.11M
Operating Expenses$1.59B
Interest Expense$156.53M
Net Income$127.47M
EPS (Basic)$0.24
EPS (Diluted)$0.24
Shares Outstanding (Basic)521.85M
Shares Outstanding (Diluted)525.14M

Key Highlights

  • 1Total revenues increased by 12.6% to $1.66 billion for the three months ended September 30, 2023, compared to $1.47 billion for the same period in 2022.
  • 2Net income attributable to common stockholders was $127.5 million ($0.24 per diluted share) for the third quarter of 2023, a significant improvement from a net loss of $6.8 million ($0.01 per diluted share) in the third quarter of 2022.
  • 3Consolidated Net Operating Income (NOI) increased by 18.7% to $666.7 million for the third quarter of 2023, compared to $561.7 million in the prior year's quarter.
  • 4Cash provided from operating activities for the nine months ended September 30, 2023, was $1.23 billion, an increase from $1.08 billion in the same period of 2022.
  • 5The company repurchased 2,948 shares of common stock for a total of $0.24 million during the third quarter of 2023.
  • 6Welltower's total assets grew to $41.65 billion as of September 30, 2023, up from $37.89 billion as of December 31, 2022.
  • 7The company's debt-to-book capitalization ratio improved to 36% as of September 30, 2023, from 42% as of September 30, 2022.

Frequently Asked Questions

For the three months ended September 30, 2023, Welltower reported total revenues of $1.66 billion, an increase of 12.6% year-over-year. Net income attributable to common stockholders was $127.5 million, or $0.24 per diluted share, a substantial improvement from a net loss of $6.8 million in the prior year's quarter. Consolidated Net Operating Income (NOI) increased by 18.7% to $666.7 million.

Welltower's total assets increased to $41.65 billion as of September 30, 2023, from $37.89 billion at December 31, 2022. This growth is primarily attributed to increases in real estate investments and cash and cash equivalents. Total liabilities also increased to $17.84 billion from $16.50 billion, largely due to an increase in senior unsecured notes. Stockholders' equity grew to $23.57 billion from $21.01 billion.

The Seniors Housing Operating segment showed strong revenue growth (12%) and a significant improvement in net income. The Triple-net segment experienced a 3% increase in total revenues, driven by rental income growth. The Outpatient Medical segment saw a 11% increase in total revenues, primarily from rental income and strategic acquisitions. Same Store Net Operating Income (SSNOI) growth was positive across all segments, indicating healthy underlying property performance.

Welltower maintained a strong liquidity position with $2.58 billion in cash and cash equivalents and $104.7 million in restricted cash as of September 30, 2023. The company also had $4 billion in available borrowing capacity under its unsecured revolving credit facility. Capital resources were primarily used for investments in real estate, debt service, and dividend distributions. The company's debt-to-book capitalization ratio improved to 36% as of September 30, 2023, from 42% a year prior, indicating a strengthened capital structure.