10-QPeriod: Q1 FY2024

WELLTOWER INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 30, 2024For Securities:WELL

Summary

Welltower Inc. (WELL) reported its first quarter 2024 financial results, showcasing a significant increase in net income attributable to common stockholders, rising to $127.1 million from $25.7 million in the prior year period. This strong performance was driven by a substantial increase in revenues across its operating segments, particularly in Seniors Housing Operating, which saw a 20% rise in resident fees and services. The company also reported growth in its Triple-net and Outpatient Medical segments. Welltower's liquidity remains robust, with substantial cash and cash equivalents and significant availability under its unsecured credit facilities. The company highlighted key capital transactions, including the successful execution of its at-the-market (ATM) program, raising approximately $2.4 billion in gross proceeds. Welltower also continued its strategy of portfolio optimization through strategic property acquisitions and dispositions. Management's outlook remains focused on protecting stockholder capital and enhancing stockholder value through consistent cash dividends and portfolio growth, underpinned by a solid business strategy and disciplined capital allocation.

Financial Highlights

40 data points
Beta

Revenue

$1.86B

41.0% Gross Margin

Net Income

$127.15M

6.8% Net Margin

EPS (Diluted)

$0.22

Total Assets

$44.55B

Cash & Equivalents

$2.39B

Free Cash Flow

$406.81M

Financial Statements
Beta
Revenue$1.86B
Cost of Revenue$1.10B
Gross Profit$762.83M
SG&A Expenses$53.32M
Operating Expenses$1.72B
Interest Expense$147.32M
Net Income$127.15M
EPS (Basic)$0.22
EPS (Diluted)$0.22
Shares Outstanding (Basic)574.05M
Shares Outstanding (Diluted)577.53M

Key Highlights

  • 1Net income attributable to common stockholders surged to $127.1 million for Q1 2024, a significant increase from $25.7 million in Q1 2023.
  • 2Total revenues increased by 19.2% to $1.86 billion, driven by growth across all operating segments.
  • 3Seniors Housing Operating segment revenue grew by 20% year-over-year, supported by increased resident fees and services and a rise in average occupancy to 82.5%.
  • 4The company successfully raised approximately $2.4 billion in gross proceeds through its at-the-market (ATM) equity program during the first quarter.
  • 5Welltower's consolidated net operating income (NOI) increased by 26.7% to $762.8 million.
  • 6The company maintained a strong liquidity position with $2.48 billion in cash, cash equivalents, and restricted cash as of March 31, 2024.
  • 7Welltower declared a quarterly dividend of $0.61 per share, marking its 212th consecutive quarterly cash dividend.

Frequently Asked Questions

For the three months ended March 31, 2024, Welltower's net income attributable to common stockholders was $127.1 million, a substantial increase from $25.7 million in the same period of 2023.

Total revenues for the first quarter of 2024 increased by 19.2% to $1.86 billion compared to $1.56 billion in the first quarter of 2023. This growth was observed across all segments, with the Seniors Housing Operating segment showing a significant 20% increase.

Welltower's primary objectives are to protect stockholder capital and enhance stockholder value by paying consistent cash dividends and creating opportunities for dividend increases through NOI growth and portfolio expansion. The company utilizes a diversified investment portfolio across property types, relationships, and geographies, and strategically manages its capital structure, including the use of equity issuances and debt financing, to fund new investments and repay borrowings.

The Seniors Housing Operating segment reported strong performance with total revenues increasing by 20% to $1.37 billion. Resident fees and services, a key revenue driver, grew by 20% year-over-year. The segment's Net Operating Income (NOI) saw a significant increase of 37% to $347.4 million. Average occupancy for the segment increased to 82.5%.