10-QPeriod: Q3 FY2024

WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 29, 2024For Securities:WELL

Summary

Welltower Inc. (WELL) reported a strong third quarter and first nine months of 2024, demonstrating significant growth in revenues and net income compared to the prior year. Total revenues for the nine months ended September 30, 2024, reached $5.74 billion, a 17% increase year-over-year, driven by higher resident fees and services and rental income across its Seniors Housing Operating and Triple-net segments. Net income attributable to common stockholders more than tripled to $831.7 million for the same period. The company's balance sheet also strengthened, with total assets growing to $48.95 billion and total equity increasing to $30.79 billion. Key strategic initiatives, including significant property acquisitions and the expansion of its credit facility, highlight the company's proactive approach to growth and financial management. Financially, Welltower showcased robust cash flow generation, with operating activities providing $1.70 billion for the first nine months of 2024, supporting dividend payments and strategic investments. The company also managed its debt effectively, with net debt to book capitalization remaining at a manageable 28% as of September 30, 2024. The company's diverse portfolio, spanning Seniors Housing Operating, Triple-net, and Outpatient Medical properties, continues to perform well, with Same Store Net Operating Income (SSNOI) showing healthy growth, particularly in the Seniors Housing Operating segment. Welltower remains focused on its strategy of investing in innovative healthcare infrastructure with leading operators, positioning itself for continued long-term value creation.

Financial Highlights

40 data points
Beta

Revenue

$2.06B

41.0% Gross Margin

Net Income

$449.85M

21.9% Net Margin

EPS (Diluted)

$0.73

Total Assets

$48.95B

Cash & Equivalents

$3.56B

Free Cash Flow

$684.98M

Financial Statements
Beta
Revenue$2.06B
Cost of Revenue$1.21B
Gross Profit$842.96M
SG&A Expenses$77.90M
Operating Expenses$1.87B
Interest Expense$139.05M
Net Income$449.85M
EPS (Basic)$0.74
EPS (Diluted)$0.73
Shares Outstanding (Basic)611.29M
Shares Outstanding (Diluted)618.31M

Key Highlights

  • 1Total revenues increased by 17% year-over-year to $5.74 billion for the first nine months of 2024.
  • 2Net income attributable to common stockholders grew significantly to $831.7 million for the first nine months of 2024, up from $256.2 million in the prior year.
  • 3The company's balance sheet showed strength, with total assets reaching $48.95 billion and total equity at $30.79 billion as of September 30, 2024.
  • 4Operating cash flow for the first nine months of 2024 was $1.70 billion, supporting ongoing investments and dividend distributions.
  • 5Welltower completed significant acquisitions, including a U.K. seniors housing portfolio and 20 Seniors Housing Operating properties under the Affinity brand.
  • 6Same Store Net Operating Income (SSNOI) increased by 19.1% for the Seniors Housing Operating segment and 4.9% for the Triple-net segment year-over-year for the first nine months.
  • 7The company expanded its primary unsecured credit facility to $5.0 billion in July 2024, enhancing its liquidity and financial flexibility.

Frequently Asked Questions

For the nine months ended September 30, 2024, Welltower reported total revenues of $5.74 billion, a 17% increase year-over-year. Net income attributable to common stockholders was $831.7 million, a substantial increase from $256.2 million in the same period of 2023. The company also generated $1.70 billion in cash from operating activities.

The Seniors Housing Operating segment showed strong growth with revenues up 22% year-over-year and Same Store Net Operating Income (SSNOI) increasing by 19.1% for the first nine months. The Triple-net segment's rental income slightly decreased by 1% but SSNOI grew by 4.9%. The Outpatient Medical segment saw a 7% increase in rental income and a 2.2% rise in SSNOI.

As of September 30, 2024, Welltower's total assets were $48.95 billion and total equity was $30.79 billion. The net debt to book capitalization ratio stood at 28%. The company expanded its unsecured revolving credit facility to $5.0 billion, providing significant liquidity. Cash and cash equivalents, along with restricted cash, totaled $3.78 billion.

Welltower actively pursued strategic growth through property acquisitions, including 20 Seniors Housing Operating properties under the Affinity brand and a significant U.K. seniors housing portfolio. The company also raised substantial capital through its ATM Program, issuing over $5.2 billion in common stock and issuing $1.035 billion in new exchangeable senior unsecured notes. Additionally, Welltower completed several debt extinguishments and refinancing activities.