Welltower (NYSE: $WELL) is a REIT (real estate investment trust) that invests in healthcare-related properties. It has over 3,000 properties, which include senior housing, nursing sectors, and hospitals all over Canada, the US, and the United Kingdom.
On Monday, April 29, Welltower announced their first quarter results, ending on March 3, 2024.
Welltower Q1 Results Surpass Estimates
In the first quarter, the company reported a revenue of $1.86 billion, a 19.2% increase year-over-year, and above the consensus estimate of $1.81 billion by 2.99%. Moreover, the adjusted EPS of $1.01 surpassed analyst expectations of 0.94$ by 7.45% and a massive 1920% gain year-over-year.
Furthermore, Welltower’s net income attributable to common stockholders amounted to $0.22 per diluted share, slightly underperforming the analyst’s projection of $0.25 per share. Quarterly normalized funds from operations (FFO) attributable to common stockholders reached $1.01 per diluted share, demonstrating a notable 18.8% year-over-year surge.
The company also reported its total portfolio growth of 12.9% of the same store NOI fueled by the Senior Housing Operating portfolio, which rose by 25.5% year-over-year.
Metrics Behind the Improvement
The revenue from residential fees and services grew 20.2% Y/Y to $1.36 billion compared to $1.13 billion the previous year. Moreover, the rental income increased 8.8% Y/Y to $417.65 million compared to $384.06 million the prior year. The interest income also increased by 44.7% in a year, amounting to $52.66 million, but fell short of the projected $61.23 million. These metrics were vital in Welltower’s Q1 performance.Â
The company said in the report, “In the first quarter, we completed $449 million of pro rata gross investments, including $208 million in acquisitions and loan funding and $241 million in development funding. We opened ten development projects, including partial conversions and expansions, for an aggregate pro rata investment amount of $166 million. Additionally, during the first quarter, we completed pro rata property dispositions and loan repayments of $107 million.”
Welltower Stock Performance
As of Tuesday, April 30 at 01:08 PM, WELL stock is trading at $96.29, a 0.54% increase from the previous closing price. The stock has increased by 6.49% since the start of the year and has a market cap of 56.735 billion, with a 24-hour trading volume of 1,245,422.
Should You Buy WELL Stock?
The company’s shares have given a profit return of 1%, which is estimated to be -2% by Zack Consensus. The stock presently holds a Zacks Rank #3 (Hold), suggesting it can perform similarly to the overall market in the short term and give good returns. Therefore, investing in Welltower is a lucrative choice as the company is taking measures to improve the firm.
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