Welltower Inc.’s WELL fourth-quarter 2024 normalized funds from operations (FFO) per share of $1.13 surpassed the Zacks Consensus Estimate by a penny. The reported figure improved 17.7% year over year.

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Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company issued its guidance for 2025.

WELL recorded revenues of $2.25 billion in the quarter, beating the Zacks Consensus Estimate of $2.12 billion. The top line increased 28.6% year over year.

For 2024, the company reported a normalized FFO per share of $4.32, up from the prior year’s $3.64. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $4.30. The total revenues of $7.79 billion improved 20.4% year over year. However, the metric missed the consensus mark of $7.91 billion.

In January 2025, the company launched its private funds management business to manage third-party capital and announced the formation of its first fund, which has the ability to source up to $2 billion to invest in stable or near-stable senior housing properties in the United States.

Quarter in Detail for WELL

The SHO portfolio’s same-store revenues increased 8.8% year over year, backed by 310-basis point year-over-year growth in average occupancy and Revenue per Occupied Room (’RevPOR’) growth of 5.0%.

The company’s total portfolio SSNOI grew 12.8% year over year, supported by SSNOI growth in its SHO portfolio of 23.9%.

WELL’s pro-rata gross investments in the fourth quarter totaled $2.4 billion. This included $2.19 billion in acquisitions and loan funding and $233.4 million in development funding. It opened 11 development projects for an aggregate pro-rata investment amount of $336 million. Welltower also completed pro-rata property dispositions and loan repayments of $464 million in the quarter.

In the fourth quarter, property operating expenses increased 36% to $1.41 billion year over year.

WELL’s Balance Sheet Position

As of Dec. 31, 2024, WELL had $8.7 billion of available liquidity, comprising $3.7 billion of available cash and restricted cash, and full capacity under its $5 billion line of credit.

WELL’s Dividend Update

On Feb. 11, Welltower announced a cash dividend for fourth-quarter 2024 of 67 cents per share. The dividend will be paid out on Mar. 6 to stockholders of record as of Feb. 25, 2025. This will mark the company’s 215th consecutive quarterly cash dividend payout.

WELL’s 2025 Guidance

Welltower projects 2025 normalized FFO per share of $4.79-$4.95. The Zacks Consensus Estimate for the same is pegged at $4.79, which lies within the company's guided range.

WELL’s guidance assumes the average blended SSNOI growth of 9.25-13.00%, comprising 15.0-21.0% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.

Welltower expects to fund an additional $461 million of development in 2025 relating to projects underway as of Dec. 31, 2024.

Currently, the company carries a Zacks Rank #2 (Buy).

Welltower Inc. Price, Consensus and EPS Surprise

Welltower Inc. price-consensus-eps-surprise-chart | Welltower Inc. Quote

Performance of Other REITs

SL Green Realty Corp. SLG reported a fourth-quarter 2024 FFO per share of $1.45, which missed the Zacks Consensus Estimate of $1.53. The company had reported an FFO of 72 cents per share in the previous year.

Results reflected lower-than-anticipated revenues despite decent leasing activity in its Manhattan portfolio. Also, higher interest expenses and lower SSNOI acted as dampeners. Presently, SLG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Healthpeak Properties, Inc. DOC reported fourth-quarter 2024 funds from operations (FFO) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.

Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. Currently, DOC carries a Zacks Rank #3 (Hold).

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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