WELL Reports Strong Q3 2025 Normalized FFO Growth, Exceeding Analyst Estimates

Welltower (WELL.US) announced strong results for the third quarter ended September 30, 2025, reporting normalized funds from operations (FFO) attributable to common stockholders of $1.34 per diluted share. This represents a 20.7% increase over the prior year and significantly exceeds the analyst estimate of $1.3 per share. Net income attributable to common stockholders was $0.41 per diluted share for the quarter.

Key Business Drivers

The company's robust performance was primarily driven by its Seniors Housing Operating ("SHO") portfolio, which recorded a year-over-year same store net operating income ("SSNOI") growth of 20.3%. This growth was fueled by a 9.7% increase in same store revenue, resulting from a 400 basis points year-over-year average occupancy growth and Revenue Per Occupied Room ("RevPOR") growth of 4.8%. Overall, total portfolio year-over-year same store NOI increased by 14.5%.

During the third quarter, Welltower completed $1.9 billion of pro rata gross investments, including $1.8 billion in acquisitions and loan funding and $96 million in development funding. The company also announced an additional $23 billion in transaction activity, anchored by $14 billion of pro rata gross investments, primarily in seniors housing communities across the U.S. and U.K. These acquisitions are expected to be fully funded by cash on hand and $9 billion of pro rata dispositions, including the sale of an outpatient medical real estate portfolio and loan repayments.

Management Outlook

Welltower revised its full-year normalized FFO attributable to common stockholders guidance to a range of $5.24 to $5.30 per diluted share, an increase from the previous range of $5.06 to $5.14 per diluted share. However, net income attributable to common stockholders guidance was revised downwards to a range of $0.82 to $0.88 per diluted share from $1.86 to $1.94 per diluted share.

The company anticipates average blended SSNOI growth of 13.2% to 14.5% for the full year, with Seniors Housing Operating projected to grow between 20.5% and 22.0%. Welltower expects pro rata disposition proceeds of $9.0 billion at a blended yield of 7.1% in the next twelve months, comprising approximately $7.2 billion from property sales and $1.8 billion from loan repayments. The company also announced a Ten Year Executive Continuity and Alignment Program to retain senior leadership, expected to be accretive to normalized FFO per share in 2026.