Valued at a market cap of $78.8 billion, Welltower Inc. (WELL) is a leading real estate investment trust (REIT) specializing in healthcare infrastructure, with a focus on senior housing, assisted living, and outpatient medical facilities. Headquartered in Toledo, Ohio, the company manages over 1,500 properties across the United States, Canada, and the United Kingdom.
The company is set to release its Q1 earnings after the market closes on Monday, Apr. 28. Ahead of the event, analysts expect Welltower to report an FFO of $1.15 per share, up 13.9% from $1.01 per share reported in the year-ago quarter. Moreover, the company has surpassed Wall Street’s FFO projections in each of the past four quarters.
For fiscal 2025, analysts expect Welltower to report an FFO per share of $4.95, up 14.6% from $4.32 in fiscal 2024. In fiscal 2026, its FFO per share is expected to grow 14.1% year-over-year to $5.65.
Welltower's shares have gained 60.7% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 5.5% gain and the Real Estate Select Sector SPDR Fund’s (XLRE) 11.8% returns during the same period.
Welltower has outperformed the broader market over the past year, driven by strong demand trends across its senior housing and outpatient medical segments. Its senior housing operating (SHO) portfolio is well-positioned to benefit from an aging population and rising healthcare expenditures. The company is also capitalizing on favorable outpatient care trends by optimizing its outpatient medical (OM) portfolio and strengthening ties with healthcare systems.
On Feb. 11, Welltower released its Q4 2024 results, and its stock rose 2.2%. The company reported a 28.6% year-over-year jump in total revenue to $2.3 billion. Its normalized funds from operations grew 17.7% from the prior-year quarter to $1.13 per share, surpassing Wall Street expectations and further fueling investor optimism. Backed by a solid 12.8% increase in comparable net operating income, net income attributable to shareholders surged nearly 43% year-over-year to approximately $120 million.
The consensus opinion on WELL stock is very upbeat, with an overall “Strong Buy” rating. Of the 19 analysts covering the stock, 14 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and three indicate a “Hold.”
WELL's average analyst price target is $165.89, indicating a potential upside of 12.7% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
