Toledo, Ohio-based Welltower Inc. (WELL) operates as a REIT and invests with senior housing operators, post-acute providers, and health systems. With a market cap of $78.2 billion, Welltower’s portfolio is concentrated in major, high-growth markets in the U.S., Canada, and the United Kingdom. The real estate giant is expected to release its Q3 earnings after the market closes on Monday, Oct. 28.
Ahead of the event, analysts expect Welltower to report funds from operations (FFO) of $1.04 per share, up 13% from $0.92 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. Its FFO per share for the last reported quarter grew 16.7% year-over-year to $1.05, while exceeding the consensus estimates by 5%.
For fiscal 2024, analysts expect Welltower to report a FFO per share of $4.19, up 15.1% from $3.64 in fiscal 2023. In fiscal 2025, its FFO per share is expected to grow 11.5% year-over-year to $4.67.
WELL stock has gained 45% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 22.5% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 10.9% returns during the same time frame.
Shares of Welltower saw a marginal uptick in the trading session after the release of its Q2 earnings on Jul. 29. The company reported a massive 41.4% year-over-year growth in normalized FFO to common stockholders, reaching $637.5 million. Moreover, its total revenue grew by an impressive 9.6%, totaling $1.8 billion, driven by growth in resident fees and services and interest income. Its resident fees and services surged a staggering 20.2% to $1.4 billion, while its interest income skyrocketed 63.9% to $63.5 million compared to the year-ago quarter.
However, its rental income plunged 12.4% year-over-year to $335.8 million, while its other income plummeted 61.7% year-over-year to $32.1 million. Following the initial uptick in prices WELL stock experienced a marginal dip in the subsequent trading session.
The consensus opinion on WELL stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, 11 recommend a “Strong Buy,” one advises a “Moderate Buy,” and seven suggest “Hold” rating. Although WELL is trading above its mean price target of $129.47, the Street-high target of $190 represents a potential upside of 45.3% from current price levels.
On the date of publication, Aditya Sarawgi 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.
