Welltower (WELL) Q1 FFO Meets Estimates, Revenues Up Y/Y
Zacks Investment Research | Apr 29, 2019 10:51PM ET
Welltower Inc. (NYSE:WELL) reported normalized funds from operations (FFO) per share of $1.02 for first-quarter 2019, which came in line with the Zacks Consensus Estimate. Further, the figure compares favorably with the year-ago quarter’s reported tally of 99 cents.
Results reflect healthy same-store net operating income (SSNOI) performance of its seniors housing triple-net, outpatient medical and long-term/post-acute care segments.
Moreover, the company posted revenues of nearly $1.27 billion that outpaced the Zacks Consensus Estimate of $1.24 billion. The revenue figure compares favorably with the year-earlier quarter’s reported tally of approximately $1.1 billion.
Quarter in Detail
Total portfolio SSNOI grew 3.1% year over year, driven by growth across all its segments.
Welltower accomplished $367 million of pro-rata gross investments in the first quarter. This included $259 million in acquisitions, $80 million in development funding and $28 million in loans.
This apart, the company also accomplished total dispositions of $612 million and received $14 million in loan payoffs during the March-end quarter.
The company exited the quarter with $249 million of cash and cash equivalents, up from $202.8 million recorded at the end of the prior-year quarter. In addition, as of Mar 31, 2019, it had $2.6 billion of available borrowing capacity under its new primary unsecured credit facility.
Dividend Update
Welltower announced a cash dividend of 87 cents per share for the first quarter. This dividend will be paid on May 28, to stockholders of record on May 14, 2019. This marks the company’s 192st consecutive quarterly cash dividend payout to stockholders.
2019 Outlook
Welltower reiterated its 2019 normalized FFO per share outlook of $4.10-$4.25. The Zacks Consensus Estimate for the same is currently pegged at $4.18.
In addition, the company anticipates its 2019 average blended SSNOI to be up around 1.25-2.25%. Further, full-year disposition proceeds are projected to be around $1.4 billion.
Our Take
Welltower’s first-quarter 2019 results were buoyed by the decent performance across all of its operating segments. Further, in January, the company entered into a definitive agreement with CNL Healthcare Properties, to acquire a portfolio of 55 Class A medical office and outpatient facilities for $1.25 billion. This will enhance its medical office portfolio.
Welltower Inc. Price, Consensus and EPS Surprise
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