Welltower (WELL) Q2 FFO Beats Estimates, Revenues Up Y/Y
Zacks Investment Research | Jul 31, 2019 09:35PM ET
Welltower Inc. (NYSE:WELL) reported normalized funds from operations (FFO) per share of $1.05 for second-quarter 2019, which surpassed the Zacks Consensus Estimate by a penny. Further, the bottom line compares favorably with the year-ago quarter figure of $1.
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 generated revenues of nearly $1.32 billion that outpaced the Zacks Consensus Estimate of $1.24 billion. The top line compares favorably with the year-earlier quarter’s reported figure of approximately $1.13 billion.
Quarter in Detail
Total portfolio SSNOI jumped 3.1% year over year, driven by growth across all its segments.
Welltower accomplished $2.6 billion of pro-rata gross investments in the second quarter. This included $2.4 billion in acquisitions and $152 million in development funding.
This apart, the company also completed total dispositions of $14 million.
The company exited the quarter with $268.7 million of cash and cash equivalents, up from $215.1 million recorded a year ago. In addition, as of Jun 30, 2019, it had $1.1 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 second quarter. This dividend will be paid out on Aug 22 to stockholders of record as on Aug 15, 2019. This marks the company’s 193rd consecutive quarterly cash dividend payout.
2019 Outlook
Welltower lowered its 2019 normalized FFO per share outlook of $4.10-$4.20. The Zacks Consensus Estimate for the same is currently pegged at $4.18.
In addition, the company increased its 2019 average blended SSNOI expectation to 2-2.5% from 1.25-2.25% previously expected. Further, full-year disposition proceeds are projected to be around $3.1 billion, up from $1.4 billion.
Our Take
Welltower’s second-quarter 2019 results were buoyed by decent performance across all its operating segments. Further, the company’s efforts to expand its medical office portfolio are impressive. However, significant disposition activity is expected to affect its near-term bottom-line performance.
Welltower Inc. Price, Consensus and EPS Surprise
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.