Welltower's Q2 FFO & Revenues Beat Estimates, Same Store NOI Rises

Welltower Inc.’s WELL second-quarter 2025 normalized funds from operations (FFO) per share of $1.28 surpassed the Zacks Consensus Estimate of $1.22. The reported figure improved 21.9% year over year.Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company increased its guidance for 2025 normalized FFO per share.WELL recorded revenues of $2.55 billion in the quarter, beating the Zacks Consensus Estimate by 2.11%. The top line increased 39.6% year over year.Quarter in Detail for WELLThe SHO portfolio’s same-store revenues increased 10.1% year over year, backed by 420 basis points year-over-year growth in average occupancy and Revenue per Occupied Room (’RevPOR’) growth of 4.9%.The company’s total portfolio SSNOI grew 13.8% year over year, supported by SSNOI growth in its SHO portfolio of 23.4%.WELL’s pro-rata gross investments in the second quarter totaled $1.16 billion. This included $1.04 billion in acquisitions and loan funding and $113.3 million in development funding. Welltower also completed pro-rata property dispositions of $28.3 million and loan repayments of $92.2 million in the quarter. It completed and placed into service eight development projects for an aggregate pro rata investment amount of $505 million.In the second quarter, property operating expenses increased 36.3% to $1.51 billion year over year.WELL’s Balance Sheet PositionAs of June 30, 2025, WELL had $9.5 billion of available liquidity, comprising $4.5 billion of available cash and restricted cash, and full capacity under its $5 billion line of credit.WELL’s Dividend UpdateOn July 28, Welltower announced a cash dividend for the second quarter of 2025 of 74 cents per share. This reflects an increase of 10.4% compared to the prior dividend payout. The dividend will be paid out on Aug. 21 to stockholders of record as of Aug. 12, 2025. This will mark the company’s 217th consecutive quarterly cash dividend payout.WELL’s 2025 GuidanceWelltower increased its 2025 normalized FFO per share guidance range to $5.06-$5.14, up from the previous range of $4.90-$5.04. The Zacks Consensus Estimate for the same is pegged at $5.02, which lies below the company's guided range.WELL’s guidance assumes the average blended SSNOI growth of 11.25-13.25%, comprising 18.5-21.5% growth in Seniors Housing Operating, 3.5-4.5% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.Welltower expects to fund an additional $212 million of development in 2025 relating to projects underway as of June 30, 2025.Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Welltower Inc. Price, Consensus and EPS Surprise Welltower Inc. price-consensus-eps-surprise-chart | Welltower Inc. Quote Performance of Other REITsDigital Realty Trust DLR reported second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO also increased 13.3% year over year.DLR's result reflected steady leasing momentum with better rental rates amid rising demand. The company raised its 2025 core FFO guidance range.Healthpeak Properties, Inc. DOC reported second-quarter FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.DOC's result reflected lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected the results to some extent.Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report Healthpeak Properties, Inc. (DOC): Free Stock Analysis Report Welltower Inc. (WELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks