The following is a summary of the Welltower Inc. (WELL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Welltower reported nearly 19% YoY growth in Q1 2024 FFO per share.
Q1 saw a double-digit same-store revenue growth of 10.3% driven by strong occupancy and rate growth.
The same-store net operating income growth was robust at 25.5%.
Gross investments of $449 million completed in Q1 and $2.6 billion of gross investments are currently under contract or closed spanning 146 properties across the US, UK, and Canada.
Net income attributable to common stockholders was $0.22 per diluted share and normalized funds from operations were $1.01 per diluted share, representing 18.8% YoY growth.
Total portfolio same-store NOI growth was 12.9% YoY.
Revised 2024 outlook for net income attributable to common stockholders is $1.48 to $1.61 per diluted share.
Normalized FFO is expected to be between $4.02 to $4.15 per diluted share, up from previously projected.
Estimated total portfolio year-over-year same-store NOI growth of 9% to 12% is driven by outpatient medical sub-segment growth.
Welltower deployed nearly $15 billion of capital since the depth of COVID, which improved cash flow and driven net debt to adjusted EBITDA down to 4x.
Welltower currently has over $6 billion of total near-term liquidity available to pursue capital deployment opportunities.
Business Progress:
Welltower remains strongly focused on senior housing as it experiences an uptick in seniors choosing to live in a curated environment.
Eight communities are being converted from triple-net to RIDEA, a move expected to add significantly to the company's full cycle stabilized earnings.
The company is enthusiastic about tuck-in acquisitions.
Plans to strengthen growth prospects and improve fit to existing portfolios by going deep in existing markets rather than broad.
Continuous improvement of customer experience and a constant pursuit of operational excellence are included in the company's goals.
Entering the crucial summer leasing season and is awaiting market responses to assess operating results.
Investments in cloud infrastructure will be accelerated to support growth and demand for AI platform.
Advancing its analytics and operations team to handle increased capital deployment.
Plans to use the balance sheet, one of the five pillars of growth, as a tool to drive part share growth.
The company aims to provide great service to communities, residents, and employees while looking for opportunities to create long-term value.
Sees a significant domestic opportunity of $19 billion over the next two years.
Expects to perform many granular transactions in the U.K. this year despite the healthcare real estate debt market being worse than the U.S.
More details: Welltower Inc IR
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