Welltower (NYSE:WELL), a real estate investment trust, reported a robust performance in Q3 2023, with revenues and earnings surpassing consensus estimates. Despite the strong financials, Welltower's shares have seen a slight decline over the past month.
The company posted revenues of $1.66 billion, marking a year-over-year increase of 12.8%, and surpassing the consensus estimate by 1.17%. The significant contributors to this revenue growth were resident fees and services, which amounted to $1.20 billion, registering a growth of 12.3% YoY and beating the six-analyst estimate.
The earnings per share (EPS) for the quarter surged to $0.92 from -$0.01 in Q3 2022, outperforming the consensus estimate by 3.37%. The diluted net EPS stood at $0.24, higher than the eight-analyst estimate of $0.20.
Rental income also saw an increase, rising by 6.2% YoY to reach $384.51 million, marginally above the five-analyst estimate. Other income witnessed an impressive YoY surge of 561.4% to hit $35.48 million, more than double the five-analyst estimate.
Interest income for the quarter stood at $42.22 million, slightly below the six-analyst average estimate but up 11.7% YoY.
Despite these strong financials, Welltower's shares declined by 0.7% over the past month but still outperformed the S&P 500 composite's -3.6% change.
InvestingPro Insights
Drawing from real-time data from InvestingPro, Welltower, with a solid market cap of $42.48 billion, is a prominent player in the Health Care REITs industry. As an InvestingPro Tip, the company's high earnings quality is notable, with free cash flow exceeding net income. It's also worth mentioning that Welltower has maintained dividend payments for 48 consecutive years, a testament to its financial stability.
InvestingPro data also highlights a P/E ratio of 334.47, indicating a high earnings multiple. This, coupled with the fact that Welltower is trading near its 52-week high, suggests investor confidence in the company's future earnings potential.
Finally, the company's revenue growth, while impressive at 16.23% in the last 12 months as of Q2 2023, has been slowing down recently. This is an important factor for investors to watch closely.
These InvestingPro Tips and real-time data points can provide valuable insights for investors looking at Welltower. For even more tips and data, consider exploring InvestingPro's product offerings.
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