TOLEDO, Ohio - Welltower Inc. (NYSE:WELL), a healthcare infrastructure company, reported a slight miss on first-quarter earnings per share (EPS) but surpassed revenue expectations and raised its full-year guidance. Shares were down 1.4% in aftermarket trading.
For the first quarter ended March 31, 2024, Welltower reported an EPS of $0.22, which was $0.03 below the analyst estimate of $0.25. However, the company's revenue for the quarter was $1.86 billion, exceeding the consensus estimate of $1.81 billion. The revenue figure also represents a significant increase from the $1.13 billion reported in the same quarter last year, reflecting the company's continued growth.
Looking ahead, Welltower has raised its full-year 2024 EPS guidance to a range of $1.48 to $1.61, up from the previous projection of $1.21 to $1.37. This updated guidance is notably higher than the analyst consensus of $1.23. The company also increased its full-year normalized funds from operations (FFO) guidance to a range of $4.02 to $4.15 per diluted share, which is an uptick from the prior range of $3.94 to $4.10 per diluted share.
Welltower's first-quarter performance was bolstered by an 18.8% increase in normalized FFO attributable to common stockholders compared to the prior year. The company also reported a 12.9% growth in its total portfolio same store net operating income (NOI), driven by a robust 25.5% increase in its Seniors Housing Operating (SHO) portfolio.
The company's CEO commented on the results, stating, "Our strong performance this quarter is a testament to our strategic investments and the resilience of our portfolio. The raised guidance reflects our confidence in the continued demand for high-quality healthcare infrastructure and our ability to deliver value to our shareholders."
Welltower's financial health was also highlighted by an improved net debt to adjusted EBITDA ratio of 4.03x, and the company maintained a strong liquidity position with approximately $6.5 billion available, including cash and full capacity under its credit line.
The company's outlook for 2024 anticipates average blended same store NOI growth of 9% to 12%, with the Seniors Housing Operating segment expected to be particularly strong, projecting approximately 17% to 22% growth.
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