12 Jan

Welltower’s 3Q17 Performance and Outlook

WRITTEN BY Raina Brown

2017 outlook

Welltower (HCN) increased its SSNOI (same-store net operating income) to 2.5%–3% from 2.25%–3%. This slight increase is due to strong seniors’ housing operating performance.

Welltower’s 3Q17 Performance and Outlook

Normalized FFO guidance also increased from $4.19 to $4.25 per share from the previous $4.15 to $4.25 per share. This increase is mainly due to the increase in SSNOI and revised dispositions timing.

Net income for common stockholders reduced from the previous outlook of $853 million–$890 million to $770 million–$792 million. Net income was revised to $2.09 to $2.15 from the previous $2.32 to $2.42 per share due to a slight increase in expenses.

Welltower’s estimated revenue for 2017 is $4.26 billion. For peers HCP (HCP), Healthcare Trust of America (HTA), and Ventas (VTR), revenue is estimated at $1.83 billion, $0.611 billion, and $3.5 billion, respectively. Welltower makes up almost 2.59% of the Vanguard REIT ETF (VNQ).

3Q17 results backed by strong performance

Senior housing operating SSNOI grew 4.1% on a YoY basis. HCN has 423 properties in the same-store operating pool, the highest in the same-store industry, making the growth statistically significant. SS REVPOR (same-store revenue per occupied room) grew 3.9%. Net debt to book capitalization declined to 35.5% from the previous 39.5%. Net debt to adjusted EBITDA also improved to 5.19x from the 3Q16 multiple of 5.65x

The company has combined both the use of triple net and RIDEA (REIT Investment Diversification and Empowerment Act). New assets are structured as RIDEA, while markets where reliable and consistent returns can be earned are under the triple-net portfolio.

In this series, we’ll look at Welltower’s revenue drivers, macroeconomic factors, valuation, and dividends.

Latest articles

21 May

Trump’s Huawei Ban Pulls Down US Chip Stocks

WRITTEN BY Scarlett Ness

Last week, Donald Trump blacklisted Chinese telecom giant Huawei Technologies amid rising US-China trade tensions.

21 May

Snap Is Making Up for Last Year


This year has been a great one for Snapchat parent Snap (SNAP), and its stock has nearly doubled.

Coca-Cola (KO) will offer a limited edition of its of New Coke cans beginning May 23 as part of its partnership with Netflix’s (NFLX) show Stranger Things.

21 May

Why Clorox Stock Is Underperforming Peers

WRITTEN BY Adrian Stevens

Clorox stock (CLX) is down about 8% since the company posted its third quarter of fiscal 2019 earnings on May 1.

21 May

What JD Is Set to Get from Its Xinning Deal

WRITTEN BY Rachel Gunter

JD.com (JD) recently invested ~$55 million in purchase a ~10% stake in Jiangsu Xinning Modern Logistics, a Chinese logistics company focusing on the consumer electronics supply chain.

Today, the US stock market was on a path of recovery after starting the week on a bearish note yesterday.