Welltower (WELL) Down 1.2% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Welltower (WELL). Shares have lost about 1.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Welltower due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Welltower Inc. before we dive into how investors and analysts have reacted as of late.

Welltower's Q4 FFO & Revenues Beat Estimates, Same Store NOI Rises

Welltower Inc.’s fourth-quarter 2025 normalized FFO per share of $1.45 surpassed the Zacks Consensus Estimate of $1.44. The reported figure improved 28.3% year over year.

Results reflected a rise in revenues on a year-over-year basis. The total portfolio SSNOI increased year over year, driven by SSNOI growth in the SHO portfolio. The company issued its guidance for 2026 normalized FFO per share.

The company recorded revenues of $3.18 billion in the quarter, beating the Zacks Consensus Estimate of $2.71 billion. The top line increased 41.3% year over year.

Quarter in Detail

The SHO portfolio’s same-store revenues increased 9.6% year over year, backed by 400 basis-point year-over-year growth in average occupancy and Revenue per Occupied Room (’RevPOR’) growth of 4.7%.

The company’s total portfolio SSNOI grew 15% year over year, supported by SSNOI growth in its SHO portfolio of 20.4%.

Its pro-rata gross investments in the fourth quarter totaled $13.9 billion. This included $1.2 billion in loan funding and $112 million in development funding. Welltower also completed pro-rata property dispositions of $6.1 billion and loan repayments of $1.4 billion in the quarter. It completed and placed into service five development projects for an aggregate pro rata investment amount of $173 million.

In the fourth quarter, property operating expenses increased 37.2% to $1.93 billion year over year.

Balance Sheet Position

As of Dec. 31, 2025, Welltower had $10.2 billion of available liquidity, comprising $5.2 billion of available cash and restricted cash and full capacity under its $5 billion line of credit.

2026 Guidance

Welltower issued its 2026 normalized FFO per share guidance range of $6.09-$6.25.

Its guidance assumes the average blended SSNOI growth of 11.25-15.75%, comprising 15-21% growth in Seniors Housing Operating, 3.0-4.0% 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 $370 million of development in 2026 relating to projects underway as of Dec. 31, 2025.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Welltower has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Welltower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Welltower belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Healthpeak (DOC), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Healthpeak reported revenues of $719.4 million in the last reported quarter, representing a year-over-year change of +3.1%. EPS of $0.16 for the same period compares with $0.46 a year ago.

For the current quarter, Healthpeak is expected to post earnings of $0.44 per share, indicating a change of -4.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Healthpeak has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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