Welltower Exceeds Q2 Expectations with 22% FFO Growth, Raises Guidance, and Achieves Record NOI Growth

Welltower Inc reported a 22% increase in FFO per share, exceeding expectations, and raised its full-year FFO guidance by $0.13 to $5.10 per share. The company achieved 23.4% same-store NOI growth in its senior housing operating portfolio and reported significant occupancy gains, with a 420 basis points increase. However, the transition of the Holiday by Atria portfolio has been described as a capital allocation mistake and a disappointment.

Welltower Inc. (NYSE: WELL) has reported robust second-quarter (Q2) results, with a 22% increase in funds from operations (FFO) per share, exceeding market expectations. The company also raised its full-year FFO guidance by $0.13 to a range of $5.10 to $5.14 per share [1].

Key highlights from the quarter include:
- FFO per share: Increased by 22% to $1.28, up from $1.05 in the same period last year.
- Same-store NOI (SSNOI) growth: Achieved 13.8% year-over-year (YoY) growth, driven primarily by a 23.4% increase in the Seniors Housing Operating (SHO) portfolio.
- Occupancy gains: The SHO portfolio reported a 420 basis points (bps) increase in average occupancy growth, with revenue per occupied room (RevPOR) growing by 4.9%.

However, the transition of the Holiday by Atria portfolio has been described as a capital allocation mistake and a disappointment. The company's net debt to Adjusted EBITDA ratio improved to 2.93x as of June 30, 2025, compared to 3.68x at the same time last year [1].

Welltower also announced a 10.4% increase in the quarterly dividend, reflecting its solid financial performance and the Board's confidence in the durability of outsized levels of cash flow growth. The dividend is further supported by a low payout ratio and a low-levered balance sheet [1].

The company expects average blended SSNOI growth of 11.25% to 13.25% for 2025, with the SHO portfolio expected to grow by 18.5% to 21.5%. The guidance also includes pro rata disposition proceeds of $340 million at a blended yield of 6.9% in the next twelve months [1].

Welltower's conference call to discuss these results is scheduled for Tuesday, July 29, 2025, at 9:00 a.m. Eastern Time. The call can be accessed via telephone or webcast.

References:
[1] https://welltower.com/investors/press-release-details?id=789