Welltower's Q2 2025: Unpacking Contradictions in Occupancy Growth, Revenue Strategy, and Construction Viability

Strong Financial Performance and Guidance Increase:
- Welltower reported net income of $0.45 per diluted share and normalized FFO of $1.28 per diluted share, up 21.9% year-over-year.
- The company raised its full-year FFO guidance by $0.13 to $5.10 per share.
- This performance was driven by strong operational and investment execution, as well as positive market dynamics.

Seniors Housing Operating Performance:
- The company's same-store NOI growth for the seniors housing operating portfolio was 23.4%, exceeding 20% for the 11th consecutive quarter.
- Organic revenue growth was 10%, driven by a 420 basis points increase in occupancy.
- The robust performance was supported by RevPOR growth of approximately 5% and a wide margin between RevPOR and ExpPOR, expanding margins by 330 basis points.

Capital Deployment and Investment Activity:
- Welltower closed or under contract approximately $9.2 billion worth of acquisitions year-to-date, exceeding all of 2024's acquisitions in just two quarters.
- The investment team focused on enhancing the quality of assets and leveraging its Data Science platform for business plans.
- This high level of activity reflects strong industry fundamentals and the company's ability to uncover off-market opportunities.

Balance Sheet Strength and Debt Reduction:
- The company's balance sheet strengthened, with debt to adjusted EBITDA below 3x and interest coverage over 6x.
- Welltower lifted its total liquidity to $9.5 billion and lowered net debt to adjusted EBITDA to its lowest leverage level in history.
- This improvement was driven by strong cash flow growth and prudent funding of the balance sheet.