A rise in the senior citizen population and healthcare expenses, restructuring efforts, and a healthy balance sheet are likely to support WELL.
WELL's strong senior housing growth, strategic acquisitions and solid balance sheet fuel a 28.9% YTD stock price surge.
WELL's seniors housing operating portfolio is set to benefit from the aging population and rising healthcare spending. However, high competition is a concern.
Welltower has delivered robust growth in revenue, NOI, and FFO, significantly outperforming sector peers since the pandemic, especially in senior housing. Despite operational strength, WELL's shares appear overvalued, trading at historically high multiples (P/FFO 33x), with limited upside from current levels. The dividend yield is low (1.8%) compared to peers, and while payout is consistent, it lacks meaningful growth despite strong earnings expansion.
Welltower Inc. (NYSE:WELL ) Q2 2025 Earnings Conference Call July 29, 2025 9:00 AM ET Company Participants John F. Burkart - VC & COO Matthew Grant McQueen - Chief Legal Officer, General Counsel & Corporate Secretary Nikhil Chaudhri - Co-President & Chief Investment Officer Shankh S.
WELL's Q2 FFO outshines estimates, driven by a rise in revenues. Same Store NOI improves year over year.
While the top- and bottom-line numbers for Welltower (WELL) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Welltower (WELL) came out with quarterly funds from operations (FFO) of $1.28 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to FFO of $1.05 per share a year ago.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Welltower (WELL), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended June 2025.
Sector rotation remains a powerful strategy, especially in real estate, allowing investors to capitalize on shifting market sentiment and valuation extremes. Welltower is priced for perfection after a strong run, but its high valuation and emerging industry risks make taking profits appealing now. Realty Income offers a compelling entry point with a high yield, reasonable valuation, and potential upside if interest rates decline.
Welltower Inc. is a dominant, well-managed healthcare REIT benefiting from strong secular tailwinds like aging demographics and wellness trends. The company's competitive advantages include a customer-focused culture, visionary leadership, and early adoption of data science and AI to drive growth. Despite strong revenue growth and a solid balance sheet, Welltower's current valuation appears stretched, with a low dividend yield and consistent shareholder dilution.
Aging population, a rise in senior citizens' healthcare expenditures, and favorable outpatient visit trends are likely to support WELL's performance.