Welltower Inc. Reports Significant Increase in Net Income and FFO for 2024

Welltower Inc. (WELL), a real estate investment trust (REIT) and S&P 500 company, reported its 2024 financial performance in its recent 10-K filing. The company's net income for the year ended December 31, 2024, was $972.8 million, a significant increase from $358.1 million in 2023. Net income attributable to common stockholders reached $951.7 million in 2024, up from $340.1 million in 2023. Funds from operations attributable to common stockholders (FFO) totaled $2.3 billion in 2024, compared to $1.8 billion in 2023. Consolidated net operating income (NOI) for 2024 was $3.2 billion, a 17% increase from 2023.

Key changes compared to the previous fiscal year include a 27% increase in resident fees and services revenue within the Seniors Housing Operating segment, primarily due to acquisitions and construction conversions exceeding dispositions. The Triple-net segment experienced a 5% decrease in rental income due to property conversions and write-offs of straight-line rent receivables. Conversely, the Outpatient Medical segment saw a 7% increase in rental income, driven by acquisitions and construction conversions. The company also completed significant capital transactions, including the sale of 70.4 million shares of common stock under its ATM Programs, generating gross proceeds of approximately $7.5 billion. Welltower also expanded its unsecured revolving credit facility to $5 billion.

Strategic developments during the year included the acquisition of 251 properties, with a total investment of $5.7 billion, across its three operating segments. The company also disposed of 55 properties for net proceeds of $770.9 million. Significant joint venture transactions involved the acquisition of the remaining interest in a joint venture owning 39 properties and the acquisition of a 25% minority interest in a joint venture owning 39 properties. Welltower also completed the acquisition of Care UK, a U.K.-based seniors housing operator, for a total consideration of $842.6 million.

Operational developments included an increase in average occupancy rates across all segments. In the Seniors Housing Operating segment, average occupancy increased from 79% in 2023 to 82.5% in 2024. The company also reported on its employee headcount, which stood at 685 as of December 31, 2024, with 653 employees in the U.S., 20 in the U.K., and 12 in Canada. The company's credit strength improved, with the net debt to book capitalization ratio decreasing from 34.3% in 2023 to 26.8% in 2024.

Welltower's outlook includes continued investment opportunities and plans to reinvest proceeds from dispositions in new acquisitions. The company anticipates using a combination of available cash, borrowings, and debt and equity offerings to fund future investments. The company also acknowledges various risks, including those related to the healthcare industry, capital markets, competition, and its status as a REIT, as detailed in the 10-K filing's "Risk Factors" section.