Welltower Inc. Sees Remarkable Growth Amid Healthcare Evolution
Located in Toledo, Ohio, Welltower Inc. (WELL) operates as a real estate investment trust (REIT), working to transform healthcare infrastructure. The company collaborates with leading senior housing and healthcare operators to develop infrastructure for innovative care models. With a market cap of $18.7 billion, Welltower strategically focuses on high-growth areas across the U.S., Canada, and the U.K. It invests in senior housing, post-acute, and outpatient medical facilities, aiming to enhance wellness and care experiences.
Strong Performance Outshining Market Trends
Over the last 52 weeks, Welltower’s shares have risen impressively, increasing by 57.7% compared to the S&P 500 Index’s ($SPX) 30.4% increase. In 2024 alone, WELL stock has surged by 50.9%, far surpassing the SPX’s 23.1% rise year-to-date.
Beating Industry Benchmarks
In addition to outperforming the SPX, WELL has also outshone the Vanguard Real Estate Index Fund ETF Shares (VNQ), which saw an 18.2% gain over the same period.
Record Highs and Continuous Dividends
In 2024, Welltower has capitalized on the growing aging population and positive performance indicators. On November 8, WELL stock reached new heights, hitting $140.19, highlighting its expanding role in healthcare real estate. The company also declared a $0.67 per share dividend on October 28, which will be paid on November 21. This is significant as it marks the 214th consecutive quarterly payout, reinforcing investor confidence in the company’s reliable income stream.
Impressive Earnings Report
After its Q3 earnings report on October 28, shares of Welltower jumped 5.2%. The company reported funds from operations (FFO) that increased 20.7% year over year to $1.11 per share, surpassing Wall Street forecasts by 6.7%. Revenue reached $2.06 billion, up 23.7% from the prior year, also beating expectations. Furthermore, the company enjoyed growth of 12.6% in total portfolio same-store net operating income (SSNOI), with the senior housing portfolio (SHO) showing a remarkable 23% rise.
Additionally, Welltower has upped its guidance for 2024, now projecting normalized FFO per share between $4.27 and $4.33, adjusting from prior estimates.
Analyst Consensus and Future Outlook
As of now, analysts covering WELL stock offer a consensus rating of “Moderate Buy,” based on 11 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This outlook has shown slight changes recently, with 12 “Strong Buy” ratings noted over the last three months.
Wells Fargo Adjusts Perspective
On October 1, Wells Fargo (WFC) adjusted its stance on WELL stock, downgrading it from “Overweight” to “Equal-Weight.” This suggests a more neutral perspective, although the target price was raised slightly from $134 to $135. Wells Fargo’s analysts now favor Ventas (VTR) over Welltower, but they believe Welltower’s Price-to-Earnings-to-Growth Yield (PEGY) ratio remains attractive across different scenarios.
Interestingly, even as the stock trades above the average price target of $135.89, the highest target of $190 suggests potential for a 39.7% rally.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
