Welltower (WELL) Q1 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 28, 2026 astatine 11:14 AM CDT 52 min read

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Date

Tuesday, Apr. 29, 2025 astatine 9:00 a.m. ET

Call participants

• Chief Executive Officer — Shankh Mitra

• Chief Operating Officer — John Burkart

• Chief Investment Officer — Nikhil Chaudhri

• Chief Financial Officer — Tim McHugh

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Full Conference Call Transcript

Shankh Mitra: Thank you, Matt, and bully morning, everyone. I'll reappraisal concern trends and our superior allocation priorities. And the Tim volition travel the accustomed cadence. I'm pleased to study that we began the twelvemonth connected a affirmative note, delivering astir 19% maturation successful FFO per share, driven by better-than-expected results from our seniors' lodging operating portfolio and important acquisition activity. These results and our refreshed outlook for the remainder of the twelvemonth person enabled america to rise the midpoint of our full-year FFO guidance by $0.10 per stock to $4.97. Before getting into immoderate of the details, I archetypal privation to notation that our achievements this 4th widen good beyond operational execution and charismatic superior deployment.

Our years of unrelenting effort culminated into an announcement of respective large achievements, which I judge volition let america to some augment our maturation and widen its duration adjacent further into the future. These achievements include, one, the motorboat of our backstage money absorption business, two, important advancement successful the Welltower concern system, our proprietary end-to-end operating platform, three, solidifying our enactment done respective cardinal promotions, four, our palmy rollout of a firm rebranding that reflects Welltower’s translation from a healthcare existent property woody store to a information subject and technology-driven operating institution successful a existent property wrapper. And finally, and astir recently, an upgrade to our recognition ratings by some S&P and Moody's to A- and A3, respectively.

I'm humbled by this unwavering dedication of our squad successful achieving these large milestones. Turning to fundamentals, seniors' lodging operating concern remains strong. There is nary diminution of the momentum which we carried into the twelvemonth arsenic reflected by our 10th consecutive 4th successful which same-store nett operating income maturation has exceeded 20%. From an occupancy perspective, pursuing a play of exceptional results successful 2024, we reported 400 ground points of year-over-year maturation successful Q1, the highest level of maturation we person witnessed successful immoderate 4th extracurricular post-COVID recovery.

Perhaps adjacent much awesome is that contempt seasonal headwinds that we typically brushwood aboriginal successful the year, the portfolio's sequential mean occupancy maturation of 60 ground points was the strongest we person reported successful the archetypal 4th of immoderate twelvemonth successful our recorded history. Please look astatine our Slide 6 of our concern update to bespeak connected what benignant of seasonal outlier Q1 was. The concern besides maintained beardown pricing powerfulness with maturation successful RevPOR oregon portion gross of astir 6%, with 90% occupancy cohort experiencing 7%-plus growth. Excluding the interaction of leap year, RevPOR maturation was inactive beardown astatine 5.1%, and export oregon portion disbursal would person been 1.3%, and same-store gross maturation of 9.9%.