Welltower Reports Second Quarter 2025 Results

Rhea-AI Summary

Welltower (NYSE:WELL) reported strong Q2 2025 financial results, with 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 demonstrated robust performance with total portfolio same-store NOI growth of 13.8%, primarily driven by a 23.4% increase in Seniors Housing Operating portfolio.

Key highlights include $9.2 billion in pro rata investment activity year-to-date, improved leverage metrics with Net Debt to Adjusted EBITDA of 2.93x, and a 10.4% increase in quarterly dividend to $0.74 per share. The company raised its 2025 guidance, now expecting normalized FFO of $5.06 to $5.14 per diluted share.

Positive

• Normalized FFO increased 21.9% year-over-year to $1.28 per diluted share
• Strong same-store NOI growth of 13.8%, with SHO portfolio up 23.4%
• Significant occupancy improvement with 420 basis points year-over-year growth
• Board approved 10.4% dividend increase to $0.74 per share
• Robust liquidity position with $9.5 billion available
• Improved leverage with Net Debt to Adjusted EBITDA decreasing to 2.93x from 3.68x
• Guidance raised for full-year 2025 normalized FFO

Negative

• Variable rate debt exposure at 12.0% of total debt
• Higher interest rates on new debt issuance (4.5% and 5.125% vs. previous 4.0%)

Insights

Financial Analyst

Welltower shows exceptional Q2 performance with 21.9% FFO growth, 13.8% SSNOI growth, and substantial dividend increase, signaling continued industry recovery.

Welltower delivered outstanding Q2 2025 results that significantly exceeded expectations, demonstrating the continued strength of the senior housing recovery cycle. The company posted normalized FFO of $1.28 per share, representing impressive 21.9% year-over-year growth. This performance was primarily driven by exceptional same-store NOI growth of 13.8% across the portfolio, with the Seniors Housing Operating (SHO) segment leading the way at a remarkable 23.4%.

The SHO portfolio's success stems from two key factors: occupancy improvements and pricing power. Occupancy increased by 420 basis points year-over-year, while RevPOR (revenue per occupied room) grew by 4.9%. This revenue growth outpaced expense growth, leading to a substantial 330 basis point expansion in operating margins – a clear indicator of operational leverage as properties fill up and gain pricing power.

Welltower's balance sheet continues to strengthen, with Net Debt to Adjusted EBITDA improving to 2.93x (from 3.68x a year ago) and fixed charge coverage ratio reaching 6.33x (up from 5.09x). This financial flexibility supports the company's aggressive growth strategy, with $9.2 billion of investments announced year-to-date. Despite this substantial investment activity, Welltower maintains approximately $9.5 billion of available liquidity.

The 10.4% dividend increase signals management's confidence in sustained growth, supported by a low payout ratio and strong balance sheet. The company's upward revision of full-year guidance (normalized FFO now $5.06-$5.14 per share, up from $4.90-$5.04) reflects momentum across the portfolio, with same-store NOI now expected to grow 11.25-13.25% for the year.

The 18.5-21.5% projected growth in the SHO segment highlights the continuing demographic-driven recovery in senior housing, while stable performance in triple-net senior housing, outpatient medical, and long-term care properties (2-4.5% growth) provides diversification and stability.

TOLEDO, Ohio, July 28, 2025 /PRNewswire/ -- Welltower Inc. (NYSE:WELL) today announced results for the quarter ended June 30, 2025.

Second Quarter and Other Recent Highlights

• Reported net income attributable to common stockholders of $0.45 per diluted share
• Reported quarterly normalized funds from operations attributable to common stockholders of $1.28 per diluted share, an increase of 21.9% over the prior year
• Reported total portfolio year-over-year same store NOI ("SSNOI") growth of 13.8%, driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio of 23.4%
• SHO portfolio year-over-year same store revenue increased 10.1% in the second quarter, driven by 420 basis points ("bps") of year-over-year average occupancy growth and Revenue Per Occupied Room ("RevPOR") growth of 4.9%
• SHO portfolio year-over-year SSNOI margin expanded by 330 bps in the second quarter driven primarily by strong RevPOR growth, which continued to meaningfully outpace Expense per Occupied Room ("ExpPOR") growth
• Announced $9.2 billion of pro rata investment activity year-to-date, exclusive of development funding, which includes $3.7 billion closed in the first half of 2025 and additional transaction activity closed or under contract to close as of July 28, 2025
• Reported Net Debt to Adjusted EBITDA of 2.93x at June 30, 2025 compared to 3.68x at June 30, 2024
• Reported Adjusted Fixed Charge Coverage Ratio of 6.33x at June 30, 2025 compared to 5.09x at June 30, 2024
• Board of Directors announced a 10.4% increase in the quarterly dividend, reflecting solid financial performance and the Board's confidence in the durability of outsized levels of cash flow growth. The dividend is further supported by a low payout ratio and low-levered balance sheet
• As of June 30, 2025, we had approximately $9.5 billion of available liquidity inclusive of $4.5 billion of available cash and restricted cash and full capacity under our $5.0 billion line of credit

Second Quarter Capital Activity and Liquidity

Liquidity Update Net debt to consolidated enterprise value decreased to 10.1% as of June 30, 2025 from 14.8% as of June 30, 2024. We sourced over $4.0 billion of attractively priced capital, including the issuance of senior unsecured notes, assumption of below-market debt, equity issuances and proceeds from dispositions and loan repayments to fund accretive capital deployment opportunities and to further strengthen our already robust liquidity profile. As of June 30, 2025, our share of variable rate debt was approximately 12.0%.

In June 2025, we repaid our $1.25 billion 4.0% senior unsecured notes at maturity and completed the issuance of $600 million of 4.5% senior unsecured notes due 2030 and $650 million of 5.125% senior unsecured notes due 2035 for net proceeds of approximately $1.24 billion.

Second Quarter Investment Activity

In the second quarter, we completed $1.2 billion of pro rata gross investments, including $113 million in development funding, and also completed pro rata property dispositions of $28 million and loan repayments of $92 million. We completed and placed into service eight development projects, including partial conversions and expansions, for an aggregate pro rata investment amount of $505 million.

Dividend On July 28, 2025, the Board of Directors declared a cash dividend for the quarter ended June 30, 2025 of $0.74 per share. This dividend, which will be paid on August 21, 2025 to stockholders of record as of August 12, 2025, will be our 217th consecutive quarterly cash dividend. The declaration and payment of future quarterly dividends remains subject to review and approval by the Board of Directors.

Outlook for 2025 Net income attributable to common stockholders guidance has been revised to a range of $1.86 to $1.94 per diluted share from the previous range of $1.70 to $1.84 per diluted share. We also increased the guidance range of full year normalized FFO attributable to common stockholders to a range of $5.06 to $5.14 per diluted share from the previous range of $4.90 to $5.04 per diluted share. In preparing our guidance, we have updated or confirmed the following assumptions:

• Same Store NOI: We expect average blended SSNOI growth of 11.25% to 13.25%, which is comprised of the following components:
  • Seniors Housing Operating approximately 18.5% to 21.5%
  • Seniors Housing Triple-net approximately 3.5% to 4.5%
  • Outpatient Medical approximately 2.0% to 3.0%
  • Long-Term/Post-Acute Care approximately 2.0% to 3.0%
• Investments: Our earnings guidance includes only those acquisitions announced or closed to date. Furthermore, no transitions, restructures or capital activity beyond those announced to date are included.
• General and Administrative Expenses: We anticipate general and administrative expenses to be approximately $243 million to $249 million and stock-based compensation expense to be approximately $52 million, exclusive of approximately $10 million of expense related to Special Performance Options and OPP awards.
• Development: We anticipate funding an additional $212 million of development in 2025 relating to projects underway as of June 30, 2025.
• Dispositions: We expect pro rata disposition proceeds of $340 million at a blended yield of 6.9% in the next twelve months. This includes approximately $164 million of consideration from expected property sales and $176 million of expected proceeds from loan repayments.

Our guidance does not include any additional investments, dispositions or capital transactions, nor any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items beyond those disclosed. Please see the Supplemental Reporting Measures section for further discussion and our definition of normalized FFO and SSNOI and Exhibit 3 for a reconciliation of the outlook for net income available to common stockholders to normalized FFO attributable to common stockholders. We will provide additional detail regarding our 2025 outlook and assumptions on the second quarter 2025 conference call.

Conference Call Information We have scheduled a conference call on Tuesday, July 29, 2025 at 9:00 a.m. Eastern Time to discuss our second quarter 2025 results, industry trends and portfolio performance. Telephone access will be available by dialing (888) 340-5024 or (646) 960-0135 (international). For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through August 5, 2025. To access the rebroadcast, dial (800) 770-2030 or (609) 800-9909 (international). The conference ID number is 8230248. To participate in the webcast, log on to www.welltower.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days.

Supplemental Reporting Measures We believe that net income and net income attributable to common stockholders ("NICS"), as defined by U.S. generally accepted accounting principles ("U.S. GAAP"), are the most appropriate earnings measurements. However, we consider funds from operations ("FFO"), normalized FFO, net operating income ("NOI"), same store NOI ("SSNOI"), revenue per occupied room ("RevPOR"), same store RevPOR ("SS RevPOR"), expense per occupied room ("ExpPOR"), same store ExpPOR ("SS ExpPOR"), EBITDA and Adjusted EBITDA to be useful supplemental measures of our operating performance. Excluding EBITDA and Adjusted EBITDA, these supplemental measures are disclosed on our pro rata ownership basis. Pro rata amounts are derived by reducing consolidated amounts for minority partners' noncontrolling ownership interests and adding our minority ownership share of unconsolidated amounts. We do not control unconsolidated investments. While we consider pro rata disclosures useful, they may not accurately depict the legal and economic implications of our joint venture arrangements and should be used with caution.

Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In response, the National Association of Real Estate Investment Trusts ("NAREIT") created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO attributable to common stockholders, as defined by NAREIT, means net income attributable to common stockholders, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and acquisitions of controlling interests, impairments of depreciable assets, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests. Normalized FFO attributable to common stockholders represents FFO attributable to common stockholders adjusted for certain items detailed in Exhibit 2. We believe that normalized FFO attributable to common stockholders is a useful supplemental measure of operating performance because investors and equity analysts may use this measure to compare the operating performance of Welltower between periods or as compared to other REITs or other companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items.

We define NOI as total revenues, including tenant reimbursements, less property operating expenses. Property operating expenses represent costs associated with managing, maintaining and servicing tenants for our properties. These expenses include, but are not limited to, property-related payroll and benefits, property management fees paid to managers, marketing, housekeeping, food service, maintenance, utilities, property taxes and insurance. General and administrative expenses represent general overhead costs that are unrelated to property operations and are unallocable to the properties. These expenses include, but are not limited to, payroll and benefits related to corporate employees, professional services, office expenses and depreciation of corporate fixed assets. SSNOI is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. As used herein, same store is generally defined as those revenue-generating properties in the portfolio for the relevant year-over-year reporting periods. Acquisitions and development conversions are included in the same store amounts five full quarters after acquisition or being placed into service. Land parcels, loans and leased properties, as well as any properties sold or classified as held for sale during the period, are excluded from the same store amounts. Redeveloped properties (including major refurbishments of a Seniors Housing Operating property where 20% or more of units are simultaneously taken out of commission for 30 days or more or Outpatient Medical properties undergoing a change in intended use) are excluded from the same store amounts until five full quarters post completion of the redevelopment. Properties undergoing operator transitions and/or segment transitions are also excluded from the same store amounts until five full quarters post completion of the operator transition or segment transition. In addition, properties significantly impacted by force majeure, acts of God or other extraordinary adverse events are excluded from same store amounts until five full quarters after the properties are placed back into service. SSNOI excludes non-cash NOI and includes adjustments to present consistent property ownership percentages and to translate Canadian properties and UK properties using a consistent exchange rate. Normalizers include adjustments that in management's opinion are appropriate in considering SSNOI, a supplemental, non-GAAP performance measure. None of these adjustments, which may increase or decrease SSNOI, are reflected in our financial statements prepared in accordance with U.S. GAAP. Significant normalizers (defined as any that individually exceed 0.50% of SSNOI growth per property type) are separately disclosed and explained. We believe NOI and SSNOI provide investors relevant and useful information because they measure the operating performance of our properties at the property level on an unleveraged basis. We use NOI and SSNOI to make decisions about resource allocations and to assess the property level performance of our portfolio. No reconciliation of the forecasted range for SSNOI on a combined basis or by property type is included in this release because we are unable to quantify certain amounts that would be required to be included in the comparable GAAP financial measure without unreasonable efforts, and we believe such reconciliation would imply a degree of precision that could be confusing or misleading to investors.

RevPOR represents the average revenues generated per occupied room per month and ExpPOR represents the average expenses per occupied room per month at our Seniors Housing Operating properties. These metrics are calculated as our pro rata share of total resident fees and services revenues or property operating expenses from the income statement, divided by average monthly occupied room days. SS RevPOR and SS ExpPOR are used to evaluate the RevPOR and ExpPOR performance of our properties under a consistent population, which eliminates changes in the composition of our portfolio. They are based on the same pool of properties used for SSNOI and include any revenue and expense normalizations used for SSNOI. We use RevPOR, ExpPOR, SS RevPOR and SS ExpPOR to evaluate the revenue-generating capacity and profit potential of our Seniors Housing Operating portfolio independent of fluctuating occupancy rates. They are also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our Seniors Housing Operating portfolio.

We measure our credit strength both in terms of leverage ratios and coverage ratios. The leverage ratios indicate how much of our balance sheet capitalization is related to long-term debt, net of cash and restricted cash. We expect to maintain capitalization ratios and coverage ratios sufficient to maintain a capital structure consistent with our current profile. The ratios are based on EBITDA and Adjusted EBITDA. EBITDA is defined as earnings (net income per income statement) before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding unconsolidated entities and including adjustments for stock-based compensation expense, provision for loan losses, gains/losses on extinguishment of debt, gains/losses on disposition of properties and acquisitions of controlling interests, impairment of assets, gains/losses on derivatives and financial instruments, other expenses, other impairment charges and other adjustments deemed appropriate in management's opinion. We believe that EBITDA and Adjusted EBITDA, along with net income, are important supplemental measures because they provide additional information to assess and evaluate the performance of our operations. In addition, we use Adjusted EBITDA to measure our adjusted fixed charge coverage ratio, which represents Adjusted EBITDA divided by fixed charges. Fixed charges include total interest expense and secured debt principal amortization. Our leverage ratios include net debt to Adjusted EBITDA and consolidated enterprise value. Net debt is defined as total long-term debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash. Consolidated enterprise value represents the sum of net debt, the fair market value of our common stock and noncontrolling interests.

Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and rating agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, these measures are utilized by the Board of Directors to evaluate management performance. None of the supplemental reporting measures represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see the exhibits for reconciliations of supplemental reporting measures and the supplemental information package for the quarter ended June 30, 2025, which is available on Welltower's website (www.welltower.com), for information and reconciliations of additional supplemental reporting measures.

About Welltower Welltower Inc. (NYSE: WELL), an S&P 500 company, is one of the world's preeminent residential wellness and healthcare infrastructure companies. We seek to position our portfolio of 1,500+ seniors and wellness housing communities at the intersection of housing, healthcare, and hospitality, creating vibrant communities for mature renters and older adults in the United States, United Kingdom, and Canada. We also strive to support physicians in our outpatient medical buildings with the critical infrastructure needed to deliver quality care. We believe our real estate portfolio is unmatched, located in highly attractive micro-markets with stunning built environments. Yet, we are an unusual real estate organization as we view ourselves as a product company in a real estate wrapper, driven by relationships and an unconventional culture. Through our disciplined approach to capital allocation powered by our Data Science platform and superior operating results driven by our operating platform, the Welltower Business System, we aspire to deliver long-term compounding of per share growth and returns for our existing investors – our North Star. More information is available at www.welltower.com.

We routinely post important information on our website at www.welltower.com in the "Investors" section, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website under the heading "Investors". Accordingly, investors should monitor such portion of our website in addition to following our press releases, public conference calls and filings with the Securities and Exchange Commission. The information on our website is not incorporated by reference in this press release and our web address is included as an inactive textual reference only.

Forward-Looking Statements and Risk Factors This document contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the impact of macroeconomic and geopolitical developments, including economic downturns, elevated inflation and interest rates, political or social conflict, unrest or violence or similar events; the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the healthcare industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements, public perception of the healthcare industry and operators'/tenants' difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the healthcare and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; Welltower's ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters, public health emergencies and extreme weather affecting Welltower's properties; Welltower's ability to re-lease space at similar rates as vacancies occur; Welltower's ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting Welltower's properties; changes in rules or practices governing Welltower's financial reporting; the movement of U.S. and foreign currency exchange rates and changes to U.S. and global monetary, fiscal or trade policies; Welltower's approach to artificial intelligence; Welltower's ability to maintain its qualification as a REIT; key management personnel recruitment and retention; and other risks described in Welltower's reports filed from time to time with the SEC. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

Welltower Inc.
Financial Exhibits
Consolidated Balance Sheets (unaudited)
(in thousands)
		June 30,
		2025		2024
Assets
Real estate investments:
Land and land improvements		$                       5,794,697		$                       4,839,036
Buildings and improvements		46,583,039		38,540,623
Acquired lease intangibles		2,775,121		2,192,386
Real property held for sale, net of accumulated depreciation		108,925		81,033
Construction in progress		712,119		1,474,024
Less accumulated depreciation and intangible amortization		(11,673,306)		(9,908,007)
Net real property owned		44,300,595		37,219,095
Right of use assets, net		1,279,172		360,282
Real estate loans receivable, net of credit allowance		1,801,860		1,791,202
Net real estate investments		47,381,627		39,370,579
Other assets:
Investments in unconsolidated entities		1,964,267		1,709,558
Cash and cash equivalents		4,409,740		2,776,628
Restricted cash		113,771		86,970
Receivables and other assets		1,964,090		1,590,202
Total other assets		8,451,868		6,163,358
Total assets		$                     55,833,495		$                     45,533,937
Liabilities and equity
Liabilities:
Unsecured credit facility and commercial paper		$                                   —		$                                   —
Senior unsecured notes		13,448,881		12,169,775
Secured debt		2,522,222		1,765,992
Lease liabilities		1,335,647		393,670
Accrued expenses and other liabilities		1,980,444		1,515,921
Total liabilities		19,287,194		15,845,358
Redeemable noncontrolling interests		283,187		262,273
Equity:
Common stock		665,238		609,859
Capital in excess of par value		43,949,130		36,693,283
Treasury stock		(13,944)		(114,674)
Cumulative net income		10,656,569		9,526,904
Cumulative dividends		(19,190,453)		(17,492,484)
Accumulated other comprehensive income		(166,014)		(246,462)
Total Welltower Inc. stockholders' equity		35,900,526		28,976,426
Noncontrolling interests		362,588		449,880
Total equity		36,263,114		29,426,306
Total liabilities and equity		$                     55,833,495		$                     45,533,937

 

Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2025		2024		2025		2024
Revenues:
	Resident fees and services		$        1,971,044		$        1,393,473		$        3,835,574		$        2,753,747
	Rental income		483,040		335,811		944,607		753,463
	Interest income		62,057		63,453		124,547		116,117
	Other income		32,103		32,147		66,603		61,298
	Total revenues		2,548,244		1,824,884		4,971,331		3,684,625
Expenses:
	Property operating expenses		1,514,711		1,111,297		2,977,101		2,208,210
	Depreciation and amortization		495,036		382,045		980,905		747,908
	Interest expense		141,157		133,424		286,119		280,742
	General and administrative expenses		64,175		55,565		127,933		108,883
	Loss (gain) on derivatives and financial instruments, net		(409)		(5,825)		(3,619)		(8,879)
	Loss (gain) on extinguishment of debt, net		—		1,705		6,156		1,711
	Provision for loan losses, net		(1,113)		5,163		(3,120)		6,177
	Impairment of assets		19,876		2,394		72,278		45,725
	Other expenses		16,598		48,684		30,658		62,815
	Total expenses		2,250,031		1,734,452		4,474,411		3,453,292
Income (loss) from continuing operations before income taxes and other items			298,213		90,432		496,920		231,333
Income tax (expense) benefit			(1,053)		(1,101)		4,466		(7,292)
Income (loss) from unconsolidated entities			(7,392)		4,896		(6,129)		(2,887)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net			14,850		166,443		66,627		171,150
Income (loss) from continuing operations			304,618		260,670		561,884		392,304
Net income (loss)			304,618		260,670		561,884		392,304
Less: Net income (loss) attributable to noncontrolling interests(1)			2,730		5,956		2,039		10,444
Net income (loss) attributable to common stockholders			$           301,888		$           254,714		$           559,845		$           381,860
Average number of common shares outstanding:
	Basic		656,593		600,545		650,029		587,297
	Diluted		668,140		604,563		661,004		591,047
Net income (loss) attributable to common stockholders per share:
	Basic		$                 0.46		$                 0.42		$                 0.86		$                 0.65
	Diluted(2)		$                 0.45		$                 0.42		$                 0.85		$                 0.65
Common dividends per share			$                 0.67		$                 0.61		$                 1.34		$                 1.22
(1) Includes amounts attributable to redeemable noncontrolling interests.
(2) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units.

 

FFO Reconciliations									Exhibit 1
(in thousands, except per share data)			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2025		2024		2025		2024
Net income (loss) attributable to common stockholders			$        301,888		$       254,714		$        559,845		$       381,860
Depreciation and amortization			495,036		382,045		980,905		747,908
Impairments and losses (gains) on real estate dispositions and acquisitions of controlling interests, net			5,026		(164,049)		5,651		(125,425)
Noncontrolling interests(1)			(6,256)		(6,348)		(15,724)		(18,344)
Unconsolidated entities(2)			30,023		27,411		60,237		64,477
NAREIT FFO attributable to common stockholders			825,717		493,773		1,590,914		1,050,476
Normalizing items, net(3)			31,472		143,759		53,452		172,264
Normalized FFO attributable to common stockholders			$        857,189		$       637,532		$     1,644,366		$    1,222,740
Average diluted common shares outstanding			668,140		604,563		661,004		591,047
Per diluted share data attributable to common stockholders:
	Net income (loss)(4)		$              0.45		$             0.42		$              0.85		$             0.65
	NAREIT FFO		$              1.24		$             0.82		$              2.41		$             1.78
	Normalized FFO		$              1.28		$             1.05		$              2.49		$             2.07
Normalized FFO Payout Ratio:
	Dividends per common share		$              0.67		$             0.61		$              1.34		$             1.22
	Normalized FFO attributable to common stockholders per share		$              1.28		$             1.05		$              2.49		$             2.07
	Normalized FFO payout ratio		52 %		58 %		54 %		59 %
Other items:(5)
Net straight-line rent and above/below market rent amortization(6)			$         (48,607)		$        (37,104)		$         (94,728)		$        (72,108)
Non-cash interest expenses(7)			12,441		9,812		25,310		19,198
Recurring cap-ex, tenant improvements and lease commissions(8)			(77,158)		(67,249)		(151,708)		(118,865)
Stock-based compensation(9)			12,668		10,026		27,311		21,368
(1) Represents noncontrolling interests' share of net FFO adjustments.
(2) Represents Welltower's share of net FFO adjustments from unconsolidated entities.
(3) See Exhibit 2.
(4) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units.
(5) Amounts presented net of noncontrolling interests' share and including Welltower's share of unconsolidated entities.
(6) Excludes normalized other impairment (see Exhibit 2).
(7) Excludes normalized foreign currency loss (gain) (see Exhibit 2).
(8) Reflects recurring cap-ex, tenant improvements and lease commissions on owned operational properties.
(9) Excludes normalized stock compensation expense related to the Special Performance Options and OPP awards (see Exhibit 2).

 

Normalizing Items							Exhibit 2
(in thousands, except per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Loss (gain) on derivatives and financial instruments, net	$                (409)	(1)	$             (5,825)		$             (3,619)		$             (8,879)
Loss (gain) on extinguishment of debt, net	—		1,705		6,156		1,711
Provision for loan losses, net	(1,113)	(2)	5,163		(3,120)		6,177
Income tax benefits	(595)	(3)	—		(8,181)		—
Other impairment	604	(4)	88,318		604		97,674
Other expenses	16,598	(5)	48,684		30,658		62,815
Special Performance Options and OPP Awards	2,540	(6)	—		5,402		—
Casualty losses, net of recoveries	2,496	(7)	1,953		6,338		4,111
Foreign currency loss (gain)	(1,864)	(8)	(200)		(1,755)		409
Normalizing items attributable to noncontrolling interests and unconsolidated entities, net	13,215	(9)	3,961		20,969		8,246
Net normalizing items	$             31,472		$           143,759		$             53,452		$           172,264
Average diluted common shares outstanding	668,140		604,563		661,004		591,047
Net normalizing items per diluted share	$                 0.05		$                 0.24		$                 0.08		$                 0.29
(1) Primarily related to mark-to-market of the equity warrants received as part of the Safanad/HC-One transactions.
(2) Primarily related to adjustments to reserves for loan losses under the current expected credit losses accounting standard.
(3) Primarily related to the retrospective application of a deferred tax benefit.
(4) Represents the write off of straight-line rent receivable balances relating to a lease placed on cash recognition.
(5) Primarily related to non-capitalizable transaction costs and legal fees.
(6) Primarily related to expenses recognized on the 2021 Special Performance Option Awards and 2022-2025 Outperformance Program ("OPP").
(7) Primarily relates to casualty losses net of any insurance recoveries.
(8) Primarily relates to foreign currency gains and losses related to accrued interest on intercompany loans and third party debt denominated in a foreign currency.
(9) Primarily relates to hypothetical liquidation at book value adjustments related to in substance real estate investments.

 

Outlook Reconciliation: Year Ending December 31, 2025							Exhibit 3
(in millions, except per share data)	Prior Outlook				Current Outlook
	Low		High		Low		High
FFO Reconciliation:
Net income attributable to common stockholders	$               1,127		$               1,219		$                 1,249		$                 1,303
Impairments and losses (gains) on real estate dispositions and acquisitions of controlling interests, net(1)	(4)		(4)		4		4
Depreciation and amortization(1)	2,092		2,092		2,085		2,085
NAREIT FFO attributable to common stockholders	3,215		3,307		3,338		3,392
Normalizing items, net(1,2)	30		30		59		59
Normalized FFO attributable to common stockholders	$               3,245		$               3,337		$                 3,397		$                 3,451
Diluted per share data attributable to common stockholders:
Net income	$                 1.70		$                 1.84		$                   1.86		$                   1.94
NAREIT FFO	$                 4.86		$                 5.00		$                   4.97		$                   5.05
Normalized FFO	$                 4.90		$                 5.04		$                   5.06		$                   5.14
Other items:(1)
Net straight-line rent and above/below market rent amortization	$                (190)		$                (190)		$                  (205)		$                  (205)
Non-cash interest expenses	50		50		50		50
Recurring cap-ex, tenant improvements and lease commissions(3)	(352)		(352)		(355)		(355)
Stock-based compensation	53		53		53		53
(1) Amounts presented net of noncontrolling interests' share and Welltower's share of unconsolidated entities.
(2) See Exhibit 2. Also includes estimated stock compensation expense related to the one-time 2021 Special Stock Performance Option Awards and the 2022-2025 OPP Awards.
(3) Reflects recurring cap-ex, tenant improvements and lease commissions on owned operational properties.

 

SSNOI Reconciliation							Exhibit 4
(in thousands)			Three Months Ended
			June 30,
			2025		2024		% growth
Net income (loss)			$                         304,618		$                            260,670
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net			(14,850)		(166,443)
Loss (income) from unconsolidated entities			7,392		(4,896)
Income tax expense (benefit)			1,053		1,101
Other expenses			16,598		48,684
Impairment of assets			19,876		2,394
Provision for loan losses, net			(1,113)		5,163
Loss (gain) on extinguishment of debt, net			—		1,705
Loss (gain) on derivatives and financial instruments, net			(409)		(5,825)
General and administrative expenses			64,175		55,565
Depreciation and amortization			495,036		382,045
Interest expense			141,157		133,424
Consolidated NOI			1,033,533		713,587
NOI attributable to unconsolidated investments(1)			26,069		32,720
NOI attributable to noncontrolling interests(2)			(13,531)		(17,296)
Pro rata NOI			1,046,071		729,011
Non-cash NOI attributable to same store properties			(25,861)		(28,306)
NOI attributable to non-same store properties			(345,450)		(115,200)
Currency and ownership adjustments(3)			(6,174)		1,497
Normalizing adjustments, net(4)			2,857		2,799
Same Store NOI (SSNOI)			$                         671,443		$                            589,801		13.8 %
Seniors Housing Operating			383,008		310,413		23.4 %
Seniors Housing Triple-net			72,961		69,416		5.1 %
Outpatient Medical			134,161		130,770		2.6 %
Long-Term/Post-Acute Care			81,313		79,202		2.7 %
Total SSNOI			$                         671,443		$                            589,801		13.8 %
(1) Represents Welltower's interests in joint ventures where Welltower is the minority partner.
(2) Represents minority partners' interests in joint ventures where Welltower is the majority partner.
(3) Includes where appropriate adjustments to reflect consistent property ownership percentages, to translate Canadian properties at a USD/CAD rate of 1.43 and to translate UK properties at a GBP/USD rate of 1.23.
(4) Includes other adjustments described in the accompanying Supplement.

 

Reconciliation of SHO SS RevPOR Growth			Exhibit 5
(in thousands except SS RevPOR)	Three Months Ended
	June 30,
	2025		2024
Consolidated SHO revenues	$                1,975,732		$                1,395,373
Unconsolidated SHO revenues attributable to WELL(1)	51,947		63,164
SHO revenues attributable to noncontrolling interests(2)	(20,112)		(20,394)
SHO pro rata revenues(3)	2,007,567		1,438,143
Non-cash and non-RevPOR revenues on same store properties	(2,074)		(3,761)
Revenues attributable to non-same store properties	(741,878)		(295,869)
Currency and ownership adjustments(4)	(15,414)		(5,272)
SHO SS RevPOR revenues(5)	$                1,248,201		$                1,133,241
Average occupied units/month(6)	69,134		65,855
SHO SS RevPOR(7)	$                       6,035		$                       5,752
SS RevPOR YOY growth	4.9 %
(1) Represents Welltower's interests in joint ventures where Welltower is the minority partner.
(2) Represents minority partners' interests in joint ventures where Welltower is the majority partner.
(3) Represents SHO revenues at Welltower pro rata ownership.
(4) Includes adjustments to reflect consistent property ownership percentages and foreign currency exchange rates for properties in the U.K. and Canada.
(5) Represents SS SHO RevPOR revenues at Welltower pro rata ownership.
(6) Represents average occupied units for SS properties on a pro rata basis.
(7) Represents pro rata SS average revenues generated per occupied room per month.

 

Net Debt to Adjusted EBITDA and Adjusted Fixed Charge Ratio Reconciliation					Exhibit 6
(in thousands)			Three Months Ended
			June 30,
			2025		2024
Net income (loss)			$                       304,618		$                     260,670
Interest expense			141,157		133,424
Income tax expense (benefit)			1,053		1,101
Depreciation and amortization			495,036		382,045
EBITDA			941,864		777,240
Loss (income) from unconsolidated entities			7,392		(4,896)
Stock-based compensation			15,208		10,026
Loss (gain) on extinguishment of debt, net			—		1,705
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net			(14,850)		(166,443)
Impairment of assets			19,876		2,394
Provision for loan losses, net			(1,113)		5,163
Loss (gain) on derivatives and financial instruments, net			(409)		(5,825)
Other expenses			16,598		48,684
Casualty losses, net of recoveries			2,496		1,953
Other impairment(1)			604		88,318
Adjusted EBITDA			$                       987,666		$                     758,319
Total debt(2)			$                  16,079,566		$                14,027,128
Cash and cash equivalents and restricted cash			(4,523,511)		(2,863,598)
Net debt			$                  11,556,055		$                11,163,530
Adjusted EBITDA annualized			$                    3,950,664		$                  3,033,276
Net debt to Adjusted EBITDA ratio			2.93x		3.68 x
Interest expense			$                       141,157		$                     133,424
Capitalized interest			8,653		14,478
Non-cash interest expense			(10,231)		(8,953)
Total interest			139,579		138,949
Secured debt principal amortization			16,558		10,107
Total fixed charges			$                       156,137		$                     149,056
Adjusted EBITDA			$                       987,666		$                     758,319
Adjusted fixed charge coverage ratio			6.33x		5.09 x
(1) Represents the write-off of straight-line rent receivable and unamortized lease incentive balances for leases placed on cash recognition.
(2) Amounts include unamortized premiums/discounts, other fair value adjustments and financing lease liabilities. Excludes operating lease liabilities related to ASC 842 of $1,227,184,000  and $302,309,000 for the three months ended June 30, 2025 and 2024, respectively.

 

Net Debt to Consolidated Enterprise Value					Exhibit 7
(in thousands, except share price)
			June 30, 2025		June 30, 2024
Common shares outstanding			665,120		608,151
Period end share price			$                     153.73		$                     104.25
Common equity market capitalization			$            102,248,898		$              63,399,742
Net debt			11,556,055		11,163,530
Noncontrolling interests(1)			645,775		712,153
Consolidated enterprise value			$            114,450,728		$              75,275,425
Net debt to consolidated enterprise value			10.1 %		14.8 %
(1) Includes all noncontrolling interests (redeemable and permanent) as reflected on our consolidated balance sheet.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/welltower-reports-second-quarter-2025-results-302515201.html

SOURCE Welltower Inc.

FAQ

What were Welltower's (WELL) Q2 2025 earnings per share?

Welltower reported net income of $0.45 per diluted share and normalized FFO of $1.28 per diluted share, representing a 21.9% increase year-over-year.

How much did Welltower increase its dividend in Q2 2025?

Welltower announced a 10.4% increase in quarterly dividend to $0.74 per share, payable on August 21, 2025 to stockholders of record as of August 12, 2025.

What is Welltower's updated guidance for 2025?

Welltower raised its 2025 guidance, projecting normalized FFO of $5.06 to $5.14 per diluted share and net income of $1.86 to $1.94 per diluted share.

What was Welltower's same-store NOI growth in Q2 2025?

Welltower reported total portfolio same-store NOI growth of 13.8%, driven by Seniors Housing Operating portfolio growth of 23.4%.

How much investment activity did Welltower announce year-to-date in 2025?

Welltower announced $9.2 billion of pro rata investment activity year-to-date, including $3.7 billion closed in the first half of 2025.