Download PDF

1. Company Snapshot

1.a. Company Description

Welltower Inc.(NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure.The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience.


Welltower™, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.

Show Full description

1.b. Last Insights on WELL

Welltower's recent performance was driven by strong senior housing growth, strategic acquisitions, and a solid balance sheet. The company's Seniors Housing Operating (SHO) portfolio saw a 23.4% year-over-year same-store NOI growth, driven by a 10.1% increase in revenue and a 330 bps expansion in NOI margin. Additionally, Welltower announced $9.2 billion of pro-rata investment activity year-to-date, with a 10.4% increase in quarterly dividend. The company's robust growth and improved guidance also fueled its performance, with its subsidiary WELLSTAR tracking ahead of internal expectations.

1.c. Company Highlights

2. Welltower's Q3 2025 Earnings: A Strong Performance

Welltower reported a strong Q3 2025 performance, with net income attributable to common stockholders of $0.41 per diluted share and normalized funds from operations (FFO) of $1.34 per diluted share, beating estimates of $1.3 per diluted share. The company's revenue growth was driven by a 390 basis point increase in occupancy and 5.1% RevPOR growth, resulting in a 9.6% revenue growth. The expense growth was 5.25%, indicating a stable margin profile.

Publication Date: Oct -30

📋 Highlights
  • Record Q3 2025 Performance: Achieved occupancy, margins, and net operating income exceeding high expectations, with 14.5% year-over-year same-store NOI growth.
  • Capital Allocation Milestones: Executed $33B in year-to-date transactions, including $23.2B in new investments, with $5.4B closed by Q3 and $11B post-Q3.
  • Strategic UK Acquisitions: Acquired Barchester ($7B) and HC-One ($5.2B) portfolios, targeting a pure-play rental housing platform with low-teens IRR potential.
  • Welltower 3.0 Launch: Shift to tech-driven operations with $2.9B in Q3 capital raises, $7B cash balance, and $14B new investments across 46,000+ units.
  • 2025 Guidance Update: Net income guidance of $0.82–$0.88/share and normalized FFO of $5.24–$5.30/share, excluding future investment activity.

Operational Highlights

The company's operational performance was strong, with a 14.5% year-over-year total portfolio same-store NOI growth. Welltower's focus on technology-driven transformation and its new operations and technology-first platform, Welltower 3.0, is expected to drive long-term growth. The company has also made significant progress in reducing latency in its business system, with customers now receiving responses in single-digit minutes, down from 2 business days.

Capital Allocation and Investments

Welltower has been actively investing in its business, with $14 billion of new investments announced, spanning over 46,000 units across 700-plus communities. The company's investment activity is expected to drive long-term growth, with a focus on senior housing and a plug-and-play approach to its business system in the UK. The initial blended yield on the $14 billion in investments is not publicly disclosed, but it's similar to the company's previous activity.

Valuation and Outlook

With a P/E Ratio of 124.21 and an EV/EBITDA of 38.76, Welltower's valuation multiples are high, indicating that the market is pricing in strong future growth. Analysts estimate next year's revenue growth at 15.3%, which is in line with the company's long-term growth prospects. Given the company's strong operational performance and growth prospects, the current valuation appears justified.

Conclusion on Financial Health

Welltower's financial health is strong, with a net debt to EBITDA ratio of 3.4 and a free cash flow yield of 2.35%. The company's return on equity (ROE) is 2.73%, indicating a relatively low return on equity. However, the company's focus on long-term growth and its strong operational performance are expected to drive future returns.

3. NewsRoom

Card image cap

Seniors Housing REITs: Generational Compounding Opportunity

Dec -04

Source: seekingalpha.com

Card image cap

4 Reasons to Add Welltower Stock to Your Portfolio Right Now

Dec -03

Source: zacks.com

Card image cap

Global Net Lease (NYSE:GNL) and Welltower (NYSE:WELL) Critical Comparison

Dec -01

Source: defenseworld.net

Card image cap

3 Top REIT Dividend Stocks to Buy Right Now With $1,000 for Passive Income

Nov -28

Source: fool.com

Card image cap

B&I Capital AG Reduces Stock Position in Welltower Inc. $WELL

Nov -27

Source: defenseworld.net

Card image cap

Advisors Asset Management Inc. Purchases 5,684 Shares of Welltower Inc. $WELL

Nov -26

Source: defenseworld.net

Card image cap

Welltower Inc. $WELL is Catalyst Funds Management Pty Ltd’s 9th Largest Position

Nov -20

Source: defenseworld.net

Card image cap

Avantax Advisory Services Inc. Has $6.62 Million Stock Holdings in Welltower Inc. $WELL

Nov -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.32%)

6. Segments

Seniors Housing Operating

Expected Growth: 4.4%

Welltower Inc. benefits from the growing demand for seniors housing, driven by an aging population and increasing life expectancy. The company's diversified portfolio and strong partnerships support its growth.

Outpatient Medical

Expected Growth: 4.5%

Welltower's outpatient medical segment is poised for growth, driven by an aging population, increasing healthcare expenditure, and a shift towards value-based care, leading to higher demand for outpatient services.

Triple-Net

Expected Growth: 3.5%

Welltower Inc.'s Triple-Net segment benefits from a diversified tenant base, long-term leases, and a strong track record of rent growth, driving a forecasted CAGR of 3.5%.

Non-Segment / Corporate

Expected Growth: 4.3%

Welltower Inc.'s corporate and non-segment activities are expected to grow driven by increasing healthcare demand, aging demographics, and strategic investments in healthcare infrastructure.

7. Detailed Products

Senior Housing

Welltower owns and operates senior housing communities that provide independent living, assisted living, and memory care services to seniors.

Post-Acute Care

Welltower's post-acute care facilities provide rehabilitation and skilled nursing services to patients recovering from illness or injury.

Outpatient Medical

Welltower's outpatient medical facilities provide a range of medical services, including primary care, specialty care, and ambulatory surgery.

Health Systems

Welltower partners with health systems to provide capital and real estate expertise, enabling them to focus on delivering high-quality patient care.

8. Welltower Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Welltower Inc. operates in a niche market, providing healthcare infrastructure and services. While there are substitutes available, they are not easily accessible, and the company's strong brand reputation and network effects provide a moat against substitutes.

Bargaining Power Of Customers

Welltower Inc.'s customers are primarily healthcare providers and operators, who have limited bargaining power due to the company's strong market position and the specialized nature of its services.

Bargaining Power Of Suppliers

Welltower Inc. relies on a diverse range of suppliers for its operations, including construction companies, equipment providers, and service providers. While suppliers have some bargaining power, the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The healthcare infrastructure and services market has high barriers to entry, including regulatory hurdles, capital requirements, and the need for specialized expertise. This limits the threat of new entrants and provides a moat for Welltower Inc.

Intensity Of Rivalry

The healthcare infrastructure and services market is highly competitive, with several established players vying for market share. Welltower Inc. faces intense competition from rivals, which can lead to pricing pressure and margin compression.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.29%
Debt Cost 4.27%
Equity Weight 61.71%
Equity Cost 9.26%
WACC 7.35%
Leverage 62.04%

11. Quality Control: Welltower Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
VICI Properties

A-Score: 7.6/10

Value: 5.0

Growth: 7.7

Quality: 8.1

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
National Health Investors

A-Score: 6.7/10

Value: 3.0

Growth: 4.3

Quality: 8.1

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
LTC Properties

A-Score: 6.7/10

Value: 4.0

Growth: 4.1

Quality: 7.3

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
CareTrust REIT

A-Score: 6.7/10

Value: 2.2

Growth: 4.4

Quality: 7.9

Yield: 9.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Simon Property Group

A-Score: 6.1/10

Value: 2.1

Growth: 3.9

Quality: 6.5

Yield: 9.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Welltower

A-Score: 5.7/10

Value: 0.9

Growth: 3.9

Quality: 5.4

Yield: 5.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

204.31$

Current Price

204.31$

Potential

-0.00%

Expected Cash-Flows