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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.

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1.b. Last Insights on WELL

Welltower's recent performance was driven by strong revenue growth, record quarterly results, and strategic growth initiatives. The company's Q4 2025 earnings call highlighted a 36% increase in revenue, 32% growth in EBITDA, and 22% FFO per share growth. Same-store NOI growth was 15% in the total portfolio, driven by a 20.4% increase in the Seniors Housing Operating (SHO) portfolio. SHO portfolio organic same-store revenue growth was 9.6% year-over-year, fueled by occupancy growth and RevPOR expansion. The company completed $13.9 billion of pro rata gross investments and $7.5 billion of dispositions and loan payoffs.

1.c. Company Highlights

2. Welltower's Strong 2025 Results and Promising 2026 Outlook

Welltower reported a strong set of financial results for the fourth quarter and full-year 2025, with normalized funds from operations (FFO) per diluted share coming in at $1.45, beating analyst estimates of $1.44. The company's revenue growth was robust, with same-store net operating income (NOI) growth exceeding 20% for the thirteenth consecutive quarter. For the full year, Welltower delivered 36% revenue growth, 32% EBITDA growth, and 22% FFO per share growth. The company's senior housing operating portfolio (SHOP) continued to drive growth, with organic revenue growth around 10% and same-store NOI growth of 20.4%.

Publication Date: Feb -12

📋 Highlights
  • 10-Year Refounding Milestone and Growth Metrics:: Delivered 36% revenue growth, 32% EBITDA growth, and 22% FFO/share growth in 2025, alongside deleveraging and strategic investments in systems and talent.
  • Senior Housing Portfolio Strength:: Achieved 13th consecutive quarter of >20% same-store NOI growth, with organic revenue growth ~10%, driven by 400-basis-point occupancy gains and robust pricing power.
  • Private Funds Management Launch:: Successfully closed $2.5B US Seniors Housing Fund One, significantly oversubscribed, leveraging data science and capital allocation track record to expand into capitalized businesses.
  • Strategic Asset Transactions:: Sold $1.3B skilled nursing portfolio with 25% unlevered IRR and 3.1x money multiple, while deploying $11B in net capital to increase SHOP concentration to ~70%.
  • 2026 Growth Guidance and Acquisition Momentum:: Guided for 28.3% normalized FFO/share increase ($6.09–$6.25) over 2025, with $5.7B in new acquisitions closed or under contract, including the $3.2B Amica transaction.

Operational Highlights

Welltower's SHOP portfolio is showing signs of continued strength, with the company expecting another year of strong occupancy upside in 2026. The average age of the SHOP portfolio has decreased to sixteen years, compared to nineteen years in 2021, indicating a relatively modern and high-quality portfolio. The company's focus on operational excellence and its Welltower Business System initiatives is driving meaningful alpha for owners. As Shankh Mitra, the company's CEO, emphasized, "our compounding aspect is driven by mix shift, pricing power, and free cash flow generation."

Investment and Capital Allocation

Welltower has been actively investing in its business, deploying $11 billion of net investment capital in 2025. The company has also launched its private funds management business, with the US Seniors Housing Fund One closing with approximately $2.5 billion of equity commitments. Welltower's debt fund will focus on lending on existing, cash-flowing assets, providing a simple lending business. The company's investment strategy is focused on acquiring high-quality assets, with a focus on senior housing.

Valuation and Outlook

Given Welltower's strong financial performance and promising outlook, we can examine the company's valuation metrics to understand what's priced in. The company's P/E Ratio is -328.01, indicating a potentially challenging earnings environment. However, the P/S Ratio is 13.25, and the EV/EBITDA is 61.5, suggesting that investors are willing to pay a premium for Welltower's growth prospects. Analysts estimate next year's revenue growth at 9.5%, indicating a continued strong trajectory for the company.

Guidance and Key Trends

Welltower introduced a full-year 2026 outlook for net income attributable to common stockholders of $3.11 to $3.27 per diluted share and normalized FFO of $6.09 to $6.25 per diluted share. The company is guiding for higher occupancy and RevPAR growth in 2026, driven by its focus on operational excellence and its Welltower Business System initiatives. The senior housing industry is also seeing a trend towards larger residential units, which Welltower is well-positioned to capitalize on.

3. NewsRoom

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Real Estate Stocks To Follow Now – February 10th

Feb -12

Source: defenseworld.net

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Welltower Inc (WELL) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Growth Initiatives

Feb -11

Source: gurufocus.com

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Welltower Inc. (WELL) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

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Real Estate Stocks To Keep An Eye On – February 9th

Feb -11

Source: defenseworld.net

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Welltower (WELL) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -11

Source: zacks.com

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Welltower (WELL) Tops Q4 FFO and Revenue Estimates

Feb -10

Source: zacks.com

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Welltower expects annual FFO above estimates on stronger senior-housing demand

Feb -10

Source: reuters.com

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Welltower Issues Business Update

Feb -10

Source: prnewswire.com

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: 7.4/10

Value: 5.1

Growth: 7.7

Quality: 7.2

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

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CareTrust REIT

A-Score: 7.1/10

Value: 2.5

Growth: 3.9

Quality: 8.3

Yield: 9.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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National Health Investors

A-Score: 6.8/10

Value: 2.8

Growth: 4.4

Quality: 7.6

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Simon Property Group

A-Score: 6.2/10

Value: 2.1

Growth: 3.9

Quality: 7.0

Yield: 9.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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LTC Properties

A-Score: 6.2/10

Value: 2.7

Growth: 4.1

Quality: 6.2

Yield: 9.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Welltower

A-Score: 5.7/10

Value: 1.0

Growth: 3.9

Quality: 5.4

Yield: 5.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

208.19$

Current Price

208.19$

Potential

-0.00%

Expected Cash-Flows