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Welltower, Inc. (WELL)
:WELL
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Welltower (WELL) AI Stock Analysis

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WELL

Welltower

(NYSE:WELL)

Rating:77Outperform
Price Target:
$189.00
▲(11.38% Upside)
Welltower's strong financial performance and positive earnings call results are the most significant strengths, supporting a high score. However, expensive valuation and overbought technical indicators present risks, slightly tempering the overall score.
Positive Factors
Earnings
Welltower reported a Normalized FFO that was above consensus, driven by NOI, other income, and income tax benefits.
Investment Activity
Management suggests a strong acquisition pipeline and potential for investment activity to reach $10B, leveraging current capital markets volatility.
Occupancy Growth
Welltower, Inc. achieved its highest occupancy gain in history, with a 400 basis points increase in SHOP occupancy year over year.
Negative Factors
Financial Forecast
The potential for investment activity to reach $10B is ambitious and may not materialize if market conditions change.
Market Volatility
Management is leaning into opportunities created by current capital markets volatility, which may present risks if the market conditions shift unfavorably.

Welltower (WELL) vs. SPDR S&P 500 ETF (SPY)

Welltower Business Overview & Revenue Model

Company DescriptionWelltower 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.
How the Company Makes MoneyWelltower makes money primarily through the ownership, management, and leasing of real estate properties focused on health care and senior living. The company generates revenue from rental income by leasing its properties to senior housing operators, health systems, and other healthcare providers. Additionally, Welltower engages in strategic partnerships and joint ventures to expand its portfolio and enhance its service offerings, which further contribute to its income. Revenue is also bolstered by property management fees and interest income from loans made to real estate operators and developers. The company's financial performance is influenced by factors such as occupancy rates, rental rate escalations, and the overall demand for senior living and healthcare facilities.

Welltower Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: 7.20%|
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant growth in FFO, NOI, and occupancy gains. While there are challenges, such as the underperformance of the Holiday by Atria portfolio, the overall growth trajectory and robust capital deployment overshadow these issues.
Q2-2025 Updates
Positive Updates
Strong FFO Growth
Welltower Inc. delivered strong FFO per share growth of 22%, exceeding expectations, and raised full-year FFO guidance midpoint by $0.13 to $5.10 per share.
Significant NOI Growth
The company reported 23.4% same-store NOI growth for seniors housing operating portfolio, marking the eleventh consecutive quarter of over 20% growth.
Record Occupancy Gains
The UK portfolio posted a 600 basis point pickup in occupancy and 27% same-store NOI growth, showcasing strong demand and favorable positioning.
Increased Capital Deployment
Year-to-date, Welltower closed or is under contract to close approximately $9.2 billion worth of acquisitions, reflecting robust and actionable pipeline.
Strong Balance Sheet and Liquidity
Following recent rating upgrades, the balance sheet is strong with net debt to adjusted EBITDA below three times, interest coverage over six times, and total liquidity at $9.5 billion.
Dividend Increase
A 10.4% increase in the quarterly dividend was announced, reflecting confidence in cash flow durability and growth trajectory.
Negative Updates
Underperformance in Holiday by Atria Portfolio
The Holiday by Atria portfolio transition is cited as the biggest capital allocation mistake, with initial execution plans and structuring being flawed.
Challenges in Non-Same Store Assets
Non-same store assets faced challenges with occupancy and margin expansion compared to same-store metrics due to incorporating under-occupied and new development assets.
Company Guidance
During the Welltower Inc. Second Quarter 2025 Earnings Call, the company announced a strong financial performance with a notable 22% growth in FFO per share, surpassing expectations. As a result, Welltower raised its full-year FFO guidance midpoint by $0.13 to $5.10 per share. The seniors housing operating portfolio reported a significant 23.4% same-store NOI growth, marking the eleventh consecutive quarter of growth exceeding 20%, driven by a 420 basis point occupancy increase. The UK portfolio, in particular, saw a 600 basis point occupancy gain and 27% same-store NOI growth. The company highlighted a 5% growth in RevPOR, with a wide margin expansion of 330 basis points in SHOP. Welltower also noted reaching significant milestones, with in-place annualized NOI for SHOP assets surpassing $2 billion and overall annualized company revenue indicating $10 billion for the first time. The company's investment activity remained robust, with $9.2 billion in acquisitions closed or under contract year-to-date, reflecting strong capital deployment and strategic growth initiatives.

Welltower Financial Statement Overview

Summary
Welltower shows strong financial performance with robust revenue growth, improved profitability margins, and a solid balance sheet. Cash flows are healthy, though some volatility in free cash flow suggests the need for cautious management.
Income Statement
85
Very Positive
Welltower's income statement shows robust growth and profitability. Revenue has consistently increased, with a TTM revenue growth rate of 7.94% from the previous year. Gross profit margin is strong at 51.55%, and net profit margin has improved significantly to 12.77%, indicating enhanced operational efficiency. EBIT and EBITDA margins are healthy at 15.09% and 35.87%, respectively, signaling good cost control and profitability.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.74, indicating moderate leverage. The equity ratio is robust at 63.72%, suggesting strong asset backing by equity. Return on equity has improved to 3.19%, showing better utilization of equity for generating profits. However, there is a need for vigilance regarding total liabilities management.
Cash Flow
80
Positive
Cash flow statements indicate strong cash generation with a free cash flow growth rate of -26.77%, reflecting some volatility. The operating cash flow to net income ratio stands at 1.71, and free cash flow to net income is 1.53, indicating efficient cash conversion. The company should focus on sustaining positive cash flow trends amid fluctuating investment and financing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.85B6.63B5.86B4.74B4.61B
Gross Profit3.02B2.68B2.30B1.97B2.01B
EBITDA2.78B2.40B2.01B1.70B1.52B
Net Income951.68M340.09M141.21M162.04M-41.52M
Balance Sheet
Total Assets51.04B44.01B37.89B34.91B32.48B
Cash, Cash Equivalents and Short-Term Investments3.51B1.99B631.68M269.26M1.55B
Total Debt16.76B16.12B14.96B14.68B14.22B
Total Liabilities18.47B17.64B16.50B15.91B15.26B
Stockholders Equity31.96B25.40B20.29B17.64B15.97B
Cash Flow
Free Cash Flow2.20B1.55B1.30B1.26B1.35B
Operating Cash Flow2.26B1.60B1.33B1.28B1.36B
Investing Cash Flow-5.51B-5.71B-3.70B-4.52B2.35B
Financing Cash Flow4.91B5.45B2.76B1.57B-2.08B

Welltower Technical Analysis

Technical Analysis Sentiment
Positive
Last Price169.69
Price Trends
50DMA
155.76
Positive
100DMA
151.55
Positive
200DMA
143.25
Positive
Market Momentum
MACD
3.78
Negative
RSI
72.54
Negative
STOCH
89.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WELL, the sentiment is Positive. The current price of 169.69 is above the 20-day moving average (MA) of 160.78, above the 50-day MA of 155.76, and above the 200-day MA of 143.25, indicating a bullish trend. The MACD of 3.78 indicates Negative momentum. The RSI at 72.54 is Negative, neither overbought nor oversold. The STOCH value of 89.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WELL.

Welltower Risk Analysis

Welltower disclosed 45 risk factors in its most recent earnings report. Welltower reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Welltower Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$0.0024.8210.47%6.71%12.73%23.51%
77
Outperform
$111.04B137.323.48%1.61%30.73%96.48%
77
Outperform
$31.45B156.071.81%2.76%12.45%
75
Outperform
$6.13B34.867.02%3.91%43.27%80.97%
71
Outperform
¥221.22B14.6810.66%3.76%18.21%20.85%
66
Neutral
$11.91B71.451.97%7.63%15.91%-49.49%
61
Neutral
$5.96B-7.59%7.50%-7.16%23.40%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WELL
Welltower
169.69
57.11
50.73%
DOC
Healthpeak Properties
17.19
-2.97
-14.73%
OHI
Omega Healthcare
40.00
5.21
14.98%
VTR
Ventas
68.73
12.61
22.47%
HR
Healthcare Realty Trust
16.95
0.56
3.42%
CTRE
CareTrust REIT
32.79
6.51
24.77%

Welltower Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Welltower Issues $1 Billion in New Notes
Neutral
Aug 4, 2025

On August 4, 2025, Welltower OP LLC, a prominent player in the healthcare and seniors housing property sector, issued $1 billion in notes, consisting of $400 million in 4.500% Notes due 2030 and $600 million in 5.125% Notes due 2035. These notes are guaranteed by Welltower Inc. and are part of a strategic financial maneuver to bolster the company’s capital for general corporate purposes, including debt repayment and investment opportunities in its core markets.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyRegulatory Filings and Compliance
Welltower Registers Shares for Recent Acquisition
Neutral
Jul 29, 2025

On July 29, 2025, Welltower Inc. filed a prospectus supplement with the SEC to register the offer and resale of up to 949,412 shares of its common stock. This filing is related to its recent acquisition of certain properties, reflecting the company’s ongoing strategic expansion in the healthcare real estate sector.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Welltower Issues $1.25 Billion in New Notes
Neutral
Jun 27, 2025

On June 27, 2025, Welltower OP LLC issued $1.25 billion in notes, comprising $600 million of 4.500% Notes due 2030 and $650 million of 5.125% Notes due 2035. The proceeds from these notes are intended for general corporate purposes, including debt repayment and investment in healthcare and seniors housing properties, reflecting the company’s strategic focus on expanding its real estate portfolio in these sectors.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Welltower Shareholders Elect Directors and Approve Plans
Positive
May 23, 2025

At the 2025 Annual Meeting of Shareholders on May 22, 2025, Welltower Inc. shareholders elected nine directors, ratified Ernst & Young LLP as the independent auditor for 2025, approved executive compensation, and amended the 2022 Long-Term Incentive Plan. These decisions reflect shareholder support for the company’s leadership and strategic direction, potentially strengthening its governance and financial oversight.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025