Welltower raises 2026 outlook as third-quarter normalized FFO rises 24.6% to $1.67 a share

Welltower Inc. (NYSE: WELL) reported third-quarter normalized funds from operations of $1.67 per diluted share, up 24.6% from a year earlier, and raised its 2026 earnings outlook, according to its earnings release on October 26.

What happened

Normalized funds from operations (FFO), a real estate investment trust (REIT) earnings measure that excludes depreciation and other items, was $1.67 per diluted share in the third quarter, compared with $1.34 a year earlier. Net income attributable to common stockholders rose to $396.6 million, or $0.54 per diluted share, from $280.6 million, or $0.41 a share (the 41.4% rise in dollars is computed).

Total revenues were $3.72 billion, up 38.4% from $2.69 billion a year earlier (computed). Resident fees and services, the largest line, rose 51.4% to $3.12 billion (computed).

Same store net operating income (NOI) across the portfolio grew 15.8% from a year earlier. In the Seniors Housing Operating portfolio it grew 21.0%, helped by a 320 basis point rise in average occupancy and a 5.3% increase in revenue per occupied room.

The company raised its 2026 outlook for normalized FFO to $6.47-$6.53 per diluted share from $6.36-$6.44. Its net income outlook is now $3.31-$3.37 per diluted share, up from $3.11-$3.19. It expects blended same store NOI growth of 15.0% to 16.25% for the year.

Why it matters

Welltower said it completed $4.1 billion of pro rata gross investments in the quarter, including $2.7 billion across 43 seniors housing properties. Since the start of the year it has closed or is under contract to close $21.0 billion of investments, of which $7.7 billion was closed or under contract after quarter end and remains subject to customary closing conditions.

It reported net debt of 3.02 times adjusted EBITDA and about $9.5 billion of available liquidity at September 30. The quarterly dividend of $0.85 a share compares with $0.74 a year earlier, and is the company's 222nd consecutive quarterly cash dividend.

What to watch

Welltower is scheduled to discuss the results on a conference call on Tuesday, October 27, at 9:00 a.m. ET. The dividend is payable on November 19 to shareholders of record on November 10.