Shares fell 5.8% despite Welltower raising its full-year FFO midpoint, suggesting investors focused on the risk that growth may decelerate as occupancy gains give way to pricing-led growth. Management said the transition is underway, but described next year’s occupancy outlook conditionally and noted that quarterly trends are not necessarily indicative of the longer-term path.
- Welltower raised its full-year FFO outlook midpoint by $0.10 per share to $6.50; if achieved, that would represent 23% year-over-year growth.
- Same-store NOI increased 16%, with SHOP accounting for 70% of same-store NOI; SHOP organic revenue growth was 9.1%.
- SHOP occupancy rose 120 basis points sequentially, while RevPOR increased 5.3%. Management said occupancy growth may moderate as communities fill and pricing becomes a larger revenue driver.
- SHOP expenses grew 4.3%, or less than 1% on an ExpPOR basis; the RevPOR–ExpPOR spread drove 300 basis points of margin expansion, and flow-through margin reached a record 66%.
- The company completed or announced more than $21 billion of investment activity year to date, including 196 transactions with a median size of $35.5 million.
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