Welltower (NYSE: WELL) has demonstrated strong occupancy gains and nearly $3 billion in gross investments throughout the fourth quarter of 2023. This marks one of the most active periods of capital deployment in the company’s history, according to a recent business update.
The Toledo, Ohio-based real estate investment trust (REIT) reported a significant $2.8 million in pro rata gross investments in the last quarter of the previous year, bringing the total year-end investments for 2023 to $4.8 billion. The company aims to continue this investment pace in the current year.
Furthermore, Welltower anticipates closing $1.2 billion in acquisitions in the first half of this year, pending loan assumption timing. The company’s acquisition pipeline remains strong, with a robust outlook for continued growth.
According to the business update, the capital deployment environment remains favorable, with motivated sellers seeking near-term liquidity and operator solutions.
Welltower also expects to achieve a full-year, same-store revenue increase in line with previous guidance of 9.8% within its senior housing operating (SHO) portfolio. The company’s fourth-quarter occupancy growth significantly outperformed seasonal trends and represented its strongest quarter of growth in 2023.
Despite a delay in asset disposition timing in the fourth quarter and early this year, full-year 2023 net income attributable to common shareholders is expected to be below previous guidance, in the range of $0.91 to $0.95 per diluted share.
On the other hand, Welltower anticipates full-year 2023 normalized funds from operations (FFO) at the higher end of its previously issued guidance, reaching $3.59 to $3.63 per diluted share.
At the close of the market on Monday, Welltower stock fell to $88.94, a decrease of $0.91 (1.01%) from the previous market close.
