Welltower lifts 2026 FFO outlook on senior housing strength

Overview

• U.S. seniors housing REIT's Q2 normalized FFO per share rose 25% yr/yr

• Same store NOI grew 15.5%, led by 20.5% growth in Seniors Housing Operating portfolio

• Company raised quarterly dividend 15% to $0.85 per share

Outlook

• Welltower lowers 2026 net income guidance to $3.11-$3.19 per diluted share from $3.24-$3.38

• Company raises full-year 2026 normalized FFO guidance to $6.36-$6.44 per diluted share

• Welltower expects 2026 same store NOI growth of 13.75%-16.00%, led by seniors housing operating segment

Result Drivers

• SHO ORGANIC GROWTH - Co said 9.2% yr/yr same store revenue growth in Seniors Housing Operating portfolio was driven by 330 bps average occupancy growth and 5.2% increase in revenue per occupied room

• PORTFOLIO EXPANSION - Co completed C$4.1 bln acquisition of 38 Canadian seniors housing communities and closed on five additional properties under development

• CAPITAL RECYCLING - Co completed $843 mln of dispositions and loan repayments in Q2, including $561 mln of Outpatient Medical dispositions

Company press release: ID:nPnb6JJFra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Welltower Inc is $242.00, about 4% below its July 24 closing price of $252.07

• The stock recently traded at 82 times the next 12-month earnings vs. a P/E of 67 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)