Key Stats for Welltower Stock
- Price change for Welltower stock in the last 6 months: 35%
- $WELL Stock Price as of Jul. 28: $244
- 52-Week High: $253
- $WELL Stock Price Target: $245
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What Happened?
Welltower (WELL) stock jumped 4% initially before moving lower after the senior housing REIT raised its full-year guidance. Management now expects normalized funds from operations between $6.36 and $6.44 per share, ahead of the FactSet consensus estimate of $6.30.
The quarter itself was strong across the board.
- Revenue came in at $3.54 billion, up 39.1% from a year ago and well above the $3.36 billion analysts expected.
- Earnings per share reached $1.60, a big jump from $0.45 in the same quarter last year.
- FFO growth accelerated to 25% year-over-year, up from 23% in Q1.
- Digging into the details, same-store senior housing operating NOI growth stayed above 20%, and the spread between revenue per occupied room and expense per occupied room widened to 450 basis points.
- Total portfolio same-store NOI growth hit 15.5% for the quarter, driven largely by that 20.5% senior housing operating growth.
- Occupancy is also improving. Same-store occupancy in senior housing operations rose 330 basis points year-over-year to 89.4%.
- RevPOR growth accelerated to 5.2%, while expense growth per room was a much smaller 0.7%, showing the company is growing revenue faster than costs.
Welltower has also been busy buying.
- The company acquired $6.2 billion in assets during the quarter at an initial yield of 6.0%, beating the $5.1 billion analysts expected.
- Year-to-date, Welltower has closed or placed under contract $15.5 billion in acquisitions, compared to $19.3 billion for all of last year.
Given this momentum, the company raised its 2026 senior housing same-store NOI growth guidance to a range of 18.5% to 21.5%, up from the prior 16.5% to 21.5% range.
UBS reiterated its buy rating on Welltower stock with a $271 price target, pointing to the strong quarter and heavy acquisition activity as reasons for confidence.
Shares are trading near their 52-week high of $252.94, and the stock has returned 57% over the past year.
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What the Market Is Telling Us About Welltower Stock
The 4% pop shows investors are rewarding Welltower for both the earnings beat and the raised outlook, not just one or the other.
Occupancy gains, healthy rent growth, and disciplined cost control all point to a business firing on multiple cylinders at once.
Valuation is worth watching, though. Welltower stock trades at 36 times next-twelve-months FFO, a 108% premium to the sector, well above its five-year average premium of 77%.
That suggests the market already has high expectations baked in, meaning future results will need to keep clearing a high bar to keep pushing Welltower stock higher.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
