Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$83.61Last close (Oct 31, 2023)
Post-Earnings Price$83.84Open (Nov 1, 2023)
Price Change
$0.23(+0.28%)
- Welltower expects to maintain strong revenue growth through substantial rate increases to existing customers without significant pushback, due to the high-end positioning of their properties and short average length of stay.
- Integra assets have shown remarkable performance improvements, generating $127 million of EBITDARM in Q2, representing a $215 million positive cash flow swing within six months of transition, exceeding initial expectations.
- Welltower is capitalizing on high-quality acquisition opportunities without increasing risk, as the current market provides access to trophy assets due to broken capital structures rather than asset quality issues.
- The company anticipates another year of elevated G&A expenses due to ongoing platform build-out, potentially impacting near-term earnings.
- Sustainability of rate increases may face challenges due to possible customer pushback, particularly from elderly residents who may be sensitive to price increases.
- The company's margins are at a suboptimal level, which may hinder the ability to attract capital and achieve desired profitability.