Welltower Boosts 2025 Profit Forecast as Senior Housing Demand Soars

Welltower (WELL) shares attracted interest from individual investors on Monday following an increase in its projected funds from operations for 2025.

The real estate investment trust has increased its forecast for full-year normalized funds from operations (FFO) to between $4.90 and $5.04 per share, an improvement from the previously estimated range of $4.79 to $4.95 per share.

Welltower has increased its earnings projection for 2025 to a span of $1.70 to $1.84 per diluted share, an improvement from the earlier estimate of $1.60 to $1.76 per diluted share.

The corporation's earnings for the first quarter amounted to $2.42 billion, which was nearly what financial analysts had anticipated.

The revenue from its resident fees and services division surged to $1.86 billion, up from $1.36 billion in the same period of the previous year.

For the quarter ending March 31, Welltower announced a net income of $257.9 million, equivalent to $0.40 per share. This represents a significant increase from the $127.1 million, or $0.22 per share, recorded in the same period the previous year.

The firm has thrived due to high demand for senior living accommodations. This year, they have undertaken multiple buyouts to strengthen their position within this sector.

In March, it agreed to purchase Amica Senior Lifestyles’ premium senior living portfolio along with specific assets from the Ontario Teachers' Pension Plan Board for $4.6 billion Canadian dollars.

In January, Welltower entered into an agreement to acquire NorthStar Healthcare Income, which owns senior living facilities, for a total valuation of $900 million.

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