Welltower (NYSE: WELL) reported Q4 EPS of $0.55, $0.25 better than the analyst estimate of $0.30. Revenue for the quarter came in at $1.26 billion versus the consensus estimate of $1.26 billion.

Fourth Quarter Highlights

• Reported net income attributable to common stockholders of $0.55 per diluted share compared to $0.27 per diluted share in 2018
• Reported normalized FFO attributable to common stockholders of $1.05 per diluted share, compared to $1.01 per diluted share in 2018, representing 4% normalized FFO growth
• Grew total portfolio same store NOI by 2.2%, driven by consistent performance across all property types
• Achieved same store REVPOR growth rate of 3.5% within the Seniors Housing Operating segment, led by the U.K. and U.S. portfolios
• Completed over $1.4 billion of pro rata gross investments comprised of $1.1 billion of high-quality acquisitions at a blended year one yield of 5.3% and expected stabilized yield of 5.6%. Additionally, completed $308 million of development funding with an expected stabilized yield of 7.9%
• Successfully closed our first green bond offering of $500 million of 2.7% senior unsecured notes due 2027, with proceeds to be used to fund renewable energy, water conservation, energy efficiency and green building projects

"Welltower continues to redefine the built environment where health and wellness services can be delivered with better outcomes, lower costs and enhanced consumer experience" commented Chairman and CEO, Thomas J. DeRosa. "This is evident in our recently announced groundbreaking strategic partnership with Jefferson Health, as well as innovative collaborations with industry leaders such as CareMore Health and Philips. Welltower's unique strategy and best-in-class health care real estate platform continue to drive strong, sustainable results, enabling us to enhance shareholder value through accretive capital deployment into next generation sites of care."

GUIDANCE:

Welltower sees FY2020 EPS of $2.96-$3.06, versus the consensus of $1.48.

Outlook for 2020 We are introducing our 2020 earnings guidance and expect to report net income attributable to common stockholders in a range of $2.96 to $3.06 per diluted share and normalized FFO attributable to common stockholders in a range of $4.20 to $4.30 per diluted share. In preparing our guidance, we have made the following assumptions:

• Same Store NOI: We expect average blended SSNOI growth of 1.5% to 2.5% which is comprised of the following components:
  • Seniors housing operating approximately 1.00% to 2.50%
  • Seniors housing triple-net approximately 2.25% to 2.75%
  • Outpatient medical approximately 2.25% to 2.75%
  • Health system approximately 1.95%
  • Long-term/post-acute care approximately 2.0% to 2.5%
• General and administrative expenses: We anticipate annual general and administrative expenses of approximately $140 million, including $30 million of stock-based compensation.
• Acquisitions/Joint Ventures: 2020 earnings guidance includes only acquisitions and joint ventures closed or announced year to date of $1.1 billion at a year 1 blended yield of 5.6%.
• Development: We anticipate funding approximately $468 million of development in 2020 relating to projects underway on December 31, 2019.
• Dispositions: We expect pro rata disposition proceeds of $1.7 billion at a blended yield of 5.1% in 2020.

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