Welltower Inc.
WELL · NYSE
Next quarter
Expected to report Oct 26, 2026 — estimated from last year’s reporting date.
Consensus is $1.63 EPS for Sep 2026 across 5 estimates, ranging $1.60 to $1.65.
WELL Jun 2026
- 3.23%
- -1.92%
- $1.55
- $1.60
- —
- —
Highlights
- Earnings beat: Reported EPS was $1.60 versus $1.55 consensus, a 3.23% surprise; GAAP diluted EPS was $0.61 versus $0.45 in Q2 FY2025.
- Operating growth: Pro rata NOI rose to $1.42 billion from $1.33 billion in Q1 FY2026 and $1.05 billion in Q2 FY2025, while same-store NOI increased 15.5% year over year to $800.5 million.
- Seniors housing momentum: Seniors Housing Operating same-store NOI grew 20.5% to $584.8 million, with occupancy improving to 89.4% from 88.8% in Q1 FY2026 and 86.1% a year earlier.
- Acquisition acceleration: Welltower completed $6.23 billion of acquisitions and loan funding at a 6.0% yield in Q2, including the $2.95 billion Amica Senior Lifestyles acquisition.
- Forward investment pipeline: Management said it had closed or expected to close more than $5 billion of seniors housing acquisitions in the second half of 2026; development commitments totaled $1.47 billion at a projected 10.5% yield.
- Portfolio reshaping: Outpatient Medical dispositions generated $1.26 billion of proceeds in the first half, including 70 properties sold under the broader portfolio transaction; 311 of 319 properties had been disposed by June 30.
- Balance-sheet capacity: Net debt to adjusted EBITDA was 2.99x, with $2.10 billion of cash and restricted cash and no balance on the $6.25 billion revolving credit facility at quarter-end.
- Shareholder returns: The board declared a $0.85 quarterly dividend, up from $0.74 in Q2 FY2025; the company raised $4.45 billion through common-stock issuance in the first half.
Analysis
Welltower's June 2026 quarter was defined by another step-up in seniors housing operations and a very large deployment of capital. The company beat the $1.55 consensus EPS estimate with reported EPS of $1.60, while GAAP diluted EPS was $0.61, up from $0.45 a year ago and below the $1.02 recorded in Q1 FY2026, which benefited from larger disposition-related gains. Consolidated revenue was $3.54 billion, versus $2.55 billion in Q2 FY2025 and $3.35 billion in the prior quarter; net income was $463.0 million, compared with $304.6 million a year ago and $752.3 million in Q1. Pro rata NOI increased to $1.42 billion from $1.33 billion sequentially and $1.05 billion year over year.
The underlying print was strongest in Seniors Housing Operating, where same-store NOI grew 20.5%, occupancy reached 89.4% and the margin expanded to 32.1%. Welltower also invested $6.23 billion in acquisitions and loan funding, led by Amica, while flagging more than $5 billion of additional seniors housing acquisitions for the second half. The funding was paired with continued portfolio recycling, including outpatient medical sales, and substantial equity issuance. Leverage remained moderate at 2.99x net debt to adjusted EBITDA, although the scale of investment and $4.45 billion of first-half equity issuance are central to the quarter's financial profile.
Seniors housing operations
Seniors Housing Operating remained the central operating story. Pro rata revenue rose to $3.03 billion from $2.82 billion in Q1 FY2026 and $2.01 billion in Q2 FY2025, while NOI increased to $872.9 million from $780.9 million sequentially and $543.1 million a year earlier. The gains reflected both portfolio expansion and strong same-store performance.
- Same-store NOI: NOI increased 20.5% year over year to $584.8 million, with the margin rising to 32.1% from 29.1% a year earlier.
- Occupancy: Same-store occupancy reached 89.4%, up from 88.8% in Q1 FY2026 and 86.1% in Q2 FY2025.
- Pricing: Same-store revenue per occupied unit per month increased 5.2% year over year to $6,059.
- Portfolio scale: Seniors Housing Operating included 1,994 properties and 202,480 pro rata units at quarter-end.
Acquisition strategy
Welltower significantly increased its investment pace, using seniors housing as the primary destination for capital. Gross acquisitions and loan funding totaled $6.23 billion in the quarter at a 6.0% yield, while gross investment activity including development funding reached $6.31 billion.
- Amica acquisition: The April 1 purchase of 34 Canadian seniors housing communities and interests in four unconsolidated properties totaled $2.95 billion, funded with cash, $408.6 million of assumed secured debt and $27.6 million of exchangeable partnership units.
- Quarterly mix: Seniors Housing Operating acquisitions totaled $4.27 billion, long-term/post-acute care acquisitions totaled $1.55 billion and loan funding contributed $368.6 million.
- Pipeline: Management announced more than $5 billion of seniors housing acquisitions had closed or were expected to close in the second half of 2026.
- Development: Development commitments were $1.47 billion, including $736.0 million of unfunded seniors housing operating commitments, with a projected 10.5% stabilized yield.
Portfolio recycling
The quarter continued Welltower's shift away from outpatient medical assets and toward seniors housing. The company sold 70 outpatient medical properties during the first half under its previously announced portfolio transaction and had disposed of 311 of the 319 properties covered by the agreement by June 30.
- Outpatient dispositions: First-half outpatient medical dispositions totaled $1.26 billion, including a $534.3 million gain on the 70 properties sold under the portfolio agreement.
- Cash proceeds: Total first-half real estate disposition proceeds were $2.35 billion, compared with $410.8 million in the year-ago period.
- Remaining sales: Held-for-sale assets at June 30 had an aggregate book value of $374.5 million and expected gross sales proceeds of approximately $527.4 million.
- Operating impact: Outpatient Medical same-store NOI rose only 2.4% year over year to $26.9 million, underscoring why the segment was a source of recycling capital rather than the principal growth engine.
Capital and leverage
Welltower funded its investment program with a combination of asset sales, common equity and debt capacity while keeping reported leverage in check. The balance sheet ended the quarter with meaningful liquidity, although the capital raise was substantial relative to the company's existing share base.
- Leverage: Net debt to adjusted EBITDA was 2.99x, and adjusted interest coverage was 7.67x for the quarter.
- Liquidity: Cash and restricted cash totaled $2.10 billion, and the $6.25 billion unsecured revolving facility had no outstanding balance.
- Equity funding: First-half common-stock issuance generated $4.45 billion of net proceeds, with 21.6 million ATM shares issued at an average price of $207.74.
- Debt maturity: Combined debt maturities and scheduled principal amortization totaled $3.01 billion in 2027 and $2.68 billion in 2028.
- Dividend: The quarterly dividend was raised to $0.85 per share, versus $0.74 in Q2 FY2025.
Broader portfolio performance
The rest of the portfolio provided steady support, but at materially lower growth rates than Seniors Housing Operating. Total same-store NOI reached $800.5 million, up 15.5% year over year, with growth concentrated in the operating seniors housing portfolio.
- Seniors Housing Triple-net: Same-store NOI grew 5.2% to $82.3 million; occupancy was 84.7%, with EBITDAR coverage of 1.23x and EBITDARM coverage of 1.46x.
- Long-Term/Post-Acute Care: Same-store NOI increased 2.9% to $106.4 million; EBITDAR coverage was 1.30x and EBITDARM coverage was 1.65x.
- Outpatient Medical: Occupancy was 97.0%, while same-store NOI grew 2.4% to $26.9 million; 94.7% of rental income came from investment-grade tenants.
- Total portfolio: Annualized in-place NOI was $4.87 billion, with Seniors Housing Operating representing 69.9% of the total.
