Welltower raises FY24 normalized FFO view to $4.13-$4.21 from $4.05-$4.17

Consensus is for FY24 FFO $4.13. The company said, “We expect average blended SSNOI growth of 10.0% to 12.5%, which is comprised of the following components: Seniors Housing Operating approximately 19.0% to 23.0%; Seniors Housing Triple-net approximately 3.0% to 4.0%; Outpatient Medical approximately 2.0% to 3.0%; long-Term/Post-Acute Care approximately 2.0% to 3.0%. Investments: Our earnings guidance includes only those acquisitions announced or closed to date. Furthermore, no transitions or restructures beyond those announced to date are included. General and Administrative Expenses: We anticipate general and administrative expenses to be approximately $205 million to $211M and stock-based compensation expense to be approximately $40M. Development: We anticipate funding an additional $328M of development in 2024 relating to projects underway as of June 30. Dispositions: We expect pro rata disposition proceeds of $643M at a blended yield of 6.9% in the next twelve months. This includes approximately $601M of consideration from expected property sales and $42M of expected proceeds from loan repayments. Our initial 2024 earnings guidance did not include the recognition of any pandemic relief funds which may be received during the year. During the six months ended June 30 we recognized approximately $2M at our share related to Provider Relief Funds and similar programs in the United Kingdom and Canada. Our updated guidance does not include any additional funds in 2024. In 2023, we recognized approximately $13M at our share relating to Provider Relief Funds and similar programs in the United Kingdom and Canada.