Welltower raises FY24 normalized FFO view to $4.27-$4.33 from $4.13-$4.21

Consensus is for FY24 FFO $4.19. The company said, “In preparing our guidance, we have updated or confirmed the following assumptions: Same Store NOI: We expect average blended SSNOI growth of 11.5% to 13.0%, which is comprised of the following components: Seniors Housing Operating approximately 22.0% to 24.0; Seniors Housing Triple-net approximately 4.0% to 5.0%; 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 $205M-$211M and stock-based compensation expense to be approximately $40M, exclusive of approximately $33.5M of expected expense related to the Special Performance Option Awards and the 2022-2025 OPP Awards. Development: We anticipate funding an additional $247M of development in 2024 relating to projects underway as of September 30. Dispositions: We expect pro rata disposition proceeds of $899M at a blended yield of 8.4% in the next twelve months. This includes approximately $790M of consideration from expected property sales and $109M of expected proceeds from loan repayments. Pandemic Relief Funds: Our initial 2024 earnings guidance did not include the recognition of any pandemic relief funds which may be received during the year.