Welltower acquired 43 seniors housing properties for $2.7 billion in the third quarter as rising occupancy and higher revenue per occupied room lifted operating results, the healthcare real estate company reported Monday.
The purchases were part of $4.1 billion in gross investments completed during the quarter, including development funding, according to the company’s October 26 earnings release. Investment figures reflect Welltower’s ownership share rather than the full value of jointly owned properties.
Same-store net operating income in its seniors housing operating portfolio rose 21% from a year earlier. Revenue in that portfolio increased 9.1%, supported by a 3.2-percentage-point gain in average occupancy and 5.3% growth in revenue per occupied room.
Net income was $415 million, with net income attributable to common stockholders of 54 cents per diluted share. Normalized funds from operations, a supplemental measure used by real estate companies, reached $1.67 per diluted share, up 24.6% from a year earlier. It is not the same as net income under generally accepted accounting principles.
Welltower also sold 25 outpatient medical properties for $139 million and seven seniors housing properties for $145 million during the quarter. Those amounts, like the acquisition figures, are reported on a pro rata basis.
The company said its gross investments completed or under contract for the year totaled $21 billion, excluding development funding. Of that amount, $13.3 billion had been completed in the first nine months; another $7.7 billion was closed or under contract after quarter-end. Transactions that have not closed remain subject to customary closing conditions.
The board declared a quarterly cash dividend of 85 cents per share, payable November 19 to stockholders of record November 10.
JBizNews Desk | Toledo, Ohio
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