Welltower Inc (NYSE: WELL) stock fell over 0.6% in the pre-market session of Feb 10th, 2021 (Source: Google finance) after the company posted mixed results for the fourth quarter of FY 20. In the fourth quarter, the company had completed $703 million of pro rata gross investments including $506 million in acquisitions at a blended, non-stabilized yield of 3.6%, and at a significant discount to replacement cost. $176 million in development funding with an anticipated stable yield of 7.6% and $21 million of loan funding at a yield of 6.5% were completed. During the quarter, the company had converted four development and expansion projects for an aggregate pro rata amount of $65 million and an expected stable yield of 9.1%. Further, during the quarter the company had completed pro rata property dispositions of $674 million at a 5.2% yield. At December 31, 2020, WELL had $2.0 billion of cash and cash equivalents, including $424 million of IRC section 1031 deposits, and $3.0 billion of available borrowing capacity under the unsecured revolving credit facility.
Moreover, during the quarter, the company had acquired a portfolio of 11 assisted living and memory care communities located throughout the Midwest for $89 million. The company expanded the RIDEA relationship with StoryPoint through the acquisition of four purpose-built, Class-A seniors housing communities in the Midwest for a pro rata investment of $147 million. During the fourth quarter, the company had sold a portfolio of SHO properties operated by Northbridge for $200 million, representing a 4.9% cap rate on March TTM NOI (with average portfolio occupancy during that time of 88%) or, $395,000 per unit. During the fourth quarter, the company had announced a joint venture partnership with certain investment vehicles managed by Wafra, comprising of a portfolio of 24 outpatient medical properties. In this transactions related to 18 properties have already closed in the quarter. The remaining six properties are anticipated to close in the first quarter.
WELL in the fourth quarter of FY 20 has reported the adjusted funds from operations (FFO) per share of 84 cents, beating the analysts’ estimates for the adjusted FFO per share of 77 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.12 billion in the fourth quarter of FY 20, missing the analysts’ estimates for revenue by 0.22%.
Additionally, the company has declared a cash dividend for the quarter ended December 31, 2020 of $0.61 per share.