Welltower Inc (NYSE:WELL) stock fell 1.36% (As on October 28, 11:21:54 AM UTC-4, Source: Google Finance) after the company reported third quarter normalized funds from operations (FFO) of $1.34 per share, representing a 20.7% increase from the same period last year, despite missing analyst expectations on earnings per share. Welltower also announced a significant $23 billion in transaction activity, including $14 billion in acquisitions primarily focused on seniors housing communities. The company’s same-store net operating income (SSNOI) grew 14.5% YoY, driven by a 20.3% increase in its Seniors Housing Operating portfolio. Same-store margins expanded by 260 basis points, with revenue growth of 9.7% resulting from 400 basis points of occupancy improvement and 4.8% growth in revenue per occupied room. The company also announced a significant strategic shift, including the sale of an 18 million square foot outpatient medical portfolio valued at approximately $7.2 billion, with the first tranche of $2 billion already completed in October. Additionally, Welltower disclosed plans to intensify its focus on seniors housing, which is expected to represent mid-80% of its net operating income following these transactions.

Moreover, the healthcare real estate investment trust has closed or is under contract to close $14 billion of investments spanning over 700 seniors housing communities with more than 46,000 units. The company plans to fully fund these acquisitions through $9 billion in asset sales, loan repayments, and other capital recycling activities, along with cash on hand. With a robust current ratio of 3.22 and strong revenue growth of 31.96% over the last twelve months. The largest component includes the acquisition of a Barchester-operated portfolio in the UK for £5.2 billion, comprising 111 communities under RIDEA contracts, 152 triple-net leased properties, and 21 ongoing developments. Welltower also purchased the HC-One-operated portfolio for £1.2 billion, partially funded through the repayment of a £660 million loan.

WELL in the third quarter of FY25 has reported the adjusted earnings per share of 41 cents, missing the analysts’ estimates for the adjusted earnings per share of 52 cents. The company had reported the adjusted revenue of $2.69 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $2.61 billion. Welltower completed $1.9 billion of investments during the quarter, including $1.8 billion in acquisitions and loan funding. The company declared a quarterly cash dividend of $0.74 per share, payable on November 20, 2025.

Welltower raised its full-year normalized FFO guidance to $5.24-$5.30 per share from the previous range of $5.06-$5.14, while lowering its net income guidance to $0.82-$0.88 per share from $1.86-$1.94 previously.