Welltower Inc (NYSE:WELL) stock rose 2.26% (As on February 12, 11:28:58 AM UTC-4, Source: Google Finance) after the company reported mixed fourth quarter 2024 results, with earnings missing estimates but revenue beating expectations, while issuing full-year 2025 guidance below analyst projections. Welltower’s fourth quarter normalized funds from operations (FFO) per share, a key metric for REITs, rose 17.7% year-over-year to $1.13. The company reported strong same-store net operating income (SSNOI) growth of 12.8% compared to the prior year period, driven by a 23.9% increase in its Seniors Housing Operating portfolio.

Further, Welltower’s SHO portfolio saw a year-over-year same store revenue growth of 8.8% in the fourth quarter, on the back of a 310 basis points increase in average occupancy and a 5.0% growth in Revenue Per Occupied Room (RevPOR). The SHO portfolio’s SSNOI margin expanded by 320 basis points, mainly due to strong RevPOR growth outpacing Expense per Occupied Room (ExpPOR) growth. During the fourth quarter, Welltower completed $2.4 billion of pro rata gross investments, including $2.2 billion in acquisitions and loan funding and $233 million in development funding. The company also launched a private funds management business in January 2025, with the formation of a fund capable of sourcing up to $2 billion to invest in stable or near-stable seniors housing properties in the U.S.

WELL in the fourth quarter of FY 24 has reported the adjusted earnings per share of 19 cents, missing the analysts’ estimates for the adjusted earnings per share of 41 cents. The company had reported the adjusted revenue of $2.25 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $2.12 billion.

Additionally, the company has approved a 10% increase in the quarterly dividend per share, reflecting the company’s solid financial performance and strong growth prospects. In terms of capital activity, Welltower improved its net debt to Adjusted EBITDA ratio to 3.49x at December 31, 2024, from 5.03x at December 31, 2023. The company also closed on an expanded $5.0 billion senior unsecured revolving credit facility and issued $1.035 billion of 3.125% exchangeable senior unsecured notes maturing in July 2029.

Looking ahead, Welltower provided softer-than-expected guidance for fiscal year 2025. The company forecasts earnings per share in the range of $1.60 to $1.76, below the consensus estimate of $1.86. Normalized FFO is projected between $4.79 and $4.95 per share for 2025.