Welltower Inc (NYSE:WELL) stock rose 2.97% (As on August 1, 11:19:51 AM UTC-4, Source: Google Finance) after the company raised its guidance for 2023 normalized FFO per share. The total same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio.  The SHO portfolio’s same-store revenues increased 9.9% year over year, backed by a 190-basis point uptick in average occupancy from the year-ago quarter. A 7.3% year-over-year rise in same-store revenue per occupied room (REVPOR) was another contributing factor. The company’s total portfolio SSNOI grew 12.7% year over year, supported by SSNOI growth in its SHO portfolio of 24.2%. As of Jul 28, 2023, WELL had $6.7 billion of available liquidity comprising $2.7 billion of available cash and restricted cash and full capacity under its $4.0 billion line of credit.

WELL’s pro-rata gross investments in the second quarter totaled $414 million. This included $164 million in acquisitions and loan funding, and $250 million in development funding. It opened nine development projects for a pro-rata investment amount of $315 million. Welltower also completed pro-rata property dispositions and loan payoffs of $433 million in the quarter. Further, in the quarter, WELL entered into definitive agreements to dissolve its existing joint venture (JV) with Revera across the United States, the United Kingdom and Canada.

WELL in the second quarter of FY 23 has reported the normalized funds from operations (FFO) per share of 90 cents, beating the analysts’ estimates for the adjusted earnings per share of 86 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 13.1 percent to $1.67 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $1.59 billion.

Additionally, the company has announced a cash dividend of 61 cents per share for the second quarter. The dividend will be paid out on Aug 23 to stockholders of record as of Aug 15, 2023

Welltower now projects 2023 normalized FFO per share of $3.48-$3.59, up from the prior-guided range of $3.43-$3.56. The Zacks Consensus Estimate for the same is pegged at $3.50, which lies within the guided range.

The company’s full-year guidance now assumes the average blended SSNOI growth of 10-13%, comprising 20-25% growth in Seniors Housing Operating, 1-3% in Seniors Housing Triple-net, 2-3% in Outpatient Medical and 3-4% in Long-Term/Post-Acute Care.

Welltower expects to fund an additional $441 million of development in 2023 relating to projects underway as of Jun 30, 2023.