Welltower Inc (NYSE:WELL) stock rose 3.09% (As on Feb 16, 12:50:19 AM UTC-4, Source: Google Finance) after the company posted better than expected result for the fourth quarter of FY 21. In the fourth quarter, the company completed $1.5 billion of pro rata gross investments including $1.4 billion in acquisitions and loan funding as well as $142 million in development funding. The company converted five development projects for an aggregate pro rata investment amount of $189 million. Further, during the quarter the company completed pro rata property dispositions and loan payoffs of $200 million. During the fourth quarter, the company acquired a portfolio of eight rental and six entrance fee communities from Watermark Retirement Communities for $580 million, located in attractive markets across the U.S. Watermark will be retained to manage the properties under a highly aligned RIDEA 3.0 management agreement. The company formed a new 98/2 joint venture with New Perspective Senior Living and simultaneously acquired three newly developed senior housing communities in fast growing micro markets in the Midwest with densification opportunities. The portfolio was acquired for a pro rata investment of $108 million, and New Perspective has assumed operations under a strongly aligned RIDEA 3.0 contract. The company has also entered into a construction contract to fund the development of 34 additional cottages at one of the properties for $8 million. The transaction is anticipated to generate unlevered IRR in the high single-digit range. During the fourth quarter, the company acquired a cottage-style active adult community located in Venice, Florida for $115 million.

During 2021, the company completed $5.7 billion of pro rata gross investments including $5.1 billion in acquisitions and loan funding as well as $546 million in development funding. The company converted 16 development projects for an aggregate pro rata amount of $625 million.

WELL in the fourth quarter of FY 21 has reported the adjusted earnings per share of 83 cents, beating the analysts’ estimates for the adjusted earnings per share of 15 cents, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 17 percent to $1.31 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.26 billion.

For the first quarter of 2022, the company expects average blended SSNOI growth of 7.0%, expects pro rata disposition proceeds of $220 million at a blended yield of 5.3% in 2022 and funding approximately $728 million of development in 2022 relating to projects underway on December 31, 2021.