Earnings

Welltower Raises 2026 Profit Outlook As Senior Housing Same-Store Income Jumps 21.0%

The senior-housing landlord lifted its full-year forecast after third-quarter normalized FFO rose 24.6% to $1.67 per diluted share.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Welltower Raises 2026 Profit Outlook As Senior Housing Same-Store Income Jumps 21.0%

Welltower, the real estate investment trust that owns rental housing for aging seniors in the U.S., U.K. and Canada, raised its 2026 earnings outlook Monday after normalized funds from operations climbed 24.6% to $1.67 per diluted share in the third quarter. The company's 8-K carried the results; management discusses them on a call Tuesday at 9:00 a.m. Eastern.

A higher bar for the full year

Welltower now expects full-year normalized FFO, a standard REIT profit measure, of $6.47 to $6.53 per diluted share, up from $6.36 to $6.44. Its net income forecast for common stockholders rose to $3.31 to $3.37 per share from $3.11 to $3.19.

The guidance assumes blended same-store net operating income growth of 15.0% to 16.25%. Seniors Housing Operating is expected at about 20.25% to 21.75%, triple-net seniors housing at 3.5% to 4.5%, and outpatient medical and skilled nursing each at 2.0% to 3.0%. The company said the outlook includes only acquisitions announced or closed to date.

Occupancy and rents drive the quarter

Third-quarter net income was $415 million, or $0.54 per diluted share for common stockholders. Total revenue reached $3.72 billion, against $2.69 billion a year earlier.

Same-store net operating income rose 15.8% across the portfolio and 21.0% in Seniors Housing Operating, where outside partners run the properties. Organic same-store revenue there grew 9.1%, built on 320 basis points (3.2 percentage points) of higher average occupancy and 5.3% growth in revenue per occupied room.

The company said it has closed or has under contract $21.0 billion of pro rata gross investments this year, excluding development funding: $13.3 billion completed in the first nine months and $7.7 billion closed or under contract since quarter end. Year to date it completed $4.1 billion of dispositions and loan repayments.

Balance sheet and payout

Net debt stood at 3.02 times adjusted EBITDA at September 30, with about $9.5 billion of available liquidity. In July Welltower sold C$1.15 billion of senior unsecured notes at a weighted-average coupon of 3.95%.

The board declared a $0.85 quarterly dividend, payable November 19 to holders of record November 10. It is the company's 222nd consecutive quarterly dividend.

Where the income comes from

Welltower's 10-K shows Seniors Housing Operating made up 78% of 2025 revenue, with triple-net leases at 11% and outpatient medical at 7%. That makes the segment's 21.0% same-store gain the number driving the raised forecast.

Management is due to lay out more detail on its 2026 assumptions on Tuesday's call.

Sources

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