Seniors Housing Strength
Strategic Transformation
During the quarter, Welltower accelerated its shift toward becoming a “pure-play rental housing platform” for the aging population. The company completed $13.9 billion in gross investments, including the massive acquisition of U.K.-based portfolios operated by Barchester and HC-One.
Simultaneously, the REIT capitalized on high demand for medical office space by completing $6.1 billion in property dispositions, primarily from its Outpatient Medical (OM) portfolio. Management noted that the pace of these sales exceeded prior expectations.
Balance Sheet and Outlook
Welltower ended 2025 with a significantly strengthened balance sheet, reporting Net Debt to Adjusted EBITDA of 3.03x and approximately $10.2 billion in available liquidity. Credit rating agencies S&P and Moody’s both upgraded the company’s ratings during the year to “A-” and “A3,” respectively, citing improved leverage and strong operating performance.
Looking ahead, the company introduced 2026 guidance, projecting normalized FFO in the range of $6.09 to $6.25 per diluted share. The outlook assumes continued double-digit SSNOI growth, led by the SHO portfolio.
“We have achieved robust external growth while further reducing leverage,” the company stated in its business update, noting that the aging of the 80+ population continues to provide a “compelling backdrop” for multi-year revenue compounding.
The board of directors declared a quarterly cash dividend of $0.74 per share, a 10.4% increase reflecting confidence in the company’s cash flow trajectory.