Welltower raises FY23 normalized FFO view to $3.48-$3.59 from $3.43-$3.56

Consensus is for FY23 FFO $3.50. Sees FY23 SSNOI growth 10%-13%, which is comprised of the following components: Seniors Housing Operating approximately 20% to 25%; Seniors Housing Triple-net approximately 1% to 3%; Outpatient Medical approximately 2% to 3%; Long-Term/Post-Acute Care approximately 3% to 4%. The company said, “Our earnings guidance includes only those acquisitions closed to date. Furthermore, no transitions or restructures beyond those announced to date are included. Impact of Interest Rates: Increased interest rates on floating rate debt are expected to reduce 2023 normalized FFO attributable to common stockholders by approximately 20c per diluted share versus 2022. General and Administrative Expenses: We anticipate general and administrative expenses to be approximately $171M-$177M and stock-based compensation expense to be approximately $35M. Development: We anticipate funding an additional $441M of development in 2023 relating to projects underway on June 30, 2023. Dispositions: We expect pro rata disposition proceeds of $966M at a blended yield of 5.0% in the next twelve months. This includes approximately $961M from expected property sales and $5M of expected proceeds from loan repayments. Provider Relief Funds: Our initial 2023 earnings guidance did not include the recognition of any Provider Relief Funds or other government grants. During the six months ended June 30, 2023, we recognized approximately $11M at our share relating to Provider Relief Funds and similar programs in the United Kingdom and Canada. Our updated guidance does not include any additional funds in 2023. During the FY22, we recognized approximately $35 million at our share relating to these programs.”