Group 1 - The company, Welltower, forecasts annual funds from operations above estimates due to strong demand for its assisted living and senior housing properties [1]

Portfolio Overview - The total properties in the portfolio amount to 2,534, with a total annualized In-Place NOI of $4,160,088,000[9]. - The total annualized In-Place NOI for the Seniors Housing Triple-net segment is $612,740,000, with a 2.6% increase projected for 4Q25[5]. - The total annualized In-Place NOI for the Seniors Housing Operating segment is projected to increase to $469,183,000 in 4Q25, reflecting a 20.4% change[5]. - The total number of properties in the seniors housing operating portfolio is projected to grow from 1,085 in 4Q24 to 1,659 by 4Q25[10]. - The company operates a total of 2,900 properties, with 1,410 classified as same store properties[82]. Occupancy Rates - The overall occupancy rate for the Seniors Housing Operating segment is 88.9%, with a private pay revenue mix of 93.2%[6]. - Total occupancy increased to 87.4% by 4Q25, up from 84.8% in 4Q24[10]. - The occupancy rate for outpatient medical properties was 95.5% in 4Q25, indicating strong demand in this segment[15]. - The occupancy rate for properties is expected to progress, with 32 properties currently at 0%-50% occupancy and 23 properties at 70%+ occupancy by 12/31/2025[35]. - The occupancy rate remained stable at 97.5% for Q4 2025, with an NOI margin of 86.6%[16]. Financial Performance - Total revenues for 4Q25 reached $2,607,559, reflecting a year-over-year growth rate of 9.6%[10]. - Total revenues for the company reached $3,223,960,000, with property operating expenses at $1,961,614,000, resulting in an NOI of $1,262,346,000[81]. - Consolidated net operating income (NOI) for 4Q25 is projected at $1,247,079,000, up from $841,530,000 in 4Q24, representing a significant growth[80]. - Same store NOI for 4Q25 is expected to be $643,341,000, reflecting a year-over-year growth of 15.0%[86]. - The company reported a total of 64 unstabilized properties as of 9/30/2025, with 68 properties expected by 12/31/2025[35]. Revenue Mix - The company has a diverse revenue mix, with 88.6% from private pay sources across the portfolio[6]. - Total revenues from Seniors Housing Operating are expected to grow from $1,805,306,000 in 4Q24 to $2,588,078,000 in 4Q25[44]. - The company anticipates continued growth in the silver economy, focusing on rental housing for aging seniors across the United States, United Kingdom, and Canada[99]. Investments and Acquisitions - The company completed 276 acquisitions from 2021 to 2025, totaling $35,314,348,000[22]. - In Q4 2025, the company made gross investments of $13,921,726,000 with a yield of 7.8%[25]. - Year-to-date 2025 gross investments amounted to $19,739,604,000, maintaining a yield of 7.4%[29]. - The company has made strategic adjustments to reflect consistent property ownership percentages, impacting the overall financial metrics positively[87]. Debt and Equity - The total debt stands at $20,560,581,000, with senior unsecured notes amounting to $16,451,346,000[38]. - Total debt as of December 31, 2025, was $19,737,446,000, representing 25.42% of the gross asset value of $77,653,668,000[48]. - The total equity and noncontrolling interests were $43,202,939,000, making up 74.84% of the consolidated book capitalization[48]. - The company has scheduled principal amortization and debt maturities totaling $19,636,968,000, with a weighted average interest rate of 4.01%[52]. Operational Metrics - The average maturity of rental income agreements is approximately 15 years, with 65.0% of total revenues coming from agreements maturing thereafter[13]. - The average remaining lease term across the portfolio is 11.8 years, with an average building size of 70,997 square feet[17]. - The average age of properties in the portfolio is 19 years, indicating a mature asset base[17]. - The company measures credit strength using leverage ratios and coverage ratios, with a focus on maintaining capitalization ratios consistent with its current profile[77]. Earnings and Profitability - Net income for the twelve months ended December 31, 2025, was $961,837,000, with a quarterly net income of $117,767,000[46]. - EBITDA for the twelve months ended December 31, 2025, reached $3,691,544,000, while the quarterly EBITDA was $910,717,000[46]. - Adjusted EBITDA for the twelve months was $4,169,347,000, with a quarterly adjusted EBITDA of $1,200,564,000[46]. - The interest coverage ratio was 5.82x for the twelve months and 4.63x for the quarter[46]. Future Projections - Projected future funding for Seniors Housing Operating is estimated at $370,374,000 for 2026, with total unfunded commitments of $566,137,000[33]. - The company anticipates a projected yield of 10.4% on committed balances of $1,360,100,000 for development properties[38]. - The company has 75 properties with a total of 10,427 beds/units projected by 12/31/2025, reflecting a net increase[35].

Core Insights - Welltower Inc. reported strong financial results for Q4 2025, with significant growth in revenue and investments, reflecting a robust operational performance in the seniors housing sector [1][2][3] Financial Performance - Reported normalized funds from operations (FFO) attributable to common stockholders of $1.45 per diluted share, an increase of 28.3% year-over-year [1] - Total portfolio year-over-year same store net operating income (SSNOI) growth of 15.0%, driven by a 20.4% increase in the Seniors Housing Operating (SHO) portfolio [1] - Quarterly net income attributable to common stockholders was $0.14 per diluted share [1] Investment Activity - Completed $13.9 billion of pro rata gross investments in Q4 2025, including $1.2 billion in loan funding and $112 million in development funding [2] - Closed the inaugural private fund vehicle, Seniors Housing Fund I, securing approximately $2.5 billion in total equity commitments [1][2] - Acquired a real estate portfolio in the U.K. for approximately £5.2 billion, enhancing growth potential with a blended portfolio occupancy in the high 70%s [2] Disposition Activity - Completed $7.5 billion of pro rata dispositions and loan payoffs in Q4 2025, exceeding prior expectations [1][2] - Total disposition activity for 2025 is expected to reach $11.8 billion, compared to $9.8 billion as of September 30, 2025 [2] Liquidity and Capital Structure - As of December 31, 2025, reported net debt to adjusted EBITDA of 3.03x and approximately $10.2 billion of available liquidity [1] - S&P and Moody's upgraded Welltower's credit ratings to "A-" and "A3" respectively, reflecting improved financial metrics and strong operating performance [1][2] Dividend and Shareholder Returns - The Board of Directors approved a 10.4% increase in the quarterly dividend per share, supported by solid financial performance and a low payout ratio [1] - Declared a cash dividend of $0.74 per share for the quarter ended December 31, 2025, marking the 219th consecutive quarterly cash dividend [2] Outlook for 2026 - Introduced earnings guidance for 2026, expecting net income attributable to common stockholders in the range of $3.11 to $3.27 per diluted share and normalized FFO in the range of $6.09 to $6.25 per diluted share [3]

Fund Performance - Baron Health Care Fund rose 13.10% in Q4 2025, outperforming the Russell 3000 Health Care Index which gained 11.92% and the Russell 3000 Index which gained 2.40% [1] - For the full year, the Fund returned 10.28%, while the benchmarks returned 14.56% and 17.15% respectively [1] - Strong stock selection in biotechnology contributed to the Fund's relative gains in the quarter [1] Investment Strategy - The Fund seeks to invest in businesses with secular growth opportunities, a sustainable competitive edge, and strong management [1] - The healthcare sector is viewed as a strong area in the U.S. economy, offering attractive investment opportunities with positive momentum heading into 2026 [1] Welltower Inc. Overview - Welltower Inc. (NYSE:WELL) is a healthcare REIT focusing on rental housing for aging seniors, with a market capitalization of $131.13 billion [2] - As of February 5, 2026, Welltower's stock closed at $191.06 per share, with a one-month return of 2.68% and a twelve-month increase of 33.99% [2] Welltower Inc. Investment Rationale - Welltower is positioned to benefit from favorable trends in the senior housing industry, particularly the supply/demand imbalance [3] - The over 80 population is expected to grow at a 4% to 5% CAGR over the next five years, contrasting with annual growth below 2% post-2008 financial crisis [3] - There is limited new supply of senior housing due to unattractive developer economics and lengthy project timelines [3] - Opportunities exist for improved operating margins and occupancy through enhanced asset management and data analytics [3] - Management has implemented an "all in" compensation program, reflecting confidence in shareholder value creation over the next decade [3]

Company Overview - Welltower Inc. is a real estate investment trust based in Toledo, Ohio, focusing on investments with senior housing operators, post-acute providers, and health systems, with a market cap of $127.3 billion [1] Stock Performance - WELL shares have outperformed the broader market over the past year, surging 34.4% in the last 52 weeks and growing 2.9% year-to-date, compared to the S&P 500 Index's 12.2% return and a marginal decline in 2026 [2] - WELL has also outperformed the State Street Real Estate Select Sector SPDR ETF, which saw a 1.8% decline over the past 52 weeks and a 2.2% increase this year [3] Earnings Report - On October 27, WELL stock increased by 2.6% following the release of better-than-expected Q3 2025 earnings, with total revenue rising 30.6% year-over-year to $2.7 billion, surpassing estimates [4] - The normalized FFO per share grew 20.7% from the previous year to $1.34, beating Wall Street's estimates by 3.1% [4] Future Projections - For the fiscal year ending December 2025, analysts anticipate a 22.2% year-over-year growth in adjusted EPS to $5.28, with a strong earnings surprise history as the company has exceeded bottom-line estimates in the past four quarters [5] - The consensus rating for WELL is "Strong Buy," with 14 "Strong Buys," two "Moderate Buys," and four "Holds" among 20 analysts [5] Analyst Ratings - UBS analyst Michael Goldsmith maintained a "Buy" rating for Welltower, lowering the price target from $232 to $228, while the mean price target of $214.63 indicates a 12.3% premium to current market prices [7] - The Street-high target of $260 suggests a potential upside of 36.1% from current levels [7]

Technology companies have been the early leaders in adopting AI. They are leveraging this powerful technology to increase efficiency, boost productivity, and enhance their growth. That has helped drive strong returns for tech stock investors. However, tech stocks aren't the only ones benefiting from AI-driven advances. The healthcare sector is starting to capitalize on this technology. That should benefit healthcare REIT Welltower (NYSE: WELL). Where to invest $1,000 right now? Our analyst team just reveal ...

Core Insights - WELL Health Technologies Corp. is focused on leveraging technology to improve health outcomes for healthcare practitioners and patients globally [1] - The company has outlined its strategic priorities for 2026 in a letter to shareholders from its CEO Hamed Shahbazi [1] Company Overview - WELL Health Technologies aims to tech-enable healthcare providers by developing advanced technologies, services, and support [2] - The company operates a comprehensive healthcare and digital platform that includes front and back-office management software applications [2] - WELL supports over 43,000 healthcare providers across the US and Canada and operates the largest owned healthcare ecosystem in Canada with more than 240 clinics [2] - In the US, WELL's solutions target specialized markets such as gastrointestinal, women's health, primary care, and mental health [2]

Core Viewpoint - Welltower Inc. will release its fourth quarter 2025 financial results on February 10, 2026, and will host a conference call on February 11, 2026, to discuss these results [1][2]. Company Overview - Welltower Inc. is an S&P 500 company focused on rental housing for aging seniors in the United States, United Kingdom, and Canada, with a portfolio of over 2,000 seniors and wellness housing communities [3]. - The company positions itself at the intersection of housing and hospitality, aiming to create vibrant communities for mature renters and older adults [3]. - Welltower views itself as an operating company within a real estate framework, emphasizing partnerships and a unique culture [3]. - The company employs a disciplined approach to capital allocation, supported by a Data Science platform and the Welltower Business System, to achieve long-term growth for its investors [3].

Core Insights - Welltower (WELL) shares have increased by 19.4% over the past six months, significantly outperforming the industry average gain of 2.9% [1][8] - The company has a well-diversified portfolio of healthcare real estate assets across key markets in the United States, Canada, and the U.K. [1] Industry Trends - The aging population and rising healthcare expenditures among senior citizens are expected to drive solid demand for Welltower's seniors housing operating portfolio (SHOP) [2][4] - Favorable trends in outpatient medical visits compared to inpatient admissions are anticipated to benefit the outpatient medical (OM) segment [5] Company Strategy - Welltower is focused on enhancing its SHO portfolio through strategic property additions and capital recycling via asset dispositions [6] - From the beginning of the year through October 27, 2025, Welltower completed $5.82 billion in pro-rata gross investments, including $5.47 billion in acquisitions and loan funding [6] Financial Position - As of September 30, 2025, Welltower had $11.9 billion in available liquidity, including $6.9 billion in cash and restricted cash, and full capacity under a $5 billion line of credit [9] - The company's net debt to adjusted EBITDA ratio stands at 2.36X, with a well-laddered debt maturity profile averaging 5.7 years [9]

Core Viewpoint - Welltower Inc (NYSE: WELL) is currently experiencing a rebound from its 20-week moving average and December 2025 lows, with the price maintaining a +50% year-over-year increase, indicating a favorable entry point for bullish investors [1][4]. Group 1: Stock Performance - The stock is bouncing off the 20-week moving average and its December 2025 lows, suggesting a potential upward trend [1][4]. - The price is holding steady at a +50% year-over-year level, which may attract bullish investors [1][4]. Group 2: Options Trading Activity - Short-term options traders are increasingly favoring puts, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.35, ranking in the 96th percentile of its annual range [3]. - The options appear affordable, with a Schaeffer's Volatility Index (SVI) of 25%, which is higher than just 25% of all other readings from the past year [3]. - A recommended March call option has a leverage ratio of 9.4, which could double with a 10.4% rise in the underlying equity [3].