Welltower expects annual FFO above estimates on stronger senior-housing demand

Feb 10 (Reuters) – Welltower forecast annual funds from operations above estimates on Tuesday, citing strong demand for the healthcare REIT’s assisted living and senior housing properties.

The company sees 2026 normalized FFO, a key performance measure for REITs, in the range of $6.09 to $6.25 per share, above the analysts’ average estimate of $6.03 per share, according to data compiled by LSEG.

The REIT owns senior housing, outpatient medical centers and healthcare properties with a focus on facilities serving older adults. It operates across the United States, Canada and the UK.

Welltower also said it expects about $3.5 billion in total dispositions in 2026, including previously announced deals.

Its normalized FFO of $1.45 per share rose 28.3% year-over-year in the quarter ended December 31, just above analysts’ expectations of $1.44 per share. This marks Welltower’s sixth consecutive quarterly beat.

The increasing population of older Americans and their growing healthcare needs have led to a surge in demand for senior living communities.

Welltower’s same-store net operating income from its senior housing properties rose 15% from the year-ago period.

The Ohio-based company posted a net profit of $0.14 per share.

(Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Alan Barona)