Welltower forecasts annual FFO above estimates on strong demand for senior housing

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(Reuters) -Welltower forecast annual funds from operations (FFO) above estimates on Monday, betting on strong demand for the healthcare real estate investment trust’s assisted living and senior housing properties.

The REIT owns housing, outpatient medical centers and healthcare properties with a focus on older adults and assisted living. It operates in the United States, Canada and the UK.

The company now sees 2025 normalized FFO, a key performance measure for REITs, in the range of $4.90 to $5.04 per share, compared to its previous range of $4.79 to $4.95 apiece. This is above analysts’ average estimate of $4.92 per share, according to data compiled by LSEG.

The REIT reported quarterly normalized FFO of $1.20 per share in the quarter ended March 31, up 18.8% from the previous year.

An aging U.S. population and increasing healthcare spending by seniors have been driving demand for senior housing.

Welltower’s same-store net operating income from its senior housing properties rose 21.7% in the quarter.

The Ohio-based company posted a net profit of 40 cents per share, compared with a net profit of 22 cents per share reported a year earlier.

(Reporting by Sriparna Roy in Bengaluru; Editing by Alan Barona)