WELL

WELL's SHO portfolio posts 20.5% SSNOI growth as acquisitions and capital recycling support its seniors housing focus.

The leading edge of 70 million baby boomers just started turning 80, and new senior housing construction sits at record lows.

WELL is trading at historically high valuations, now over 3x the sector average FFO multiple. WELL's shift to the SHOP model and strong senior housing demand have driven double-digit dividend and NOI growth, with Q2 SHOP NOI up 20.5%. Despite operational strength and raised guidance, WELL faces significant downside risk if market sentiment or growth expectations falter.

REITs snapped a 3-month winning streak with a -0.49% average total return in July. Mid-cap (+2.12%) and large-cap REITs (+1.48%) continued to perform well, but small caps (-0.81%) and especially micro caps (-9.49%) struggled. 59.06% of REIT securities had a positive total return in July.

After a lengthy run of disappointment, real estate investment trusts (REITs) and the related ETFs are notching some impressive performances this year, with the largest ETF in the category higher by 11%. Proving active management brings benefits to the real estate sector, the ALPS Active REIT ETF (REIT) is higher by more than 17% year-to-date.

Welltower NYSE: WELL reported second-quarter results marked by higher senior housing occupancy, pricing gains and continued investment activity, while raising its full-year normalized funds from operations outlook.

WELL's Q2 FFO beat and 20.5% SHO SSNOI growth fuel a higher 2026 outlook, while acquisitions strengthen its seniors housing focus.

TOLEDO, Ohio, July 27, 2026 /PRNewswire/ -- Welltower® Inc. (NYSE: WELL) has issued the following business update which can be found at: https://welltower.com/jul-27-26-business-update  About Welltower Welltower Inc. (NYSE: WELL), an S&P 500 company, is positioned at the center of the silver economy, focusing on rental housing for aging seniors across the United States, United Kingdom, and Canada. Our portfolio of 2,500+ seniors and wellness housing communities are positioned at the intersection of housing and hospitality, creating vibrant communities for mature renters and older adults.

TOLEDO, Ohio, July 27, 2026 /PRNewswire/ -- Welltower Inc. (NYSE:WELL) today announced results for the quarter ended June 30, 2026. Second Quarter and Other Recent Highlights Reported net income attributable to common stockholders of $0.61 per diluted share Reported quarterly normalized funds from operations attributable to common stockholders of $1.60 per diluted share, an increase of 25.0% over the prior year Reported total portfolio year-over-year same store NOI ("SSNOI") growth of 15.5%, driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio of 20.5% SHO portfolio organic same store revenue growth increased 9.2% year-over-year in the second quarter, resulting from 330 basis points ("bps") of average occupancy growth and 5.2% growth in Revenue Per Occupied Room ("RevPOR") Year-to-date, closed or under contract to close $15.5 billion of pro rata gross investments, including $9.4 billion completed in the six months ended June 30, 2026 and $6.1 billion closed or under contract to close subsequent to quarter end, excluding development funding.

Welltower trades at an extreme premium, with a 41x forward AFFO multiple and implied cap rates below 3%. WELL's short-term AFFO per share growth is strong, but margin expansion and cost controls are unsustainable long-term. The REIT's best move is to issue equity at these valuations, but future AFFO multiple compression poses significant downside risk.