Raised Guidance and Major U.K. Acquisitions Might Change the Case for Investing in Welltower (WELL)

• Welltower reported third-quarter 2025 results with normalized FFO per share rising 20.7% year over year, supported by revenue and same-store NOI growth, while completing significant U.K. acquisitions of portfolios operated by Barchester and HC-One.
• The company raised its full-year guidance, reflecting management’s increased confidence in ongoing growth across its operating segments and newly acquired assets.
• We’ll explore how management’s raised guidance and recent acquisitions may affect Welltower’s investment case going forward.

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Welltower Investment Narrative Recap

Investors in Welltower share a belief in the resilience and growth potential of the health care REIT sector, anchored by increasing demand for senior housing and care. The company’s raised 2025 guidance and progress with U.K. acquisitions have provided near-term confidence, but the most immediate catalyst, occupancy and revenue growth, remains sensitive to potential supply-demand imbalances and wider macroeconomic risks, making the overall impact of recent results supportive, but not necessarily a game changer for its risk profile.

Among recent announcements, Welltower’s U.K. portfolio expansions through Barchester and HC-One are especially relevant, aligning with the company's push to enhance revenue growth and diversify earnings streams. These acquisitions, while significant, feed directly into the ongoing debate about leverage and balance sheet strength as the company manages higher investment levels against an uncertain economic backdrop.

In contrast, investors should be aware that even with elevated guidance and acquisition activity, the risk tied to high investment levels and future capital availability remains...

Read the full narrative on Welltower (it's free!)

Welltower's narrative projects $14.6 billion in revenue and $2.0 billion in earnings by 2028. This requires 16.3% yearly revenue growth and an $0.9 billion earnings increase from the current $1.1 billion.

Uncover how Welltower's forecasts yield a $198.95 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members posted six fair value estimates from US$136.42 to US$207.75 per share, showing a wide range of opinion. While many emphasize future revenue growth as a key support, some caution remains over exposure to macroeconomic uncertainty affecting demand and margins, offering plenty of fresh perspectives for you to consider next.

Explore 6 other fair value estimates on Welltower - why the stock might be worth 34% less than the current price!

Build Your Own Welltower Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Welltower research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Welltower research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Welltower's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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