Welltower Inc. continues to demonstrate why it remains a premier name in the healthcare real estate sector. The real estate investment trust’s latest quarterly figures not only surpassed market expectations but revealed an organization operating at peak performance levels. The impressive results, however, prompt a critical question: can this remarkable momentum be sustained given the company’s aggressive expansion plans and its current premium valuation?
Strategic Expansion Bolstered by Financial Health
Strategically, Welltower has maintained a highly offensive posture. The company has already exceeded its full-year 2024 acquisition volume by 50% with $9.2 billion in completed or contractually secured transactions since the beginning of the year. This aggressive growth trajectory is supported by exceptional financial discipline. With available liquidity of $9.5 billion and a net debt-to-EBITDA ratio of just 2.93x, Welltower possesses substantial financial capacity to pursue additional strategic investments.
Operational Excellence Drives Record Metrics
The company’s second quarter 2025 performance left little room for improvement. Normalized Funds from Operations (FFO)—a critical REIT performance metric—jumped a remarkable 21.9% year-over-year to reach $1.28 per diluted share. More impressively, same-store net operating income (NOI) climbed 13.8%, powered by the senior housing segment which delivered exceptional growth of 23.4%. This achievement marks the eleventh consecutive quarter where this segment has produced NOI growth exceeding 20%.
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Dividend Increase Reflects Management Confidence
This operational strength has directly influenced shareholder returns. Capitalizing on robust cash flows, Welltower’s board approved a 10.4% increase in the quarterly dividend—a clear signal from management that they view this positive trajectory as sustainable. This confidence is further supported by guidance projecting total portfolio NOI growth between 11.25% and 13.25%, alongside an anticipated revenue increase of 9.2%.
Welltower shares currently trade just shy of their 52-week high, having advanced more than 18% since the start of the year. Given the current valuation levels and the growth already reflected in the share price, investors are questioning whether Welltower has reached its full potential or if the healthcare real estate giant still has room to climb higher.
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