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Yahoo
15 hours ago
- Business
- Yahoo
Welltower Stock Gains 24.1% in Six Months: Will it Continue to Rise?
Shares of Welltower WELL have gained 24.1% in the past six months, outperforming the industry's upside of 5.7%. Welltower boasts a well-diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. Given an aging population and an expected rise in senior citizens' healthcare expenditure, the company's senior housing operating (SHO) segment is well-poised to benefit from this positive trend. The outpatient medical (OM) portfolio is expected to benefit from favorable outpatient visit trends in the near term. Analysts seem positive on this healthcare REIT, currently carrying a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share has been revised three cents northward to $5.02 over the past month. Image Source: Zacks Investment Research Let us decipher the possible factors behind the surge in the stock price. The senior citizens' population is expected to rise in the years ahead. As a result, the national healthcare expenditure by senior citizens, who constitute a major customer base of healthcare services and incur higher healthcare expenditures than the average population, is likely to increase in the upcoming period. Muted new supply has also been a tailwind for this industry. Capitalizing on these positive aspects, WELL's SHO portfolio is well-prepared for compelling multiyear revenue growth. For 2025, management anticipates the same-store SHO net operating income to grow within 16.5-21.5%. Historically, there has been a favorable outpatient visit trend compared with inpatient admissions. Banking on this, the company is optimizing its OM portfolio, growing relationships with health system partners and deploying capital in strategic acquisitions. Given the favorable secular trends and growing need for value-based care, the company's efforts to strengthen its OM footprint will boost long-term growth. Welltower has been actively banking on its growth opportunities through acquisitions. In March 2025, Welltower announced that it is under contract to acquire the Amica Senior Lifestyles portfolio from Ontario Teachers' Pension Plan for C$4.6 billion. The deal, subject to customary regulatory approvals, is expected to close in late 2025 or early 2026. The company has also been disposing of assets simultaneously. In the first quarter of 2025, Welltower completed pro rata property dispositions of $381 million and loan repayments of $123 million. Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. As of March 31, 2025, it had $8.6 billion of available liquidity, including $3.6 billion of cash & restricted cash and full capacity under its $5 billion line of credit. As of March 31, 2025, the net debt to adjusted EBITDA was 3.33X, improving from 4.03X year over year. Moreover, Welltower's debt maturities are well-laddered, with a weighted average maturity of 5.8 years, thereby enhancing its financial flexibility. With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term. A competitive landscape in the senior housing market and tenant concentration in its triple-net portfolio are likely to weigh on Welltower. Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Medical Properties Trust MPW, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI's 2025 FFO per share has moved one cent northward to $2.34 over the past two months. The Zacks Consensus Estimate for MPW's 2025 FFO per share has moved one cent northward to 57 cents over the past month. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report Welltower Inc. (WELL) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
07-05-2025
- Business
- Yahoo
Advocates want increased funding for senior services in Knoxville budget
KNOXVILLE, Tenn. (WATE) — As we wait for the second reading of Knoxville Mayor Indya Kincannon's proposed budget, some in the community are calling for ana amendment addressing the need for senior housing and additional programming amid the growing population. Vivian Shipe from the nonprofit organization I am the Voice of the Voiceless spoke during the City Council meeting last week to see if the council would address that need for more senior housing and programming across the city. Military helicopter training at Downtown Island Airport unsettles area residents 'We need to set aside money for senior housing, senior transportation and activities here in Knoxville and Knox County,' Shipe said. One place where it's hoped that need will soon be met, is in the Karns community. Construction on phase three of Willow Place, an affordable housing development for seniors, began last year with a completion date targeted for 2026. 'Our seniors are very active and they're living longer,' Shipe added. Shipe said census data projects Knoxville's senior population will rise 25% by 2030 and the city needs to start planning for the future. 'When you're talking about seniors who are in their 60's, 70's and 80's that are dancing, they're having activities at places like the O'Connor Center,' Shipe explained. 'They are having speakers, they're travelling, there's a set that's active. Then lets talk about the ones that maybe has health problems so we have to be prepared for that also.' TDOT 10-year plan gets $1 billion injection to speed up projects The John T. O'Connor Center has a variety of activities for those seniors who can make the trip to Winona Street in Knoxville helping make sure those seniors who may not have family close by can still socialize within the community. 'It's very important, especially with what we learned through the pandemic is when people are isolated, their physical and mental health decline,' Program Director at the John T. O'Connor Senior Center Mary Sibbett said. 'The J. T. O'Connor Center is a location for them to come and socialize, make friendships, build lifelong friendships, to build new friendships and to engage in different things that are fun for them.' Including the O'Connor Center, there are seven senior centers across Knox County. The O'Connor Center works with those other centers to provide the best slate of activities and socialization opportunities for area senior, but at times, that doesn't always seem to be enough due to the areas growing senior population. 'One of the things our participants or members ask me is, 'Mary, we need to add that second level so we can have more classes,'' Sibbett said. 'Some of our classes are full to the point where we would have to say 'sorry, can you come to tomorrow's class? We can't fit you in today. This is a very critical place for those [individuals] to come and we are very very fortunate to be a part of the CAC family.' 'We're getting double whammied right now': Local union president reacts to planned UPS layoffs A family whose impacts will continue to be felt and according to Shipe, they cannot be overlooked moving forward. 'I believe that it's going to be very important, not only for this budget and if not this budget, in budgets to come,' Shipe said. Sibbett said the average number of participants who utilize the center's programs has risen from nearly 400 to over 700 in the seven months she's been there. The second reading on the Mayor's budget proposal is set for Tuesday, May 27 with a public hearing happening on Tuesday, May 13. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to WATE 6 On Your Side.
