Third Quarter Financial Performance and Revenue Growth
Welltower reported normalized funds from operations (FFO) of $1.67 per diluted share for the third quarter of 2026, marking a 24.6% increase compared to the same period in the prior year. Total revenue for the quarter reached $3.72 billion, representing 38% growth against the $2.69 billion recorded in the third quarter of 2025.
The company raised its full-year guidance for normalized FFO to a midpoint of $6.50 per share, indicating an expected 23% year-over-year growth. Management reported a shift in growth drivers from occupancy-led gains toward pricing power as portfolio occupancy reached levels where capacity is increasingly scarce.
Same-store Net Operating Income (SSNOI) grew 15.8%, driven by the seniors housing operating portfolio. Within this segment, SHOP SSNOI grew 21.0%, marking the 16th consecutive quarter of growth exceeding 20% for the division. RevPOR grew 5.3% across the seniors housing operating portfolio, reflecting pricing power as occupancy fills up.
The SHOP operating margin reached 31.7%, a 310-basis-point expansion compared to the prior year. Average occupancy in the same-store SHOP portfolio increased 320 basis points compared to the third quarter of 2025. The U.S. portfolio occupancy crossed 90%, with RevPOR growth of 5.5% in the same period.
Operational Metrics and Portfolio Expansion
The company executed $21 billion in investment activity year to date, consisting of 196 transactions with a median size of $35.5 million. Recent seniors housing acquisitions were completed at a 10% to 15% discount to replacement cost.
Triple-Net Seniors Housing SSNOI grew 4.2%, with trailing 12-month EBITDAR coverage at 1.22x. Skilled Nursing SSNOI grew 2.8%, supported by trailing 12-month EBITDAR coverage of 1.32x.
Shankh S. Mitra stated that differentiated operations and product market fit will increasingly define revenue growth. Nikhil Chaudhri noted that stress from a highly volatile macro and geopolitical environment is showing up where expected, noting rising interest rates and inflation have increased financial pressure on asset owners.
Capital Structure and Debt Management
Net debt to adjusted EBITDA stood at 3.02x at quarter end, with $9.5 billion in total available liquidity. Welltower issued C$1.15 billion in Canadian Unsecured Notes at a 3.95% blended coupon with an average term of six years.
The company completed $6 billion in total sales for the year to refine the portfolio and reduce leverage. Genesis Healthcare senior secured term loans totaling $130 million were repaid in full, achieving a 9% IRR on the investment.
Nikhil Chaudhri warned that approximately $8 billion of U.S. senior housing debt expires in 2026, with annual maturities increasing to between $10 billion and $12 billion in 2027 and 2028. Full-year General and Administrative (G&A) guidance is estimated at $267 million to $272 million, including $60 million in stock-based compensation.