Welltower Inc

Welltower reported second-quarter 2026 normalized funds from operations of $1.60 per share, beating the Zacks Consensus Estimate of $1.55 by 3.23% and rising 25% year over year. Total revenues of $3.54 billion surpassed the consensus mark of $3.43 billion by 3.41% and increased 39.1% from a year earlier, driven by same-store net operating income growth in the seniors housing operating portfolio. The SHO portfolio delivered same-store NOI growth of 20.5%, marking the 15th consecutive quarter of at least 20% growth, with same-store revenues up 9.2% to $1.82 billion and average occupancy improving 330 basis points to 89.4%. Management raised its full-year 2026 normalized FFO guidance to a range of $6.36 to $6.44 per share and increased the quarterly dividend by 15% to 85 cents per share.

Coca-Cola and Sherwin-Williams were among the biggest premarket movers after both companies reported quarterly results that exceeded expectations and raised their full-year outlooks. Coca-Cola shares rose 2% after posting adjusted earnings of 97 cents per share on revenue of $13.38 billion, topping analyst estimates. Sherwin-Williams climbed nearly 6% with adjusted earnings of $3.70 per share on $6.79 billion in revenue, also beating forecasts and lifting its full-year earnings guidance. Johnson & Johnson gained more than 2% after agreeing to pay $5.5 billion to settle talc-related ovarian cancer lawsuits. Hilton Worldwide fell 2.7% after issuing third-quarter earnings guidance below consensus, while Universal Health Services dropped 3% on a lowered full-year outlook. Welltower advanced 4.5% after raising its full-year normalized funds from operations forecast above estimates, and Happen, formerly LendingClub, surged more than 6% on stronger-than-expected full-year earnings guidance.

Several companies made notable after-hours moves following their latest earnings reports. Cadence Design Systems rose more than 4% after posting second-quarter adjusted earnings of $2.11 per share, beating the LSEG consensus of $2.05, while revenue of $1.58 billion met expectations. Rambus edged higher after reporting adjusted earnings of 77 cents per share on revenue of $207 million, exceeding analyst estimates of 72 cents and $198 million. Welltower jumped 4% after the senior housing real estate investment trust raised its full-year normalized funds from operations guidance to a range of $6.36 to $6.44 per share, above the FactSet consensus of $6.30. Universal Health Services dropped more than 4% after lowering its full-year adjusted earnings guidance to between $22.28 and $23.65 per share, down from a prior range of $22.64 to $24.52. Happen, the bank formerly known as LendingClub, advanced 4% after issuing full-year earnings guidance of $1.80 to $1.90 per share, surpassing the FactSet consensus of $1.74, and projecting loan originations of $12.2 billion to $12.6 billion. F5 gained nearly 2% after third-quarter adjusted earnings of $4.73 per share on revenue of $865 million topped the LSEG consensus of $4 per share and $388 million. Cincinnati Financial lost almost 4% after operating earnings of $1.43 per share missed the FactSet consensus of $1.84, and net premiums of $2.64 billion came in slightly below the expected $2.66 billion. Nucor dipped 1% despite beating second-quarter earnings and revenue expectations, with the stock already up more than 50% year to date. Principal Financial Group fell 3% even though operating earnings of $2.42 per share exceeded the FactSet consensus of $2.34, as the stock had already risen more than 25% this year.

Welltower, Universal Health Services, and Element Solutions made notable after-hours moves on Tuesday following their quarterly earnings reports. Welltower advanced more than 4% after the bell, recovering from a nearly 1.5% decline during the regular session, after the healthcare REIT beat second-quarter earnings estimates and raised its 2026 guidance. Universal Health Services dropped about 10.4% in extended trading despite a 2.3% gain at the close, as its revenue rose 8.4% year-over-year but earnings per share missed expectations by $0.03. Element Solutions added to its 1.1% regular-session gain after reporting an EPS and revenue beat.

Welltower CEO Shankh Mitra transformed the real estate investment trust into a $160 billion giant focused on senior-living communities, with shares climbing from around $40 to more than $200 in six years. During the pandemic, he launched a $40 billion buying spree across North America and the U.K., acquiring 2,500 facilities that offer independent living, assisted living, and memory care. The properties are operated by partners such as Sunrise Senior Living and Atria Senior Living, and are concentrated in affluent areas with dense older populations, like a Manhattan residence where monthly fees start at $15,330. Mitra’s $821 million compensation package, contingent on performance targets, drew comparisons to Elon Musk’s pay, while industry data shows senior housing was the most profitable real estate sector last year with returns hitting 7% and occupancy at record highs amid surging demand from an aging population.

Real estate investment trusts, or REITs, were the best-performing asset class in June, a surprise turnaround for a sector that has struggled for years. The S&P 500 fell about 1% in June, while most other asset classes also declined, but REITs posted gains. The entire REIT sector is up about 9.5% this year, as measured by the Vanguard Real Estate Index Fund ETF, slightly outperforming the broader market. Lodging and resort REITs surged almost 43% this year and 12% in June alone, driven by a resurgence in group and corporate travel, while data center REITs climbed more than 33% on growth from artificial intelligence and rising data usage. Healthcare and self-storage REITs each rose over 20% in 2026, with only gaming and telecommunications REITs posting declines among the 14 REIT categories tracked by the National Association of Real Estate Investment Trusts.

Healthcare real estate investment trusts are gaining attention as a long-term bet on aging demographics. Senior housing occupancy in the 31 primary U.S. markets reached 89.5% in the first quarter of 2026, marking the 19th consecutive quarter of growth, while inventory growth slowed to a record low. Welltower, CareTrust REIT, and LTC Properties are among the companies well-positioned to benefit from these trends through expanding senior housing exposure and improving cash flows. Welltower highlighted unprecedented demand and historically low new supply during its first-quarter 2026 earnings, while CareTrust noted demographic tailwinds and improving occupancy, and LTC Properties emphasized favorable trends and disciplined investment underwriting.

Welltower shares have risen 20.9% over the past six months, outpacing the industry's 12.4% gain, driven by robust demand for its seniors housing operating portfolio. First-quarter 2026 total portfolio same-store net operating income grew 16.4% year-over-year, with the SHO portfolio up 22.1%. The company closed $3.3 billion in pro rata gross investments in the quarter and has an additional $7.2 billion closed or under contract post-quarter, including the C$4.1 billion Amica Senior Lifestyles acquisition in Canada. Welltower also sold 60 outpatient medical properties for $1.38 billion as part of a $4.3 billion disposition plan to fund reinvestment, while maintaining $11.1 billion in available liquidity as of March 31, 2026.

Real estate stocks gained as the rotation out of technology continued, with the S&P 500 Real Estate Index Sector rising 3.94% to close at 288.04 points. The S&P 500 fell 1.96% for the week to 7,353.29, while real estate was the third-largest gaining sector behind health care and utilities. Among large-cap gainers, Healthpeak Properties led with a 10.17% weekly rise to $21.55 after JPMorgan raised its price target, and Welltower added 10.01% to $227.33. KE Holdings topped the losers, retreating 4.36% to $14.26 after President Donald Trump canceled the signing of an affordable housing bill. Hotel and resort REITs have been the biggest beneficiaries year-to-date, with the S&P 500 Hotel & Resort REITs sector adding approximately 40%.

Welltower Co-President and CFO Timothy McHugh received a pay package of nearly $167 million in 2025, making him the highest-paid finance chief in the U.S. That figure tops the $139 million that Tesla's Vaibhav Taneja took home in 2024, previously the highest on record for a U.S. finance chief. Stock awards worth roughly $164 million accounted for nearly all of McHugh's 2025 package, a dramatic jump from his $7.2 million in total compensation the prior year, driven by Welltower's 10-year Executive Continuity and Alignment Program adopted in October 2025. None of those equity grants can be accessed for five years, with shares becoming redeemable in monthly installments from October 2030 through September 2035. Across all U.S. public companies, McHugh was among just three CFOs whose 2025 pay crossed the $100 million threshold, according to The Wall Street Journal.