Welltower and LTC Properties reported second-quarter earnings to analysts and investors on Tuesday.

Welltower

Welltower’s second-quarter results were led by its senior living portfolio, CEO Shank Mitra told investors on Tuesday’s earnings call.

The Toledo, OH-based real estate investment trust’s total-portfolio, year-over-year, same-store net operating income grew by 11.3%, driven by same-store NOI growth of 21.7% in its senior housing operating portfolio, or SHOP.

Mitra said that the REIT remains “as optimistic as ever” about senior living. He said that the second quarter marks the seventh consecutive quarter in which the SHOP has posted same-store NOI of more than 20%. 

The company noted in a press release issued in conjunction with the earnings call that its credit rating outlook had been revised to positive from stable by S&P Global and Moody’s, citing strong senior housing industry tailwinds “and a materially improved balance sheet.”

During the second quarter, Welltower completed $1.7 billion of pro rata gross investments, including $1.4 billion in acquisitions and loan funding and $251 million in development funding.

Just this month, the REIT closed on an expanded $5 billion senior unsecured revolving credit facility, which replaced its $4 billion existing line of credit. The new facility includes a $3 billion revolving line of credit maturing in June 2028 and a $2 billion revolving line of credit maturing in June 2029. 

“The successful upsizing and extension of our line of credit not only highlights the strength of Welltower’s balance sheet and unparalleled access to efficiently priced capital, but also the powerful growth outlook of our business,” Chief Financial Officer Tim McHugh stated. 

“Thanks to the support of 29 participating financial institutions, the company is well-positioned with ample liquidity and historically low leverage to continue delivering shareholder value through disciplined capital allocation in any capital markets environment.”

The board of directors approved a 10% increase in the quarterly dividend per share, increasing the dividend to $0.67 per share. This was the first increase in the dividend since 2017, according to Welltower.

“Overall, while we are pleased with the results we achieved this quarter, what we are much more excited about is the fundamental backdrop is for us to dramatically improve as we look forward to 2025 and beyond,” Mitra said.

Read more coverage of the earnings call on the McKnight’s Senior Living website.

LTC Properties

“With continued improvement across our industry, I remain optimistic that we are on the right path for growth,” LTC Properties President and CEO Wendy Simpson said on Tuesday’s earnings call.

As of June 30, LTC Properties had total liquidity of almost $190 million, including just over $6 million of cash on hand, approximately $118 million available on its line of credit and roughly $65 million available under its at-the-market offering.

Total revenues increased year over year in the second quarter as a result of higher interest income from mortgage and mezzanine loan originations in 2023, construction loan funding in 2024, interest rate escalations and insurance proceeds related to sold properties. 

According to a press release issued in conjunction with the earnings call, LTC’s expenses decreased year over year “primarily due to the impairment loss in the year-ago period, a decrease in interest expense due to scheduled principal paydowns on the company’s senior unsecured notes, partially offset by an increase in general and administrative expense, and an increase in provisions for credit losses.”

Co-President and Chief Financial Officer Pam Kessler noted that LTC Properties originated a $12.7 million mortgage loan to Ignite Medical Resorts and recorded $295,000 of revenue from this investment during the second quarter. 

Third-quarter guidance for funds from operations, excluding nonrecurring items, is between $0.66 and $0.67 per share, excluding non-recurring items, Kessler said. Full year guidance for FFO, excluding non-recurring items, remains $2.63 to $2.65 per share.

Read more coverage of the earnings call on the McKnight’s Senior Living website.