Toledo, OH-based Welltower invested almost $850 million in the third quarter and has announced or completed the deployment of approximately $8.6 billion in capital since October 2020, the real estate investment trust said in a presentation released Tuesday.
The REIT said it funded its acquisition activity predominantly by settling previous forward equity issuance.
Welltower said the growth of its platform has been concentrated on micro markets primarily on the coasts of the United States and in Greater London, with a focus on higher-needs populations.
The “focused development pipeline targets underserved senior populations in high-barrier-to-entry micro markets with multi-year entitlement processes that limit threat of new supply,” the REIT said.
The company’s liquidity remains “exceptional” at the end of the quarter, nearly approaching $2 billion of combined proceeds from unsettled equity issuances and expected dispositions and loan payoffs, as well as “providing significant investment capacity at an attractive cost of capital.” The REIT closed in June 2022 on an amended $5.2 billion unsecured credit facility with improved pricing across existing term loans.
Pricing power remains “robust,” and year-over-year occupancy for the third quarter is expected to be up by about 400 basis points, which is “in line with previous expectations,” according to the REIT. Occupancy continues to outperform seasonal trends. According to Since a dip late in the first quarter of 2021, sequential average occupancy growth has “meaningfully outpaced” pre-COVID averages, Welltower said, adding that it expects the trend to continue through the third quarter.
Inflationary pressures, including those related to repairs and maintenance, utilities, raw food and total compensation, still are affecting business, Welltower said, but full-time hiring is trending upward, which will reduce the use of employment agencies.
The REIT also said that it has completed the previously announced transition of 12 West Coast properties to Oakmont, Cogir and Kisco Senior Living. Welltower said it expects the transitions to improve net operating income.