Welltower (NYSE:WELL) Inc., a real estate investment trust (REIT) specializing in health care infrastructure, has announced the registration of up to 23,471,419 shares of common stock, according to a filing with the Securities and Exchange Commission (SEC) today. The shares, with a par value of $1.00 each, may potentially be issued upon the exchange of exchangeable senior notes due in 2028 and 2029 by Welltower OP LLC, the company's operating partner.
The registration is part of a prospectus supplement to the company’s automatic shelf registration statement initially filed on April 1, 2022. The prospectus supplement details the potential for these shares to be issued and subsequently resold by the recipients.
The exchangeable senior notes in question include the 2.750% notes due in 2028 and the 3.125% notes due in 2029. Holders of these notes may, under certain circumstances, choose to exchange their notes for shares of Welltower's common stock.
In other recent news, Welltower Inc. has seen several positive developments. Analysts at Mizuho Securities and Scotiabank (TSX:BNS) have raised their price targets for Welltower, reflecting a positive outlook for the company's financial performance. This comes after Welltower reported a 17% increase in normalized funds from operations (FFO) per share in the second quarter of 2024, primarily driven by its Senior Housing portfolio.
Notably, Deutsche Bank (ETR:DBKGn), Morgan Stanley (NYSE:MS), and RBC (TSX:RY) Capital have also revised their price targets for Welltower upwards. The company has been active on the acquisition front, investing approximately $5 billion year-to-date, primarily in the Senior Housing sector in the US and UK. Welltower's management has revised its forecast for FFO per share to $4.13 to $4.21, up from the prior estimate of $4.05 to $4.17.
In addition, Freddie Mac announced the appointment of Diana Reid as its new CEO. Reid, who serves on the board of Welltower, brings extensive experience from her previous roles at PNC Financial Services Group (NYSE:PNC) and Credit Suisse (SIX:CSGN) First Boston. Her focus will be on ensuring liquidity, stability, and affordability in housing across the United States.
InvestingPro Insights
Welltower's recent SEC filing aligns with its strong market position and financial performance. According to InvestingPro data, the company boasts a substantial market capitalization of $76.04 billion, underscoring its significance in the health care REIT sector. The company's revenue growth of 17.51% over the last twelve months as of Q2 2024 reflects its robust operational performance, which may contribute to investor confidence in its financial instruments.
InvestingPro Tips highlight Welltower's strength as a prominent player in the Health Care REITs industry, with a track record of maintaining dividend payments for 49 consecutive years. This consistency in dividend payments could make the potential shares from the exchangeable notes attractive to income-focused investors. Additionally, the company's strong return over the last year, with a 56.46% price total return, suggests positive market sentiment that could support the value of these potential new shares.
For readers interested in a deeper analysis, InvestingPro offers 16 additional tips for Welltower, providing a comprehensive view of the company's financial health and market position.
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