Welltower (WELL) Financials

Welltower Inc. (NYSE: WELL) displays steady financial performance and growth over the past few years, based on analysis of income statements, balance sheets, and cash flow statements from Q3 2022 through Q2 2025.

Positive Developments:

• Consistent increase in consolidated net income from $28.6 million in Q1 2023 to $304.6 million in Q2 2025, showing substantial profitability growth.
• Net cash from continuing operating activities increased from $376.1 million in Q1 2023 to $770.0 million in Q2 2025, reflecting improving operational cash flow generation.
• Total assets steadily increased from approximately $38.5 billion in Q1 2023 to $55.8 billion in Q2 2025, indicating growth in company scale and investments.
• Growth in shareholders’ equity from about $20.4 billion in Q1 2023 to $36.3 billion in Q2 2025, enhancing the company's net worth and financial stability.
• Welltower has maintained a solid common equity base, increasing from $20.4 billion in early 2023 to $35.9 billion in mid-2025.
• Issuance of common equity has been consistently significant each quarter, reaching nearly $2 billion in Q2 2025, potentially supporting growth and asset acquisitions.
• Dividends per share have consistently increased or held steady at $0.61 to $0.67 over recent quarters, signaling reliable income for investors.
• Depreciation expense increased in line with asset base growth, reflecting ongoing investments in property, plant, and equipment (PPE), supporting long-term growth.

Neutral Factors:

• Long-term debt level gradually increased from around $14.96 billion in Q1 2023 to about $15.97 billion in Q2 2025, indicating moderate leverage consistent with asset growth.
• Non-cash adjustments to reconcile net income show some volatility but generally follow net income trends, reflecting accounting practices rather than cash impact.

Negative Considerations:

• Significant and increasing net cash used in investing activities, reaching a cash outflow of $1.4 billion in Q2 2025, indicating heavy capital expenditures and investments which may pressure liquidity if not matched by operating cash flows.
• Total non-interest expense is high, with $2.25 billion reported in Q2 2025, which impacts operating margins and requires close expense management.
• There are occasional impairment charges recorded, such as $19.9 million in Q2 2025, which could signify asset write-downs or challenges with some investments.
• Welltower recorded net interest income as zero in recent quarters, which may be a result of internal accounting classifications but needs monitoring if impacting profitability.

Summary: Welltower’s financial statements point to sustained revenue and income growth driven by strong operating cash flows and strategic equity raises that fund asset growth. The company has efficiently expanded its asset base and equity value while maintaining consistent dividend payouts. The steady long-term debt level relative to asset growth suggests prudent leverage management. However, substantial investing cash outflows and elevated operating expenses highlight the need for ongoing liquidity and cost control vigilance. Retail investors should consider Welltower’s growth potential balanced against capital intensity and operational cost dynamics when evaluating the stock.