Welltower (WELL) Financials

Welltower Inc. (NYSE: WELL) shows a generally stable and growing financial profile over the last four years with some notable trends and fluctuations in its income statement, balance sheet, and cash flow statement.

Key Positive Factors:

• Consolidated net income has increased significantly from $18 million in Q4 2022 to $305 million in Q2 2025, indicating improving profitability.
• Total assets have grown from about $37.9 billion in Q4 2022 to $55.8 billion in Q2 2025, showing expansion of the company’s asset base.
• Welltower consistently generates strong net cash from operating activities, reaching $770 million in Q2 2025, supporting business operations and investments.
• The company has raised substantial capital through issuance of common equity ($1.98 billion in Q2 2025) and debt ($1.36 billion in Q2 2025), providing liquidity for growth.
• Dividend payments per share have been steady at $0.61-$0.67, reflecting a commitment to returning cash to shareholders.
• Depreciation and amortization expenses are large (around $495 million depreciation in Q2 2025), which is typical for real estate investment trusts due to asset-heavy business.
• Welltower maintains a large stock of property, leasehold improvements, and equipment (e.g., $41.4 billion in Q2 2025), anchoring its core operational assets.
• Other non-interest income shows volatility between positive and negative values quarter to quarter, suggesting some variability in non-core income streams.
• Net interest income fluctuates, including periods of net expense (e.g., Q3 2024), tied to changing interest expense levels on long-term debt.
• Total liabilities have increased to $19.3 billion by Q2 2025 from $16.5 billion in Q4 2022, primarily due to higher long-term debt, which may increase financial risk if not well managed.
• Despite growing net income, the company has a negative retained earnings balance (about -$8.5 billion as of Q2 2025), indicating accumulated losses or large dividend distributions beyond earnings over time.
• Non-interest expenses, including impairment charges, have been substantial and occasionally volatile (e.g., impairment charge of $19.8 million in Q2 2025), which may impact margins.
• Large investing cash outflows (over $1.3 billion in Q2 2025) for property and investments imply significant capital expenditure requirements and capital intensity.

Summary: Welltower has demonstrated growth in net income, asset base, and operational cash flow which is positive. Its ability to raise equity and debt capital also supports future expansion. However, increases in liabilities and persistent negative retained earnings merit cautious monitoring. Operational expenses and impairments could pressure profitability if they continue rising. The company’s financial health appears reasonably solid but capital intensive and somewhat leveraged, typical for its sector.

Retail investors should watch upcoming quarters for the company’s ability to sustain earnings growth and manage liabilities while maintaining dividend payouts.