Welltower Inc. WELL boasts a diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the United Kingdom. Rising healthcare spending and an aging population are likely to continue aiding this Toledo, OH-based healthcare real estate investment trust (“REIT”) in riding the growth curve. Portfolio-repositioning efforts and a healthy balance sheet bode well.
Analysts seem bullish on this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for WELL’s 2026 FFO per share has moved 2.8% northward over the past two months to $6.24, with an expected growth of 18% over last year.
Shares of the company have gained 12.1% in the past three months compared with the industry’s 3.2% growth.
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Factors That Make Welltower a Solid Pick
Favorable SHO Portfolio Dynamics: Welltower is poised to benefit from the favorable fundamentals of the healthcare real estate market. The senior citizens’ population is expected to rise in the years ahead. Muted new supply has also been a tailwind for this industry. Capitalizing on these positive aspects, Welltower’s SHO portfolio is well-prepared for compelling multi-year revenue growth.
The company has improved its SHO portfolio operator diversification and expanded geographic footprint in high-barrier-to-entry urban markets. Stronger demographics and increasing penetration rates have favorably positioned the portfolio for long-term growth.
The fourth quarter of 2025 marked the 13th consecutive quarter in which year-over-year SHO SSNOI growth exceeded 20%. In 2026, management anticipates the SHO SSNOI to grow within 15-21%.
Strategic Acquisitions: Welltower has been actively banking on its growth opportunities through acquisitions. In October 2025, Welltower acquired a portfolio of seniors housing real estate in the United Kingdom for approximately £5.2 billion, operated by Barchester. In the same month, the company acquired 100% of the equity ownership of the portfolio in the United Kingdom operated by HC-One Group for £1.2 billion.
Restructuring Efforts: Welltower has resorted to capital-recycling activities to finance investment and development opportunities, paving the way for its long-term growth. In 2025, Welltower completed $19.74 billion of pro-rata gross investments, including $19.28 billion in acquisitions and loan funding, and $463 million in development funding. The company has also been disposing of assets simultaneously. In 2025, Welltower completed pro rata property dispositions of $6.53 billion.
The company also focuses on development/redevelopment activities. In the fourth quarter of 2025, it completed and placed into service five development projects, including partial conversions and expansions, for an aggregate pro rata investment amount of $173 million.
Balance Sheet Strength: Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. As of Dec. 31, 2025, it had $10.2 billion of available liquidity and its net debt to adjusted EBITDAre was 3.03X. Moreover, Welltower’s debt maturities are well-laddered, with a weighted average maturity of 5.5 years. It also enjoys investment-grade credit ratings of A-/ Stable Outlook and A3/Positive outlook from S&P Global Ratings and Moody's Investor Service, respectively, allowing it to access the debt market at favorable terms.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Crown Castle Inc. CCI and Prologis PLD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CCI’s 2026 FFO per share is pegged at $4.43, which indicates year-over-year growth of 1.6%.
The consensus estimate for PLD’s full-year FFO per share is pinned at $6.14, which calls for an increase of 5.7% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).