WELL - Is it Wise to Retain Welltower Stock in Your Portfolio? | Benzinga
Welltower Inc. (NYSE: WELL) is well-poised to benefit from its diversified portfolio of healthcare real estate assets amid favorable industry fundamentals. An aging population and a rise in healthcare expenditure by senior citizens are likely to aid the senior housing operating portfolio's growth. Moreover, portfolio restructuring initiatives and capital-recycling efforts augur well. However, competition in the senior housing market and high interest rates pose key concerns.
What's Aiding it?
The senior citizen population is expected to escalate in the coming years. This age cohort constitutes a major customer base of healthcare services and incurs higher healthcare expenditures than the average population. Hence, given the expected rise, they are likely to end up spending more on healthcare services in the upcoming period, poising Welltower's SHO portfolio well to capitalize on this positive trend.
Muted new supply has also been a tailwind for the senior housing industry. Hence, given these circumstances, Welltower's SHO portfolio remains well-poised to benefit, boosting the segment's performance. With a supply-demand imbalance, the portfolio is expected to experience sustained occupancy growth in 2024 and the coming years.
Capitalizing on these positive aspects, Welltower's SHO portfolio is well-prepared for compelling multiyear revenue growth. In 2024, management anticipates the same-store SHO NOI to grow at the midpoint of 19.5%, driven by favorable revenue and expense trends.