A significant actual property funding belief (REIT) headed larger on Nov. 8, after reporting third-quarter funds from operation (FFO) met expectations and revenues beat them. Welltower Inc. WELL gained considerably on the information that the corporate had a quarterly FFO of $0.84 per share, higher than the year-ago determine of $0.80%.
The REIT’s third-quarter income got here in at $1.47 billion, a greater than 18% improve over the earlier yr’s outcomes. From headquarters in Toledo, Ohio, Welltower operates healthcare amenities, together with senior housing, post-acute care and well being techniques.
After opening up by greater than 11%, the REIT cooled down in the course of the buying and selling session and managed to carry on to an 8.8% achieve for the day. The REIT has since held onto most of these positive factors and is now up 12.86% for the month.
Welltower has a market capitalization of $31.3 billion, which places it within the “main” group of actual property funding trusts. The common every day quantity for the large healthcare REIT is 2.67 million shares.
Credit score Suisse analysts on Nov. 1 reiterated their outperform score for the corporate with a worth goal lowered from $100 to $75. Raymond James analysts lately downgraded their opinion of Welltower from sturdy purchase to outperform with a worth goal downsized from $81 to $70.
The REIT continues to pay a 3.67% dividend.
Welltower’s every day worth chart is right here:
The hole up in worth takes it above the declining 50-day transferring common, a bullish-looking transfer for the REIT. The heavier-than-usual quantity can be a great signal, a affirmation of the energy of the transfer.
That is the weekly chart:
Welltower has an extended approach to go to regain the form of upward momentum seen in 2021 and the start of this yr. It’s a extremely seen bounce off of the September/October lows, a greater look proper now than most different names in the actual property funding group.
REITs equivalent to this one can be deeply affected by the Federal Reserve’s choices on rate of interest hikes, with issues about how a lot larger they’ll rise and for a way lengthy. Traders can be on the lookout for clues with the newest client worth index studying, launched on Nov. 10 for the month of October.
REITs are probably the most misunderstood funding choices, making it tough for traders to identify unbelievable alternatives till it’s too late. Benzinga’s in-house actual property analysis staff has been working onerous to determine the best alternatives in at the moment’s market, which you’ll be able to achieve entry to free of charge by signing up for Benzinga’s Weekly REIT Report.
Charts courtesy of StockCharts
