Welltower Sees 38% Revenue Growth and 14.8% Upside Despite 33x P/FFO
Welltower’s Q1 normalized FFO was $1.47 per share on revenues of $3.35 billion, up 38.3% year-over-year, with same-store SHO portfolio NOI rising 22.1% at 89.0% occupancy. UBS lifted its target to $249 from $240, a 14.8% increase, despite shares trading at 33x P/FFO, over 30% above historical and 131% above peers.
1. UBS Price Target Increase
UBS raised its price target for Welltower to $249 from $240, reflecting a projected 14.8% upside from the prior trading level. This adjustment underscores confidence in the company’s growth trajectory despite its current premium valuation.
2. Q1 Financial Results
In the first quarter of 2026, Welltower reported normalized FFO of $1.47 per share and total revenues of $3.35 billion, marking a 38.3% year-over-year increase driven by strong demand across its asset base.
3. Senior Housing Operating Performance
The Senior Housing Operating portfolio posted a 22.1% increase in same-store Net Operating Income and achieved an 89.0% occupancy rate, contributing significantly to the overall revenue and cash flow growth.
4. Valuation Considerations
Shares trade at a 33x Price to FFO multiple, over 30% above the company’s historical average and 131% above peer levels, raising questions about valuation sustainability amid strong operational momentum.