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October 28, 2025 • 4 min read
Welltower Inc. (NYSE: WELL), a major player in healthcare real estate, recently released its financial results for the third quarter of 2025. As a real estate investment trust (REIT) focused on seniors housing, post-acute care facilities, and outpatient medical properties, its performance offers a window into the health of the broader healthcare infrastructure market. Let's dive into their latest 10-Q filing to see how the company is navigating the current landscape.
Welltower reported a significant increase in total revenues, reaching $2.7 billion for the third quarter of 2025, a 31% jump from the $2.1 billion reported in the same quarter last year. For the first nine months of the year, revenues climbed to $7.7 billion from $5.7 billion in 2024.
The primary engine for this growth is the "Resident fees and services" line item, which soared 36% to $2.1 billion for the quarter. This revenue comes from Welltower's Seniors Housing Operating (SHO) portfolio, where the company directly participates in the operational results of the properties rather than just collecting rent. This segment now accounts for 57% of the company's Net Operating Income (NOI).
To better understand Welltower's quarterly financial flow from revenues to profit, the following diagram provides a visual breakdown.
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In the chart, you may notice revenue and cost items not allocated to a specific business segment. The unallocated revenue of $114 million for the quarter primarily consists of interest income from loans and investments ($67 million) and other corporate-level income. The unallocated costs are minor property-related expenses managed at the corporate level.
While revenues surged, net income attributable to common stockholders (NICS) for the quarter actually decreased to $281 million ($0.41 per share) from $450 million ($0.73 per share) in Q3 2024. This apparent contradiction is easily explained: the third quarter of 2024 included a substantial one-time gain of $272 million from real estate dispositions, which did not recur this year.
A better measure of a REIT's operational performance is its Net Operating Income (NOI), which represents revenue from properties minus their operating expenses. Here, Welltower shows impressive strength:
These figures indicate that Welltower's growth is not just from buying new properties but also from improving the performance of its existing assets, particularly in the high-demand senior housing sector.
Welltower has been actively reshaping its portfolio. During the first nine months of 2025, the company:
This high level of activity continued after the quarter ended, with the company announcing several major acquisitions in the United Kingdom in October 2025, signaling its commitment to expanding its international footprint.
Welltower's Q3 results paint a picture of a company in a dynamic growth phase. The robust performance of its Seniors Housing Operating segment highlights a successful strategy of direct operational involvement. While headline net income was down due to a lack of one-off gains from the prior year, the underlying operational metrics like NOI and FFO (Funds From Operations) show significant strength and momentum.
The company's aggressive acquisition strategy is clearly paying off in top-line growth. The key challenge ahead will be to successfully integrate these new assets and maintain strong operational performance across its expanding portfolio in what remains a competitive market for healthcare real estate.
Last updated: October 28, 2025