Welltower Sees Income Boost in Q1 With Major Acquisition Pending

Senior and assisted living communities owner Welltower (WELL) kicked off the year with a boost in income while it continues to expand its portfolio.

Same-store net operating income increased 12.9 percent from the first quarter of 2024 to the first quarter of 2025, hitting $650 million, while revenue grew to $2.4 billion, up from the $1.8 billion during that same time last year.

Welltower also saw the average number of occupied rooms increased year-over-year, from 67,633 to 70,786.

“From an occupancy perspective, following a period of exceptional results in 2024, we reported 400 basis points of year-over-year growth in Q1, the highest level of growth we have witnessed in any quarter outside of post-COVID recovery,” Shankh Mitra, CEO of Welltower, said during the earnings call. 

The earnings follow the March announcement of a $3.3 billion deal to acquire 38 luxury seniors housing communities — as well as development land — in Toronto, Vancouver and Victoria, Canada, owned by Amica Senior Lifestyles. The deal is still pending and expected to close by the end of 2025.

Welltower took on about $404 million in Canada Mortgage and Housing Corporation debt for the acquisition at an interest rate of 3.6 percent, while the S&P increased its credit rating to A-minus and Moody’s increased its standing to A3, both with stable outlooks. 

S&P believes that strong operating performance with Welltower will continue to improve its credit standing over the next two years.

The Toledo, Ohio-based company also either completed or kicked off nine development projects, which included conversions and expansions, where it invested a total of ​​$475 million in the work and paid $123 million in loan payments.

Welltower currently owns over 1,500 senior and wellness communities in the U.S., the United Kingdom and Canada.

Mark Hallum can be reached at mhallum@commercialobserver.com.