Send me real-time posts from this site at my email

Welltower's (WELL) Seniors Housing Occupancy Slips in February

While Welltower Inc. WELL continues to make solid strides on the portfolio front with operator transitions and non-strategic sales; continued senior housing woes, exacerbated by the pandemic, have been affecting its performance.

The operating environment for senior housing properties remains challenging amid the surge in global COVID-19 cases. This has been affecting occupancy, move-ins and move-outs at the company’s seniors housing operating assets.

According to a business update, total seniors housing operating (SHO) portfolio occupancy continued to decline, slipping 220 basis points from 76.2% on Dec 31, 2020, to 74% as of Feb 28, 2021.

This likely reflects the adverse effects of the resurgence of COVID-19 cases in December and January that is anticipated to have compelled operators to reinstate admission bans.  In fact, as of mid-January, 84% of the company’s communities were accepting new residents. The number improved to 95% as of Feb 28, 2021. This will limit occupancy losses in the upcoming period.

Moreover, the company noted elevated cleaning and PPE protocols. Hence, operating expenses are expected to continue to be high due to rising labor costs and procurement cost of protective-equipment supplies. Further, with occupancy declines and rising expenses, the company is likely to witness net operating income (NOI) erosions in the near term.

Amid these concerns, the speedy vaccination process at Welltower’s seniors housing communities is reassuring. In fact, the company noted that nearly all assisted living/memory care communities have finished the first vaccine clinic, while many have completed the second clinic as well.

Markedly, while the seniors housing industry beats back the pandemic through vaccination, immediate recovery is less likely and will drag the company’s near-term performance.

Welltower currently carries a Zacks Rank #5 (Strong Sell). In the past year, the company’s shares have declined 10.9%, wider than the industry's fall of 2.1%.



Stocks to Consider

Extra Space Storage Inc.’s EXR Zacks Consensus Estimate for 2021 FFO per share has moved up 2.5% to $5.66 in the past week. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

JBG SMITH Properties JBGS Zacks Consensus Estimate for 2021 FFO per share has been unchanged at $1.48 in a month’s time. The company has a Zacks Rank of 2 at present.

American Tower Corporation’s AMT FFO per share estimate for the current year has moved up marginally to $9.41 in the past week. The company carries a Zacks Rank of 2, currently.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Tower Corporation (AMT): Free Stock Analysis Report
Extra Space Storage Inc (EXR): Free Stock Analysis Report
JBG SMITH Properties (JBGS): Free Stock Analysis Report
Welltower Inc. (WELL): Get Free Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue