Welltower faces risks from economic downturns, capital market volatility, healthcare industry changes (regulations, payments), tenant/operator financial difficulties, property transitions, natural disasters, currency fluctuations, maintaining REIT status, and potential legal proceedings. The company's significant debt obligations and reliance on subsidiary performance also pose risks. Credit concentration risk exists with top relationships and geographic areas.
Financial Upside
Welltower's strategy focuses on consistent dividend payments and portfolio growth. Recent acquisitions, construction conversions, and lease renewals present potential for increased NOI and FFO. The company has substantial borrowing capacity and ongoing equity offerings (ATM program) to fund future investments. Favorable market conditions and successful property dispositions could further enhance returns.
