Welltower Inc. (NYSE:WELL) has recently released its 10-Q report, providing a detailed look at the company's financial performance and operations. Welltower, a real estate investment trust (REIT) and S&P 500 company headquartered in Toledo, Ohio, focuses on driving the transformation of health care infrastructure. The company invests in seniors housing, post-acute communities, and outpatient medical properties, partnering with leading operators to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower's interests are concentrated in major, high-growth markets in the United States, Canada, and the United Kingdom.
In the 10-Q report, Welltower discussed various factors that could impact its future performance, including the status of the economy, capital markets, and the health care industry. The company highlighted potential risks and uncertainties, such as changes in financing terms, competition within the health care and seniors housing industries, and the impact of natural disasters and health emergencies like the COVID-19 pandemic on its properties. Welltower also emphasized its commitment to complying with government regulations and addressing potential liabilities or contract claims.
Additionally, the report provided insights into the market risks that Welltower faces, including potential losses from adverse changes in interest rates and foreign currency exchange rates. The company outlined its strategies for mitigating these risks, such as using derivative contracts to hedge foreign currency exposures and matching the terms of new investments with long-term fixed-rate borrowings to address fluctuations in interest rates. Welltower also discussed its borrowing practices, including utilizing unsecured revolving credit facilities and commercial paper programs to finance health care and seniors housing properties, as well as the associated risks of debt financing and refinancing.
The 10-Q report included a sensitivity analysis on Welltower's fixed-rate debt instruments, demonstrating the potential impact of changes in interest rates on the fair value of the company's debt. This analysis provided stakeholders with valuable information about the potential effects of interest rate fluctuations on Welltower's future cash flows and earnings.
The market has reacted to these announcements by moving the company's shares 5.2% to a price of $137.38. If you want to know more, read the company's complete 10-Q report here.
