WELLTOWER INC. recently released its 10-K report, providing insight into its financial condition and operations. The company recognized $1,556,732,000 in stock-based compensation expense during the year ended December 31, 2025, with $1,408,672,000 related to Executive & Key Employee LTIP Unit Awards. The valuation of these awards involved a Monte Carlo model, factoring in inputs such as the risk-free rate, grant date common share price, expected dividend yield, common share price volatility, and expected volatility of comparative indices.
Additionally, the company maintained an allowance for credit losses on loans receivable, evaluating the collectability of loans based on factors like payment status, historical loan charge-offs, and the financial strength of borrowers and guarantors. During the year ended December 31, 2025, WELLTOWER INC. recognized a provision for loan losses of $(9,416,000), reflecting changes in the reserve based on historical loss experience.
These figures indicate the significant impact of stock-based compensation and credit loss provisions on the company's financials, highlighting the importance of these factors in understanding WELLTOWER INC.'s financial performance and risk management. As a result of these announcements, the company's shares have moved 1.7% on the market, and are now trading at a price of $191.38. Check out the company's full 10-K submission here.
