- In Q2, Welltower's in-place annualized NOI for senior housing (SHOP) assets surpassed $2 billion.
- Overall company revenue reached $10 billion for the first time.
- Eleventh consecutive quarter of senior housing same-store NOI growth exceeding 20%.
- Organic revenue growth of 10%, driven by occupancy gains of 420 basis points, with notable 600 basis points increase in UK portfolio occupancy.
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- Adjusted EBITDA grew 13% year-over-year, reflecting revenue growth and higher fee income.
- Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
- Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
- Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
- Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
- Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
- Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
- Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
- Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
- Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
- Adjusted operating margin was 18.5% for the quarter, a 150 basis point improvement over prior year, driven by strong organic growth and expense management.
- Free cash flow for the first half of 2025 was $217 million, down $88 million from prior year due to increased incentive costs, retirement program redesign, higher cash taxes, and absence of TRANZACT cash inflows.
- Health, Wealth & Career (HWC) segment revenue grew 4% with strong growth in Health at 8%, Wealth at 3%, Career at 1%, and flat growth in Benefits Delivery & Outsourcing (BD&O).
- HWC operating margin increased 190 basis points to 23.8%, and R&B operating margin improved 60 basis points to 21.2%, or 100 basis points excluding foreign exchange impact.
- Returned $591 million to shareholders via $500 million in share repurchases and $91 million in dividends during the quarter.
- Risk & Broking (R&B) segment revenue grew 6%, with Corporate Risk & Broking (CRB) growing 6% or 7% excluding book of business activity and fiduciary interest income.
- WTW delivered 5% organic revenue growth and 150 basis points of adjusted operating margin expansion in Q2 2025, with adjusted EPS of $2.86, up roughly 20% year-over-year.
- Highwoods is actively rotating out of slower growth, CapEx-intensive properties into higher-growth, capital-efficient assets.
- The company aims to unlock $25 million of annual NOI upside from core assets, with 50% already signed and prospects for an additional 20%.
- Focus on improving portfolio quality to drive organic growth in earnings and cash flows.
- Management highlighted market conditions such as the 'Liberation Day' market disruption, which influenced their funding approach, shifting towards more equity due to market volatility.
- The company maintains a positive outlook on the senior housing sector, emphasizing organic upside and the pipeline of acquisitions as key growth drivers.
- They are actively monitoring long-term bond rates and plan to utilize public debt to support liquidity and investment strategies, reflecting a flexible and market-responsive approach.
Dafinchi