Dividend coverage remains robust with a 0.38 payout ratio relative to AFFO in 2026Q1, even as the company increased capital expenditures to $388.3 million to support property-level reinvestment.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 2.95B | 2.88B | 2.26B | 1.6B | 1.33B | 1.28B | 1.36B | 1.54B | 1.58B | 1.43B | 1.64B | 1.37B | 1.14B | 988.5M | 818.13M | 588.22M | 364.74M | 381.26M | 335.65M | 263.88M | 216.45M | 173.75M | 144.03M | 129.52M | 105.37M | 88.68M | 82.7M | 96.13M | 75.75M | 56.01M | 36.22M |
| Operating CF Growth % | 81.37% | 27.71% | 40.86% | 20.56% | 4.19% | -6.55% | -11.15% | -3.03% | 10.44% | -12.5% | 19.34% | 20.62% | 15.19% | 20.82% | 39.09% | 61.27% | -4.33% | 13.59% | 27.2% | 21.92% | 24.57% | 20.64% | 11.2% | 22.92% | 18.81% | 7.23% | -13.97% | 26.91% | 35.24% | 54.63% | 33.39% |
| Operating CF / Revenue % | 25.39% | 27.01% | 28.73% | 24.73% | 23% | 27.08% | 29.76% | 30.11% | 33.91% | 33.36% | 38.55% | 35.76% | 34.14% | 34.36% | 45.46% | 45.18% | 63.84% | 72.86% | 63.76% | 61.44% | 75.09% | 61.65% | 63.7% | 76.13% | 80.77% | 82.28% | 70.62% | 74.29% | 77.29% | 76.41% | 66.58% |
| Net Income | 1.43B | 961.84M | 972.86M | 340.09M | 160.57M | 374.48M | 1.04B | 1.33B | 829.75M | 540.61M | 1.08B | 888.55M | 512.3M | 138.28M | 294.84M | 212.72M | 128.88M | 192.93M | 288.11M | 141.4M | 102.75M | 84.29M | 85.37M | 82.74M | 67.66M | 60.55M | 68.06M | 75.6M | 62.3M | 46.5M | 30.7M |
| Depreciation & Amortization | 2.26B | 2.14B | 1.68B | 1.4B | 1.34B | 1.05B | 1.05B | 1.04B | 970.07M | 938.6M | 910.39M | 835.25M | 851.84M | 882.52M | 548.93M | 440.46M | 219.71M | 180.34M | 173.07M | 149.63M | 97.56M | 89.8M | 156.52M | 56.83M | 44.28M | 33.44M | 25.22M | 20.1M | 11.65M | 6.34M | 2.46M |
| Stock-Based Compensation | 1.56B | 1.56B | 75.82M | 37.2M | 26.15M | 17.81M | 28.32M | 25.05M | 27.65M | 19.1M | 28.87M | 30.84M | 32.08M | 20.18M | 18.52M | 10.79M | 11.82M | 9.63M | 8.53M | 7.05M | 6.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.93B | -1.49B | -429.85M | -100.12M | -47.09M | -30.82M | 60.25M | -106.33M | -32.86M | -80.4M | -88.09M | -92.91M | -74.55M | -46.07M | -32.36M | -31.58M | -6.59M | 6.26M | -17.11M | -10.84M | 16.7M | -2.27M | -82.92M | -17.3M | -6.37M | -6.16M | -1.45M | -5.81M | -4.4M | 4.82M | 4.82M |
| Working Capital Changes | -393.67M | -280.78M | -42.04M | -76.41M | -140.58M | -44.56M | -31.82M | -92.49M | 76.59M | 50.3M | -3.74M | -8.49M | -74.02M | 19.99M | 19.93M | 5.91M | -8.24M | -36.38M | 13.67M | -16.31M | -566K | 1.93M | -14.95M | 7.26M | -198K | 854K | -9.13M | 6.24M | 6.2M | -1.65M | -1.76M |
| Cash from Investing | -9.29B | -10.51B | -5.51B | -5.71B | -3.7B | -4.52B | 2.35B | -2.05B | -2.39B | 154.58M | -309.5M | -3.48B | -2.13B | -3.53B | -3.59B | -4.52B | -2.31B | -270.06M | -1.01B | -885.34M | -560.82M | -449.07M | -507.36M | -388.75M | -353.43M | -79.62M | 94.1M | -213.21M | -346.58M | -212.07M | -164.98M |
| Acquisitions (Net) | -13.48B | -14.41B | -3.79B | -3.9B | -2.81B | -4.48B | -1.31B | -4.24B | -3.7B | -919.63M | -2.15B | -3.35B | -2.56B | -3.7B | -3.57B | 0 | 0 | 0 | 0 | -141.96M | -182.57M | 91.33M | -972.39M | 65.45M | 52.28M | 22.58M | 107.18M | 18.11M | 11.38M | 0 | 0 |
| Purchase of Investments | -1.4B | -76.64M | -61.03M | -100.13M | -98.46M | -26.59M | -13.32M | -731.1M | -431.04M | -430.82M | -760.27M | -1.15B | 0 | 0 | 0 | -25.77M | 0 | 0 | 0 | -400.86M | -281.32M | -40.72M | -61.89M | -110.29M | -88.74M | -49.2M | -36.46M | -58.11M | -126.25M | -128.34M | -168.85M |
| Sale of Investments | 737.93M | 0 | 20.09M | 31.49M | 63.75M | 7.52M | 7.73M | 2.78B | 1.72B | 1.53B | 2.6B | 985.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 52.35M | 82.25M | 98.64M | 55.47M | 57.08M | 92.97M | 94.34M | 70.57M | 42.73M | 38.63M | 49.75M | 60.66M |
| Other Investing | 5.27B | 4.01B | -1.63B | -1.69B | -830.42M | 2.35M | 3.69B | 158.54M | 19.08M | -12.9M | -8.23M | 49.72M | 445.04M | 172.83M | -10.36M | 423.93M | -217.07M | 370.07M | 61.88M | 236.34M | 250.01M | 974K | 2.02B | 9.42M | -229K | -262K | -742K | -444K | -328K | 2.36M | 9.29M |
| Cash from Financing | 7.49B | 9B | 4.91B | 5.45B | 2.76B | 1.57B | -2.08B | 577.15M | 818.37M | -1.91B | -1.25B | 2.01B | 1.3B | 1.67B | 3.65B | 3.96B | 2.04B | -99.09M | 667.94M | 615.51M | 344.35M | 291.79M | 258.6M | 374.17M | 247.79M | -2.08M | -176.08M | 117.93M | 270.73M | 156.86M | 128.48M |
| Dividends Paid | -1.97B | -1.88B | -1.55B | -1.26B | -1.13B | -1.04B | -1.12B | -1.4B | -1.35B | -1.33B | -1.3B | -1.21B | -1.04B | -906.27M | -722.45M | -544.25M | -370.22M | -333.84M | -276.86M | -208.1M | -199.83M | -154.14M | -135.72M | -111.08M | -97.14M | -85.27M | -80.33M | -77.19M | -60.72M | -45.8M | -28.43M |
| Common Dividends | -1.97B | -1.88B | -1.55B | -1.26B | -1.13B | -1.04B | -1.12B | -1.4B | -1.35B | -1.33B | -1.3B | -1.21B | -1.04B | -906.27M | -722.45M | -544.25M | -370.22M | -333.84M | -276.86M | -208.1M | -199.83M | -154.14M | -135.72M | -111.08M | -97.14M | -85.27M | -80.33M | -77.2M | -60.7M | -45.8M | -28.43M |
| Debt Issuance (Net) | 0 | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -7.66M | 0 | 0 | -287.5M | 0 | 0 | 0 | 0 | -275M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -575.66M | -633.02M | -330.1M | 44.06M | -146.35M | -65.39M | -351.05M | -3.55B | -1.56B | -101.32M | -885.9M | -490M | -417.28M | -581.99M | -5.64M | -60.69M | -690K | -9.54M | 442K | -48.67M | -2.38M | -351.19M | -143.06M | 105.86M | -40.61M | -6.07M | -794K | -1.91M | -875K | -1.6M | 14.07M |
| Net Change in Cash | 1.21B | 1.5B | 1.64B | 1.35B | 375.54M | -1.67B | 1.64B | 69.64M | 6.83M | -297.92M | 58.47M | -112.82M | 314.95M | -874.98M | 870.28M | 31.91M | 96.09M | 12.11M | -6.9M | -5.95M | -21K | 16.47M | -104.73M | 114.95M | -276K | 6.98M | 715K | 860K | -112K | 800K | -278.96K |
| Exchange Rate Effect | 56.02M | 129.39M | -11.72M | 11.03M | -10.63M | -1.01M | 3.45M | 5.31M | -9.02M | 26.85M | -20.27M | -8.57M | -690K | 442K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 5.21B | 3.71B | 2.08B | 722.29M | 346.75M | 2.02B | 385.77M | 316.13M | 309.3M | 607.22M | 360.91M | 473.73M | 158.78M | 1.03B | 163.48M | 131.57M | 35.48M | 23.37M | 30.27M | 36.22M | 36.24M | 19.76M | 124.5M | 9.55M | 9.83M | 2.84M | 2.13M | 1.27M | 1.38M | 581K | 860.35K |
| Cash at End | 4.82B | 5.21B | 3.71B | 2.08B | 722.29M | 346.75M | 2.02B | 385.77M | 316.13M | 309.3M | 419.38M | 360.91M | 473.73M | 158.78M | 1.03B | 163.48M | 131.57M | 35.48M | 23.37M | 30.27M | 36.22M | 36.24M | 19.76M | 124.5M | 9.55M | 9.83M | 2.84M | 2.13M | 1.27M | 1.38M | 581.39K |
| Free Cash Flow | 2.54B | 2.85B | 2.2B | 1.55B | 1.3B | 1.26B | 1.35B | 1.52B | 1.58B | 1.42B | 1.61B | 1.36B | 1.13B | 981.8M | 808.36M | -4.33B | -1.73B | -258.87M | -736.72M | -367.33M | -212.74M | -425.54M | -1.41B | -280.89M | -304.34M | -58.4M | 36.25M | -119.36M | -194.27M | -79.83M | -29.86M |
| FCF Growth % | 6.24% | 29.55% | 41.72% | 19.48% | 3.36% | -6.78% | -11.4% | -3.51% | 10.93% | -11.85% | 18.09% | 20.62% | 15.25% | 21.46% | 118.67% | -150.26% | -568.38% | 64.86% | -100.56% | -72.67% | 50.01% | 69.79% | -401.43% | 7.7% | -421.14% | -261.1% | 130.37% | 38.56% | -143.36% | -167.31% | -223.52% |
| FCF / Revenue % | 21.86% | 26.7% | 27.99% | 23.94% | 22.48% | 26.67% | 29.37% | 29.82% | 33.74% | 33.05% | 37.91% | 35.53% | 33.92% | 34.13% | 44.91% | -332.6% | -302.84% | -49.47% | -139.95% | -85.53% | -73.8% | -150.98% | -622.96% | -165.09% | -233.3% | -54.19% | 30.96% | -92.24% | -198.23% | -108.9% | -54.89% |
Operational labor cost volatility
As reported in the quarterly financial data, Welltower maintained a dividend payout ratio of 0.38 relative to AFFO in 2026Q1, demonstrating a significant buffer that suggests the current distribution is well-supported by recurring cash flows despite the company's aggressive capital deployment strategy in the seniors housing sector.
The low payout ratio indicates that the company retains substantial AFFO to reinvest into its portfolio or deleverage, providing a defensive cushion against potential operational volatility. Investors should monitor whether this coverage ratio remains stable as the company continues to integrate new SHOP assets which may carry higher maintenance capital requirements.
Based on the provided financial statements, the divergence between GAAP Net Income and FFO highlights the significant impact of non-cash depreciation charges, with FFO consistently exceeding net income by a wide margin, confirming that GAAP metrics are insufficient for evaluating the company's actual cash-generating capacity.
The reliance on FFO as a primary performance metric is justified given the heavy capital intensity of the healthcare real estate portfolio. The persistent gap between these figures suggests that investors should focus on the cash-based earnings profile to avoid underestimating the underlying profitability of the SHOP segment.
According to recent SEC filings, Welltower recorded a significant spike in capital expenditures to $388.3 million in 2026Q1, which appears to reflect a shift toward more intensive property-level reinvestment necessary to maintain the competitive quality of its seniors housing assets in high-barrier urban markets.
This surge in capital spending warrants further investigation to determine if it represents recurring maintenance or non-recurring repositioning costs associated with recent acquisitions. If these expenditures become a permanent feature of the cost structure, they may exert downward pressure on long-term AFFO margins.
As indicated by the historical quarterly data, the conversion of GAAP operating cash flow into FFO shows periodic fluctuations, suggesting that the company's transition to an operator-heavy model introduces timing differences in cash recognition that are not present in traditional triple-net lease REIT structures.
The variability in the FFO-to-Net Income ratio suggests that operational noise from the SHOP segment can temporarily obscure the underlying cash flow trend. Analysts should look past these quarterly oscillations to assess whether the core cash conversion remains consistent with the company's long-term growth objectives.
Quick answers to the most common questions about buying WELL stock.
Welltower Inc. (WELL) generated $2.88B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Welltower Inc. (WELL) generated $2.85B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Welltower Inc. (WELL) spent $33.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Welltower Inc. (WELL) returned $1.88B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.