WE WELL Welltower Loading... : Bullish and Bearish Analyst Opinions

Management highlights that new senior housing development projects generally do not pencil out because current rents need to be 25-40% higher and trended yields need to reach ~8%, which is well above current acquisition yields of ~6.5%. — This confirms a sustained supply shortage for the sector, which should support pricing power and occupancy gains for existing senior housing operators for years to come.

Management reported that 2026 marked the beginning of their in-house rent optimization, with assumed in-house rent increases of 8%, up from 7% the previous year. They note that RevPAU is about two-thirds of the in-house rent increase, implying that revenue growth has a solid, predictable tailwind independent of occupancy growth. — This level of rent increase, not yet seen across the sector, suggests strong resident affordability and market power, which could signal a fundamental shift toward much higher top-line growth for the broader senior housing sector than previously forecast by other REITs and analysts.