11:32 AM EDT, 10/28/2025 (MT Newswires) -- Welltower ( WELL ) is positioning its portfolio for "sustained elevated" growth by divesting 68% of its outpatient medical footprint and bringing its senior housing exposure to the mid-80% range, UBS Securities said.

The brokerage said in a Monday note that assuming its senior housing operating property, or SHOP, portfolio continues at the current pace and the rest of the portfolio grows 3%, the $7.2 billion sale of its outpatient medical portfolio should add about 200 basis points to the company's internal growth algorithm.

UBS said Welltower's ( WELL ) Q3 normalized funds from operations and transaction activity exceeded expectations, supported mainly by strong performance in its SHOP portfolio, which saw continued double-digit same-store net operating income growth, though at a slightly moderated pace from the prior quarter.

Welltower ( WELL ) reported Q3 normalized FFO of $1.34 per share, compared with a FactSet consensus estimate of $1.30.

The company invested about $1.9 billion in the quarter, ahead of UBS's estimate of $1 billion.

Shares of Welltower ( WELL ) were down 1.5% in recent Tuesday trading.

UBS has a buy rating on the stock and a price target of $195.

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