October 27, 2025 Forward Looking Statements and Risk Factors This document contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. These statements include, among others, management's expectations regard ...

Core Insights - Welltower reported a revenue of $2.69 billion for the quarter ended September 2025, marking a 30.7% increase year-over-year, with an EPS of $1.34 compared to $0.73 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.65 billion, resulting in a surprise of +1.36%, while the EPS also surpassed the consensus estimate of $1.30 by +3.08% [1] Revenue Breakdown - Interest income was reported at $67.22 million, slightly above the average estimate of $66.07 million, reflecting a year-over-year decline of -2.7% [4] - Other income reached $57.63 million, significantly exceeding the average estimate of $39.93 million, with a year-over-year increase of +29.2% [4] - Rental income amounted to $499.48 million, surpassing the average estimate of $473.42 million, showing a year-over-year growth of +16% [4] - Resident fees and services generated $2.06 billion, slightly above the average estimate of $2.05 billion, with a year-over-year increase of +36.4% [4] Stock Performance - Over the past month, Welltower's shares have returned +1.7%, compared to a +2.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Welltower reported quarterly funds from operations (FFO) of $1.34 per share, exceeding the Zacks Consensus Estimate of $1.3 per share, and up from $1.11 per share a year ago [1][2] - The company achieved revenues of $2.69 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.36%, compared to $2.06 billion in the same quarter last year [3] - Welltower's stock has increased by approximately 41.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.5% [4] Financial Performance - The FFO surprise for the recent quarter was +3.08%, and the company has consistently surpassed consensus FFO estimates over the last four quarters [2] - The current consensus FFO estimate for the upcoming quarter is $1.34, with projected revenues of $2.71 billion, and for the current fiscal year, the estimate is $5.12 on revenues of $10.27 billion [8] Market Outlook - The estimate revisions trend for Welltower was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] - The REIT and Equity Trust - Other industry is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [9]

Market Performance - Major U.S. stock indices, including the S&P 500, Nasdaq, and Dow Jones, closed at record highs for the second consecutive day, reflecting robust market performance [2][9] - The Dow Jones surged 324 points, or 0.69%, closing at 47,531.10, while the Nasdaq climbed 439 points, or 1.89%, reaching 23,644.20, and the S&P 500 advanced 83.72 points, or 1.23%, closing at 6,875.41 [2][9] Corporate Earnings - Cadence Design Systems (CDNS) reported strong Q3 results with adjusted earnings per share of $1.93, exceeding analyst estimates of $1.79, and revenue of $1.34 billion, surpassing expectations of $1.32 billion [3][9] - NXP Semiconductors (NXP) presented a mixed Q3 earnings report, with reported EPS of $2.48 lower than last year's $2.79, while revenue of $3.17 billion slightly exceeded the estimated $3.16 billion [4][9] - Welltower (WELL) announced solid Q3 results, with rental income reaching $499.48 million and declared a dividend of $0.74 per share, reaffirming its full-year adjusted FFO per share guidance between $5.24 and $5.30 [5][9] Strategic Developments - IBM (IBM) launched a new platform aimed at supporting financial institutions in navigating the evolving digital asset economy, positioning itself to capitalize on the growing interest in blockchain and digital currencies [6][9]

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Financial Performance - The total NOI for the same store in-place portfolio increased by 14.5% from $527,414 in Q3 2024 to $603,852 in Q3 2025[5] - Total revenues for Q3 2024 reached $2,104,073,000, with a projected increase to $2,735,813,000 by Q3 2025, representing a growth of approximately 30%[49] - Net operating income (NOI) for Q3 2024 was $857,673,000, expected to rise to $1,125,701,000 by Q3 2025, indicating a growth of about 31%[49] - Consolidated net operating income (NOI) for Q3 2024 was $842.9 million, expected to rise to $1.1 billion by Q3 2025[85] - The company reported an annualized In-Place NOI of $3.3 billion, indicating strong operational performance[86] - Total NOI reached $1,125,701, with a significant increase from $857,673 in the previous quarter[1] - The total stabilized NOI is reported at $3,445,505,000, with obligations totaling $17,869,897,000[44] Revenue Growth - Total revenues for the Seniors Housing Operating segment are projected to increase from $1,556,957 in Q3 2024 to $2,109,690 in Q3 2025, representing a growth of approximately 35.4%[11] - Same store revenues are forecasted to grow from $1,284,544 in Q3 2024 to $1,409,613 in Q3 2025, reflecting a year-over-year growth rate of 9.7%[11] - Rental income from Seniors Housing Operating increased from $1,554,263,000 in Q3 2024 to a projected $2,100,724,000 in Q3 2025, reflecting a growth of approximately 35%[49] - Consolidated SHO revenues increased from $1,256,831 in Q3 2024 to $1,507,666 in Q3 2025, representing a growth of approximately 19.8%[95] Occupancy Rates - The occupancy rate for Seniors Housing Operating properties was reported at 88.4%[6] - Total occupancy in the Seniors Housing Operating segment is expected to rise from 83.8% in Q3 2024 to 86.9% in Q3 2025, indicating an increase of 3.1 percentage points[11] - The occupancy rate for the Outpatient Medical segment is expected to remain stable around 94% over the same period[17] - The occupancy rate increased from 97.0% in Q3 2024 to 97.5% in Q3 2025[18] Property Portfolio - The total number of properties in the portfolio is 1,965, with a total NOI of $3,294,832[10] - The total number of properties in the Seniors Housing Operating segment is expected to increase from 1,029 in Q3 2024 to 1,199 in Q3 2025, a growth of 16.5%[11] - The total number of properties in the Outpatient Medical segment is projected to grow from 426 in Q3 2024 to 437 in Q3 2025[17] - The company has 3,187 units in development across 20 projects, with a projected stable yield of 7.7%[40] Capital Expenditures and Investments - The company completed 62 acquisitions and loan funding in Q3 2025, totaling $1,762,111,000 with a yield of 7.8%[29] - Year-to-date 2025 gross investments amounted to $5,817,879,000, with a yield of 7.3%[34] - Total development funding for 2025 was $351,103,000, with a yield of 7.4%[34] - Total development commitment amount is $875,805,000 with future funding of $297,822,000[38] Debt and Financial Ratios - The company reported a net debt of $10,019,435,000, resulting in a net debt to EBITDA ratio of 2.62x[51] - The company’s total debt as a percentage of gross asset value is 24.36%, with total debt reported at $16,960,008,000[53] - The average interest rate on combined debt is 4.03%, with a weighted average maturity of 5.7 years[58] - The company’s secured debt totals $2,629,981,000, with a significant portion in senior unsecured notes[58] Strategic Focus and Market Position - The company is focusing on expanding its portfolio in key metropolitan areas, including Los Angeles and New York/New Jersey, which contribute significantly to the overall revenue[10] - The company anticipates continued growth driven by strategic investments and market expansion in the senior housing sector[100] - Welltower's focus on data science and operational excellence aims to enhance long-term shareholder value through disciplined capital allocation[103] - The company is positioned to navigate macroeconomic challenges while capitalizing on opportunities within the healthcare and seniors housing industries[100]

Core Insights - Welltower Inc. announced a series of transactions totaling $23 billion to enhance its focus on rental housing for the growing seniors population, including $14 billion in acquisitions primarily in the US and UK [1][6] - The company expects these transactions to be accretive to its normalized funds from operations (FFO) per share in 2026, with significant future earnings growth potential [1][12] Acquisition Details - The largest component of the transactions is the acquisition of a real estate portfolio of Barchester-operated communities in the UK for £5.2 billion, forming a long-term partnership with Barchester [4][5] - Welltower also purchased 100% of the HC-One-operated portfolio for £1.2 billion, funded partially through the repayment of a £660 million loan [7][8] - The company is under contract or has closed an additional $4 billion of seniors housing acquisitions across over 150 communities and 12,000 units [9] Financial Strategy - The transactions are expected to be fully funded through cash on hand and $9 billion from asset sales and loan repayments [1][6] - Welltower anticipates net aggregate proceeds of approximately $6.0 billion from the divestiture of an 18 million square foot outpatient medical portfolio valued at $7.2 billion [10][11] Operational Focus - Following these transactions, Welltower's percentage of in-place net operating income (NOI) from the seniors housing business is expected to rise to the mid-80% range [2][12] - The company aims to drive operational and technological transformation across its seniors housing portfolio to enhance the experience for residents and employees [2][3] Market Positioning - Welltower's strategic focus on seniors housing is seen as a pathway to long-term compounding of per-share growth for investors [3][12] - The company emphasizes its commitment to high-quality care and operational excellence, with 86% of its communities rated as good or outstanding by the Care Quality Commission in the UK [8][9]

Core Insights - Welltower Inc. reported its third-quarter results for the period ending September 30, 2025, highlighting significant capital activity, investment activity, and acquisitions in the seniors housing sector [1]. Financial Performance - Reported net income attributable to common stockholders was $0.41 per diluted share, with normalized funds from operations (FFO) of $1.34 per diluted share, reflecting a 20.7% increase year-over-year [13]. - Total revenues for the third quarter reached $2.69 billion, up from $2.06 billion in the same period last year [29]. - The company revised its net income guidance for the full year to a range of $0.82 to $0.88 per diluted share, down from a previous range of $1.86 to $1.94 per diluted share [12]. Capital Activity and Liquidity - The net debt to consolidated enterprise value decreased to 7.6% as of September 30, 2025, from 13.1% a year earlier [2]. - Over $4.1 billion of attractively priced capital was sourced, including senior unsecured notes and equity issuances [2]. Investment Activity - In the third quarter, Welltower completed $1.9 billion in pro rata gross investments, including $1.8 billion in acquisitions and loan funding [13]. - The company announced $23 billion of additional transaction activity closed or under contract, primarily focused on seniors housing communities in the U.S. and U.K. [13]. Recent Acquisitions - Welltower acquired a real estate portfolio in the U.K. from Barchester Healthcare for approximately £5.2 billion, which includes 111 communities and 21 ongoing developments [5]. - The company also acquired HC-One Group's portfolio for £1.2 billion, creating a long-duration cash flow stream [6]. - An additional acquisition pipeline includes a trophy seniors housing portfolio along the East Coast, with expected completion of the New England portfolio repositioning [7]. Dispositions - Welltower entered into a definitive agreement to divest an 18 million square foot outpatient medical portfolio valued at approximately $7.2 billion, with a current occupancy of 94% [9]. Executive Compensation - The Board approved a Ten Year Executive Continuity and Alignment Program to secure senior leadership, with executives agreeing to a base salary of $110,000 and a long-term equity-based incentive award [10]. Dividend Declaration - The Board declared a cash dividend of $0.74 per share for the quarter ended September 30, 2025, marking the 218th consecutive quarterly cash dividend [11]. Outlook - The company anticipates average blended same store NOI growth of 13.2% to 14.5%, driven by various segments including Seniors Housing Operating [14].

Market Overview - U.S. markets opened with significant gains, with the Nasdaq rising by 1.47% to reach 8,532.62 and the S&P 500 increasing by 0.91% to 23,546.16, both setting new records [2] - The Dow Jones Industrial Average jumped 310 points, or 0.66%, to 47,517.13 [2] - Small caps, represented by the Russell 2000, initially rose by 0.53% before pulling back [2] Premarket Movers - Notable gainers in premarket trading included Janus Henderson (+14% on buyout rumors), Darling Ingredients (+14%), and Keurig Dr. Pepper (+9.7% following earnings) [4] - Major losers included Organon & Co (-21% due to CEO resignation amid controversy), Carter's Inc. (-9.4% after earnings), and Newmont Corp (-5.1% linked to declining gold prices) [4] Economic Context - U.S. stock futures were on the rise, buoyed by strong earnings reports and a softer-than-expected inflation report from the previous week [5] - The S&P 500 and Nasdaq Composite reached new intraday records, surpassing 6.8K and 23.2K, respectively, while the Dow Jones also exceeded 47.2K [5] - Hopes for a U.S.-China trade deal have increased, with a framework being discussed that includes issues like fentanyl, rare earth metals, and tariffs, as President Trump and President Xi are expected to meet at the APEC [6] Earnings Reports - The week is anticipated to be busy for earnings, with reports from Keurig Dr. Pepper and others, including Welltower, Cadence Design, and Waste Management, expected later in the day [7]

Core Insights - Analysts project Welltower (WELL) will report quarterly earnings of $1.30 per share, reflecting a 17.1% year-over-year increase [1] - Revenue is expected to reach $2.65 billion, marking a 28.9% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 1.1% in the past 30 days [2] - Changes in earnings estimates are crucial for predicting investor reactions [3] Revenue Breakdown - 'Revenues- Interest income' is estimated at $66.07 million, a decrease of 4.3% year-over-year [5] - 'Revenues- Other income' is projected to be $39.93 million, down 10.5% from the previous year [5] - 'Revenues- Rental income' is expected to be $473.42 million, indicating a 10% increase year-over-year [5] - 'Revenues- Resident fees and services' is anticipated to reach $2.05 billion, reflecting a 35.6% increase from the prior year [6] - 'Depreciation and amortization' is projected at $487.61 million [6] Market Performance - Welltower shares have returned +1.5% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [6] - Welltower holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near future [6]