Welltower(WELL) - 2024 Q1 - Quarterly Results

Overview This chapter provides a snapshot of Welltower's portfolio composition by asset type, details same-store Net Operating Income (NOI) performance for Q1 2024, and shows the facility revenue mix Portfolio Composition (Total Properties: 2,096, Average Age: 19 years) | Asset Type | Properties | Total Beds/Units/SqFt | Wellness Housing | Independent Living | Assisted Living | Memory Care | Long-Term/Post-Acute Care | | :-------------------------- | :--------- | :---------------------- | :--------------- | :----------------- | :-------------- | :---------- | :------------------------ | | Seniors Housing Operating | 994 | 120,401 units | 20,767 | 45,676 | 37,958 | 15,370 | 630 | | Seniors Housing Triple-net | 360 | 27,842 units | — | 5,001 | 13,671 | 8,791 | 379 | | Outpatient Medical | 450 | 26,680,153 sqft | n/a | n/a | n/a | n/a | n/a | | Long-Term/Post-Acute Care | 292 | 37,225 beds | — | — | 1,022 | — | 36,203 | Same Store NOI Performance (Q1 2024 vs Q1 2023) | Asset Type | 1Q23 NOI ($) | 1Q24 NOI ($) | % Change | | :-------------------------- | :----------- | :----------- | :--------- | | Seniors Housing Operating | 212,749 | 266,907 | 25.5 % | | Seniors Housing Triple-net | 90,310 | 93,740 | 3.8 % | | Outpatient Medical | 116,879 | 119,184 | 2.0 % | | Long-Term/Post-Acute Care | 57,507 | 59,308 | 3.1 % | | Total | 477,445 | 539,139 | 12.9 % | Portfolio Performance Facility Revenue Mix (as of March 31, 2024) | Asset Type | Occupancy | Private Pay | Medicaid | Medicare | Other Government | | :-------------------------- | :-------- | :---------- | :------- | :------- | :--------------- | | Seniors Housing Operating | 83.9 % | 97.6 % | 1.0 % | 0.4 % | 1.0 % | | Seniors Housing Triple-net | 83.2 % | 88.6 % | 4.2 % | 0.5 % | 6.7 % | | Outpatient Medical | 94.2 % | 100.0 % | — | — | — | | Long-Term/Post-Acute Care | 79.3 % | 27.6 % | 47.7 % | 24.7 % | — % | | Total | — | 93.0 % | 3.9 % | 1.7 % | 1.4 % | Portfolio This section provides a detailed breakdown of Welltower's portfolio, including diversification by partner, country, and metropolitan statistical area (MSA), as well as specific performance metrics for key segments Portfolio Diversification This section details the diversification of In-Place Net Operating Income (NOI) across various partners, countries, and metropolitan statistical areas (MSAs) In-Place NOI Diversification by Partner (Annualized) | Partner | Total Properties | Total In-Place NOI ($) | % of Total | | :-------------------------- | :--------------- | :--------------------- | :--------- | | Cogir Management Corporation | 105 | 176,880 | 6.8 % | | Sunrise Senior Living | 91 | 170,568 | 6.5 % | | Integra Healthcare Properties | 147 | 156,272 | 6.0 % | | Avery Healthcare | 91 | 146,120 | 5.6 % | | Oakmont Management Group | 63 | 112,844 | 4.3 % | | Remaining | 1,151 | 1,446,092 | 55.5 % | | Total | 1,937 | 2,609,800 | 100.0 % | In-Place NOI Diversification by Country (Annualized) | Country | Total Properties | Total In-Place NOI ($) | % of Total | | :-------------- | :--------------- | :--------------------- | :--------- | | United States | 1,674 | 2,240,160 | 85.8 % | | United Kingdom | 129 | 194,816 | 7.5 % | | Canada | 134 | 174,824 | 6.7 % | | Total | 1,937 | 2,609,800 | 100.0 % | Top MSAs by In-Place NOI (Annualized) | MSA | Total Properties | Total In-Place NOI ($) | % of Total | | :---------------- | :--------------- | :--------------------- | :--------- | | Los Angeles | 74 | 155,452 | 6.0 % | | New York / New Jersey | 76 | 131,068 | 5.0 % | | Dallas | 71 | 103,880 | 4.0 % | | Greater London | 49 | 90,100 | 3.5 % | | Washington D.C. | 40 | 82,288 | 3.2 % | Seniors Housing Operating (SHO) Performance This section presents a quarterly overview of Seniors Housing Operating (SHO) performance, including total portfolio and same-store metrics, highlighting significant year-over-year NOI growth SHO Total Portfolio Performance (Quarterly) | Metric | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | | :---------------- | :----- | :----- | :----- | :----- | :----- | | Properties | 885 | 886 | 883 | 915 | 935 | | Units | 89,240 | 89,932 | 90,953 | 99,387 | 101,395 | | Total occupancy | 79.0 % | 79.6 % | 80.7 % | 82.2 % | 82.5 % | | Total revenues ($) | 1,143,744 | 1,178,975 | 1,221,753 | 1,287,666 | 1,386,818 | | NOI ($) | 248,763 | 276,907 | 288,290 | 305,589 | 351,836 | | NOI margin | 21.7 % | 23.5 % | 23.6 % | 23.7 % | 25.4 % | SHO Same Store Performance (Quarterly) | Metric | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | | :-------------------------- | :----- | :----- | :----- | :----- | :----- | | Properties | 665 | 665 | 665 | 665 | 665 | | Occupancy | 80.0 % | 80.8 % | 82.2 % | 83.5 % | 83.4 % | | Same store revenues ($) | 909,268 | 935,048 | 962,566 | 980,403 | 1,003,135 | | Same store NOI ($) | 212,749 | 231,714 | 242,254 | 245,338 | 266,907 | | Same store NOI margin % | 23.4 % | 24.8 % | 25.2 % | 25.0 % | 26.6 % | | Year over year NOI growth rate | — | — | — | — | 25.5 % | | Year over year revenue growth rate | — | — | — | — | 10.3 % | Top SHO Partners by 1Q24 NOI | Partner | 1Q24 NOI ($) | % of Total | | :-------------------------- | :----------- | :--------- | | Cogir Management Corporation | 32,634 | 9.3 % | | Sunrise Senior Living | 19,709 | 5.6 % | | Oakmont Management Group | 18,426 | 5.2 % | | Belmont Village | 18,191 | 5.2 % | | Atria Senior Living | 15,365 | 4.4 % | Lease and Coverage Metrics This section details payment coverage stratification for Seniors Housing and Long-Term/Post-Acute Care properties and provides a comprehensive schedule of revenue and lease maturities EBITDARM Coverage Stratification (as of Dec 31, 2023) | % of In-Place NOI | Seniors Housing Triple-net | Long-Term/Post-Acute Care | Total | Weighted Average Maturity (Years) | Number of Leases | | :---------------- | :------------------------- | :------------------------ | :---- | :-------------------------------- | :--------------- | | <.85x | 0.4 % | — % | 0.4 % | 9 | 2 | | .85x-.95x | — % | — % | — % | — | — | | .95x-1.05x | 2.3 % | — % | 2.3 % | 9 | 2 | | 1.05x-1.15x | 1.9 % | 0.4 % | 2.3 % | 5 | 4 | | 1.15x-1.25x | 2.1 % | 0.9 % | 3.0 % | 11 | 3 | | 1.25x-1.35x | 5.7 % | 0.1 % | 5.8 % | 8 | 5 | | >1.35 | 1.2 % | 4.3 % | 5.5 % | 17 | 13 | | Total | 13.6 % | 5.7 % | 19.3 % | 11 | 29 | Revenue and Lease Maturity Schedule (Total Revenues $1,499,102k) | Year | Seniors Housing Triple-net ($) | Outpatient Medical ($) | Long-Term/Post-Acute Care ($) | Interest Income ($) | Total Revenues ($) | % of Total | | :--- | :----------------------------- | :--------------------- | :---------------------------- | :------------------ | :----------------- | :--------- | | 2024 | 13,495 | 50,449 | — | 39,088 | 103,032 | 6.9 % | | 2025 | 5,837 | 40,593 | 720 | 16,667 | 63,817 | 4.3 % | | 2026 | 3,304 | 49,666 | 9,287 | 40,118 | 102,375 | 6.8 % | | 2027 | — | 45,040 | 1,232 | 11,953 | 58,225 | 3.9 % | | 2028 | — | 46,576 | 6,404 | 103,633 | 156,613 | 10.4 % | | 2029 | 1,035 | 42,595 | — | 3,322 | 46,952 | 3.1 % | | 2030 | 42,330 | 39,955 | 29,031 | 361 | 111,677 | 7.4 % | | 2031 | 6,571 | 52,905 | 4,430 | 233 | 64,139 | 4.3 % | | 2032 | 94,226 | 44,474 | — | 351 | 139,051 | 9.3 % | | 2033 | 55,028 | 32,495 | — | — | 87,523 | 5.8 % | | Thereafter | 154,579 | 129,182 | 280,219 | 1,718 | 565,698 | 37.8 % | | Total | 376,405 | 573,930 | 331,323 | 217,444 | 1,499,102 | 100.0 % | | Weighted Avg Maturity Years | 10 | 7 | 14 | 3 | 9 | | Outpatient Medical Performance This section provides a quarterly performance review for the Outpatient Medical portfolio, including total and same-store metrics, portfolio diversification, and lease expiration schedules Outpatient Medical Total Portfolio Performance (Quarterly) | Metric | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | | :---------------------- | :----- | :----- | :----- | :----- | :----- | | Properties | 419 | 420 | 422 | 426 | 427 | | Square feet | 20,188,159 | 20,236,315 | 20,748,969 | 21,043,557 | 21,148,949 | | Occupancy | 94.0 % | 94.4 % | 94.5 % | 94.5 % | 94.2 % | | Total revenues ($) | 185,190 | 186,802 | 195,136 | 192,822 | 203,849 | | NOI ($) | 126,213 | 127,444 | 131,305 | 137,762 | 138,687 | | NOI margin | 68.2 % | 68.2 % | 67.3 % | 71.4 % | 68.0 % | Outpatient Medical Same Store Performance (Quarterly) | Metric | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | | :-------------------------- | :----- | :----- | :----- | :----- | :----- | | Properties | 378 | 378 | 378 | 378 | 378 | | Occupancy | 94.7 % | 94.9 % | 95.0 % | 94.8 % | 94.7 % | | Same store revenues ($) | 172,500 | 171,576 | 174,464 | 167,390 | 176,084 | | Same store NOI ($) | 116,879 | 117,828 | 117,750 | 120,320 | 119,184 | | NOI margin | 67.8 % | 68.7 % | 67.5 % | 71.9 % | 67.7 % | | Year over year NOI growth rate | — | — | — | — | 2.0 % | Outpatient Medical Portfolio Diversification (by Tenant Rental Income) | Tenant | Rental Income ($) | % of Total | | :-------------------------- | :---------------- | :--------- | | Kelsey-Seybold | 45,543 | 7.9 % | | UnitedHealth | 18,404 | 3.2 % | | Common Spirit Health | 17,976 | 3.1 % | | Novant Health | 17,485 | 3.0 % | | Providence Health & Services | 16,739 | 2.9 % | | Remaining portfolio | 457,783 | 79.9 % | | Total | 573,930 | 100.0 % | - Outpatient Medical Quality Indicators: - Health system affiliated properties as % of NOI: 88.9 % - Health system affiliated tenants as % of rental income: 60.4 % - Investment grade tenants as % of rental income: 55.6 % - Retention (trailing twelve months): 92.7 % - Average remaining lease term: 6.6 years[23] Outpatient Medical Expirations (% of occupied square feet) | Year | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | :--------- | | % of occupied square feet | 8.5 % | 6.7 % | 9.0 % | 8.0 % | 8.3 % | 59.5 % | Investment This section details Welltower's investment activities, including historical acquisitions, gross investment breakdown, and a comprehensive overview of development projects and unstabilized properties Investment Activity Overview This section provides a historical overview of Welltower's acquisition and joint venture activities and details investment timing for Q1 2024 Relationship Investment History (Acquisitions/JVs Total) | Year | Count | Total ($) | | :--- | :---- | :-------- | | 2020 | 12 | 910,217 | | 2021 | 35 | 4,101,534 | | 2022 | 27 | 2,785,739 | | 2023 | 52 | 4,222,706 | | 1Q24 | 3 | 61,034 | | 20-24 Total | 129 | 12,081,230 | Investment Timing (Q1 2024) | Activity | Total ($) | Yield | | :-------------------------- | :-------- | :------ | | Acquisitions and Loan Funding | 207,934 | 6.8 % | | Construction Conversions | 165,603 | 3.7 % | | Dispositions and Loan Repayments | 106,994 | 5.0 % | Gross Investment Details This section outlines the gross investment activities for Q1 2024, categorizing them into acquisitions, development funding, and dispositions Gross Investment Activity (First Quarter 2024) | Category | Properties | Pro Rata Amount ($) | Yield | | :-------------------------------- | :--------- | :------------------ | :------ | | Acquisitions and Loan Funding | 3 | 207,934 | 6.8 % | | Development Funding (Total) | 56 | 241,295 | 7.1 % | | Total Gross Investments | — | 449,229 | 6.9 % | | Dispositions and Loan Repayments | 10 | 106,994 | 5.0 % | | Net Investments (Dispositions) | — | 342,235 | — | Development Projects This section provides a detailed summary of current development projects, funding projections, conversion timelines, and an overview of unstabilized properties Total Development Projects (Commitment Amount & Future Funding) | Category | Commitment Amount ($) | Estimated Future Funding ($) | | :-------------------------- | :-------------------- | :--------------------------- | | Seniors Housing Operating | 1,811,089 | 543,075 | | Outpatient Medical | 710,406 | 382,563 | | Total Development Projects | 2,521,495 | 925,638 | Development Funding Projections (Total) | Category | Stable Yields | 2024 Funding ($) | Thereafter Funding ($) | Total Unfunded Commitments ($) | Committed Balances ($) | | :-------------------------- | :------------ | :--------------- | :--------------------- | :--------------------------- | :--------------------- | | Seniors Housing Operating | 7.3 % | 351,697 | 191,378 | 543,075 | 1,811,089 | | Outpatient Medical | 6.3 % | 308,716 | 73,847 | 382,563 | 710,406 | | Total | 7.0 % | 660,413 | 265,225 | 925,638 | 2,521,495 | Development Project Conversion Estimates (Total) | Period | Amount ($) | Year 1 Yields | Stable Yields | | :---------------- | :--------- | :------------ | :------------ | | 1Q24 actual | 162,557 | 3.7 % | 6.6 % | | 2Q24 estimate | 388,082 | 2.9 % | 6.5 % | | 3Q24 estimate | 317,906 | 0.6 % | 7.7 % | | 4Q24 estimate | 742,951 | 2.0 % | 7.1 % | | 1Q25 estimate | 561,326 | 4.0 % | 7.0 % | | 2Q25 estimate | 250,798 | 1.7 % | 6.3 % | | 3Q25 estimate | 66,799 | 0.7 % | 6.9 % | | 4Q25 estimate | 58,284 | (0.3)% | 7.2 % | | 1Q26 estimate | 18,375 | (3.4)% | 10.9 % | | 3Q26 estimate | 116,974 | 0.5 % | 7.5 % | | Total | 2,684,052 | 2.3 % | 7.0 % | Unstabilized Properties (as of March 31, 2024) | Occupancy | Properties | Months In Operation | Revenues ($) | % of Total Revenues | Gross Investment Balance ($) | % of Total Gross Investment | | :-------- | :--------- | :------------------ | :----------- | :------------------ | :--------------------------- | :-------------------------- | | 0% - 50% | 16 | 11 | 88,874 | 1.2 % | 866,877 | 1.8 % | | 50% - 70% | 20 | 24 | 172,291 | 2.3 % | 938,069 | 2.0 % | | 70% + | 14 | 29 | 165,498 | 2.2 % | 559,736 | 1.2 % | | Total | 50 | 21 | 426,663 | 5.7 % | 2,364,682 | 5.0 % | Financial This section provides a comprehensive financial overview, including Net Asset Value (NAV) components, Net Operating Income (NOI) by segment, leverage reconciliations, and debt structure Components of NAV This section details the components contributing to Welltower's Net Asset Value (NAV), including stabilized NOI, total debt, and other assets and liabilities Total Stabilized NOI | Category | Amount ($) | | :-------------------------- | :----------- | | Seniors Housing Operating | 1,344,032 | | Seniors Housing Triple-net | 407,064 | | Outpatient Medical | 526,384 | | Long-Term/Post-Acute Care | 332,320 | | Incremental stabilized NOI | 116,098 | | Total stabilized NOI | 2,725,898 | Total Debt Obligations | Category | Amount ($) | | :-------------------------- | :----------- | | Lines of credit and commercial paper | — | | Senior unsecured notes | 12,328,089 | | Secured debt | 2,905,614 | | Financing lease liabilities | 80,541 | | Total debt | 15,314,244 | Net Obligations | Category | Amount ($) | | :---------------------------------------- | :----------- | | Total debt | 15,314,244 | | Other liabilities (assets), net | 424,081 | | Cash and cash equivalents and restricted cash | (2,478,335) | | Net obligations | 13,259,990 | Other Assets | Category | Amount ($) | | :-------------------------- | :----------- | | Land parcels | 427,215 | | Real estate loans receivable | 2,147,555 | | Non-real estate loans receivable | 290,619 | | Joint venture real estate loans receivables | 269,190 | | Property dispositions (expected) | 1,043,796 | | Development properties (committed balances) | 2,539,605 | Net Operating Income This section provides a detailed quarterly breakdown of Net Operating Income (NOI) by property segment, showing revenues and property operating expenses for each Total Revenues by Segment (1Q24) | Segment | Resident Fees & Services ($) | Rental Income ($) | Interest Income ($) | Other Income ($) | Total Revenues ($) | | :-------------------------- | :--------------------------- | :---------------- | :------------------ | :--------------- | :----------------- | | Seniors Housing Operating | 1,379,295 | — | 4,716 | 2,807 | 1,386,818 | | Seniors Housing Triple-net | — | 110,967 | 35,478 | 955 | 147,400 | | Outpatient Medical | — | 200,593 | 852 | 2,404 | 203,849 | | Long-Term/Post-Acute Care | — | 104,046 | 15,823 | 244 | 120,113 | | Corporate | — | — | — | 28,729 | 28,729 | | Total | 1,379,295 | 415,606 | 56,869 | 35,139 | 1,886,909 | Total Property Operating Expenses by Segment (1Q24) | Segment | Property Operating Expenses ($) | | :-------------------------- | :------------------------------ | | Seniors Housing Operating | 1,034,982 | | Seniors Housing Triple-net | 7,559 | | Outpatient Medical | 65,162 | | Long-Term/Post-Acute Care | 3,448 | | Corporate | 3,636 | | Total | 1,114,787 | Net Operating Income (NOI) by Segment (1Q24) | Segment | NOI ($) | | :-------------------------- | :-------- | | Seniors Housing Operating | 351,836 | | Seniors Housing Triple-net | 139,841 | | Outpatient Medical | 138,687 | | Long-Term/Post-Acute Care | 116,665 | | Corporate | 25,093 | | Total Net Operating Income | 772,122 | Leverage and EBITDA Reconciliations This section provides reconciliations for EBITDA and Adjusted EBITDA, along with calculations for key coverage and net debt ratios EBITDA and Adjusted EBITDA (Twelve Months Ended March 31, 2024) | Metric | Amount ($) | | :-------------------------- | :----------- | | Net income (loss) | 461,138 | | Interest expense | 610,761 | | Income tax expense (benefit) | 9,510 | | Depreciation and amortization | 1,427,852 | | EBITDA | 2,509,261 | | Total adjustments | 159,892 | | Adjusted EBITDA | 2,669,153 | Coverage Ratios (Twelve Months Ended March 31, 2024) | Ratio | Value | | :-------------------------- | :------ | | Interest coverage ratio | 3.94 x | | Adjusted Interest coverage ratio | 4.19 x | | Fixed charge coverage ratio | 3.65 x | | Adjusted Fixed charge coverage ratio | 3.88 x | Net Debt to EBITDA Ratios (as of March 31, 2024) | Metric | Amount ($) | Ratio | | :-------------------------- | :----------- | :------ | | Total debt | 14,285,686 | | | Less: cash and cash equivalents and restricted cash | (2,478,335) | | | Net debt | 11,807,351 | | | EBITDA Annualized | 2,604,024 | 4.53 x | | Adjusted EBITDA Annualized | 2,929,464 | 4.03 x | Leverage and Current Capitalization This section details Welltower's capitalization structure across book and enterprise value metrics, highlighting key leverage indicators Book Capitalization (as of March 31, 2024) | Category | Amount ($) | % of Total | | :---------------------------------------- | :----------- | :--------- | | Long-term debt obligations | 14,285,686 | 35.40 % | | Cash and cash equivalents and restricted cash | (2,478,335) | (6.14)% | | Net debt to consolidated book capitalization | 11,807,351 | 29.26 % | | Total equity | 28,547,908 | 70.74 % | | Consolidated book capitalization | 40,355,259 | 100.00 % | Enterprise Value (as of March 31, 2024) | Category | Amount ($) | % of Total | | :---------------------------------------- | :----------- | :--------- | | Net debt to consolidated enterprise value | 11,807,351 | 17.36 % | | Common equity market capitalization | 55,216,873 | 81.17 % | | Noncontrolling interests | 999,965 | 1.47 % | | Consolidated enterprise value | 68,024,189 | 100.00 % | - Debt Ratios (as of March 31, 2024): - Secured debt as % of gross asset value: 3.76 % - Total debt as % of gross asset value: 26.41 % - Unsecured debt as % of unencumbered assets: 25.07 %[51] Debt Maturities and Scheduled Principal Amortization This section provides a detailed schedule of debt maturities and scheduled principal amortization by year, along with a breakdown of debt by local currency Debt Maturities and Scheduled Principal Amortization (Total Combined Debt $15,233,703k) | Year | Senior Unsecured Notes ($) | Consolidated Secured Debt ($) | Combined Debt ($) | % of Total | Wtd. Avg. Interest Rate | | :--- | :------------------------- | :---------------------------- | :---------------- | :--------- | :---------------------- | | 2024 | — | 307,236 | 400,509 | 2.63 % | 4.75 % | | 2025 | 1,260,000 | 379,484 | 2,115,154 | 13.88 % | 4.03 % | | 2026 | 700,000 | 152,652 | 881,481 | 5.79 % | 4.03 % | | 2027 | 1,906,204 | 206,191 | 2,197,899 | 14.43 % | 4.66 % | | 2028 | 2,480,035 | 105,956 | 2,597,090 | 17.05 % | 3.79 % | | 2029 | 1,050,000 | 318,012 | 1,403,229 | 9.21 % | 3.81 % | | 2030 | 750,000 | 57,066 | 841,298 | 5.52 % | 3.13 % | | 2031 | 1,350,000 | 6,978 | 1,390,263 | 9.13 % | 2.77 % | | 2032 | 1,050,000 | 47,952 | 1,101,746 | 7.23 % | 3.38 % | | 2033 | — | 395,502 | 367,371 | 2.41 % | 4.88 % | | Thereafter | 1,781,850 | 93,747 | 1,937,663 | 12.74 % | 5.04 % | | Totals | 12,328,089 | 2,070,776 | 15,233,703 | 100.00 % | 4.02 % | | Weighted Avg. Maturity Years | 6.3 | 4.8 | 6.0 | | | | % Floating Rate Debt | 5.63 % | 23.15 % | 7.56 % | | | Debt by Local Currency (as of March 31, 2024) | Currency | Senior Unsecured Notes ($) | Consolidated Secured Debt ($) | Combined Debt ($) | Investment Hedges ($) | | :------------- | :------------------------- | :---------------------------- | :---------------- | :-------------------- | | United States | 10,595,000 | 1,354,921 | 12,673,242 | — | | United Kingdom | 1,326,885 | — | 1,326,885 | 2,098,637 | | Canada | 406,204 | 715,855 | 1,233,576 | 1,920,236 | | Totals | 12,328,089 | 2,070,776 | 15,233,703 | 4,018,873 | Glossary This section provides definitions for key terms used throughout the financial report, including various financial metrics, property classifications, and operational concepts - EBITDAR: Earnings before interest, taxes, depreciation, amortization and rent[64] - EBITDARM: Earnings before interest, taxes, depreciation, amortization, rent and management fees[66] - NOI (Net Operating Income): Total revenues, including tenant reimbursements, less property operating expenses[80] - Seniors Housing Operating (SHO): Includes independent, assisted living and dementia care properties in the U.S. and Canada and all care homes in the U.K. generally structured to take advantage of the REIT Investment Diversification and Empowerment Act of 2007, as well as Wellness Housing properties[73] - Outpatient Medical: Buildings offering ambulatory medical services such as primary and secondary care, outpatient surgery, diagnostic procedures and rehabilitation, typically affiliated with a health system[72] - Stable Property: Generally, a triple-net rental property is considered stable when it has achieved EBITDAR coverage of 1.00x or greater for three consecutive months or 12 months following the budgeted stabilization date. A Seniors Housing Operating facility is stable upon the earliest of 90% occupancy, NOI at or above the underwritten target or 12 months past the underwritten stabilization date[76] Supplemental Reporting Measures This section defines and reconciles various non-GAAP financial measures used by Welltower to assess operating performance and credit strength Non-GAAP Measure Definitions This section defines key supplemental reporting measures such as EBITDA, Adjusted EBITDA, NOI, In-Place NOI (IPNOI), Same Store NOI (SSNOI), RevPOR, and ExpPOR - NOI (Net Operating Income): Total revenues, including tenant reimbursements, less property operating expenses[80] - In-Place NOI (IPNOI): NOI excluding interest income, other income and non-IPNOI, adjusted for timing of current quarter portfolio changes[80] - Same Store NOI (SSNOI): Evaluates operating performance of properties using a consistent population, controlling for portfolio changes[80] - EBITDA: Earnings (net income) before interest expense, income taxes, depreciation and amortization[82] - Adjusted EBITDA: EBITDA excluding unconsolidated entities and including adjustments for stock-based compensation, loan losses, gains/losses on debt extinguishment, properties, derivatives, other expenses, and impairment charges[82] - RevPOR: Average revenues generated per occupied room per month at Seniors Housing Operating properties[81] - ExpPOR: Average expenses per occupied room at Seniors Housing Operating properties[81] Non-GAAP Reconciliations This section provides detailed reconciliations from net income to NOI, and further breakdowns for In-Place NOI, Same Store Property, Same Store NOI, and SHO RevPOR NOI Reconciliation (1Q24) | Metric | Amount ($) | | :---------------------------------------- | :----------- | | Net income (loss) | 131,634 | | Total adjustments (various non-operating items) | 640,500 | | Consolidated net operating income | 762,828 | | NOI attributable to unconsolidated investments | 32,090 | | NOI attributable to noncontrolling interests | (22,796) | | Pro rata net operating income (NOI) | 772,122 | Annualized In-Place NOI Reconciliation (1Q24) | Segment | Annualized In-Place NOI ($) | | :-------------------------- | :-------------------------- | | Seniors Housing Operating | 1,344,032 | | Seniors Housing Triple-net | 407,064 | | Outpatient Medical | 526,384 | | Long-Term/Post-Acute Care | 332,320 | | Corporate | — | | Total Annualized In-Place NOI | 2,609,800 | Same Store NOI Reconciliation (1Q24 vs 1Q23 YoY Growth) | Segment | 1Q23 SSNOI ($) | 1Q24 SSNOI ($) | Y/o/Y Growth | | :-------------------------- | :------------- | :------------- | :----------- | | Seniors Housing Operating | 212,749 | 266,907 | 25.5 % | | Seniors Housing Triple-net | 90,310 | 93,740 | 3.8 % | | Outpatient Medical | 116,879 | 119,184 | 2.0 % | | Long-Term/Post-Acute Care | 57,507 | 59,308 | 3.1 % | | Corporate | — | — | — | | Total SSNOI | 477,445 | 539,139 | 12.9 % | SHO SS RevPOR Growth (1Q24 vs 1Q23 YoY Growth) | Region | 1Q23 SHO SS RevPOR ($) | 1Q24 SHO SS RevPOR ($) | YOY Growth | | :------------- | :----------------------- | :----------------------- | :--------- | | United States | 5,632 | 5,901 | 4.8 % | | United Kingdom | 8,100 | 8,690 | 7.3 % | | Canada | 2,469 | 2,535 | 2.7 % | | Total | 5,373 | 5,630 | 4.8 % | SHO SSNOI/Unit (Trailing Four Quarters) | Region | Trailing Four Quarters' SSNOI ($) | Average Units in Service | SSNOI/Unit in USD ($) | | :------------- | :------------------------------- | :--------------------- | :-------------------- | | United States | 864,375 | 61,453 | 14,066 | | United Kingdom | 45,590 | 2,469 | 18,465 | | Canada | 76,248 | 7,419 | 10,277 | | Total | 986,213 | 71,341 | 13,824 | Forward-Looking Statements and Risk Factors This section contains standard forward-looking statements and outlines various risks and uncertainties that could cause actual results to differ materially from expectations - Forward-Looking Statements: Welltower uses words like "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions[102] - Key Risk Factors: Include the status of the economy and capital markets, issues facing the health care industry (regulations, payment policies, operator/tenant financial condition), changes in financing terms, competition, natural disasters, ability to re-lease space, operator/tenant bankruptcies, government regulations (Medicare/Medicaid), environmental laws, and maintaining REIT qualification[102] - Additional Information: Investors can access SEC filings (10-K, 10-Q, 8-K) and other financial information on www.welltower.com and www.sec.gov[103](index=103&type=chunk)[104] - About Welltower: Welltower Inc (NYSE:WELL) is a REIT and S&P 500 company focused on transforming health care infrastructure by investing with leading seniors housing operators, post-acute providers, and health systems in major, high-growth markets across the United States, Canada, and the United Kingdom[105]