Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

6825dd3d5627a2c048012f90584b6b71cb26a6af8fe90721a1b873d0cf5f503a

| Metric [Unit: $ Thousand] | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|---------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States             | **1,745,893**  **[0000766704-24-000039_well-20240930.htm:39]**  | **1,530,174**  **[0000766704-24-000033_well-20240630.htm:33]**  | **1,115,789**  **[0000766704-24-000020_a1q24supplement992.htm:26]**  | N/A     | N/A     | **226,419**  **[0001193125-23-232066_d550779dex991.htm:17]**  | N/A     | N/A     |
| United Kingdom            | **174,337**  **[0000766704-24-000039_well-20240930.htm:39]**    | **163,264**  **[0000766704-24-000033_well-20240630.htm:33]**    | **119,887**  **[0000766704-24-000020_a1q24supplement992.htm:26]**    | N/A     | N/A     | **15,523**  **[0001193125-23-232066_d550779dex991.htm:17]**   | N/A     | N/A     |
| Canada                    | **135,433**  **[0000766704-24-000039_well-20240930.htm:39]**    | **131,446**  **[0000766704-24-000033_well-20240630.htm:33]**    | **151,142**  **[0000766704-24-000020_a1q24supplement992.htm:26]**    | N/A     | N/A     | **34,965**  **[0001193125-23-232066_d550779dex991.htm:17]**   | N/A     | N/A     |

2c76b04f5775470e7aa7bf8eaa32078e629cc6c3bf545efa4f121518681ed0ba

Welltower Inc. is a real estate investment trust (REIT) that focuses on transforming health care infrastructure by investing in seniors housing, post-acute communities, and outpatient medical properties across major markets in the United States, Canada, and the United Kingdom **[0000766704-24-000012_well-20240401.htm:3]** **[0000766704-24-000015_well-20240412.htm:3]** **[0000766704-24-000008_well-20231231.htm:100]**. The company generates revenue primarily from resident fees and services, rent, interest income, and interest earned on short-term deposits **[0000766704-24-000008_well-20231231.htm:116]** **[0000766704-24-000033_well-20240630.htm:51]** **[0000766704-24-000039_well-20240930.htm:60]**. Welltower aims to protect stockholder capital and enhance value by paying consistent dividends and increasing them through annual NOI growth and portfolio expansion **[0000766704-24-000022_well-20240331.htm:32]** **[0000766704-24-000033_well-20240630.htm:37]**.

1. **Seniors Housing Operating** - Manages seniors housing facilities directly, capturing both rental income and resident fees, and is the largest contributor to the company's net operating income.
2. **Triple-net** - Leases properties to operators under long-term leases, providing a stable income stream through rental agreements.
3. **Outpatient Medical** - Includes properties leased to health care providers for outpatient services, supporting the delivery of medical care outside of hospital settings.

e7b92c03cb07573798ba02fde1a9b19fe8c1371b981d7ba251dcf8b112a337c1

Same Store NOI ($000)

48c404a51d2d67817d72114178f2089155cb861a96d19dc3cbdca179758fc79f

ebfa8c729cef84f0a9dd9676da1884de1a483fe6b3d0e1279bfda72142f23545

| Metric [USD Thousands] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Seniors Housing Operating | **4,173,711**  **[0000766704-23-000010_well-20221231.htm:196]**  | **1,131,685**  **[0000766704-23-000017_well-20230331.htm:27]**  | **1,159,449**  **[0000766704-23-000025_well-20230630.htm:31]**  | **1,203,899**  **[0000766704-23-000031_well-20230930.htm:34]**  | **1,268,624**  **[0000766704-24-000008_well-20231231.htm:201]**  | **1,360,274**  **[0000766704-24-000022_well-20240331.htm:27]**  | **1,411,450**  **[0000766704-24-000033_well-20240630.htm:31]**  | **1,530,350**  **[0000766704-24-000039_well-20240930.htm:37]**  |
| Triple-net             | **931,507**  **[0000766704-23-000010_well-20221231.htm:196]**  | **202,419**  **[0000766704-23-000017_well-20230331.htm:27]**  | **198,916**  **[0000766704-23-000025_well-20230630.htm:31]**  | **236,322**  **[0000766704-23-000031_well-20230930.htm:34]**  | **266,814**  **[0000766704-24-000008_well-20231231.htm:201]**  | **221,744**  **[0000766704-24-000022_well-20240331.htm:27]**  | **188,610**  **[0000766704-24-000033_well-20240630.htm:31]**  | **280,515**  **[0000766704-24-000039_well-20240930.htm:37]**  |
| Outpatient Medical     | **678,757**  **[0000766704-23-000010_well-20221231.htm:196]**  | **181,640**  **[0000766704-23-000017_well-20230331.htm:27]**  | **184,523**  **[0000766704-23-000025_well-20230630.htm:31]**  | **191,958**  **[0000766704-23-000031_well-20230930.htm:34]**  | **188,174**  **[0000766704-24-000008_well-20231231.htm:201]**  | **195,908**  **[0000766704-24-000022_well-20240331.htm:27]**  | **198,085**  **[0000766704-24-000033_well-20240630.htm:31]**  | **205,847**  **[0000766704-24-000039_well-20240930.htm:37]**  |
| Non-segment/Corporate  | **4,934**  **[0000766704-23-000010_well-20221231.htm:196]**  | **1,152**  **[0000766704-23-000017_well-20230331.htm:27]**  | **12,719**  **[0000766704-23-000025_well-20230630.htm:31]**  | **29,834**  **[0000766704-23-000031_well-20230930.htm:34]**  | **26,163**  **[0000766704-24-000008_well-20231231.htm:201]**  | **24,087**  **[0000766704-24-000022_well-20240331.htm:27]**  | **26,739**  **[0000766704-24-000033_well-20240630.htm:31]**  | **38,951**  **[0000766704-24-000039_well-20240930.htm:37]**  |

2e63fd748c8f0d8b2dbd95ce5c69a80b7dbbc2b20634111a7340d19674d82f6d

004ed62c147e5d7c29c487df1ce1c45e10e902a80ae42e876a4ade2b39002aaa

1. With operating margins in your SHOP portfolio still in the **high 20s**, what specific strategies do you have to not only return to **pre-pandemic margins** but exceed them, and what challenges do you foresee in achieving higher occupancy levels to drive this margin expansion?  **[WELL_3395153_25]** 

2. Given that there's **$70 million** and **$40 million** of future cash flow upside from recent triple-net to RIDEA transitions, how much of the remaining **7.5%** of in-place NOI from Seniors Housing Triple-net do you plan to convert to RIDEA, and what factors influence your decision to retain certain assets under triple-net leases?  **[WELL_3395153_12]** 

3. Considering the significant amount of distressed senior housing opportunities totaling roughly **$16 billion** of "at-risk of default" properties, what percentage of these assets are you targeting for acquisition, and how do you assess quality and price to ensure they fit your strategic objectives?  **[WELL_3395153_27]** 

4. Despite falling lumber prices, you mentioned that overall construction costs remain **meaningfully higher** than a couple of years ago; how does this impact your development plans for wellness housing, and what's your expected timeline to stabilize these developments amidst these cost pressures?  **[WELL_3395153_26]** 

5. You have highlighted the inherent operating leverage in your business; given the current market conditions and your expectations for occupancy growth, what is your projected run rate for margins, and what initiatives are you implementing to achieve margins **higher than pre-COVID levels**?  **[WELL_3395153_16]** 

dd72702ab6e0056a3ed7bf138354f54830bd5db92859092ad37d9ed9c2ae9f4f

- Real estate investment trusts
- Real estate partnerships
- Private equity and hedge fund investors
- Banks
- Insurance companies
- Finance/investment companies
- Government-sponsored agencies
- Taxable and tax-exempt bond funds
- Health care operators
- Developers
- Other investors in the acquisition, development, leasing, and financing of health care and seniors housing properties  **[0000766704-24-000008_well-20231231.htm:13]** 
- Operators and managers of properties and other health care providers that provide comparable services for residents and patients  **[0000766704-24-000008_well-20231231.htm:67]** 

2c84bb21e3f556b6b8c924044e7b5b5fe38f50b35163afc622d1c5a1ee2e0337

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**: The documents do not contain information about the Q3 2024 earnings call or the guidance provided during that period.

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Income Attributable to Common Stockholders**: $1.52 to $1.60 per diluted share.
  2. **Normalized Funds From Operations (FFO)**: $4.13 to $4.21 per diluted share, with a midpoint of $4.17.
  3. **Same-Store Net Operating Income (NOI) Growth**: 10% to 12.5%.
     - Outpatient Medical: 2% to 3%
     - Long-term, Post Acute: 2% to 3%
     - Senior Housing Triple-Net: 3% to 4%
     - Senior Housing Operating: 19% to 23%
  4. **Revenue Growth**: 9.2%, composed of RevPOR growth of 5.25% and year-over-year occupancy growth of 290 basis points.
  5. **Total Expense Growth**: 5.5%  **[WELL_3395153_9]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Income Attributable to Common Stockholders**: $1.48 to $1.61 per diluted share.
  2. **Normalized Funds From Operations (FFO)**: $4.02 to $4.15 per diluted share, with a midpoint of $4.085.
  3. **Same-Store Net Operating Income (NOI) Growth**: 9% to 12%.
     - Outpatient Medical: 2% to 3%
     - Long-Term Post-Acute: 2% to 3%
     - Senior Housing Triple-Net: 2.5% to 4%
     - Senior Housing Operating Growth: 17% to 22%
  4. **Revenue Growth**: Approximately 9.2%, composed of RevPOR growth of approximately 5.25% and year-over-year occupancy growth of 290 basis points.
  5. **Total Expense Growth**: Approximately 6%  **[WELL_3381678_8]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Income Attributable to Common Stockholders**: $1.21 to $1.37 per diluted share.
  2. **Normalized Funds From Operations (FFO)**: $3.94 to $4.10 per diluted share, with a midpoint of $4.02.
  3. **Year-over-Year Growth in FFO per Share**: 11.5% at the midpoint, after adjusting for $0.03 received in 2023.
  4. **Total Portfolio Year-over-Year Same-Store NOI Growth**: 8.25% to 11.5%.
  5. **Subsegment Growth**:
     - Outpatient Medical: 2% to 3%
     - Long-Term Post-Acute: 2% to 3%
     - Senior Housing Triple-Net: 2.5% to 4%
     - Senior Housing Operating Growth: 15% to 21%, driven by revenue growth of approximately 9.2%
  6. **Revenue per Occupied Room (RevPOR) Growth**: Approximately 5.25%.
  7. **Occupancy Growth**: An acceleration in year-over-year occupancy growth to 290 basis points.
  8. **Senior Housing Operating Portfolio Same-Store NOI Growth**: Guidance at the midpoint is 18%  **[WELL_3373412_7]** **[WELL_3373412_3]** .

ca56f7d153f9415556e152e0c89356921b34559b663d8bb26d4ecbd44632b0b5

United States

United Kingdom

Canada

International

Total Revenue

e4c9746f0cd75f91b282ec6a4fe96bcddb14ae1e5781344a5a054c36106c392e

Seniors Housing Operating

Triple-net

Outpatient Medical

Non-segment/Corporate

- Interest Income

- Other Income

c953bcbc46630114b4d9348bcec5ee53f1a04993de02c912d557a958001e502b

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

2347820397422b578169094968b63109d0ef6dad4fec05b59f8308551ccb6c2d

| Name               | Position                                                   | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|--------------------|------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Shankh Mitra       | Chief Executive Officer                                    | October 2020     | **Shankh Mitra** has served as the Chief Executive Officer of Welltower Inc. since **October 2020**. Before becoming CEO, he held various roles at Welltower, including Chief Investment Officer from August 2018 to January 2023, Vice Chair – Chief Operating Officer and Chief Investment Officer from April 2020 to October 2020  **[0000766704-24-000012_well-20240401.htm:23]** **[0000766704-24-000015_well-20240412.htm:23]** **[0000766704-24-000012_well-20240401.htm:37]** . |
| Timothy G. McHugh  | Executive Vice President – Chief Financial Officer         | April 2020       | **Timothy G. McHugh** has served as Welltower's Executive Vice President – Chief Financial Officer since **April 2020**. Prior to this role, he held various positions at Welltower, including Senior Vice President – Chief Financial Officer & Treasurer from September 2019 to April 2020  **[0000766704-24-000012_well-20240401.htm:37]** **[0000766704-24-000015_well-20240412.htm:37]** .                                      |
| John F. Burkart    | Executive Vice President – Chief Operating Officer         | July 2021        | **John F. Burkart** has served as Welltower's Executive Vice President – Chief Operating Officer since **July 2021**. Before joining Welltower, Mr. Burkart was at Essex Property Trust, where he served as Chief Operating Officer and Senior Executive Vice President from September 2019 to December 2020  **[0000766704-24-000012_well-20240401.htm:37]** **[0000766704-24-000015_well-20240412.htm:37]** **[0001193125-23-098475_d401725ddef14a.htm:37]** .                      |
| Matthew G. McQueen | Executive Vice President – General Counsel & Corporate Secretary | November 2020    | **Matthew G. McQueen** has served as Welltower's Executive Vice President – General Counsel & Corporate Secretary since **November 2020**. Prior to this role, he was the Senior Vice President – General Counsel & Corporate Secretary from July 2016 to November 2020  **[0000766704-24-000015_well-20240412.htm:37]** **[0000766704-24-000012_well-20240401.htm:37]** **[0001193125-23-098475_d401725ddef14a.htm:37]** .                                                        |

5cee6f7a55e2ec9fe8d79bb236582dadd0e581d0eda50344ad4c85e63a6fcf27

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | November 7, 2022  **[0000766704-24-000039_well-20240930.htm:91]**  |
| End Date/Duration        | No expiration date  **[0000766704-24-000039_well-20240930.htm:91]**  |
| Total additional amount  | **$3,000,000,000**  **[0000766704-24-000039_well-20240930.htm:91]**  |
| Remaining authorization  | **$3,000,000,000**  **[0000766704-24-000039_well-20240930.htm:91]**  |
| Details                  | Provides flexibility for share repurchases; evaluated against other capital deployment opportunities  **[0000766704-24-000022_well-20240331.htm:69]** **[WELL_1201147_11]**  |

daeecc8c50c5cf1fd1c9081c4ea15a3cd1070dfad1364b8bf4321905d65dcb68

**Annual guidance for FY 2024:**
- **Net income**: $1.75 to $1.81  **[WELL_3404332_7]**  (raised from $1.52 to $1.60  **[WELL_3395153_9]** )  
- **Normalized FFO**: $4.27 to $4.33  **[WELL_3404332_7]**  (raised from $4.13 to $4.21  **[WELL_3395153_9]** )  
- **Same-store NOI growth**: 11.5% to 13%  **[WELL_3404332_8]**  (raised from 10% to 12.5%  **[WELL_3395153_9]** )  
  - Outpatient medical: 2% to 3%  **[WELL_3404332_8]**  (no change from prior guidance  **[WELL_3395153_9]** )  
  - Long-term, post-acute: 2% to 3%  **[WELL_3404332_8]**  (no change from prior guidance  **[WELL_3395153_9]** )  
  - Senior housing triple-net: 4% to 5%  **[WELL_3404332_8]**  (raised from 3% to 4%  **[WELL_3395153_9]** )  
  - Senior housing operating: 22% to 24%  **[WELL_3404332_8]**  (raised from 19% to 23%  **[WELL_3395153_9]** )  
- **Revenue growth**: 9.2%  **[WELL_3404332_8]**  (no change from prior guidance  **[WELL_3395153_9]** )  
- **Expense growth**: 5%  **[WELL_3404332_8]**  (lowered from 5.5%  **[WELL_3395153_9]** )  
- **Net debt to adjusted EBITDA**: below 4x  **[WELL_3404332_7]**  (no prior guidance)  

2ffc20f2febe23d7c884d85a3c04ec1fcce423d9668870f4b344861947a58256

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1970  **[0000766704-24-000008_well-20231231.htm:148]**    | Present  | Current auditor   |

a665829fba33368aa329d9c8bff26c8541431c658f70d94e70e89c1a5ffed6f8

8f0b84ffc9c00e63ed490dfd58417a61343643ede43cc33f50fbf68fda8bba36

- Total Revenue: $2,055.663 million (+24% YoY)  **[0000766704-23-000031_well-20230930.htm:34]** **[0000766704-24-000039_well-20240930.htm:37]**   
- Seniors Housing Operating: $1,530.35 million (+28% YoY)  **[0000766704-23-000031_well-20230930.htm:34]** **[0000766704-24-000039_well-20240930.htm:37]**   
- Triple-net: $280.515 million (**+44%** YoY)  **[0000766704-23-000031_well-20230930.htm:34]** **[0000766704-24-000039_well-20240930.htm:37]**   
- Outpatient Medical: $205.847 million (+9% YoY)  **[0000766704-23-000031_well-20230930.htm:34]** **[0000766704-24-000039_well-20240930.htm:37]**   
- United States Region: $1,745.9 million (+26% YoY)  **[0000766704-23-000031_well-20230930.htm:36]** **[0000766704-24-000039_well-20240930.htm:39]**   
- Net Income: $456.8 million (**+239%** YoY)  **[0000766704-23-000031_well-20230930.htm:35]** **[0000766704-23-000031_well-20230930.htm:2]** **[0000766704-24-000039_well-20240930.htm:38]** **[0000766704-24-000039_well-20240930.htm:2]**   
- EPS (Diluted): $0.74 (+196% YoY)  **[0000766704-23-000031_well-20230930.htm:2]** **[0000766704-24-000039_well-20240930.htm:2]**   

8ff9c7f70bfb5ac129afd70b102df4598bd84ddf13175c97af6c4690ada074f9

d742886c39dcff2645bcb4cb8d474f398d320d7f24f493a097dc8c60e6bb69b8

9d31cbdde5e51a0e1731ee9bdff9ed4a3b2d72971116b841388b55593208cf25

Average occupancy for Seniors Housing Operating (percentage)

Number of properties for Seniors Housing Operating (count)

Number of properties for Triple-net (count)

Number of properties for Outpatient Medical (count)

Total number of properties (count)

Square feet of new leases for Outpatient Medical (square feet)

Square feet of renewals for Outpatient Medical (square feet)

Weighted-average term of these leases for Outpatient Medical (years)

Number of properties for triple-net lease expirations (count)

Number of units or beds for triple-net lease expirations (units/beds)

Square feet for outpatient medical lease expirations (square feet)

066f51325717bf7dec517d64add9f7831fe6c04eb723b87e10bb1be9462f516a

- **Welltower expects to maintain strong revenue growth through substantial rate increases to existing customers without significant pushback, due to the high-end positioning of their properties and short average length of stay.**  **[WELL_3363157_18]**
- **Integra assets have shown remarkable performance improvements, generating $127 million of EBITDARM in Q2, representing a $215 million positive cash flow swing within six months of transition, exceeding initial expectations.**  **[WELL_3363157_26]**
- **Welltower is capitalizing on high-quality acquisition opportunities without increasing risk, as the current market provides access to trophy assets due to broken capital structures rather than asset quality issues.**  **[WELL_3363157_23]**

cb35c43302f7bc9d2084e77c1e2b93e5f39d8ca52ec2a7712343a77f3eed3bec

- **Uncertainty about sustaining high growth rates in the future**: When asked if the current strong growth trajectory can continue, CEO Shankh Mitra acknowledged uncertainty, stating, "**We have no hubris of sort of knowing what we don't know... We'll see how this plays out.**" This suggests the company is unsure if growth will normalize or decelerate.  **[WELL_3373412_18]**
- **Potential regulatory risks impacting profitability**: In response to questions about regulatory concerns, Tim McHugh admitted awareness of discussions on regulatory changes that could affect senior housing, such as potential staffing requirements, though he downplayed the impact. This indicates that regulatory changes could pose a risk to profitability.  **[WELL_3373412_13]**
- **Lack of specific data on key operational metrics**: When asked about average age of move-in and comparisons to pre-COVID levels, Executive John Burkart did not have the specific information and could not provide details, stating he would "**look to see if I can get it and get it back to you off-line.**" This suggests a possible lack of data or monitoring of important operational metrics.  **[WELL_3373412_10]**

9546a623ceb3683e4d68aebee15a0f83d9eff2a32d11c575d2771077a1258cbc

- **Welltower is actively acquiring high-quality seniors housing assets at attractive valuations**, capitalizing on distressed opportunities in the market, leading to **potential substantial occupancy and cash flow upside**. The company has **$4.9 billion of transactions closed or under contract in 2024**  **[WELL_3395153_6]** , with assets offering significant occupancy growth potential from the **low-80% range**  **[WELL_3395153_13]** . Executives emphasize that they are in the **very early inning** of the growth cycle  **[WELL_3395153_13]** .
- **Strategic initiatives**, including leveraging technology and operational improvements, are expected to **drive significant growth and margin expansion starting in 2025 and beyond**  **[WELL_3395153_5]** . The company is **dramatically driving down costs by 20% to 50%**  **[WELL_3395153_5]** , and their initiatives have the potential to **meaningfully contribute to growth in 2025 and beyond**  **[WELL_3395153_5]** . They are focused on **building regional density and growing with operating partners**, emphasizing a total return approach  **[WELL_3395153_27]** **[WELL_3395153_17]** .
- **Financial performance is strong**, with **normalized FFO of $1.05 per share, representing 16.7% year-over-year growth** (19% adjusted)  **[WELL_3395153_8]** , and **same-store NOI growth of 11.3% year-over-year**  **[WELL_3395153_8]** . Credit rating agencies **S&P and Moody's both moved their outlooks on Welltower's ratings to positive** during the quarter  **[WELL_3395153_8]** , reflecting the company's strong balance sheet and growth trajectory.

0ef640c74290aaa599ce711803e3aeda2c6befc2ff43d4a56062bcbb64b5086e

- **Despite falling lumber prices, Welltower's overall construction costs remain meaningfully higher than they were a couple of years ago, impacting development margins.**  **[WELL_3395153_26]**
- **Operating margins in Welltower's senior housing operating portfolio remain in the high 20% range, below pre-pandemic levels, and improving margins requires higher occupancy, which may be challenging.**  **[WELL_3395153_25]**
- **Welltower is being cautious about acquisitions of distressed senior housing properties, with no set targets, potentially limiting growth opportunities.**  **[WELL_3395153_27]**

2ac76ee40ccc458c7de0ce9f8be03a9a2f4f09ccfbd5aa862d95813b65f7f652

1. **NOI Growth Outlook**  
   **Q:** Can double-digit NOI growth continue?  
   **A:** Management believes they can continue achieving **double-digit NOI growth for years to come**.  **[WELL_3373412_10]**  Despite market expectations of deceleration, they see no reason they can't return to **2015 occupancy levels** due to improved demand/supply dynamics and their platform's buildout.  **[WELL_3373412_10]** 

2. **Investment Opportunities**  
   **Q:** How robust is the acquisition pipeline?  
   **A:** The acquisition pipeline is extremely robust, with management stating they've **never been this busy in Q1**.  **[WELL_3373412_12]**  They anticipate a potential **record year** due to a massive amount of senior housing loans rolling over and limited credit available for refinancing.  **[WELL_3373412_12]**  However, they emphasize they will only grow if it adds value per share.  **[WELL_3373412_12]** 

3. **RevPOR and Rent Growth**  
   **Q:** What is the expected RevPOR growth in guidance?  
   **A:** Rent growth is expected to be in the **5% to 5.5%** range, driving the flexibility within their guidance.  **[WELL_3373412_11]**  This contributes significantly to the anticipated performance of the SHOP portfolio.  **[WELL_3373412_11]** 

4. **Operating Leverage and Margins**  
   **Q:** Does increasing occupancy require more staffing or marketing spend?  
   **A:** As occupancy surpasses **80%**, incremental staffing needs are minimal since key positions are already in place.  **[WELL_3373412_11]**  Therefore, higher occupancy leads to significant flow-through to the bottom line, with conditions being described as **fantastic** due to favorable supply-demand factors.  **[WELL_3373412_11]** 

5. **Wellness Housing Growth**  
   **Q:** How has the wellness housing portfolio performed?  
   **A:** The wellness housing portfolio has historically grown at **mid- to high single digits**.  **[WELL_3373412_9]**  In **2023**, same-store NOI growth was **12.2%**, and in the fourth quarter alone, it reached **13.1%**.  **[WELL_3373412_9]**  The **60% operating margin** of the Affinity portfolio sits towards the upper end of the wellness housing spectrum.  **[WELL_3373412_9]** 

6. **Regulatory Risks**  
   **Q:** Are minimum staffing rules a concern?  
   **A:** Management is aware of regulatory discussions but notes that their senior housing business is **almost entirely private pay**, driven by reputation and quality.  **[WELL_3373412_13]**  Staffing levels and care quality are critical for their success, and they focus on creating sustainable models at the property level.  **[WELL_3373412_13]** 

7. **Development Expectations**  
   **Q:** When will senior housing development pick up?  
   **A:** They anticipate that significant development is **years away** due to high construction and capital costs, lack of development financing, and dismantled development platforms.  **[WELL_3373412_16]**  There is little confidence in achieving profitable development given recent market conditions.  **[WELL_3373412_16]** 

8. **Occupancy Targets**  
   **Q:** Can occupancy exceed pre-COVID levels?  
   **A:** Management believes there's no reason they can't surpass **91% occupancy**, which was achieved in 2015.  **[WELL_3373412_25]**  They would be disappointed if they only returned to pre-COVID levels, given upcoming favorable demand-supply dynamics.  **[WELL_3373412_25]** 

9. **Competition for Assets**  
   **Q:** Is more capital entering the space, increasing competition?  
   **A:** Currently, there is **little to no competition** for acquisitions as most transactions are privately negotiated.  **[WELL_3373412_16]**  They are not seeing other capital entering the space significantly.  **[WELL_3373412_16]** 

10. **Balance Sheet Positioning**  
    **Q:** How will excess cash be utilized?  
    **A:** The company holds significant cash but plans to use it to pay off **$1.35 billion of unsecured maturities** in the first quarter.  **[WELL_3373412_21]**  They are well-positioned to capitalize on opportunities to deploy cash into investments.  **[WELL_3373412_21]** 

f0af85fe0394eb92c4a7a56ed492d2ea60053c79850a30e5a12bcd170e215e04

- **Consistent Outperformance in Occupancy and NOI Growth**: Welltower has consistently outperformed the market in both rate growth and occupancy growth, achieving a **330 basis point year-over-year occupancy gain**—a record year. If they achieve their NOI growth guidance in the SHOP portfolio, it will result in a **75% compounded growth over three years**, an unprecedented achievement in a large portfolio.  **[WELL_3373412_23]**
- **Strong Pipeline and Robust External Growth Opportunities**: Welltower is experiencing a **record level of investment opportunities**, with a robust and actionable pipeline, particularly in Q1, which is traditionally a slower period. They anticipate a **massive amount of value creation** through these investments, owing to a large number of maturing loans in the senior housing space that present acquisition opportunities.  **[WELL_3373412_12]**
- **Confidence in Sustained Double-Digit NOI Growth**: Management expresses strong confidence in sustaining **double-digit NOI growth for years to come**, driven by favorable demand-supply dynamics starting in 2025-2026 and their strategic platform buildout. They believe there's "no reason" they can't return to or exceed **2015 occupancy levels**.  **[WELL_3373412_10]** **[WELL_3373412_25]**

175c49dc22401c2bf98be48c1eea5565447ccd8fb66b478d35d0fccd3341bac9

| Year       | Amount Due (in billions) | Debt Type              | Interest Rate (%)       | % of Total Debt Calculation |
|------------|--------------------------|------------------------|-------------------------|-----------------------------|
| 2024       | 0.10                     | Secured Debt           | 1.31 to 8.00 **[0000766704-24-000039_well-20240930.htm:23]**   | 0.6% = (0.10 / 16.03) * 100 **[0000766704-24-000039_well-20240930.htm:23]** |
| 2025       | 1.54                     | Senior Unsecured Notes | 2.05 to 6.50 **[0000766704-24-000039_well-20240930.htm:23]**   | 9.6% = (1.54 / 16.03) * 100 **[0000766704-24-000039_well-20240930.htm:23]** |
| 2026       | 0.93                     | Senior Unsecured Notes | 2.05 to 6.50 **[0000766704-24-000039_well-20240930.htm:23]**   | 5.8% = (0.93 / 16.03) * 100 **[0000766704-24-000039_well-20240930.htm:23]** |
| 2027       | 2.36                     | Senior Unsecured Notes | 2.05 to 6.50 **[0000766704-24-000039_well-20240930.htm:23]**   | 14.7% = (2.36 / 16.03) * 100 **[0000766704-24-000039_well-20240930.htm:23]** |
| 2028       | 2.68                     | Senior Unsecured Notes | 2.05 to 6.50 **[0000766704-24-000039_well-20240930.htm:23]**   | 16.7% = (2.68 / 16.03) * 100 **[0000766704-24-000039_well-20240930.htm:23]** |
| Thereafter | 8.42                     | Senior Unsecured Notes | 2.05 to 6.50 **[0000766704-24-000039_well-20240930.htm:23]**   | 52.5% = (8.42 / 16.03) * 100 **[0000766704-24-000039_well-20240930.htm:23]** |

c1202a270a83f79b763fe2b0020e0a225198d685653351c9f1afbecc2cbc54f5

1. **FAD Growth and Dividend**  
   **Q:** What's your outlook for FAD growth and dividend policy?  
   **A:** Management expects strong Funds Available for Distribution (FAD) growth, driven by continued focus on long-term value-add projects with attractive returns.  **[WELL_3381678_11]**  Cash flow has recovered meaningfully from COVID lows, boosting confidence in the senior housing recovery.  **[WELL_3381678_11]**  They are actively discussing the current dividend policy with the Board, indicating potential for dividend increases.  **[WELL_3381678_11]** 

2. **Acquisitions and Funding Plans**  
   **Q:** Discuss the $2.6B acquisitions and future funding.  
   **A:** The $2.6 billion in acquisitions are entirely in senior housing and wellness housing, with expected returns similar to previous quarters despite higher interest rates.  **[WELL_3381678_12]**  They've raised capital to fund these transactions, and their pipeline remains robust beyond the $2.8 billion of deals closed or under contract.  **[WELL_3381678_12]**  Management agrees they are under-leveraged and plans to utilize the balance sheet to drive earnings growth post-Fed cycle.  **[WELL_3381678_12]** 

3. **Expense Guidance and NOI Growth**  
   **Q:** Was there a change in same-store operating expense guidance?  
   **A:** Yes, expenses underlying the initial budget were at **6.5%**, but the revised outlook has decreased to **6%**, reducing expenses by 50 basis points.  **[WELL_3381678_20]**  This positively impacts NOI growth expectations.  **[WELL_3381678_20]** 

4. **Potential Risks and Rent Controls**  
   **Q:** How do you anticipate potential risks and rent control concerns?  
   **A:** While **25% NOI growth** is impressive, management notes the industry's profitability remains challenging, with margins below pre-COVID levels and the peak in 2015.  **[WELL_3381678_22]**  They emphasize the need to restore margins through rates and occupancy.  **[WELL_3381678_22]**  Rent growth has been around **8–9%**, not double digits, and employee costs are up **30–40%** over the last 5 years.  **[WELL_3381678_22]**  They focus on long-term value creation and are vigilant about potential risks.  **[WELL_3381678_22]** 

5. **Development and Capital Investment**  
   **Q:** Are you seeing more competition or new supply in development?  
   **A:** No, there is no influx of new capital, and debt markets are effectively closed.  **[WELL_3381678_16]**  This limits competition and reduces new development activity. Instead, some developers are abandoning projects and disbanding teams.  **[WELL_3381678_16]** 

6. **Senior Housing Strategy**  
   **Q:** Are NOI gains driven by strategy or cyclical factors?  
   **A:** Broad-based outperformance is attributed to a deliberate strategy of deep partnerships with operators rather than cyclical factors.  **[WELL_3381678_19]**  This approach enhances employee retention and customer experience, ultimately driving financial results.  **[WELL_3381678_19]** 

7. **Investments in Analytics and Operations**  
   **Q:** Elaborate on investments in analytics and operations teams.  
   **A:** Investments in analytics tools and operations teams enable handling a large volume of transactions efficiently.  **[WELL_3381678_14]**  These tools are crucial in screening properties, predicting stabilized NOI, and matching operators.  **[WELL_3381678_14]**  Operational excellence at scale allows for more effective processes, driving value.  **[WELL_3381678_14]** 

8. **Rent Increases and Lease Rates**  
   **Q:** How are early rent increases impacting retention and lease rates?  
   **A:** Rent increases have proceeded smoothly with minimal pushback, as residents understand cost pressures.  **[WELL_3381678_13]**  Robust market demand supports renewals and new lease rates, with strong supply-demand fundamentals and appreciated value proposition.  **[WELL_3381678_13]** 

9. **International Opportunities**  
   **Q:** Is the $19B opportunity domestic, and what's the outlook abroad?  
   **A:** The $19 billion opportunity is domestic.  **[WELL_3381678_23]**  Similar situations exist internationally, particularly in the UK, where the market and debt availability are more challenging than in the U.S..  **[WELL_3381678_23]**  Management anticipates engaging in numerous transactions in the UK to capitalize on these conditions.  **[WELL_3381678_23]** 

10. **Transition Assets and Growth**  
    **Q:** How will transition assets affect growth when added to same-store?  
    **A:** Many transition assets will enter the same-store pool towards the end of the year or in 2025.  **[WELL_3381678_15]**  Management expects strong growth from these assets, which may be additive to overall growth, though it's too early to say definitively.  **[WELL_3381678_15]**  The Canadian assets transitioned in Q4 will re-enter same-store in 2025.  **[WELL_3381678_15]** 

11. **Skilled Nursing Investments**  
    **Q:** How are you accounting for EBITDA reductions in skilled nursing?  
    **A:** They approach skilled nursing as structured credit with short-duration capital, focusing on basis and downside protection.  **[WELL_3381678_21]**  Potential EBITDA reductions have minimal impact due to the protective structure of their investments.  **[WELL_3381678_21]** 

12. **Operating Platform Efficiencies**  
    **Q:** Can you provide more color on operating platform improvements?  
    **A:** They are advancing plans to create efficiencies by reducing administrative burden through a unified system.  **[WELL_3381678_17]**  This reduces errors and wasted time, enabling staff to focus on care and leveraging technology to drive value.  **[WELL_3381678_17]** 

13. **Cogir Portfolio Performance**  
    **Q:** How is the Cogir PLR portfolio in Canada performing?  
    **A:** The partnership with Cogir is performing very well, with assets and teams embracing Cogir management.  **[WELL_3381678_18]**  Expectations for the portfolio are strong, and significant leasing activity is starting now in Canada.  **[WELL_3381678_18]** 

14. **SHOP Guidance and Leasing Season**  
    **Q:** Any updates on SHOP guidance and peak leasing season?  
    **A:** It's too early in the year to comment definitively on guidance.  **[WELL_3381678_10]**  Annual results will be defined by the summer leasing season.  **[WELL_3381678_10]**  Management remains cautiously optimistic and aims to capture more than their fair share of the market.  **[WELL_3381678_10]** 

938f4bf22537ee8787b6d9b7920748b80228537549cc73675b32fdac8f5ff310

1. **Growth Drivers and Occupancy**  
   **Q:** What will drive the next phase of growth?  
   **A:** Management sees substantial occupancy upside, as industry occupancy is in the **low 80%** range.  **[WELL_3395153_13]**  They expect tremendous cash flow growth as occupancy increases beyond **80%**, where margin flow-through improves significantly.  **[WELL_3395153_13]**  They focus on assets with occupancy upside and believe they are in the **very early innings** of the growth cycle.  **[WELL_3395153_13]** 

2. **Margins and Operating Leverage**  
   **Q:** How high can operating margins go?  
   **A:** While not speculating on exact margins, management aims to exceed pre-COVID levels.  **[WELL_3395153_16]**  Achieving higher occupancy and implementing platform initiatives are key to margin expansion.  **[WELL_3395153_16]**  They stress that merely returning to pre-pandemic margins would mean they have failed.  **[WELL_3395153_25]** 

3. **Acquisition Strategy**  
   **Q:** What's the current investment environment?  
   **A:** The company focuses on total return investments with occupancy upside, not stabilized assets attracting competition.  **[WELL_3395153_17]**  They target assets where they can add value and grow with operating partners.  **[WELL_3395153_17]**  Availability of debt for stabilized properties doesn't affect their strategy.  **[WELL_3395153_17]** 

4. **Balance Sheet and Leverage**  
   **Q:** Will you use leverage to drive growth?  
   **A:** There's no plan to lean into leverage, but low leverage offers optionality.  **[WELL_3395153_15]**  Organic deleveraging and increased free cash flow provide capacity to tap debt for per-share growth when appropriate.  **[WELL_3395153_15]**  Management acknowledges they won't remain at very low leverage levels indefinitely.  **[WELL_3395153_15]** 

5. **Cash Flow Generation**  
   **Q:** Are there upside drivers to free cash flow?  
   **A:** They are in the early stages of enhancing free cash flow generation.  **[WELL_3395153_22]**  Operational initiatives are reducing CapEx costs by **25% to 50%** and accelerating turnaround times, improving occupancy and NOI.  **[WELL_3395153_22]**  Management is excited about the significant potential in free cash flow as these initiatives take effect.  **[WELL_3395153_22]** 

6. **Wellness Housing Growth**  
   **Q:** What's the growth profile of wellness housing?  
   **A:** The wellness housing business has expanded to **25,000 units** since 2018.  **[WELL_3395153_21]**  Despite high occupancy, it has compounded at **8% to 10%** through the pandemic.  **[WELL_3395153_21]**  Management is enthusiastic about its strong organic growth potential.  **[WELL_3395153_21]** 

7. **Foreign Owners Exiting**  
   **Q:** Why are foreign owners selling senior housing?  
   **A:** Foreign counterparties face debt pressure similar to domestic sellers.  **[WELL_3395153_18]**  A strong U.S. dollar offsets some impact, but they seek to exit entirely.  **[WELL_3395153_18]**  The company is working on transactions to buy them out completely.  **[WELL_3395153_18]** 

8. **SHOP Portfolio Margins**  
   **Q:** How to improve SHOP operating margins?  
   **A:** Increasing occupancy is crucial for achieving higher margins beyond pre-pandemic levels.  **[WELL_3395153_25]**  Management insists that merely returning to pre-COVID margins is insufficient.  **[WELL_3395153_25]**  Higher occupancy will drive significant margin expansion.  **[WELL_3395153_25]** 

aff4446b2f40ef9adb3f17f6cd80c38da2467a7a1352f7d9999ad0dbeaadfe3c

1. **Sustainability of Top-Line Growth**  
   **Q:** Will 8% top-line growth decelerate in 2025?  
   **A:** Management is not speculating on 2025 but is optimistic about occupancy growth potentially improving next year. They focus on RevPOR minus expenses and highlight a record sequential occupancy increase in Q3, suggesting potential for continued growth.  **[WELL_3404332_12]** 

2. **Incremental Margins at Higher Occupancy**  
   **Q:** What's the incremental margin as occupancy rises above 90%?  
   **A:** Flow-through margins were at **60%** this quarter, and excluding one operator, they are closer to **67%**. Management expects flow-through margins to move into the mid-60s and approach **70%** as occupancy returns to pre-COVID levels of **88%** and beyond.  **[WELL_3404332_10]** 

3. **CapEx Expectations in Senior Housing**  
   **Q:** Where will CapEx as % of NOI stabilize?  
   **A:** CapEx has been elevated due to strategic investments but is expected to lower the long-term run rate. The internal team is reducing costs by **20% to 50%** per unit and improving efficiencies, which will reduce CapEx as a percentage of NOI over time.  **[WELL_3404332_16]** 

4. **Tech Platform Impact on Margins**  
   **Q:** How will tech rollout affect financials?  
   **A:** The goal is significantly better financial results. Initial investments are made by Welltower, with some duplicative costs upfront. Over time, the tech platform will be less expensive and scaled across the operating platform, leading to improved margins without increasing costs.  **[WELL_3404332_17]** 

5. **SHOP Portfolio Exposure**  
   **Q:** Will SHOP grow as percentage of NOI?  
   **A:** Yes, SHOP will continue to grow as a percentage of the overall portfolio. Even without new acquisitions, improving occupancy and margins will increase SHOP's contribution. Management is comfortable with potential volatility, focusing on long-term value rather than short-term fluctuations.  **[WELL_3404332_25]** 

6. **Segments Driving Occupancy Gains**  
   **Q:** Which segments are boosting occupancy?  
   **A:** Occupancy gains are across the board, but the majority of growth is from assisted living and independent living. The wellness housing portfolio is highly occupied and thus a drag on occupancy growth. Labor costs are moving favorably, which may benefit expenses.  **[WELL_3404332_22]** 

7. **Acquisition Pipeline and Competition**  
   **Q:** Can you maintain investment activity amid competition?  
   **A:** Management focuses on value creation rather than maintaining activity levels. They conduct mostly private, bilateral transactions (about **94%**), facing less competition. Their cost of capital considerations are based on long-term returns for existing shareholders.  **[WELL_3404332_20]** 

8. **Path to Recovery and Margins**  
   **Q:** Is returning to pre-COVID margins realistic?  
   **A:** Management expects occupancy growth to surpass pre-COVID levels. Despite lower occupancy, NOI is already **$33 million** higher than pre-COVID due to higher rates. They focus on improving revenue and believe margins will improve beyond pre-COVID levels.  **[WELL_3404332_19]** 

9. **Non-Same-Store Portfolio Improvement**  
   **Q:** How quickly will non-same-store catch up?  
   **A:** Non-same-store assets have lower occupancy but are expected to grow faster as they improve. They are acquiring assets with **40%–60%** occupancy, which is a drag now but will lead to higher earnings and growth. Over time, margins between portfolios should converge.  **[WELL_3404332_23]** 

10. **Construction Cost and Development**  
    **Q:** When will it make economic sense to build?  
    **A:** Construction costs remain high due to insurance and labor expenses. Rent growth alone isn't sufficient; markets need a **25%–30%** increase in RevPOR minus expenses before development makes sense. In average markets, new construction currently doesn't make economic sense.  **[WELL_3404332_11]** 

11. **Occupancy Trends and Traffic**  
    **Q:** How are traffic and turnover affecting occupancy?  
    **A:** Traffic is up, and higher closing ratios indicate improved execution. Turnover remains consistent with no issues. The company is focused on executing and taking market share, contributing to occupancy gains.  **[WELL_3404332_13]** 

12. **Absorption and Occupancy Growth**  
    **Q:** Will absorption reaccelerate to boost occupancy?  
    **A:** Management doesn't speculate on macro absorption trends but focuses on gaining market share through strong execution. Any improvement in industry-wide absorption would be an added benefit but isn't their primary focus.  **[WELL_3404332_14]** 

13. **Discussions with Private Peers**  
    **Q:** Are you pursuing larger transactions with private peers?  
    **A:** They are in discussions with various groups, and outcomes vary based on asset quality and valuation. While some engagements may lead to larger deals, others may not result in any acquisitions.  **[WELL_3404332_18]** 

14. **Contribution of External Investments**  
    **Q:** How much did new investments boost FFO?  
    **A:** The **$0.045** increase in FFO guidance is due to incremental capital activity since the last update. This reflects new acquisitions and financing, while outperformance from previous acquisitions is reflected in fundamental performance.  **[WELL_3404332_21]** 

15. **Annualized Margin Improvement from Tech**  
    **Q:** What margin improvement do you expect from tech?  
    **A:** Management is optimistic about achieving higher margins than pre-COVID due to the new platform and initiatives but will not speculate on specific annualized margin improvements.  **[WELL_3404332_24]** 

16. **Acquisition Selectivity and Deal Flow**  
    **Q:** What percentage of deals do you pass on?  
    **A:** Of the **$15 billion** in opportunities reviewed, they acquired **$1.2 billion**, implying a **10%** hit rate. This selectivity reflects their focus on quality and valuation, and the percentage can fluctuate each quarter.  **[WELL_3404332_15]** 

3f2a9ae745d2af6b497378d87b390a5bb5ec0bc8bff70ada1ba113898f5b55d0

- The company anticipates **another year of elevated G&A expenses** due to ongoing platform build-out, potentially impacting near-term earnings.  **[WELL_3363157_15]**
- **Sustainability of rate increases** may face challenges due to possible **customer pushback**, particularly from elderly residents who may be sensitive to price increases.  **[WELL_3363157_18]**
- The company's margins are at a **suboptimal level**, which may hinder the ability to attract capital and achieve desired profitability.  **[WELL_3363157_13]**

21576e5b4ec8d9842d88fd23af2998604a172eb2abab1b5666f3cdd083d200ce

- **Margins remain significantly below pre-COVID levels**, and the **profitability of the industry remains challenging**, with the company "not even close" to peak levels from 2015.  **[WELL_3381678_22]**
- **Employee costs have increased by 30-40% in the last 5 years**, adding significant pressure to expenses.  **[WELL_3381678_22]**
- **The U.K. debt market is worse than that of the U.S.**, posing challenges to the company's international investments.  **[WELL_3381678_23]**

0e8db307ccc3ddb216234f60d16b7ae9d2e73781810835a28c18063980542bd4

- **Welltower is capitalizing on significant investment opportunities, with $2.8 billion in closed or under contract investments year-to-date** and a robust pipeline ahead, aiming to drive substantial per-share growth.  **[WELL_3381678_6]**
- **The company maintains a strong balance sheet with net debt to adjusted EBITDA at 4.03x, the lowest in its history, and plans to leverage this position to fund future growth opportunities.**  **[WELL_3381678_6]**
- **Welltower's investment in its analytics and operations teams is enhancing efficiency and effectiveness, contributing to operational excellence and scalability, with these investments paying off significantly.**  **[WELL_3381678_14]**

5696558498bb4fd47fd4138285b53c0b3fe84f0284f4e85548de99817598e993

Welltower Inc (WELL)

Financials