Welltower Inc. · NYSE:WELL
Welltower — Mizuho Healthcare REIT Conference April 2021
30 slides from Welltower's conference presentation, Apr 6, 2021
Slide 1: Mizuho Healthcare REIT Conference April 2021
Exhibit 99.1 Mizuho Healthcare REIT Conference April 2021Exhibit 99.1 Mizuho Healthcare REIT Conference April 2021
Slide 2: Forward Looking Statements
Forward Looking Statements 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 exp
Slide 3: Recent Developments
Recent Developments First Quarter 2021 Funds from Operations (FFO) Update (1) • Welltower (“WELL”) expects to achieve the top end of its normalized FFO guidance range of $0.71 - $0.76 per diluted share • WELL expects 1Q21 average occupancy for its Seniors Housing Operating (SHO) portfolio to finish
Slide 4: Welltower at a Glance
Welltower at a Glance World’s Largest Health and Wellness Real Estate Platform sq. ft. ~22M ~1,300 of Outpatient Senior Living S&P (1) 500 (1) Facilities Communities Baa1 BBB+ 4 1. As of 12/31/2020Welltower at a Glance World’s Largest Health and Wellness Real Estate Platform sq. ft. ~22M ~1,300 of O
Slide 5: Welltower Purpose
Welltower Purpose Addressing societal challenges through reimagining and reinventing the built environment for effective health and wellness care delivery 5Welltower Purpose Addressing societal challenges through reimagining and reinventing the built environment for effective health and wellness car
Slide 6: Secular Theme | An Aging Population
Secular Theme | An Aging Population (1) 80+ U.S. Population 20M 8% 25 7% 80+ Population 80+ Population Growth (%YoY) Population 80+ (M) 19M 7% YoY Growth (%) 23 6% 18M 6% 21 80+ population is expected to grow by 19.7M 5% 17M nearly 50% over the next decade The Aging Population is 5% 19 16M growing e
Slide 7: Secular Theme | Social Determinants of Health
Secular Theme | Social Determinants of Health (1) 80% of an individual’s health and wellness is influenced by social determinants Physical Environment Safety Housing Transportation & Accessibility 10% 40% Socioeconomic factors Drivers of Food Security Financial Community Health Care 20% & Nutrition
Slide 8: Secular Theme | The Need for Value-Based Care
Secular Theme | The Need for Value-Based Care The US spends the most per capita on health care, yet achieves significantly lower health outcomes (1) (2) Health Care vs Social Care Spend Health Care Spend vs. Life Expectancy Social Care Spend Health Care Spend 84 100% NOR NLD FRA NZL 82 AUS 80% SWE C
Slide 9: The Health and Wellness Ecosystem
The Health and Wellness Ecosystem RELATIVE COST OF CARE $ $$$ ACUTE CARE POST-ACUTE CARE SENIORS HOUSING Hospital Specialty Memory Assisted Independent Home Inpatient Rehab Long-Term Skilled Nursing Care Living Living Inpatient Care Facility Care Hospital (LTC) CONSUMER DRIVEN VENUES AND SERVICES Di
Slide 10: Portfolio Composition
(1) Portfolio Composition 7% 8% 18% 37% 23% 4Q 2018 46% 4Q 2020 IPNOI IPNOI 10% 10% 19% 22% Seniors Housing Operating Seniors Housing Triple-Net Long-Term / Post-Acute Care Outpatient Medical Health System 1. Based on In-Place NOI. See Supplemental Financial Measures at the end of this presentation
Slide 11: Seniors Housing Operating Portfolio Update
Seniors Housing Operating Portfolio Update 11Seniors Housing Operating Portfolio Update 11
Slide 12: Seniors Housing Operator Platform | Power of Diversification
Seniors Housing Operator Platform | Power of Diversification Diversity Across Acuity, Geography and Operating Model Operator Diversification | Average Monthly Rent vs Average Portfolio Acuity $$$ $ Low Average Portfolio Acuity High 12 Monthly RentSeniors Housing Operator Platform | Power of Diversif
Slide 13: Demographic Backdrop | Rapidly Aging Population
Demographic Backdrop | Rapidly Aging Population 80+ Population CAGR | Historical and Projected 10 Year Population CAGR by Age Cohort | 2020 - 2029 5% US UK Canada 4% 3.8% 4.0% 4.0% 4.0% 3.6% 3.8% 4% 3.6% 3.1% 3.0% 3.0% 3.0% 3% 3.1% 3% 2.0% 2.0% 2.0% 1.7% 2.3% 2% 1.4% 1.3% 2% 1.6% 1.0% 1.0% 1.0% 1.3%
Slide 14: Seniors Housing Supply Backdrop
Seniors Housing Supply Backdrop (2) (1) Rapid Increase in Cost of Key Materials May Curtail Near-Term Starts Seniors Housing Historical Supply NIC Primary and Secondary Markets 2019 – 2020 Price Change YTD 2021 Price Change 14K 5.0% Construction Starts Rolling 4-Quarter Starts vs. Inventory Lumber +
Slide 15: COVID Recovery | Growth Opportunity
COVID Recovery | Growth Opportunity (1) US 80+ Population Growth 20M 7.0% Demographic-driven 6.0% 3.6% CAGR Occupancy Recovery 5.0% 15M 1.3% CAGR 4.0% 3.0% 2.0% 10M 1.0% 0.0% 80+ Population 80+ Population Growth (%YoY) Supply Deceleration 5M -1.0% (2) Seniors Housing Construction vs. Inventory – Rol
Slide 16: SHO Portfolio | Occupancy Trends
SHO Portfolio | Occupancy Trends (1) Total SHO Month-End Portfolio Occupancy 86% -70 bps -230 bps Meaningful Improvement in March Occupancy Trends 84% Mar 12 Mar 19 Mar 26 Apr 1 -170 bps 73.7% 73.7% 73.9% 74.0% 82% -90 bps +4bps +11bps +16bps -60 bps -60 bps 80% -30 bps -40 bps -70 bps 78% -100 bps
Slide 17: SHO Portfolio | Move Ins & Move Outs
(1) SHO Portfolio | Move Ins & Move Outs Indexed Move Outs Since February 2020 Indexed Move Ins Since February 2020 120 120 6% decrease 66% Increase Jan‘21→Mar‘21 108.8 Jan‘21→Mar‘21 100 100 101.8 100.0 100.0 93.4 89.8 87.5 80 80 84.6 82.9 82.9 82.6 81.7 80.5 79.8 78.3 78.5 78.6 78.2 74.2 71.6 65.2
Slide 18: SHO Portfolio | COVID-19 Impact
(1) SHO Portfolio | COVID-19 Impact Resident COVID-19 Cases – Trailing Two Weeks COVID-19 Impact 99% decline in TTW cases since peak • 99% of communities are accepting new residents, up from 84% as of mid-January 2021 1,400 • Most AL/MC communities have completed • 99% decline in trailing two week (
Slide 19: COVID-19 | Case Count & Vaccination Update
COVID-19 | Case Count & Vaccination Update (1) (2) (3) UK COVID New Daily Cases US COVID New Daily Cases Canada COVID New Daily Cases 7-Day Moving Average 7-Day Moving Average 7-Day Moving Average 70K 300K 9K 8K 60K 250K 7K 50K 200K 6K 40K 5K 150K 4K 30K 100K 3K 20K 2K 50K 10K 1K K K K Cumulative US
Slide 20: Vaccine and Therapeutics Timeline
Vaccine and Therapeutics Timeline (1) Vaccine availability for all adult Americans anticipated by May 2021 New Daily Cases 7-Day Moving Avg Cumulative Vaccinations US daily COVID deaths (3) peak at 4,396 EUA granted for Pfizer and Moderna vaccine and Pfizer/BioNTech COVID- distribution begins in the
Slide 21: Balance Sheet & Investments Update
Balance Sheet & Investments Update 21Balance Sheet & Investments Update 21
Slide 22: Balance Sheet & Investment Highlights
Balance Sheet & Investment Highlights Notable 2021 Year To Date Highlights Liquidity ($M) April 2, 2021 (1) Cash and Cash Equivalents $1,760 • Near-term liquidity of $4.8 billion as of April 2, 2021 Undrawn Line of Credit Capacity $3,000 • Cash balance pro forma for expected redemption of senior (1)
Slide 23: Balanced and Manageable Debt Maturity Profile
(1,2) Balanced and Manageable Debt Maturity Profile Weighted Average Maturity of 7.8 Years USD Unsecured USD Secured CAD Unsecured CAD Secured GBP Unsecured GBP Secured Term Loan Weighted Average Interest 4.48% $3,500M 4.15% 3.95% 3.84% 3.84% 3.81% $3,000M 3.13% 3.07% 2.95% $2,500M 2.38% $2,000M 2.0
Slide 24: Supplemental Financial Measures
Supplemental Financial Measures 24Supplemental Financial Measures 24
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures We believe that revenues, net income and net income attributable to common stockholders ( NICS ), as defined by U.S. generally accepted accounting principles ( U.S. GAAP ), are the most appropriate earnings measurements. However, we consider Funds From Operations (FFO), N
Slide 26: FFO and Normalized FFO
FFO and Normalized FFO Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or
Slide 27: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Quarter Ending March 31, 2021 (in millions, except per share data) Current Outlook Low High FFO Reconciliation: Net income attributable to common stockholders $ 102 $ 123 (1,2) Impairments and losses (gains) on real estate dispositions, net (53) (53) (1) Depreciation
Slide 28: NOI and IPNOI
NOI and IPNOI We define NOI as total revenues, including tenant reimbursements, less property operating expenses. Property operating expenses represent costs associated with managing, maintaining and servicing tenants for our properties. These expenses include, but are not limited to, property-relat
Slide 29: In-Place NOI Reconciliations
In-Place NOI Reconciliations (dollars in thousands) 4Q20 4Q18 In-Place NOI by property type 4Q20 % of Total Net income (loss) $ 155,278 $ 124,696 Seniors Housing Operating $ 662,852 37 % Loss (gain) on real estate dispositions, net (185,464) (41,913) Seniors Housing Triple-Net 380,212 22 % Loss (inc
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