Slide 1: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Quarter Ended March 31, 2024 1
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: 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 Net Operating Income ("NOI"),
Slide 4: 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 5: FFO Quarterly Reconciliations
FFO QUARTERLY RECONCILIATIONS (in thousands, except per share information) Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income (loss) attributable to common stockholders $ 25,673 $ 103,040 $ 127,470 $ 83,911 $ 127,146 Depreciation and amorti
Slide 6: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Outlook Reconciliation: Year Ending December 31, 2024 (in millions, except per share data) Prior Outlook Current Outlook Low High Low High FFO Reconciliation: Net income attributable to common stockholders $ 694 $ 785 $ 879 $ 957 Impairments and losses (gains) on real
Slide 7: NOI, IPNOI, SSNOI, RevPOR, ExpPOR, SS RevPOR & SS ExpPOR
NOI, IPNOI, SSNOI, RevPOR, ExpPOR, SS REVPOR & SS ExpPOR 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 incl
Slide 8: NOI Quarterly Reconciliations
NOI QUARTERLY RECONCILIATIONS (dollars in thousands) Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income (loss) $ 28,635 $ 106,342 $ 134,722 $ 88,440 $ 131,634 Loss (gain) on real estate dispositions, net (747) 2,168 (71,102) 1,783 (4,707) L
Slide 9: Current Quarter SSNOI by Segment
CURRENT QUARTER SSNOI BY SEGMENT (dollars in thousands at Welltower pro rata ownership) 1Q23 2Q23 3Q23 4Q23 1Q24 Y/o/Y Seniors Housing Operating NOI $ 248,763 $ 276,907 $ 288,290 $ 305,589 $ 351,836 Non-cash NOI on same store properties (851) (783) (242) (186) (195) NOI attributable to non-same stor
Slide 10: IPNOI Reconciliation
IPNOI RECONCILIATION (in thousands at Welltower pro rata ownership) Seniors Housing Seniors Housing Outpatient Long-Term Operating Triple-net Medical /Post-Acute Care Corporate Total Three months ended March 31, 2024 Revenues $ 1,386,818 $ 147,400 $ 203,849 $ 120,113 $ 28,729 $ 1,886,909 Property op
Slide 11: Reconciliations of SHO SS RevPOR Growth, SSNOI Growth and SSNOI/Unit
RECONCILIATIONS OF SHO SS RevPOR GROWTH, SSNOI GROWTH AND SSNOI/UNIT (dollars in thousands, except SS REVPOR and SSNOI/unit) United States United Kingdom Canada Total 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 SHO SS RevPOR Growth Consolidated SHO revenues $ 913,152 $ 1,100,895 $ 109,328 $ 117,242 $ 11
Slide 12: Reconciliations of SHO SS ExpPOR Growth
RECONCILIATIONS OF SHO SS ExpPOR GROWTH (dollars in thousands, except SS ExpPOR and units) 1Q23 1Q24 SHO SS ExpPOR Growth Consolidated SHO property operating expenses $ 883,784 $ 1,019,347 Unconsolidated SHO expenses attributable to WELL(1) 47,455 41,799 SHO expenses attributable to noncontrolling i
Slide 13: Reconciliations of SHO SS ExpPOR Growth (cont.)
RECONCILIATIONS OF SHO SS ExpPOR GROWTH (cont.) (dollars in thousands, except SS ExpPOR and units) 1Q21 1Q22 2Q21 2Q22 3Q21 3Q22 4Q21 4Q22 SHO SS ExpPOR Growth Consolidated SHO property operating expenses $ 555,968 $ 789,928 $ 582,361 $ 789,299 $ 666,610 $ 841,914 $ 724,405 $ 870,904 Unconsolidated
Slide 14: Reconciliations of SHO SS ExpPOR Growth (cont.)
RECONCILIATIONS OF SHO SS ExpPOR GROWTH (cont.) (dollars in thousands, except SS ExpPOR and units) 1Q19 1Q20 2Q19 2Q20 3Q19 3Q20 4Q19 4Q20 SHO SS ExpPOR Growth Consolidated SHO property operating expenses $ 607,686 $ 607,871 $ 637,317 $ 595,513 $ 581,341 $ 567,704 $ 591,005 $ 555,223 Unconsolidated
Slide 15: SHO RevPOR
SHO RevPOR (dollars in thousands, except RevPOR) Three months ended March 31, 2024 United States United Kingdom Canada Total Consolidated SHO revenues $ 1,100,895 $ 117,242 $ 148,623 $ 1,366,760 Unconsolidated SHO revenues attributable to Welltower(1) 32,397 2,937 28,247 63,581 (2) SHO revenues attr
Slide 16: EBITDA and Adjusted EBITDA
EBITDA AND ADJUSTED EBITDA We measure our credit strength both in terms of leverage ratios and coverage ratios. The leverage ratios indicate how much of our balance sheet capitalization is related to long-term debt, net of cash and cash equivalents and restricted cash. We expect to maintain capitali
Slide 17: EBITDA and Adjusted EBITDA Quarterly Reconciliations
EBITDA AND ADJUSTED EBITDA QUARTERLY RECONCILIATIONS (dollars in thousands) Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income (loss) $ 28,635 $ 106,342 $ 134,722 $ 88,440 $ 131,634 Interest expense 144,403 152,337 156,532 154,574 147,318 I
Slide 18: EBITDA and Adjusted EBITDA Trailing Twelve Months Reconciliations
EBITDA AND ADJUSTED EBITDA TRAILING TWELVE MONTHS RECONCILIATIONS (dollars in thousands) Twelve Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income $ 123,452 $ 134,122 $ 271,497 $ 358,139 $ 461,138 Interest expense 552,226 576,813 593,663 607,846
Slide 19: Capitalization Ratios Quarterly
CAPITALIZATION RATIOS QUARTERLY (Amounts in thousands, except share price) As of March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Book capitalization: Unsecured credit facility and commercial paper $ — $ — $ — $ — $ — Long-term debt obligations(1) 15,074,320 16,040,53