Slide 1: Business Update April 5, 2022
Exhibit 99.1 Business Update April 5, 2022
Slide 2: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors This document contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “pro forma,” “estimat
Slide 3: Recent Highlights
Recent Highlights First Quarter 2022 Guidance Update (1) • Expect to achieve 1Q2022 net income attributable to common stockholders per diluted share within previously issued guidance range of $0.17 - $0.22 (1) • Despite delayed disbursement of HHS funds, expect 1Q2022 normalized funds from operation
Slide 4: Seniors Housing Update
Seniors Housing Update 4
Slide 5: SHO Portfolio | COVID-19 Impact
(1) SHO Portfolio | COVID-19 Impact Weekly Staff COVID-19 Cases Weekly Resident COVID-19 Cases 1,400 1,000 Lower utilization of agency Strong increase in demand labor following steep decline following normalization of 1,200 in staff COVID-19 cases conditions within communities 800 1,000 90% decline
Slide 6: SHO Portfolio | Additional Community Details
(1) SHO Portfolio | Additional Community Details Operations have largely normalized as impact of Omicron variant has subsided Communal Dining Visitation % of communities % of communities 100% 100% 80% 80% 60% 60% 40% 40% Indoor Visitation Outdoor Visitation Activities In-Person Tours % of communitie
Slide 7: Occupancy Continues to Outperform Seasonal Trends
Occupancy Continues to Outperform Seasonal Trends (1,2) SHO Portfolio Same Store Sequential Occupancy Change Pre-COVID Avg 2021 1.9% 2% 1.4% 1% 0.2% 0.4% 0.0% -1% -0.4% -0.7% -2% Since the occupancy trough in late-1Q2021, sequential average occupancy growth has meaningfully outpaced pre-COVID averag
Slide 8: Balanced lease structure and WALT mitigates impact of inflationary pressures
(1) Balanced lease structure and WALT mitigates impact of inflationary pressures Shorter duration leases in SHO portfolio allow for more frequent mark-to-market of rents SHO SH Triple-Net LT/PAC MOB Health System Hospital Li Ofte her Science 15% 9% 7% 23% 3% 31% 3x increase in SHO 4Q 2011 4Q 2021 39
Slide 9: SHO Portfolio | Historical REVPOR Growth vs. Inflation
SHO Portfolio | Historical REVPOR Growth vs. Inflation 4Q21 SS REVPOR growth returned to pre-COVID average; further acceleration expected through 2022 (1) WELL Pre-COVID REVPOR Growth Exceeded Inflation by an Average of 2% Annually 5% 4% 3% 2% 1% 0% REVPOR decline driven by mix shift; -1% WELL SSRev
Slide 10: Significant Wealth Accumulation Allows for Greater SH Affordability
Significant Wealth Accumulation Allows for Greater SH Affordability Backdrop to drive rate growth remains favorable (2) Home Price Appreciation | 1987 - Present S&P500 | 1981 – Present S&P/Case-Shiller U.S. National Home Price Index 5000 +13.2% average annual return over past 40 years 300 4500 A hom
Slide 11: Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+
Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+ SH Demand Remains Robust Despite Surge in COVID-19 SH Construction Continues to Recede (1) 20K (1) Seniors Housing Quarterly Unit Absorption Units Under Construction NIC MAP Primary and Secondary Markets NIC Primary and Second
Slide 12: SHO Portfolio | Path to Recovery
SHO Portfolio | Path to Recovery Category NOI ($M) $565 million embedded NOI growth in return to Pre- COVID levels (1) A) 4Q21 Total Portfolio - IPNOI Portfolio ex HHS 661 B) Stable Portfolio Remaining Occupancy Recovery 312 C) Development, Lease-Up, Transitions and Acquisitions 146 D) Lease-Up of C
Slide 13: Capital Deployment Update
Capital Deployment Update 13
Slide 14: Near-term capital deployment pipeline remains robust
Near-term capital deployment pipeline remains robust, exceeding $1.0 billion Notable Recent Investments (1) Transaction Segment Properties Investment Commentary Opportunistic • Portfolio comprised of eight rental and six entrance fee communities located in attractive markets across the US Investment
Slide 15: Capital Deployment Since 4Q20
Capital Deployment Since 4Q20 (1) Capital Deployment Volume ✓ Initial yield of 5.9%; Stable yield of approximately 8.2% ✓ Low last-dollar exposure and innovative structure offer downside protection GROSS (1) INVESTMENTS $7.0B✓ Expected to generate high-single-digit to mid-teens unlevered IRRs to WEL
Slide 16: Foundation for Long-Term Growth Established
Foundation for Long-Term Growth Established Opportunity to deploy in excess of $2.5 billion Annually | Economics Defined During Pandemic NEW and PROPRIETARY long-term relationships with best-in-class developers and operators with either exclusive rights or right of first offer 5 19 4 28 $25B+ Relati
Slide 17: Welltower Overview
Welltower Overview 17
Slide 18: Welltower at a Glance
Welltower at a Glance S&P + % BBB Baa1 $60B 2.5 Enterprise (1) Dividend Yield 500 (1) Value 125,000+ ~22M sq. ft. Seniors Housing & Outpatient Facilities Wellness Housing Units World's largest health & wellness real estate platform 1. Bloomberg, as of April 4, 2022 18
Slide 19: Leadership Team
Leadership Team SHANKH MITRA TIMOTHY G. MCHUGH JOHN F. BURKART Chief Executive Officer & Chief Financial Officer Chief Operating Officer Chief Investment Officer MATTHEW G. MCQUEEN AYESHA MENON JOSHUA T. FIEWEGER General Counsel & Senior Vice President Chief Accounting Officer Corporate Secretary We
Slide 20: WELL ESG Focus | Profit, Planet, People
(1) WELL ESG Focus | Profit, Planet, People Building a Portfolio Serving our People and Good Governance for the Future our Communities is Good Business E S G • 80% Women and Minority Independent (1) Sustainability Goals & Achievements Gender parity across organization Director Leadership on the Boar
Slide 21: Drivers of Per Share Cash Flow Growth
Drivers of Per Share Cash Flow Growth Post-COVID fundamental recovery sustained by strong demographic trends, SECULAR GROWTH shift to value-based health care, and social determinants of health TAILWINDS External growth strategy underpinned by value-oriented capital deployment ACCRETIVE CAPITAL philo
Slide 22: New Paradigm for Growth with Lower Entity-Level Risk
New Paradigm for Growth with Lower Entity-Level Risk PAST FIVE YEARS DO NOT REFLECT OUTLOOK FOR NEXT FIVE YEARS Where we Were (2015- 2020) Where we’re Going (2021 and beyond) • Relatively flat demographic growth of key seniors housing SENIORS HOUSING • Sharply accelerating growth of 80+ age cohort D
Slide 23: Secular Societal & Technological Trends | Impact on Real Estate Sectors
Secular Societal & Technological Trends | Impact on Real Estate Sectors Precedent for EXTENDED PERIOD OF MULTIPLE EXPANSION in Secular Growth Sectors THEME REAL ESTATE SECTOR IMPACT E-Commerce Industrial Digital Technology Data Centers Mobile Phone Usage & Wireless Technology Cellular Towers AGING O
Slide 24: Seniors Housing
Seniors Housing 24
Slide 25: Seniors Housing Operator Platform | Power of Diversification
Seniors Housing Operator Platform | Power of Diversification $$ Monthly Rent Diversity across Acuity, Geography and Operating Model $ Low High Average Portfolio Acuity 25 25
Slide 26: Demographic Backdrop | Rapidly Aging Population
Demographic Backdrop | Rapidly Aging Population 4.5% (1) 80+ Population CAGR | Historical and Projected US Population CAGR by Age Cohort | 2020 - 2029 4.0% 5.0% 2010-2019 2020-2029 4.0% 4.5% 3.5% 4.0% 4.3% 3.0% 4.0% 3.5% 2.5% 3.0% 3.1% 2.0% 2.5% 1.4% 2.0% 2.4% 1.5% 1.5% 1.8% 1.0% 1.5% 1.0% 0.3% 0.5%
Slide 27: Seniors Housing Supply | Construction Remains Well Below Peak Levels
Seniors Housing Supply | Construction Remains Well Below Peak Levels (1) (1) Construction Starts Units Under Construction NIC Primary and Secondary Markets NIC Primary and Secondary Markets Construction Starts Construction Starts (% Inventory) Units Under Construction Construction (% Inventory) 14K
Slide 28: Seniors Housing Supply | Surging Construction Costs
Seniors Housing Supply | Surging Construction Costs Material increase in cost of development for ALL RESIDENTIAL property types including SENIORS HOUSING Lumber Cement Copper 1,800 650 11,000 1,600 600 10,000 +164% since 2017 +36% since 2017 +76% since 2017 1,400 550 9,000 1,200 500 8,000 1,000 800
Slide 29: Post-COVID Recovery | Long-Term Secular Growth Opportunity
Post-COVID Recovery | Long-Term Secular Growth Opportunity Demographic-Driven Demand Supply Deceleration Resilient Pricing Power (1) (2) (3) US 80+ Population Growth Seniors Housing Construction Starts WELL SHO Same Store REVPOR Growth 5.0% 5.0% Starts (% Inventory) Average 20M WELL’s pre-COVID pric
Slide 30: Supplemental Financial Measures
Supplemental Financial Measures 30
Slide 31: 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 ),
Slide 32: 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 33: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Outlook Reconciliation: Quarter Ending March 31, 2022 (in millions, except per share data) Current Outlook Low High FFO Reconciliation: Net income attributable to common stockholders $ 78 $ 101 (1,2) Impairments and losses (gains) on real estate dispositions, net (30)
Slide 34: NOI, IPNOI, SSNOI, REVPOR & SS REVPOR
NOI, IPNOI, SSNOI, REVPOR & SS REVPOR 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 li
Slide 35: In-Place NOI Reconciliations
In-Place NOI Reconciliations (dollars in thousands) 4Q21 In-Place NOI by property type 4Q21 % of Total Net income (loss) $ 66,194 Seniors Housing Operating $ 721,684 39 % Loss (gain) on real estate dispositions, net (11,673) Seniors Housing Triple-Net 430,476 24 % Loss (income) from unconsolidated e
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