Slide 1: Business Update July 13, 2022
Business Update July 13, 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 – Since Previous Business Update on June 6, 2022
Recent Highlights – Since Previous Business Update on June 6, 2022 Second Quarter 2022 Guidance Update(1) •Expect to achieve 2Q2022 net income attributable to common stockholders per diluted share within previously issued guidance range of 22c -25c •Expect to achieve 2Q2022 normalized funds from ope
Slide 4: West Coast Transition Portfolio
West Coast Transition Portfolio Transition of 12 Well-Located West Coast Assets Expected to Drive Longer-Term Performance Upside Transition Portfolio Overview • The portfolio was acquired as part of Welltower’s 20-property 2016 Vintage acquisition and consists of 2,010 assisted living units across 1
Slide 5: Oakmont Vintage Transition Case Study – August 2021
Oakmont Vintage Transition Case Study – August 2021 Transitioned Six Facilities to Oakmont in 2021; Expected to Drive Meaningful Value Through Improved Performance Predicted Performance Operational Update • WELL transitioned management of six predominately assisted living facilities that were 85% pr
Slide 6: Secular Growth Opportunity Remains Intact
Secular Growth Opportunity Remains Intact Compelling demand-supply backdrop to drive occupancy gains Strong industry pricing power expected to offset inflationary pressures Demographic-Driven Demand Supply Deceleration Resilient Pricing Power US 80+ Population Growth(1) Seniors Housing Construction
Slide 7: Global Financial Crisis Case Study
Global Financial Crisis Case Study Resilient Demand During GFC Driven By Needs-Based Nature of Seniors Housing TTM Market Rent Growth(2) Seniors Housing Average Occupancy(1) Office Retail Multi-Family Industrial Seniors Housing 95% 4.0% Seniors housing occupancy remained stable through the GFC 2.0%
Slide 8: Seniors Housing Update
Seniors Housing Update
Slide 9: SHO Portfolio | COVID-19 Impact
SHO Portfolio | COVID-19 Impact(1) Weekly Staff COVID-19 Cases Weekly Resident COVID-19 Cases 1,600 1,000 Despite recent rise in 1,400 900 case counts, virtually all 800 1,200 communities remain 700 1,000 600 open to admissions 800 500 600 400 300 400 200 200 100 — WELL US SHO Portfolio WELL UK SHO
Slide 10: Occupancy Continues to Outperform Seasonal Trends
Occupancy Continues to Outperform Seasonal Trends SHO Portfolio Same Store Sequential Occupancy Change(1,2) Pre-COVID Avg 2021 2022 1.9% 2% 1.4% 1% 0.2% 0.4% 0.3% 0.0% -1% -0.4% -0.7% -2% Since the occupancy trough in late-1Q2021, sequential average occupancy growth has meaningfully outpaced pre-COV
Slide 11: Significant Wealth Accumulation Allows for Greater SH Affordability
Significant Wealth Accumulation Allows for Greater SH Affordability Backdrop to drive rate growth remains favorable Home Price Appreciation | 1987—Present S&P500 | 1981 – Present(2) S&P/Case-Shiller U.S. National Home Price Index 5000 300 4500 250 4000 3500 200 3000 2500 150 2000 100 1500 1000 50 (1
Slide 12: Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+
Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+ SH Demand Remains Robust SH Construction Continues to Recede TTM Absorption(1) Units Under Construction(1) NIC MAP Primary and Secondary Markets NIC Primary and Secondary Markets TTM Absorption Pre-Covid Average Units Under Co
Slide 13: SHO Portfolio | Path to Recovery
SHO Portfolio | Path to Recovery Category NOI ($M) $562 million embedded NOI growth in return to Pre-COVID levels A) 1Q22 Total Portfolio—IPNOI Portfolio ex HHS(1) 743 B) Stable Portfolio Remaining Occupancy Recovery 293 C) Development, Lease-Up, Transitions and Acquisitions 143 D) Lease-Up of COVID
Slide 14: Capital Deployment Since 4Q20
Capital Deployment Since 4Q20 As Previously Disclosed on June 6, 2022 Capital Deployment Volume(1) ✓ Initial yield of 5.9%; Stable yield of approximately 7.9% GROSS ✓ Low last-dollar exposure and innovative structure offer downside protection $8.4B INVESTMENTS ✓ Expected to generate high-single-digi
Slide 15: Foundation for Long-Term Growth Established
Foundation for Long-Term Growth Established Opportunity to deploy in excess of $3.0 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 20 5 30 $30B+ Relati
Slide 16: Welltower Overview
Welltower Overview 17
Slide 17: Welltower at a Glance
Welltower at a Glance S&P + $53B 3.0% Baa1 BBB Enterprise (1) 500 Dividend Yield Value(1) 125,000+ ~23M sq. ft. Seniors Housing & Outpatient Facilities Wellness Housing Units World’s largest health & wellness real estate platform 1. Bloomberg, as of July 7, 2022 18
Slide 18: 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 19: WELL ESG Focus | Profit, Planet, People
WELL ESG Focus(1) | Profit, Planet, People Building a Portfolio Serving our People and Good Governance E for the Future S our Communities G is Good Business Sustainability Goals & Achievements(1) Gender parity across organization • 90% Women and Minority Leadership on the Board of Directors Targetin
Slide 20: Drivers of Per Share Cash Flow Growth
Drivers of Per Share Cash Flow Growth SECULAR GROWTH Post-COVID fundamental recovery sustained by strong demographic trends, TAILWINDS shift to value-based health care, and social determinants of health ACCRETIVE CAPITAL External growth strategy underpinned by value-oriented capital deployment DEPLO
Slide 21: New Paradigm for Growth with Lower Entity-Level Risk
New Paradigm for Growth with Lower Entity-Level Risk RECENT PAST DOES NOT REFLECT OUTLOOK FOR THE FUTURE Where we Were (2015-2020) Where we’re Going SENIORS HOUSING • Relatively flat demographic growth of key seniors housing • Sharply accelerating growth of 80+ age cohort DEMAND demographic resultin
Slide 22: 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 23: Balanced Lease Structure Mitigates Impact of Inflationary Pressures
Balanced Lease Structure Mitigates Impact of Inflationary Pressures(1) 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 Life Other Science 17% 9% 7% 24% 2% 30% ~3x increase in SHO 1Q 2012 NOI(2) 1Q 2022 NOI(3
Slide 24: Seniors Housing Overview
Seniors Housing Overview 25
Slide 25: Seniors Housing Operator Platform | Power of Diversification
Il Seniors Housing Operator Platform | Power of Diversification $85 (Monthly Rent Acuity, Geography and Operating Model : © ewctave # @.ivirg) Low Average Portfolio Acuity Nigh as
Slide 26: Demographic Backdrop | Rapidly Aging Population
Demographic Backdrop | Rapidly Aging Population 80+ Population CAGR | Historical and Projected(1) 4.5% US Population CAGR by Age Cohort | 2020—2029 4.0% 5.0% 2010-2019 2020-2029 4.0% 4.5% 3.5% 4.0% .3% 3.0% 3.5% 0% 2.5% 3.0% .1% 2.5% 2.0% 1.4% 2.0% 2.4% 1.5% 1.5% 1.8% 1.0% 1.0% 1.5% 0.3% 0.5% 0.2% 0
Slide 27: Seniors Housing Supply | Construction Remains Well Below Peak Levels
Seniors Housing Supply | Construction Remains Well Below Peak Levels Construction Starts(1) Units Under Construction(1) NIC Primary and Secondary Markets NIC Primary and Secondary Markets 14K Construction Starts Construction Starts (% Inventory) 5.0% 80K Units Under Construction Units Under Construc
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 1,800 700 12,000 1,600 +83% since 2017 600 +18% since 2017 +35% since 2017 10,000 1,400 500 1,200 8,000 1,000 400 6,000 800 3
Slide 29: Supplemental Financial Measures
Supplemental Financial Measures 30
Slide 30: 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 31: 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 32: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Outlook Reconciliation: Quarter Ending June 30, 2022 (in millions, except per share data) Current Outlook Low High FFO Reconciliation: Net income attributable to common stockholders $ 103 $ 117 Depreciation and amortization(1) 323 323 NAREIT FFO attributable to common
Slide 33: 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 34: In-Place NOI Reconciliations
In-Place NOI Reconciliations (dollars in thousands) 1Q22 In-Place NOI by property type 1Q22 % of Total Net income (loss) $ 65,751 Seniors Housing Operating $ 745,316 41 % Loss (gain) on real estate dispositions, net (22,934) Seniors Housing Triple-Net 383,528 21 % Loss (income) from unconsolidated e
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