Welltower Inc. · NYSE:WELL
Welltower — Investor Presentation (April 2022)
38 slides from Welltower's investor presentation, Apr 21, 2022
Slide 1: Investor Presentation April 21, 2022
Investor Presentation April 21, 2022 Exhibit 99.1
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 and First Quarter 2022 Guidance Update
Expect net income attributable to common stockholders below previously issued guidance range of $0.17 - $0.22 per diluted share(1) Primarily driven by higher than anticipated non-capitalizable transaction costs and lower than expected gain on sale during the period Per previous business update issue
Slide 4: Seniors Housing Update
Seniors Housing Update
Slide 5: SHO Portfolio | COVID-19 Impact
SHO Portfolio | COVID-19 Impact(1) 1. All data presented as of April 1, 2022 as reported by operators Lower utilization of agency labor following steep decline in staff COVID-19 cases 90% decline since peak Strong increase in demand following normalization of conditions within communities 79% declin
Slide 6: SHO Portfolio | Additional Community Details
SHO Portfolio | Additional Community Details(1) As reported by operators Operations have largely normalized as impact of Omicron variant has subsided Per Business Update as of April 5, 2022
Slide 7: Occupancy Continues to Outperform Seasonal Trends
Occupancy Continues to Outperform Seasonal Trends Represents SHO same store portfolio each quarter at pro rata ownership Pre-COVID average represents 2016 through 2019 Since the occupancy trough in late-1Q2021, sequential average occupancy growth has meaningfully outpaced pre-COVID averages and cont
Slide 8: Balanced lease structure and WALT mitigates impact of inflationary pressures
Balanced lease structure and WALT mitigates impact of inflationary pressures(1) WALT: Weighted Average Lease Term Represents annualized NOI as reported in 4Q 2011. See 4Q 2011 Supplemental Information Report for further information Represents in place NOI. See Supplemental Financial Measures at the
Slide 9: SHO Portfolio | Historical REVPOR Growth vs. Inflation
SHO Portfolio | Historical REVPOR Growth vs. Inflation Represents quarterly year-over-year Same Store REVPOR growth percentage. See each quarters respective Supplemental Information Report for a discussion of such supplemental reporting measure as well as the applicable reconciliations 4Q21 SS REVPO
Slide 10: Significant Wealth Accumulation Allows for Greater SH Affordability
Significant Wealth Accumulation Allows for Greater SH Affordability Source: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey Source: Bloomberg as of 2/4/2022 Assumes reinvestment of dividends and annual compounding Backdrop to drive rate growth remains favorable ~80% of seniors 7
Slide 11: Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+
Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+ National Investment Center for Seniors Housing & Care – latest available data UNPRECEDENTED seniors housing absorption in recent quarters Per Business Update as of April 5, 2022
Slide 12: SHO Portfolio | Path to Recovery
A) 4Q21 Portfolio In-Place NOI excluding HHS(1) B) 4Q19 Stable Portfolio - Incremental NOI from return to 4Q19 NOI levels C) Incremental NOI from: Development properties delivered subsequent to 4Q19, lease-up properties as of 4Q19, properties transitioned to new operators subsequent 4Q19, properties
Slide 13: Capital Deployment Update
Capital Deployment Update
Slide 14: Near-term capital deployment pipeline remains robust, exceeding $1.0 billion
Near-term capital deployment pipeline remains robust, exceeding $1.0 billion At pro rata ownership Opportunistic Investments Executed at Significant Discounts to Estimated Replacement Cost Newly Established and Growing Relationships Notable Recent Investments Transaction Segment Properties Investmen
Slide 15: Capital Deployment Since 4Q20
Capital Deployment Since 4Q20 Includes pro rata gross investments across acquisitions and loans since October 2020 and agreement to acquire $548 million seniors housing portfolios as disclosed on March 6, 2022; excludes development funding Oakmont Ivy Park at Otay Ranch | Chula Vista, CA HarborChase
Slide 16: Centralized Capital Allocation; Decentralized Execution
Centralized Capital Allocation; Decentralized Execution Foundation for Long-Term Growth Established New relationships formed during depths of COVID-19 pandemic to create visible and significant long-term capital deployment opportunities Opportunity to deploy in excess of $2.5 billion Annually | Econ
Slide 17: Welltower Overview
Welltower Overview
Slide 18: Welltower at a Glance
Welltower at a Glance Bloomberg, as of April 4, 2022 500 S&P 2.5% Dividend Yield(1) $60B Enterprise Value(1) BBB+ Baa1 125,000+ Seniors Housing & Wellness Housing Units ~22M sq. ft. Outpatient Facilities World's largest health & wellness real estate platform
Slide 19: Leadership Team
Leadership Team MATTHEW G. MCQUEEN General Counsel & Corporate Secretary TIMOTHY G. MCHUGH Chief Financial Officer AYESHA MENON Senior Vice President Wellness Housing and Development SHANKH MITRA Chief Executive Officer & Chief Investment Officer JOSHUA T. FIEWEGER Chief Accounting Officer JOHN F. B
Slide 20: WELL ESG Focus | Profit, Planet, People
WELL ESG Focus(1) | Profit, Planet, People See Welltower 2020 Environmental, Social and Governance Report and Business Update dated June 7, 2021 for additional details and disclosures See Welltower 2020 Environmental, Social and Governance Report for additional details and disclosures Most recently
Slide 21: Drivers of Per Share Cash Flow Growth
Drivers of Per Share Cash Flow Growth Value-based investment philosophy and innovative structure of transactions offer significant downside protection Strong investment grade balance sheet and robust liquidity profile RISK MITIGANTS Post-COVID fundamental recovery sustained by strong demographic tre
Slide 22: New Paradigm for Growth with Lower Entity-Level Risk
New Paradigm for Growth with Lower Entity-Level Risk SENIORS HOUSING DEMAND Relatively flat demographic growth of key seniors housing demographic resulting from “Baby Bust” of 1928 - 1940 à Sharply accelerating growth of 80+ age cohort SENIORS HOUSING SUPPLY Significant multi-year increase in senior
Slide 23: Precedent for Extended Period of Multiple Expansion in Secular Growth Sectors
Precedent for EXTENDED PERIOD OF MULTIPLE EXPANSION in Secular Growth Sectors Secular Societal & Technological Trends | Impact on Real Estate 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
Slide 25: Seniors Housing Operator Platform | Power of Diversification
Low High $ $$$ Monthly Rent Average Portfolio Acuity Seniors Housing Operator Platform | Power of Diversification Diversity across Acuity, Geography and Operating Model 25
Slide 26: Demographic Backdrop | Rapidly Aging Population
Demographic Backdrop | Rapidly Aging Population 1. The Organisation for Economic Cooperation and Development (OECD). Data as of September 20, 2021
Slide 27: Seniors Housing Supply | Construction Remains Well Below Peak Levels
Seniors Housing Supply | Construction Remains Well Below Peak Levels Source: NIC MAP® Data Service Recent construction starts at 2012/2013 levels Further decline in units under construction expected following sharp decline in starts 50%+ decline in starts since 4Q17 peak
Slide 28: Seniors Housing Supply | Surging Construction Costs
Seniors Housing Supply | Surging Construction Costs SOURCE: Factset, as of 3/30/2022 Material increase in cost of development for ALL RESIDENTIAL property types including SENIORS HOUSING WEAKER DEVELOPMENT ECONOMICS LEADING TO SHARP DECLINE IN SENIORS HOUSING SUPPLY
Slide 29: Post-COVID Recovery | Long-Term Secular Growth Opportunity
Post-COVID Recovery | Long-Term Secular Growth Opportunity The Organisation for Economic Cooperation and Development (OECD) Source: NIC MAP® Data Service, Primary and Secondary markets Represents quarterly year-over-year Same Store REVPOR growth percentage. See each quarters respective Supplemental
Slide 30: Investment Theme | Secular Shift to Outpatient Care Settings
Investment Theme | Secular Shift to Outpatient Care Settings SOURCE: The Advisory Board SOURCE: Revista Historical Average 2.4% Forecasted Patient Visit Volume Growth by Care Setting 2019 – 2029(1)
Slide 31: Outpatient Medical Portfolio
Outpatient Medical Portfolio See Supplemental Financial Measures at the end of this presentation for reconciliations 4Q21 IPNOI(1) Portfolio Quality Indicators Health System Affiliated Properties % of NOI 90.4% Health System Tenants % of Rental Income 64.7% Retention Trailing twelve months 88.8% In-
Slide 32: Supplemental Financial Measures
Supplemental Financial Measures
Slide 33: 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 34: 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 35: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Amounts presented net of noncontrolling interests' share and Welltower's share of unconsolidated entities. Includes estimated gains on expected dispositions. Outlook Reconciliation: Quarter Ending March 31, 2022 (in millions, except per share data) Current Outlook Low
Slide 36: 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 37: In-Place NOI Reconciliations
In-Place NOI Reconciliations Represents Welltower's interest in joint ventures where Welltower is the minority partner. Represents minority partner's interest in joint ventures where Welltower is the majority partner and includes an adjustment to remove NOI related to a leasehold portfolio interest
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