Slide 1: Business Update June 3, 2024
Exhibit 99.1 Business Update June 3, 2024
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 April 29, 2024
Recent Highlights – Since Previous Business Update on April 29, 2024 (1) Dividend Update 2024 Guidance Update • Announced that the Board of Directors approved a 10% increase in the quarterly Raised 2024 guidance range for normalized funds from operations (FFO) dividend to $0.67 per diluted share ref
Slide 4: Welltower's Unique Value Creation Flywheel
Welltower’s Unique Value Creation Flywheel Established Competitive Advantages Driving Sustainable Shareholder Value Creation Internal Growth Welltower Value-Add and Moat • Long-term demographic tailwinds and significant decline in new Best-in-class: supply expected to drive continued outsized growth
Slide 5: Societal & Technological Trends | Impact on Real Estate Sectors
Societal & Technological Trends | Impact on Real Estate Sectors Precedent for Extended Period of Compounding Cash Flow Growth Driven by Shifting Secular Tailwinds THEME REAL ESTATE SECTOR IMPACT E-Commerce Industrial / Logistics Themes of the Life Sciences Lab Space last 10 years Operationalization
Slide 6: Atria/Holiday Portfolio Transition
Atria/Holiday Portfolio Transition Maximizing NOI Potential Through Regional Densification Strategy
Slide 7: Executive Summary
Executive Summary • Welltower to transition 89 Holiday by Atria properties to six existing regional operators, including Arrow, Cogir US, Discovery, QSL, Sagora and StoryPoint • As of June 3, 2024, 27 of the 89 properties have transitioned with the remaining 62 properties expected to transition in 3
Slide 8: Holiday Transitions | Regional Densification Illustration
New Communities Holiday Transitions | Regional Densification Illustration In-Place Communities Cogir US – Pacific Northwest StoryPoint - Midwest QSL - Southeast South Carolina Seattle MSA Michigan Mississippi Georgia Washington Louisiana Portland MSA Ohio Indiana Blake at Carnes Crossroads (2) Orego
Slide 9: Updated Holiday Per Unit Basis
Updated Holiday Per Unit Basis Transition Assets Properties Units Per Unit Total Purchase Price 89 10,500 $149,900 On target to deliver renovated portfolio at all-in (+) Completed renovations 8,100 basis significantly below replacement cost and comparable transactions (+) In-process renovations 1,50
Slide 10: Case Study | Hawaii Kai Prior Holiday Property Transition
Case Study | Hawaii Kai Prior Holiday Property Transition
Slide 11: Case Study | Hawaii Kai – Prior Holiday Property Transition
Case Study | Hawaii Kai – Prior Holiday Property Transition Upside potential at premier Holiday property could fully fund portfolio renovations Hawaii Kai Overview • Hawaii Kai was selected during underwriting of the Holiday portfolio as an opportunity for substantive Target Metrics Amount redevelop
Slide 12: Case Study | Hawaii Kai Upside Potential
Case Study | Hawaii Kai Upside Potential Oakmont has brought best-in-class operational expertise; NOI substantially improved BEFORE value-add renovation Illustrative Hawaii Kai Performance and Per Unit Value Creation 1Q24 Illustrative Value Creation Potential (000s) Expected Improvement over pre-COV
Slide 13: Welltower Regional Density Case Studies
Welltower Regional Density Case Studies Deepening Relationships with Best-in-Class Local & Regional Operators
Slide 14: Case Studies | Regional Densification Strategy
Case Studies | Regional Densification Strategy Data Science Driven Active Portfolio Management and Disciplined Capital Allocation Creating Regional Densification • Welltower continues to take an active approach to portfolio management, deepening relationships with leading operators in key markets an
Slide 15: Cogir Case Study | Soleil Portfolio Transition
Cogir Case Study | Soleil Portfolio Transition Transition of four assets to Cogir US has resulted in NOI margin and occupancy well above prior peak Regional Snapshot • In mid-2021, Welltower transitioned the Soleil portfolio (“Soleil”) of four communities consisting of 196 units to Cogir in Atria-Ho
Slide 16: StoryPoint Case Study | Danbury Portfolio Acquisition & Transition
StoryPoint Case Study | Danbury Portfolio Acquisition & Transition Acquisition of 19 assets and concurrent transition to StoryPoint has resulted in material occupancy and NOI improvement Regional Snapshot • In mid-2022, Welltower acquired the Danbury portfolio (“Danbury”) of 19 communities consistin
Slide 17: QSL Case Study | Recent Acquisitions & Transitions
QSL Case Study | Recent Acquisitions & Transitions Significant expansion of QSL relationship following strong operational performance in Southeast clusters The Blake at Carnes Cross Roads: • QSL has a strong history of integrating southeast based transition assets fluidly into their existing portfol
Slide 18: Seniors Housing Trends (Unchanged since prior update)
Seniors Housing Trends (Unchanged since prior update)
Slide 19: Supply-Demand Imbalance Expected to Support Sustained Occupancy Growth
Supply-Demand Imbalance Expected to Support Sustained Occupancy Growth in 2024+ Per previous business update issued April 29, 2024 Seniors Housing Demand Remains Robust…. ….While Supply Continues to Decline Rapidly (1) TTM Absorption Construction Pipeline NIC MAP Primary and Secondary Markets NIC Pr
Slide 20: Favorable Unit Economics Driving Substantial Margin Expansion
Favorable Unit Economics Driving Substantial Margin Expansion Per previous business update issued April 29, 2024 (1) Unit Revenue and Expense Trends Same Store RevPOR Same Store ExpPOR RevPOR growth continues to 14% outpace ExpPOR growth, driving +320 bps of SS NOI margin 12% expansion in 1Q2024 vs.
Slide 21: Seniors Housing | Compelling Backdrop for Multi-Year Revenue Growth
Seniors Housing | Compelling Backdrop for Multi-Year Revenue Growth Per previous business update issued April 29, 2024 Accelerating 80+ Population Growth Coinciding with Diminishing New Supply & Improved Affordability US 80+ Population Growth Seniors Housing TTM Construction Starts Seniors Housing A
Slide 22: Minimal New Supply in Coming Years Sets Stage For Occupancy Gains
Minimal New Supply in Coming Years Sets Stage For Multi-Year Occupancy Gains Per previous business update issued April 29, 2024 Declining Deliveries Amplified by Elevated Level of Units Coming out of Service Deliveries Obsolescence Net Inventory Growth TTM Deliveries TTM Deliveries (% Inventory) TTM
Slide 23: Muted Seniors Housing Supply Expected Through the End of the Decade
Muted Seniors Housing Supply Expected Through the End of the Decade Per previous business update issued April 29, 2024 Disruption in Construction Financing Market and Dismantling of Development Teams Expected to Result in Multi-Year Period of Diminished Supply Surge in interest rates over the past 1
Slide 24: Global Financial Crisis Case Study
Global Financial Crisis Case Study Per previous business update issued April 29, 2024 Resilient Demand During GFC Driven By Needs-Based Nature of Seniors Housing TTM Market Rent Growth Existing Home Sales Seniors Housing Average Occupancy 7.0 4.0% 95% Seniors housing occupancy remained stable 6.5 2.
Slide 25: SHO Portfolio | Path to Recovery
SHO Portfolio | Path to Recovery Per previous business update issued April 29, 2024 Category NOI ($M) $490 million embedded NOI growth in return (1) A) 1Q24 Total Portfolio - IPNOI Portfolio 1,343 to pre-COVID occupancy and margin B) Revera + Chartwell JV Ownership Increase + Announced NNN Conversio
Slide 26: Balance Sheet
Balance Sheet
Slide 27: Plurality of Capital Sources
Plurality of Capital Sources Per previous business update issued April 29, 2024 Leveraging Efficient & Low-Cost Capital to Execute Investment Strategy ✓ Access to secured and unsecured ✓ Pivot between multiple sources of capital ✓ Recycle capital to improve portfolio quality debt financing based upo
Slide 28: S&P Revised Outlook to Positive; Well-Laddered Debt Maturity Schedule
On May 22, 2024, S&P Global revised Welltower’s credit (1,2,3) rating outlook to positive from stable, citing strong Well-Laddered Debt Maturity Schedule seniors housing industry tailwinds, a materially strengthened balance sheet, and an expectation that key credit metrics will continue to improve g
Slide 29: Supplemental Financial Measures
Supplemental Financial Measures
Slide 30: 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 31: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation (in millions, except per share data) Year Ended December 31, 2024 Prior Outlook Current Outlook Low High Low High FFO Reconciliation: Net income attributable to common stockholders $ 879 $ 957 $ 868 $ 940 (1,2) Impairments and losses (gains) on real estate disposition
Slide 32: NOI, IPNOI, SSNOI, RevPOR, ExpPOR Definitions
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 33: In-Place NOI Reconciliations
In-Place NOI Reconciliations (dollars in thousands) March 31, 2024 In-Place NOI by property type March 31, 2024 % of Total Net income (loss) $ 131,634 Seniors Housing Operating $ 1,344,032 51 % Loss (gain) on real estate dispositions, net (4,707) Seniors Housing Triple-net 407,064 16 % Loss (income)
Slide 34: SSNOI Reconciliation
SSNOI Reconciliation (dollars in thousands) March 31, 2024 March 31, 2023 % growth YOY Net income (loss) $ 131,634 $ 28,635 Loss (gain) on real estate dispositions, net (4,707) (747) Loss (income) from unconsolidated entities 7,783 7,071 Income tax expense (benefit) 6,191 3,045 Other expenses 14,131
Slide 35: SHO RevPOR Growth Reconciliation
SHO RevPOR Growth Reconciliation (dollars in thousands, except SS RevPOR and units) March 31, 2023 March 31, 2024 SHO SS RevPOR Growth Consolidated SHO revenues $ 1,136,681 $ 1,366,760 (1) Unconsolidated SHO revenues attributable to WELL 59,581 63,581 (2) SHO revenues attributable to noncontrolling
Slide 36: SHO SS ExpPOR Growth Reconciliation
SHO SS ExpPOR Growth Reconciliation (dollars in thousands, except SS ExpPOR and units) March 31, 2023 March 31, 2024 SHO SS ExpPOR Growth Consolidated SHO property operating expenses $ 883,784 $ 1,019,347 (1) Unconsolidated SHO expenses attributable to WELL 47,455 41,799 (2) SHO expenses attributabl
Slide 37: Welltower
welltower