Slide 1: Business Update
Exhibit 99.1 Business Update
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 May 10, 2022
Recent Highlights – Since Previous Business Update on May 10, 2022 (1) Second Quarter 2022 Guidance Update • Raised midpoint of 2Q2022 net income attributable to common stockholders (“NICS”) guidance range to 23.5c per diluted share. Updated NICS guidance contemplates a range of 22c - 25c per dilute
Slide 4: Capital Deployment: ~$2.0 Billion of Transactions Under Contract
Capital Deployment | ~$2.0 of Transactions Billion Under Contract (1) Since pivoting to offense in October 2020, WELL has completed or announced approximately $8.4 billion of capital deployment • Additional high-conviction external growth to drive long-term per-share earnings upside for existing sha
Slide 5: Barbell Capital Allocation Strategy
Barbell Capital Allocation Strategy WELLNESS HOUSING Platform Provides Safe and Accessible Rental Housing SENIORS HOUSING Platform Growth Focused on Luxury-End of Affluent Micro Markets to Broader Group of Age-Targeted Residents • Capital deployment concentrated within highly desirable micro markets
Slide 6: Barbell Capital Allocation Strategy: Oakmont and Calamar Senior Apartment Portfolios
Barbell Capital Allocation Strategy | Oakmont and Calamar Senior Apartment Portfolios Continued Execution of BARBELL APPROACH to Capital Allocation Seniors Housing - Oakmont Acquisition Overview Wellness Housing - Calamar Senior Apartment Acquisition Overview • As announced on May 10, 2022, Welltowe
Slide 7: Oakmont and Calamar Senior Apartment Portfolios
Barbell Capital Allocation Strategy | Oakmont and Calamar Senior Apartment Portfolios Oakmont: luxury product in affluent California micro markets at premium price point Calamar: primarily non- coastal markets at approachable price point Calamar Acquisition Oakmont Acquisition Existing Oakmont Portf
Slide 8: Retirement Unlimited and Treplus Strategic Partnerships
Barbell Capital Allocation Strategy | Retirement Unlimited and Treplus Exclusive Long-Term Strategic Partnerships with RUI and Treplus Demonstrate BARBELL APPROACH to Capital Allocation Continued Execution of BARBELL APPROACH to Capital Allocation Seniors Housing - Retirement Unlimited, Inc. (“RUI”)
Slide 9: Global Financial Crisis Case Study
Global Financial Crisis Case Study Resilient Demand During GFC Driven By Needs-Based Nature of Seniors Housing (2) TTM Market Rent Growth (1) Seniors Housing Average Occupancy Office Retail Multi-Family Industrial Seniors Housing 4.0% 95% Seniors housing occupancy remained stable through the GFC 2.0
Slide 10: Seniors Housing Update
Seniors Housing Update 10
Slide 11: SHO Portfolio COVID-19 Impact
(1) SHO Portfolio | COVID-19 Impact Weekly Staff COVID-19 Cases Weekly Resident COVID-19 Cases 1,600 1,000 900 1,400 800 Despite recent rise in 1,200 81% decline in staff cases 700 case counts, virtually 1,000 since peak in January 600 all communities remain 800 500 open to admissions 400 600 300 40
Slide 12: 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 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-CO
Slide 13: Post-COVID Recovery and Long-Term Secular Growth Opportunity
Post-COVID Recovery | Long-Term Secular Growth Opportunity Strong industry pricing power expected Compelling demand-supply backdrop to drive occupancy gains to offset inflationary pressures Demographic-Driven Demand Supply Deceleration Resilient Pricing Power (1) (2) (3) US 80+ Population Growth Sen
Slide 14: 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 +11.9% average annual return over past 40 years 300 4500 A hom
Slide 15: Seniors Housing Backdrop Supports Sustained Revenue Acceleration
Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+ SH Demand Remains Robust SH Construction Continues to Recede (1) (1) TTM Absorption Units Under Construction NIC MAP Primary and Secondary Markets NIC Primary and Secondary Markets 80K 8.0% TTM Absorption Pre-Covid Average Uni
Slide 16: SHO Portfolio Path to Recovery
SHO Portfolio | Path to Recovery Category NOI ($M) $562 million embedded NOI growth in return to Pre-COVID levels (1) A) 1Q22 Total Portfolio - IPNOI Portfolio ex HHS 743 B) Stable Portfolio Remaining Occupancy Recovery 293 C) Development, Lease-Up, Transitions and Acquisitions 143 D) Lease-Up of CO
Slide 17: Capital Deployment Update
Capital Deployment Update 17
Slide 18: Capital Deployment Since 4Q20
Capital Deployment Since 4Q20 (1) Capital Deployment Volume ✓ Initial yield of 5.9%; Stable yield of approximately 7.9% ✓ Low last-dollar exposure and innovative structure offer downside protection GROSS INVESTMENTS $8.4B✓ Expected to generate high-single-digit to mid-teens unlevered IRRs to WELL Gr
Slide 19: 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 20: Welltower Overview
Welltower Overview 20
Slide 21: Welltower at a Glance
Welltower at a Glance S&P + % BBB Baa1 $57B 2.8 Enterprise (1) Dividend Yield 500 (1) Value 125,000+ ~23M sq. ft. Seniors Housing & Outpatient Facilities Wellness Housing Units World's largest health & wellness real estate platform 1. Factset, as of June 3, 2022 21
Slide 22: Leadership Team
Leadership Team SHANKH MITRA TIMOTHY G. MCHUGH JOHN F. BURKART Chief Operating Officer Chief Executive Officer & Chief Financial Officer Chief Investment Officer MATTHEW G. MCQUEEN AYESHA MENON JOSHUA T. FIEWEGER General Counsel & Senior Vice President Chief Accounting Officer Corporate Secretary We
Slide 23: 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 24: 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 25: 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 • Relatively flat demographic growth of key seniors housing SENIORS HOUSING • Sharply accelerating growth of 80+ age cohort DEMAND → demographic result
Slide 26: Secular Societal & Technological Trends
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 27: Balanced Lease Structure Mitigates Impact of Inflationary Pressures
(1) Balanced Lease Structure 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 17% 9% 7% 24% 2% 30% ~3x increase in SHO (2) (3) 1Q 2012 NOI 1Q 202
Slide 28: Seniors Housing
Seniors Housing 28
Slide 29: 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 29 25 29
Slide 30: 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 31: 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 14K 5.0% 80K 8.0% Construction Starts Construction Starts (% Inventory) Units Under Construction Units Under C
Slide 32: 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 11K 1,600 +97% since 2017 +30% since 2017 +69% since 2017 600 10K 1,400 550 9K 1,200 500 8K 1,000 800 450 7K 600 40
Slide 33: Balance Sheet Update
Balance Sheet Update - As Previously Disclosed on May 10, 2022 33
Slide 34: Capitalizing the Opportunity
(1) Capitalizing the Opportunity - As Previously Disclosed on May 10, 2022 Disciplined Focus on Efficient & Low-Cost Capital Sourcing ✓ Access to secured and unsecured ✓ Pivot between multiple sources of capital ✓ Recycle capital to improve portfolio quality debt financing based upon cost and availa
Slide 35: Balance Sheet Highlights
Balance Sheet Highlights – As Previously Disclosed on May 10, 2022 Recent Highlights Near Term Liquidity Profile • Since January 1, 2022 sold 20.9 million shares of common stock under our (2) Cash and Restricted Cash $367 ATM program via forward sale agreements for total gross proceeds of approximat
Slide 36: Pro Forma Leverage
Pro Forma Leverage - As Previously Disclosed on May 10, 2022 Organic De-Leveraging From Recovery in SH NOI Pro Forma Reduction in Net Debt/Adjusted EBITDA 7.20x 7.10x 0.02x 7.00x 0.05x 0.08x $562 million in EBITDA recovery to pre- (6) 0.73x COVID occupancy levels expected to drive further reduction
Slide 37: Well-Laddered Debt Maturity Schedule
(1,2,3) Well-Laddered Debt Maturity Schedule Weighted Average Maturity of 6.9 Years USD Unsecured USD Secured GBP Unsecured CAD Unsecured CAD Secured Line of Credit and Commercial Paper WAI $3,500M 4.47% 4.42% $3,000M 3.78% 3.78% 3.22% $2,500M 3.06% 2.95% 2.93% 2.84% 2.77% $2,000M 2.42% $1,500M $1,0
Slide 38: Supplemental Financial Measures
Supplemental Financial Measures 38
Slide 39: 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 40: 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 41: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Outlook Reconciliation: Quarter Ending June 30, 2022 (in millions, except per share data) Prior Outlook Current Outlook Low High Low High FFO Reconciliation: Net income attributable to common stockholders $ 94 $ 117 $ 103 $ 117 (1) Depreciation and amortization 323 32
Slide 42: 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 43: 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
Slide 44: 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 45: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA (dollars in thousands) Three Months Ended Three Months Ended March 31, March 31, 2022 2022 (3) Net income $ 65,751 Long-term debt obligations $ 14,652,497 Interest expense 121,696 Cash and cash equivalents and restricted cash (367,043) Income tax expense (benefit) 5,013 N
Slide 46: Pro Forma Net Debt to Adjusted EBITDA
Pro Forma Net Debt to Adjusted EBITDA (dollars in thousands) Three Months 1Q22 2Q22 Announced March 31, 2022 Held- Three Months Ended ATM Forward Ended March 31, Acquisitions and Acquisitions and for-Sale Dispositions March 31, 2022 Sale Settlement (1) (2) (3) (4) (5) (6) 2022 (Actual) HHS Received
Slide 47: 47
47