Slide 1: Business Update May 10, 2022
Business Update May 10, 2022 Welltower
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 First Quarter 2022
Recent Highlights First Quarter 2022 Seniors Housing Operating (“SHO”) Portfolio Performance • SHO Portfolio same store (“SS”) revenue growth accelerated in 1Q2022, increasing 11.2% year-over-year which exceeded guidance for a 10.0% increase(1) • US and UK portfolios continue to demonstrate signific
Slide 4: 2Q2022 Outlook | Robust Growth Expected Across All Businesses
2Q2022 Outlook | Robust Growth Expected Across All Businesses Anticipate Total Portfolio SS NOI Growth of 8-10% Led by Continued SHO Portfolio Recovery 2Q2022 Outlook Segment Low High Outpatient Medical 2.0% 3.0% Health System 2.75% 2.75% LT/PAC 2.0% 3.0% Total Portfolio 8.0% 10.0% Expect 15%—20% SH
Slide 5: Post-COVID Recovery | Long-Term Secular Growth Opportunity
Post-COVID Recovery | Long-Term Secular Growth Opportunity Compelling demand-supply backdrop to drive occupancy gains Strong industry pricing power expected to offset inflationary pressures Demographic-Driven Demand US 80+ Population Growth(1) 20M 19M 18M 17M 16M 15M 14M 13M 12M 11M 10M 1. The Organ
Slide 6: Capital Deployment | Near-Term Pipeline Exceeds $1.5 Billion
REVPOR decline driven by mix shift; rate growth remained positive for individual SH segments Capital Deployment | Near-Term Pipeline Exceeds $1.5 Billion Torrid Pace of Year-to-Date Capital Deployment; Additional $1.5 Billion+ Near-Term Pipeline (1) • WELL has completed approximately $1.2 billion of
Slide 7: Capital Deployment | Closed Transactions
Capital Deployment | Closed Transactions 2022 YTD Capital Deployment Volume(1) GROSS $1.2B INVESTMENTS ? Initial yield of 5.1% ? Stable yield of 6.6% ? Blended high-single-digit unlevered IRR ular & Off-Market Transactions 21 Total Transactions(1) 22 OM and SH Properties Acquired 2.7K Seniors Housin
Slide 8: Seniors Housing Update
Seniors Housing Update
Slide 9: SHO Portfolio | COVID-19 Impact
SHO Portfolio | COVID-19 Impact(1) Weekly Resident COVID-19 Cases 1,000 900 800 Despite recent rise in 700 case counts, virtually 600 all communities remain 500 open to admissions 400 300 200 100 - 1. All data presented as of May 6, 2022 as reported by operators Weekly Staff COVID-19 Cases 82% decli
Slide 10: SHO Portfolio | Additional Community Details
SHO Portfolio | Additional Community Details(1) Virtually all communities remain open for tours, visitation, and resident activities Visitation % of communities Communal Dining % of communities 100% 80% 60% 40% Indoor Visitation Outdoor Visitation 100% 80% 60% 40% Activities % of communities 100% 80
Slide 11: SHO Portfolio | Occupancy Trends
SHO Portfolio | Occupancy Trends(1) Occupancy gains have continued through 1Q2022 79% 78% 77% 76% 75% 74% 73% 72% Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 79% 78% 77% 76% 75
Slide 12: 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 Since the occupancy trough in late-1Q2021, sequential average occupancy growth has meaningfully outpaced pre-COVID averages, which is expected to continue through 2Q202
Slide 13: Approximately 2.8 year total portfolio weighted average lease term
Approximately 2.8 year total portfolio weighted average lease term(4) 1. WALT: Weigh 2. Represents annualized NOI as reported in 1Q2012. See 10May22 Q2 Supplemental 16:40 Information Report for furthr information 3. Represents in place NOI. See Supplemental Financial Measures at the end of this pres
Slide 14: 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 1Q 2012 NOI(2) ~3x increase in SHO exposure over past 10 years 1Q 2022 NOI(3)
Slide 15: SHO Portfolio | Historical Rate Growth vs. Inflation
SHO Portfolio | Historical Rate Growth vs. Inflation (1) WELL Pre-COVID REVPOR Growth Exceeded Inflation by an Average of 2% Annually Pricing Power Continues to Demonstrate Unabated Strength WELL SSRevPOR CPI YoY Index RevPOR Growth Average 1Q15—1Q20 REVPOR decline driven by mix shift; rate growth r
Slide 16: Seniors Housing is NOT INCOME DEPENDENT
Seniors Housing is NOT INCOME DEPENDENT; generally funded through ASSET SALES and PERSONAL WEALTH 1. Source: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey 2. Source: Bloomberg as of 5/8/2022 3. Assumes reinvestment of dividends and annual compounding 15
Slide 17: 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&P/Case-Shiller U.S. National Home Price Index S&P500 | 1981 – Present(2) +11.9% average annual return over past 40 years …Is now worth ~$1 Mill
Slide 18: Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+
Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+ SH Demand Remains Robust SH Construction Continues to Recede TTM Absorption(1) NIC MAP Primary and Secondary Markets TTM Absorption Pre-Covid Average Units Under Construction(1) NIC Primary and Secondary Markets Units Under Co
Slide 19: SHO Portfolio | Path to Recovery
SHO Portfolio | Path to Recovery Category NOI ($M) 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 Class Acquisitions (4Q20-1Q22) 126 E) 1Q22 Total Portfolio—Pos
Slide 20: Foundation for Long-Term Growth Established
ll Foundation for Long-Term Growth Established Opportunity to deploy in excess of $3.0 billion Annually | 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+ Relationships Formed Newy Formed COVI
Slide 21: Capital Deployment Since 4Q20
Capital Deployment Since 4Q20 Capital Deployment Volume(1) ? Initial yield of 5.9%; Stable yield of approxima tely 8.0% GROSS ? Low last-dollar exposure and innovative structure offer downside protection $7.6B INVESTMENTS ? Expected to generate high-single-digit to mid-teens unlevered IRRs to WELL G
Slide 22: 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 New relationships form
Slide 23: Leadership Team
ll Leadership Team SHANKH MITA, Chet Executive Ofer & ‘Chet Investment Ofer MATTHEW G. MCQUEEN, Corporate Secretary ‘Tiomiy G.Mcuvent ‘Chet Financial Otfcer Sener Vee Prescent Witness Housing & Development JOMY F.BURKART Chef Operating Otter ‘Chet Accounting Otic
Slide 24: Welltower at a Glance
World’s largest health & wellness real estate platform Welltower at a Glance Enterprise Value(1) Dividend Yield(1) 125,000+ Seniors Housing & Wellness Housing Units ~23M sq. ft. Outpatient Facilities SHANKH MITRA TIMOTHY G. MCHUGH JOHN F. BURKART Chief Executive Officer & Chief Financial Officer Chi
Slide 25: Drivers of Per Share Cash Flow Growth
ll Drivers of Per Share Cash Flow Growth SECULAR GROWTH TAILWINDS ACCRETIVE CAPITAL DEPLOYMENT DIVERSIFIED PLATFORM OF OPERATORS STRONG INTERNAL, TALENT BASE RISK MITIGANTS Post-COVID fundamental recovery sustained by strong demographic trends, shift to value-based health care, and social determinan
Slide 26: WELL ESG Focus | Profit, Planet, People
WELL ESG Focus(1) | Profit, Planet, People Building a Portfolio Serving our People and E for the Future S our Communities Sustainability Goals & Achievements(1) Gender parity across organization Targeting 10% reduction in greenhouse gas (GHG) emissions, energy, and water use by 2025(2) First health
Slide 27: 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 28: 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) SENIORS HOUSING • Relatively flat demographic growth of key seniors housing • Sharply accelerating growth of 80+ age cohort D
Slide 29: Seniors Housing Operator Platform | Power of Diversification
| Seniors Housing Operator Platform | Power of Diversification $85 Monthly Rent Geography and Operating Model + # akmor Ommuax aa © (cll) em) @ Bxcoxoats) « ee 3G 2) Besep)* Cross cE : ele SPARROW Ce pd ‘ =~ eowsreil coat) Gene | ERS s Oenctave : 2 On ee) tow Average Portfolio Acuity -_ »
Slide 30: Seniors Housing Operator Platform | Power of Diversification
Seniors Housing Operator Platform | Power of Diversification
Slide 31: 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 80+ Population CAGR | Historical and Projected(1) 2010-2019 2020-2029 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% UK Population CAGR by Age Co
Slide 32: Seniors Housing Supply | Construction Remains Well Below Peak Levels
Seniors Housing Supply | Construction Remains Well Below Peak Levels Construction Starts(1) NIC Primary and Secondary Markets Construction Starts Construction Starts (% Inventory) 65% decline in starts since 4Q17 peak Recent construction starts at 2012/2013 levels 14K 12K 10K 8K 6K 4K 2K 0K Units Un
Slide 33: 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 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 +167% since 2017 Lumber Cement +35% since 2017 Copper +71% since 2017 11,000 10,000 9,000 8,000 7,
Slide 34: Balance Sheet Update | Capitalizing the Opportunity
33 Balance Sheet Update Capitalizing the Opportunity(1) 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 availability and capitali
Slide 35: Balance Sheet Highlights
Balance Sheet Highlights Recent Highlights • Since January 1, 2022 sold 20.9 million shares of common stock under our ATM program via forward sale agreements for total gross proceeds of approximately $1.9 billion • As of May 9, 2022, approximately 19.5 million shares remain unsettled which are expec
Slide 36: Pro Forma Leverage
Pro Forma Leverage Pro Forma Reduction in Net Debt/Adjusted EBITDA 1Q22 ex HHS 1Q22 Transaction Run 2Q22 QTD Transaction Proceeds from Assets Settlement of Equity Current Pro Forma Rate(2) Run Rate(3) Held for Sale(4) Sold on Forward Basis(5) Leverage 1. Represents 1Q2022 Net Debt to Adjusted EBITDA
Slide 37: Weighted Average Maturity of 6.9 Years
Weighted Average Maturity of 6.9 Years Baa1 BBB+ closed in 2Q22) 6. See slide 17 for additional details on potential NOI upside 1. Represents principal amounts due excluding unamortized premiums/discounts or other fair value adjustments as reflected on the balance sheet 2. The 2026 maturity reflects
Slide 38: Supplemental Financial Measures
Supplemental Financial Measures
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 Net Operating Income (“NOI”),
Slide 40: 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 41: In-Place NOI Reconciliations
In-Place NOI Reconciliations (1) Represents Welltower’s interest in joint ventures where Welltower is the minority partner. (2) 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 i
Slide 42: SHO REVPOR Growth Reconciliation
SHO REVPOR Growth Reconciliation (dollars in thousands, except SS REVPOR ) SHO SS REVPOR Growth Consolidated SHO revenues Unconsolidated SHO revenues attributable to WELL(1) SHO revenues attributable to noncontrolling interests(2) SHO pro rata revenues(3) Non-cash revenues on same store properties R
Slide 43: SHO REVPOR Growth Reconciliation
SHO REVPOR Growth Reconciliation 1. Represents Welltower’s interests in joint ventures where Welltower is the minority partner. 2. Represents minority partners’ interests in joint ventures where Welltower is the majority partner and includes an adjustment to remove NOI related to certain leasehold p
Slide 44: SSNOI Reconciliation
SSNOI Reconciliation (dollars in thousands) Net income (loss) Loss (gain) on real estate dispositions, net Loss (income) from unconsolidated entities Income tax expense (benefit) Other expenses Impairment of assets Provision for loan losses, net Loss (gain) on extinguishment of debt, net Loss (gain)
Slide 45: 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 46: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA 1. Represents $13,941,000 of revenues and $5,484,000 of property operating expenses associated with a leasehold portfolio interest relating to 26 properties assumed by a wholly-owned affiliate in conjunction with the Holiday Retirement transaction. Subsequent to the initi
Slide 47: Pro Forma Net Debt to Adjusted EBITDA
Pro Forma Net Debt to Adjusted EBITDA (dollars in thousands) Three Months 1Q22 2Q22 Announced ATM Forward March 31, 2022 Held- Three Months Ended Ended March 31, Acquisitions and Acquisitions and Sale Settlement for-Sale Dispositions March 31, 2022 2022 (Actual) (1) HHS Received(2) Dispositions (3)
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