Slide 1: Business Update January 24, 2022
Exhibit 99.1 Business Update January 24, 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
Recent Highlights (1) Expect 4Q21 net income attributable to common stockholders below previously issued guidance range of $0.20 - $0.25 per diluted share • Delayed timing of asset dispositions resulted in lower than expected gain on sale during the period; dispositions expected to be completed in 1
Slide 4: Recent Highlights | Investment and Balance Sheet Update
Recent Highlights | Investment and Balance Sheet Update Per previous business update issued January 11, 2022 Investment Activity (1) • During the fourth quarter, closed on $1.4 billion in pro rata investments , the majority of which closed late in the quarter, at an expected initial yield of 5%; exp
Slide 5: Seniors Housing Update
Seniors Housing Update 5
Slide 6: SHO Portfolio | Occupancy Trends
(1) SHO Portfolio | Occupancy Trends Per previous business update issued January 11, 2022 Occupancy gains have continued through 4Q2021 +50 +0 Total Portfolio US +10 +40 +30 78% +20 78% +100 +80 +80 77% +70 77% +80 76% +60 76% +90 +120 75% 75% +50 +70 74% +50 -80bps 74% +90 +10 73% +50 -60bps 73% 72
Slide 7: SHO Portfolio | Move Ins & Move Outs
(1) SHO Portfolio | Move Ins & Move Outs Per previous business update issued January 11, 2022 Move Ins as % 2019 Move Ins Move Outs as % 2019 Move Outs 120% 120% 112% 111% 106% 104% 102% 101% 99% 99% 99% 100% 100% 95% 94% 90% 90% 90% 89% 88% 87% 87% 86% 84% 81% 80% 80% 74% 67% Recent move in trends
Slide 8: Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+
Seniors Housing Backdrop Supports Sustained Revenue Acceleration in 2022+ Per previous business update issued January 11, 2022 Meaningful Deterrents for New SH Construction SH Demand Remains Robust Despite Surge in COVID-19 (1) (1) 20K Seniors Housing Quarterly Unit Absorption Seniors Housing New Co
Slide 9: SHO Portfolio | Historical REVPOR Growth vs. Inflation
SHO Portfolio | Historical REVPOR Growth vs. Inflation Per previous business update issued January 11, 2022 (1) WELL Pre-COVID REVPOR Growth Exceeded Inflation by an Average of 2% Annually 5% 4% 3% 2% 1% 0% -1% REVPOR decline driven by mix shift; WELL SHO Same Store RevPOR Growth rate growth remaine
Slide 10: Significant Wealth Accumulation Allows for Greater SH Affordability
Significant Wealth Accumulation Allows for Greater SH Affordability Per previous business update issued January 11, 2022 Backdrop to drive rate growth remains favorable (3) Home Price Appreciation | 1987 - Present S&P500 | 1981 – Present (1) S&P/Case-Shiller U.S. National Home Price Index 5,000 +12.
Slide 11: Balanced lease structure and WALT mitigates inflationary pressures
(1) Balanced lease structure and WALT mitigates impact of inflationary pressures Per previous business update issued January 11, 2022 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 16% 9
Slide 12: SHO Portfolio | Path to Recovery
SHO Portfolio | Path to Recovery Per previous business update issued January 11, 2022 Category NOI ($M) $475 million embedded NOI growth in return to Pre-COVID levels (1) A) 3Q21 Portfolio - IPNOI Portfolio 686 B) Stable Portfolio Remaining Occupancy Recovery 296 C) Development, Lease-Up, Transition
Slide 13: Capital Deployment Update
Capital Deployment Update 13
Slide 14: Capital Deployment Since 4Q20
Capital Deployment Since 4Q20 Per previous business update issued January 11, 2022 (1) Capital Deployment Volume ✓ Initial yield of 6.1%; Year 3 yield of approximately 8.2% ✓ Low last dollar exposure and innovative structure offer downside protection GROSS (1) INVESTMENTS $6.1B✓ Expected to generate
Slide 15: Notable Investments
Notable Investments Per previous business update issued January 11, 2022 (1) Transaction Segment Properties Investment Commentary • Portfolio comprised of eight rental and six entrance fee communities located in attractive markets across the US Watermark SHO 14 $580M • Price represents a 40% discoun
Slide 16: Foundation for Long-Term Growth Established
Foundation for Long-Term Growth Established Per previous business update issued January 11, 2022 Opportunity to deploy in excess of $2.5 billion Annually | Economics Defined During Pandemic NEW and PROPRIETARY long-term relationships with best-in-class developers and operators with either exclusive
Slide 17: Welltower Overview
Welltower Overview welltower
Slide 18: Welltower at a Glance
Welltower at a Glance S&P + % BBB Baa1 $52B 2.8 Enterprise (1) Dividend Yield 500 (1) Value 100,000+ ~22M sq. ft. Seniors Housing & Outpatient Facilities Wellness Housing Units World's largest health & wellness real estate platform 1. Bloomberg, as of 12/31/2021 18
Slide 19: Welltower at a Glance | Portfolio Composition
Welltower at a Glance WELL Portfolio Composition Health System Seniors Housing Operating Outpatient 9% Medical 39% 24% 3Q 2021 (1) In-Place NOI 5% 23% Long-Term/ Seniors Housing Post-Acute Care Triple-Net 1. Based on In-Place NOI. See Supplemental Financial Measures at the end of this presentation f
Slide 20: 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 21: 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 22: Secular Themes
Secular Themes Powerful demographic tailwinds to drive multi-year period of internal and external growth 22
Slide 23: The Health and Wellness Ecosystem
The Health and Wellness Ecosystem RELATIVE COST OF CARE $ $$ ACUTE POST-ACUTE SENIORS HOUSING WELLNESS HOUSING Memory Assisted Independent Senior Horizontal Home Hospital Specialty IRF/LTACH SNF Care Living Living Apartments Apartments Inpatient Care CONSUMER DRIVEN VENUES AND SERVICES Digital Home
Slide 24: Secular Theme | Addressing the Aging Population
Secular Theme | Addressing the Aging Population GLOBAL DEMOGRAPHIC SHIFT driving significant INTERNAL & EXTERNAL growth opportunities (2) (1) 80+ UK Population Growth 80+ U.S. Population Growth 5M 7% 25M 7% (3) 6% Population 80+ (M) 3.1% CAGR through end of decade 5% YoY Growth (%) 4M 23M 6% 4% 3% 3
Slide 25: Secular Theme | The Shift to Value-Based Care
Secular Theme | The Shift to Value-Based Care The AGING POPULATION outspends all other cohorts on HEALTH CARE (2) (1) US Health Care Spend Projections US Personal Health Care Per-Capita Spend by Age $20K 20% $35K Per Capita Health Spend %GDP 20% $32.9 $30K 19% $25K 4.1X $15K 19% $20K 18% $17.0 $15K
Slide 26: Secular Theme | The Shift to Value-Based Care
Secular Theme | The Shift to Value-Based Care The US spends the MOST PER CAPITA on health care, yet achieves significantly LOWER HEALTH OUTCOMES (1) (1) Health Care Spend vs. Life Expectancy Health Care Spend vs. Life Expectancy 100% 84 NOR 80% NETH SWIZ 82 FR AUS NZ SWE CAN 60% OECD Average UK 80 G
Slide 27: Secular Theme | Social Determinants of Health
Secular Theme | Social Determinants of Health HEALTH and WELLNESS can be directly 80% of an individual’s health and wellness (1) impacted by where you LIVE and AGE is influenced by SOCIAL DETERMINANTS Socioeconomic factors Physical 10% Environment 20% Drivers of 40% Health Care Health Health 30% Beh
Slide 28: 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 29: 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) • Relatively flat demographic growth of key seniors housing SENIORS HOUSING • Sharply accelerating growth of 80+ age cohort D
Slide 30: 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 31: Competitive Advantages to Drive Growth Through Cycles
Competitive Advantages to Drive Growth Through Cycles INDUSTRY-LEADING DATA ANALYTICS PLATFORM across all commercial real estate: predictive analytics and artificial intelligence platform driving micro-market capital allocation decisions Internal and external GROWTH OPPORTUNITES spanning the care co
Slide 32: Seniors Housing
Seniors Housing 32
Slide 33: 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 33 33
Slide 34: Demographic Backdrop | Rapidly Aging Population
Demographic Backdrop | Rapidly Aging Population (1) 80+ Population CAGR | Historical and Projected 10 Year Population CAGR by Age Cohort | 2020 - 2029 4.0% US UK Canada 2010 - 2019 2020 - 2029 4.0% 4.0% 4.0% 3.8% 3.8% 3.6% 3.5% 3.6% 3.1% 3.0% 3.0% 3.0% 3.0% 3.1% 2.5% 2.0% 2.0% 2.0% 1.7% 2.3% 2.0% 1.
Slide 35: 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 Construction Starts Construction Starts (% Inventory) Units Under Construction Contruction (% Inventory) 14K 5
Slide 36: Seniors Housing Supply | Surging Construction Costs
Seniors Housing Supply | Surging Construction Costs Per previous business update issued January 11, 2022 Material increase in cost of development for ALL RESIDENTIAL property types including SENIORS HOUSING Lumber Cement Copper 1,800 650 11,000 +58% since 2016 +263% since 2016 +76% since 2016 1,600
Slide 37: Post-COVID Recovery | Long-Term Secular Growth Opportunity
Post-COVID Recovery | Long-Term Secular Growth Opportunity Demographic-driven Demand Supply Deceleration Resilient Pricing Power (1) (2) (3) US 80+ Population Growth Seniors Housing Construction Starts WELL SHO Same Store RevPOR Growth 5.0% 5.0% Starts (% Inventory) 20M WELL’s pre-COVID pricing powe
Slide 38: SHO Portfolio | COVID-19 Impact
(1) SHO Portfolio | COVID-19 Impact Per previous business update issued January 11, 2022 COVID-19 Impact ~90% of seniors housing communities accepting new residents despite significant increase in resident case counts • Trailing two-week resident case counts have increased recently, though few hospi
Slide 39: US SHO Portfolio | Occupancy gains continued in 4Q
(1) US SHO Portfolio | Occupancy gains continued in 4Q despite surge in national daily COVID-19 cases Per previous business update issued January 11, 2022 (1) US COVID-19 Update US COVID Cases, Hospitalizations and Deaths US Case Counts by Age Cohort Trailing 7-day count per 100K Trailing 7-day coun
Slide 40: UK SHO Portfolio | Resident cases remain low
UK SHO Portfolio | Resident cases remain low despite surge in national COVID-19 cases Per previous business update issued January 11, 2022 (1,3) (2) (2) UK COVID-19 Update UK COVID Cases, Hospitalizations and Deaths England Case Counts by Age Cohort UK COVID Cases, Hospitalizations and Deaths Englan
Slide 41: Canada SHO Portfolio | Occupancy gains continue
Canada SHO Portfolio | Occupancy gains continue despite elevated COVID-19 case counts Per previous business update issued January 11, 2022 (1) Canada COVID Cases, Hospitalizations and Deaths Canada COVID-19 Update Canada Case Counts by Age Cohort Trailing 7-Day Cases and Deaths per 100K; Trailing 7-
Slide 42: SHO Portfolio | Additional Community Details
(1) SHO Portfolio | Additional Community Details Per previous business update issued January 11, 2022 Nearly ALL COMMUNITIES across US, UK and Canada allowing VISITATION, IN-PERSON TOURS and COMMUNAL DINING Visitation Communal Dining % of communities % of communities 100% 100% 80% 80% 60% 60% 40% De
Slide 43: Balance Sheet
Balance Sheet 43
Slide 44: Capitalizing the Opportunity
(1) Capitalizing the Opportunity Disciplined Focus on Efficient & PUBLIC EQUITY DISPOSITIONS DEBT Low-Cost Capital Sourcing • Access to secured and unsecured debt financing • Pivot between multiple sources $6B $15B $12B of capital based upon cost and availability • Recycle capital to improve portfol
Slide 45: Balance Sheet Strength
Balance Sheet Strength Organic De-Leveraging From Recovery in SH NOI Continued reduction in pro forma Net Debt/Adjusted EBITDA since 1Q2021 7.00x 6.97x 0.15x 6.95x Further 1.25x leverage reduction 6.90x to 5.37x assuming $475 million in embedded EBITDA recovery to 6.85x (6) pre-COVID occupancy level
Slide 46: Well-Laddered Debt Maturity Schedule
(1,2,3) Well-Laddered Debt Maturity Schedule Weighted Average Maturity of 7.1 Years USD Unsecured USD Secured CAD Unsecured CAD Secured GBP Unsecured Lines of Credit & Commercial Paper Weighted Average Interest $4,000 5.02% $3,500 4.48% $3,000 4.05% 3.83% 3.82% $2,500 3.27% 3.13% 3.07% 2.95% 2.78% $
Slide 47: Supplemental Financial Measures
Supplemental Financial Measures 47
Slide 48: 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 49: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation Outlook Reconciliation: Quarter Ending December 31, 2021 (in millions, except per share data) Current Outlook Low High FFO Reconciliation: Net income attributable to common stockholders $ 87 $ 109 (1,2) Impairments and losses (gains) on real estate dispositions, net (
Slide 50: 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 51: In-Place NOI Reconciliations
In-Place NOI Reconciliations (dollars in thousands) 3Q21 In-Place NOI by property type 3Q21 % of Total Net income (loss) $ 190,336 Seniors Housing Operating $ 685,716 39 % Loss (gain) on real estate dispositions, net (119,954) Seniors Housing Triple-Net 410,524 23 % Loss (income) from unconsolidated
Slide 52: 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 Internal Revenue Code (“IRC”) Section 1031 deposits. We expect to ma
Slide 53: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA Three Months (dollars in thousands) Ended Three Months Ended September 30, September 30, 2021 2021 (3,4) Net income $ 190,336 Long-term debt obligations $ 13,779,652 (5) Interest expense 122,522 Cash and cash equivalents (307,385) Income tax expense (benefit) 4,940 Net de
Slide 54: Proforma Net Debt to Adjusted EBITDA
Proforma Net Debt to Adjusted EBITDA (dollars in thousands) Three Months Ended Q4 Announced September 30, 2021 Three Months Ended September 30, 2021 Q3 Acquisitions and Acquisitions and Held-for-Sale September 30, 2021 (1) (2) (3) (4) (5) (6) (Actual) Dispositions Dispositions Definitive Agreements
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