Slide 1: Business Update January 22, 2024
Exhibit 99.1 Business Update January 22, 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
Recent Highlights (1) Expect full year 2023 net income attributable to common stockholders below previously issued guidance range of $0.91 - $0.95 per diluted share • Primarily driven by a delay in asset disposition timing from 4Q2023 to early 2024, which resulted in a lower-than-expected gain on sa
Slide 4: Welltower's Unique Value Creation Flywheel
Welltower’s Unique Value Creation Flywheel Per previous business update issued November 13, 2023 Established Competitive Advantages Driving Sustainable Shareholder Value Creation Welltower Value-Add and Moat Internal Growth • Long-term demographic tailwinds and significant decline in Best-in-class:
Slide 5: Macroeconomic Backdrop to Boost Near-Term Capital Deployment and Long-Term Fundamentals
Macroeconomic Backdrop to Boost Near-Term Capital Deployment and Long-Term Fundamentals Per previous business update issued November 13, 2023 Scarcity of Equity and Debt Capital Multi-Year Period of Muted Supply Expected Surge in interest rates over the past 18 months has resulted in prohibitively E
Slide 6: Senior Housing Trends (Unchanged since prior update)
Senior Housing Trends (Unchanged since prior update)
Slide 7: Favorable Unit Economics Driving Substantial Margin Expansion
Favorable Unit Economics Driving Substantial Margin Expansion Per previous business update issued November 13, 2023 (1) Unit Revenue and Expense Trends Same Store RevPOR Same Store ExpPOR 14.0% RevPOR growth continues to outpace ExpPOR growth, driving +330 bps of SS NOI margin 12.0% expansion in 3Q2
Slide 8: Pre-COVID Occupancy Seasonality: Occupancy Gains Accelerating through 3Q2023
Pre-COVID Occupancy Seasonality Per previous business update issued November 13, 2023 Occupancy Gains Accelerating through 3Q2023 and Outpacing Historical Trends Year-over-Year Occupancy Gains: July 2023: +180 bps Max Change Min Change 2023 August 2023: +220 bps September 2023: +260 bps 1Q 2Q 3Q 4Q
Slide 9: Seniors Housing: Compelling Backdrop for Multi-Year Revenue Growth
Seniors Housing | Compelling Backdrop for Multi-Year Revenue Growth Per previous business update issued November 13, 2023 Accelerating 80+ Population Growth Coinciding with Diminishing New Supply & Improved Affordability US 80+ Population Growth Seniors Housing TTM Deliveries Seniors Housing Afforda
Slide 10: Minimal New Supply in Coming Years Sets Stage For Multi-Year Occupancy Gains
Minimal New Supply in Coming Years Sets Stage For Multi-Year Occupancy Gains Per previous business update issued November 13, 2023 Declining Deliveries Amplified by Elevated Level of Units Coming out of Service TTM Deliveries (% Total Inventory) Obsolescence Net Inventory Growth TTM Deletions (% Inv
Slide 11: Supply-Demand Imbalance Expected to Support Sustained Occupancy Growth
Supply-Demand Imbalance Expected to Support Sustained Occupancy Growth in 2023+ Per previous business update issued November 13, 2023 Seniors Housing Demand Remains Robust…. ….While Supply Continues to Decline Rapidly (1) Construction Pipeline TTM Absorption NIC Primary and Secondary Markets NIC MAP
Slide 12: Global Financial Crisis Case Study
Global Financial Crisis Case Study Per previous business update issued November 13, 2023 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
Slide 13: SHO Portfolio: Path to Recovery
SHO Portfolio | Path to Recovery Per previous business update issued November 13, 2023 Category NOI ($M) $537 million embedded NOI growth in return (1) A) 3Q23 Total Portfolio - IPNOI Portfolio 1,105 to pre-COVID occupancy and margin B) Revera JV Ownership Increase 19 $1,900M C) 3Q23 Total Portfolio
Slide 14: Capital Allocation (Unchanged since prior update)
Capital Allocation (Unchanged since prior update)
Slide 15: Acquisitions Since 4Q2020
Acquisitions Since 4Q2020 Per previous business update issued November 13, 2023 (1) Capital Deployment Volume ✓ Initial yield of 6.1%; Stable yield of approximately 7.9% ✓ Low last-dollar exposure and innovative structure offer downside protection GROSS INVESTMENTS $11.6B✓ Expected to generate high-
Slide 16: Foundation for Long-Term Growth Established
Foundation for Long-Term Growth Established Per previous business update issued November 13, 2023 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
Slide 17: Balance Sheet (Unchanged since prior update)
Balance Sheet (Unchanged since prior update)
Slide 18: Plurality of Capital Sources
Plurality of Capital Sources Per previous business update issued November 13, 2023 Leveraging Efficient & Low-Cost Capital to Execute Investment Strategy ✓ Pivot between multiple sources of capital ✓ Access to secured and unsecured ✓ Recycle capital to improve portfolio quality debt financing based
Slide 19: Well-Laddered Debt Maturity Schedule
(1,2,3) Well-Laddered Debt Maturity Schedule Per previous business update issued November 13, 2023 Weighted Average Maturity of 5.8 Years USD Unsecured USD Secured GBP Unsecured GBP Secured CAD Unsecured CAD Secured Weighted Average Interest Rate $7,000 5.03% 4.97% $6,000 4.66% 4.41% 4.18% 4.07% 4.0
Slide 20: Supplemental Financial Measures
Supplemental Financial Measures 20
Slide 21: 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 22: 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 23: Earnings Outlook Reconciliation
Earnings Outlook Reconciliation (in millions, except per share data) Year Ended December 31, 2023 Current Outlook Low High FFO Reconciliation: Net income attributable to common stockholders $ 468 $ 489 (1,2,3) Impairments and losses (gains) on real estate dispositions, net (124) (124) (1) Depreciati
Slide 24: NOI, IPNOI, SSNOI, RevPOR, ExpPOR, SS RevPOR & SS ExpPOR
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 25: In-Place NOI Reconciliations
In-Place NOI Reconciliations (dollars in thousands) 3Q23 In-Place NOI by property type 3Q23 % of Total Net income (loss) $ 134,722 Seniors Housing Operating $ 1,105,180 48 % Loss (gain) on real estate dispositions, net (71,102) Seniors Housing Triple-net 413,312 18 % Loss (income) from unconsolidate