EX-99.2 3 a2q19supplement992.htm EXHIBIT 99.2 Exhibit
welltowersupplementalcover2q.jpg


Table of Contents
 


    
Overview
 
 
Portfolio
 
 
Investment
 
 
Financial
 
 
Glossary
 
 
Supplemental Reporting Measures
 
 
Forward Looking Statements and Risk Factors



Overview     
 


(dollars in thousands, at Welltower pro rata ownership)
 
 
Portfolio Composition
Beds/Unit Mix
 
Average Age
 
Properties
Total
 
Independent Living
 
Assisted Living
 
Memory Care
 
Long-Term/ Post-Acute Care
Seniors Housing Operating
17

 
645
     76,311
 
35,845

 
26,902

 
13,052

 
512

Seniors Housing Triple-net
13

 
332
26,871
 
4,963

 
16,002

 
5,488

 
418

Outpatient Medical
14

 
356
21,841,197
(1) 
N/A

 
N/A

 
N/A

 
N/A

Health System
31

 
218
26,212
 
201

 
723

 
3,051

 
22,237

Long-Term/Post-Acute Care
19

 
160
     18,086
 
40

 
873

 

 
17,173

Total
17

 
1,711
 
 
 
 
 
 
 
 
 

NOI Performance
Same Store(2)
 
In-Place Portfolio(3)
 
 
Properties
 
2Q18 NOI
 
2Q19 NOI
% Change
 
Properties
 
Annualized
In-Place NOI
% of Total
Seniors Housing Operating
426

 
$
196,333

 
$
202,852

3.3
%
 
564

 
$
959,304

45.5
%
Seniors Housing Triple-net(4)
288

 
85,070

 
88,230

3.7
%
 
308

 
375,768

17.8
%
Outpatient Medical
239

 
83,529

 
85,487

2.3
%
 
334

 
450,076

21.3
%
Health System

 

 

n/a

 
218

 
143,200

6.8
%
Long-Term/Post-Acute Care(4)
115

 
40,326

 
41,151

2.0
%
 
136

 
180,004

8.6
%
Total
1,068

 
$
405,258

 
$
417,720

3.1
%
 
1,560

 
$
2,108,352

100.0
%

Portfolio Performance
 
 
 
Facility Revenue Mix
Stable Portfolio(5)
Occupancy
 
EBITDAR Coverage(6)
 
EBITDARM Coverage(6)
 
Private Pay
 
Medicaid
 
Medicare
 
Other Government(7)
Seniors Housing Operating
87.2
%
 
n/a
 
n/a
 
97.5
%
 
0.7
%
 
0.5
%
 
1.3
%
Seniors Housing Triple-net
86.3
%
 
1.05
 
1.21
 
92.3
%
 
3.1
%
 
0.7
%
 
3.9
%
Outpatient Medical
93.5
%
 
n/a
 
n/a
 
99.1
%
 

 

 
0.9
%
Health System
85.6
%
 
n/a
 
n/a
 
35.6
%
 
40.2
%
 
24.2
%
 

Long-Term/Post-Acute Care
84.5
%
 
1.24
 
1.55
 
28.9
%
 
39.7
%
 
31.4
%
 

Total
 
 
1.10
 
1.31
 
92.6
%
 
3.6
%
 
2.4
%
 
1.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
(1) Indicates the total square footage of Outpatient Medical.
(2) See pages 22 and 23 for reconciliation.
(3) Excludes land parcels, loans, developments and investments held for sale. See page 22 for reconciliation.
(4) Same store NOI for these property types represents rent cash receipts excluding the impact of expansions.
(5) Data as of June 30, 2019 for Seniors Housing Operating and Outpatient Medical and March 31, 2019 for remaining asset types.
(6) Represents trailing twelve month coverage metrics.
(7) Represents various federal and local reimbursement programs in the United Kingdom and Canada.

1

Portfolio
 



(dollars in thousands at Welltower pro rata ownership)
In-Place NOI Diversification(1)
By Partner:
Total Properties
 
Seniors Housing Operating

Seniors Housing
Triple-net

Outpatient
Medical

Health
System

Long-Term/ Post-Acute Care

Total
% of Total
Sunrise Senior Living North America
123

 
$
252,750

 
$

 
$

 
$

 
$

 
$
252,750

12.0
%
Sunrise Senior Living United Kingdom
44

 
69,662

 

 

 

 

 
69,662

3.3
%
ProMedica
218

 

 

 

 
143,200

 

 
143,200

6.8
%
Revera
98

 
108,300

 

 

 

 

 
108,300

5.1
%
Genesis HealthCare
76

 

 

 

 

 
83,564

 
83,564

4.0
%
Belmont Village
21

 
79,288

 

 

 

 

 
79,288

3.8
%
Senior Resource Group
23

 
67,877

 

 

 

 

 
67,877

3.2
%
Brookdale Senior Living
84

 

 
57,644

 

 

 

 
57,644

2.7
%
Brookdale Senior Living - Transitions(2)
7

 
5,271

 

 

 

 

 
5,271

0.3
%
Avery
52

 
5,023

 
57,529

 

 

 

 
62,552

3.0
%
Brandywine Living
27

 
61,523

 

 

 

 

 
61,523

2.9
%
Sagora Senior Living
31

 
36,318

 
24,344

 

 

 

 
60,662

2.9
%
Remaining
756

 
273,292

 
236,251

 
450,076

 

 
96,440

 
1,056,059

50.0
%
Total
1,560

 
$
959,304


$
375,768


$
450,076


$
143,200


$
180,004


$
2,108,352

100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By Country:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
1,297

 
$
725,268

 
$
295,102

 
$
429,789

 
$
143,200

 
$
173,485

 
$
1,766,844

83.8
%
United Kingdom
111

 
75,948

 
77,334

 
20,287

 

 

 
173,569

8.2
%
Canada
152

 
158,088

 
3,332

 

 

 
6,519

 
167,939

8.0
%
Total
1,560

 
959,304


375,768


450,076


143,200


180,004


2,108,352

100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By MSA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
64

 
$
91,624

 
$
30,149

 
$
10,942

 
$
3,465

 
$
11,826

 
$
148,006

7.0
%
Los Angeles
66

 
104,433

 
1,826

 
27,334

 
417

 

 
134,010

6.4
%
Greater London
50

 
48,259

 
33,697

 
20,287

 

 

 
102,243

4.8
%
Dallas
56

 
33,350

 
18,224

 
32,155

 
730

 
3,846

 
88,305

4.2
%
Philadelphia
50

 
18,023

 
2,104

 
24,873

 
11,969

 
22,981

 
79,950

3.8
%
Washington D.C.
40

 
37,648

 
2,373

 
5,406

 
10,940

 
2,973

 
59,340

2.8
%
Houston
28

 
11,989

 
4,265

 
31,232

 

 

 
47,486

2.3
%
Seattle
31

 
27,787

 
2,982

 
14,596

 
1,565

 

 
46,930

2.2
%
San Francisco
18

 
38,197

 
4,507

 

 
4,210

 

 
46,914

2.2
%
Chicago
38

 
21,152

 
9,600

 
4,414

 
9,409

 

 
44,575

2.1
%
San Diego
18

 
31,087

 

 
6,190

 

 
2,852

 
40,129

1.9
%
Toronto
26

 
38,144

 

 

 

 

 
38,144

1.8
%
Miami
35

 
5,800

 

 
21,416

 
5,009

 

 
32,225

1.5
%
Minneapolis
19

 
2,089

 
14,195

 
14,072

 

 

 
30,356

1.4
%
Montréal
19

 
27,883

 

 

 

 

 
27,883

1.3
%
Kansas City
23

 
7,471

 
8,071

 
6,282

 

 
5,578

 
27,402

1.3
%
Indianapolis
18

 

 
8,348

 
10,210

 
683

 
8,152

 
27,393

1.3
%
Atlanta
23

 
5,719

 

 
18,273

 
1,735

 

 
25,727

1.2
%
Raleigh
12

 
6,612

 
17,255

 
977

 

 

 
24,844

1.2
%
Boston
16

 
20,017

 

 
2,448

 

 
2,271

 
24,736

1.2
%
Remaining
910

 
382,020

 
218,172

 
198,969

 
93,068

 
119,525

 
1,011,754

48.0
%
Total
1,560

 
$
959,304


$
375,768


$
450,076


$
143,200


$
180,004


$
2,108,352

100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
(1) Represents current quarter annualized In-Place NOI. See page 22 for reconciliation.
(2) Represents the 7 properties to be transitioned to other operators as announced in our June 27, 2018 press release.



2

Portfolio
 


(dollars in thousands at Welltower pro rata ownership)
Seniors Housing Operating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Portfolio Performance
 
2Q18
 
3Q18
 
4Q18
 
1Q19
 
2Q19
Properties
 
 
521

 
587

 
568

 
599

 
645

Units
 
 
62,557

 
69,345

 
67,306

 
70,393

 
76,311

Total occupancy
 
 
85.9
%
 
86.9
%
 
87.2
%
 
86.2
%
 
85.7
%
Total revenues
 
 
$
733,306

 
$
849,054

 
$
834,356

 
$
841,938

 
$
880,320

Operating expenses
 
 
498,278

 
585,525

 
582,412

 
580,917

 
607,836

NOI
 
 
$
235,028

 
$
263,529

 
$
251,944

 
$
261,021

 
$
272,484

NOI margin
 
 
32.1
%
 
31.0
%
 
30.2
%
 
31.0
%
 
31.0
%
Recurring cap-ex
 
 
$
9,959

 
$
13,750

 
$
22,569

 
$
15,226

 
$
20,275

Other cap-ex
 
 
$
36,023

 
$
38,984

 
$
49,813

 
$
27,366

 
$
30,320


Same Store Performance(1)
 
2Q18
 
3Q18
 
4Q18
 
1Q19
 
2Q19
Properties
 
 
426

 
426

 
426

 
426

 
426

Occupancy
 
 
87.0
%
 
87.9
%
 
88.3
%
 
87.8
%
 
87.5
%
Same store revenues
 
 
$
595,798

 
$
609,647

 
$
613,199

 
$
617,332

 
$
621,832

Compensation
 
 
246,953

 
254,092

 
258,004

 
258,901

 
262,254

Utilities
 
 
20,777

 
23,205

 
22,812

 
24,428

 
20,484

Food
 
 
21,904

 
22,267

 
23,137

 
22,060

 
22,207

Repairs and maintenance
 
14,310

 
14,002

 
13,950

 
13,712

 
14,600

Property taxes
 
 
19,075

 
18,549

 
18,930

 
19,684

 
19,625

All other
 
 
76,446

 
77,596

 
77,377

 
77,290

 
79,810

Same store operating expenses
 
399,465

 
409,711

 
414,210

 
416,075

 
418,980

Same store NOI
 
 
$
196,333


$
199,936


$
198,989


$
201,257


$
202,852

Year over year growth rate
 
 
 
 
 
 
 
 
 
 
3.3
%
Partners
 
Properties(2)
 
Units(2)
 
Welltower Ownership %(3)
 
Core Markets
 
2Q19 NOI
 
% of Total
Sunrise Senior Living
 
167

 
14,201

 
97.3
%
 
Southern California
 
$
36,738

 
13.5
%
Revera
 
98

 
12,157

 
75.0
%
 
New York / New Jersey
 
22,479

 
8.2
%
Belmont Village
 
21

 
2,952

 
95.0
%
 
Northern California
 
20,434

 
7.5
%
Senior Resource Group
 
23

 
4,449

 
67.5
%
 
Boston
 
16,537

 
6.1
%
Brandywine Living
 
27

 
2,599

 
99.3
%
 
Greater London
 
12,060

 
4.4
%
Silverado Senior Living(4)
 
27

 
2,468

 
95.9
%
 
Washington D.C.
 
10,335

 
3.8
%
Sagora Senior Living
 
14

 
2,697

 
90.7
%
 
Toronto
 
9,489

 
3.5
%
Chartwell Retirement Residences
 
39

 
7,726

 
52.0
%
 
Montréal
 
6,991

 
2.6
%
Merrill Gardens
 
11

 
1,508

 
80.0
%
 
Seattle
 
6,947

 
2.5
%
Cogir
 
18

 
3,269

 
88.3
%
 
Ottawa
 
4,385

 
1.6
%
Senior Star Living
 
11

 
2,064

 
90.0
%
 
Vancouver
 
2,927

 
1.1
%
Clover Management
 
30

 
3,679

 
89.4
%
 
Birmingham, UK
 
1,721

 
0.6
%
Discovery Senior Living
 
9

 
2,701

 
62.1
%
 
Manchester, UK
 
1,709

 
0.6
%
Pegasus Senior Living
 
34

 
3,720

 
98.0
%
 
Core Markets
 
152,752

 
56.1
%
Remaining
 
35

 
3,230

 
 
 
All Other
 
119,732

 
43.9
%
Total
 
564

 
69,420

 
 
 
Total
 
$
272,484

 
100.0
%
Notes:
(1) See pages 22 and 23 for reconciliation.
(2) Represents In-Place Portfolio.
(3) Welltower ownership percentage weighted based on In-Place NOI. See page 22 for reconciliation.
(4) Includes 16 properties transitioned to Frontier Management and 11 properties transitioned to a triple-net lease effective July 1, 2019.

3

Portfolio
 


(dollars in thousands at Welltower pro rata ownership)
New Supply in Our US Seniors Housing Operating Portfolio
We have strategically acquired and developed properties in major US metro markets that benefit from population growth and density, affluence, job growth, and higher barriers to entry. New supply in a 3-mile ring around our properties potentially impacts just 4.1% of our total annualized In-Place NOI (IPNOI).
3-Mile Ring(1)
 
Welltower
 
Welltower
 
 
 
 
 
 
 
 
MSA
Prop. / Units
Annualized
IPNOI(2)
% of US SHO Portfolio
Prop. / Units Under Construction(3)
Prop. / Units Potentially Impacted
IPNOI Potentially Impacted(4)
5 Year Total Pop. Growth(5)
5 Year 75+ Pop. Growth(5)
Avg. Pop. Density(6)
Household Income(7)
Housing Value(7)
Est. Net Annual Inventory Growth(8)
 
Est. Annual Job Growth(9)
Los Angeles
37 / 4,236
$
104,433

14.4
%
6 / 786

7 / 762

$
11,260

3.3
%
13.4
%
6,945

$
94,771

$
925,339

1.9
 %
 
1.3
 %
New York
30 / 2,598
91,624

12.6
%
7 / 734

7 / 531

14,685

1.3
%
7.5
%
4,167

110,387

514,570

4.2
 %
 
1.2
 %
San Francisco
13 / 1,523
38,197

5.3
%



4.7
%
15.2
%
7,472

123,137

1,063,227

(0.8
)%
 
2.7
 %
Washington D.C.
12 / 1,358
37,648

5.2
%
7 / 863

6 / 507

8,989

4.4
%
15.9
%
5,567

128,429

716,662

1.8
 %
 
0.4
 %
Dallas
15 / 2,260
33,350

4.6
%
2 / 263

2 / 321

4,066

7.7
%
29.1
%
3,318

84,960

287,861

3.1
 %
 
2.9
 %
San Diego
10 / 1,309
31,087

4.3
%



4.2
%
18.6
%
4,896

98,956

817,669

2.8
 %
 
1.7
 %
Seattle
17 / 1,986
27,787

3.8
%
1 / 122

2 / 145

1,544

6.4
%
21.9
%
5,109

91,830

538,392

0.3
 %
 
2.7
 %
Chicago
14 / 1,654
21,152

2.9
%
2 / 188

2 / 195

2,369

0.4
%
14.1
%
3,391

85,724

325,546

2.0
 %
 
1.4
 %
Boston
11 / 751
20,017

2.8
%



3.4
%
9.3
%
2,599

122,024

663,560

2.8
 %
 
0.6
 %
San Jose
6 / 735
18,612

2.6
%



5.1
%
14.8
%
6,414

120,517

1,198,066

(1.9
)%
 
2.5
 %
Philadelphia
11 / 885
18,023

2.5
%
3 / 488

3 / 242

4,753

1.2
%
5.6
%
2,153

104,830

375,402

5.7
 %
 
1.2
 %
Boulder, CO
6 / 517
13,410

1.8
%



6.3
%
33.5
%
2,033

96,851

592,209

0.0
 %
 
3.4
 %
Houston
9 / 1,043
11,989

1.7
%
3 / 539

3 / 366

3,853

7.8
%
28.3
%
3,602

83,398

442,993

5.7
 %
 
2.6
 %
Denver
4 / 657
10,933

1.5
%
3 / 458

1 / 163

946

7.3
%
25.1
%
4,983

76,912

487,876

1.5
 %
 
1.2
 %
San Antonio
4 / 1,075
10,507

1.4
%
1 / 258

1 / 350

1,240

9.3
%
29.6
%
2,316

75,052

255,374

2.2
 %
 
1.8
 %
Santa Maria, CA
2 / 605
9,396

1.3
%



3.8
%
7.5
%
2,809

81,870

640,753

N/A

 
2.2
 %
Sacramento
5 / 447
9,004

1.2
%
3 / 319

3 / 261

1,791

4.2
%
13.7
%
3,945

87,037

433,264

8.3
 %
 
2.4
 %
Cincinnati
4 / 662
8,741

1.2
%
1 / 153

1 / 305

2,484

1.3
%
10.7
%
1,979

64,856

187,621

4.1
 %
 
2.0
 %
Buffalo
10 / 1,254
8,636

1.2
%



1.2
%
4.6
%
2,823

69,311

172,122

0.8
 %
 
0.4
 %
Trenton, NJ
2 / 207
8,372

1.2
%



3.2
%
12.1
%
829

127,300

485,642

N/A

 
2.1
 %
Columbus
4 / 463
7,871

1.1
%



6.1
%
28.7
%
2,249

95,267

316,111

5.1
 %
 
(0.2
)%
Kansas City
7 / 912
7,471

1.0
%
1 / 156

1 / 90


3.5
%
13.9
%
2,316

83,834

304,546

1.0
 %
 
1.8
 %
Austin
5 / 527
7,313

1.0
%
1 / 230

1 / 118

435

9.3
%
41.8
%
2,282

133,002

697,786

3.6
 %
 
2.4
 %
Santa Rosa, CA
4 / 511
7,220

1.0
%



3.0
%
9.2
%
2,090

81,680

631,297

0.0
 %
 
1.3
 %
Charlottesville, VA
1 / 302
7,189

1.0
%



3.9
%
9.5
%
2,124

49,648

339,474

N/A

 
0.9
 %
Total - Top 25
243 / 28,477
$
569,982

78.6
%
41 / 5,557

40 / 4,356

$
58,415

4.0
%
16.0
%
4,357

$
100,682

$
642,132

2.4
 %
 
1.6
 %
All Other US SHO Markets
123 / 15,260
155,286

21.4
%
29 / 4,113

29 / 3,561

28,754

4.0
%
12.4
%
2,483

74,727

314,315

 
 
 
Total US SHO
366 / 43,737
$
725,268

100.0
%
70 / 9,670

69 / 7,917

$
87,169

4.0
%
14.8
%
3,734

$
94,561

$
564,821

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Total IPNOI
 
 
 
 
 
4.1
%
 
 
 
 
 
 
 
 
US National Average
 
 
 
 
 
3.6
%
12.3
%
92

$
63,174

$
226,495

2.8
 %
(10) 
1.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
(1) Based on historical drawing patterns in our portfolio, a 3-mile ring is appropriate for most urban markets, which accounts for the vast majority of our portfolio. A 5-mile ring is appropriate for most suburban markets. A larger ring is appropriate for rural markets. Each market is unique due to population density, town lines, geographic barriers, and roads/infrastructure. In the interest of simplicity, we have applied a 3-mile competitive ring to all of our properties given the preponderance of urban locations. We have also included a sensitivity with a 5-mile ring.
(2) Represents annualized IPNOI. See pages 2 and 22 for a reconciliation.
(3) Construction data provided by NIC, reflects competitive seniors housing properties within 3 miles of Welltower SHO properties for US markets.
(4) Reflects annualized IPNOI for Welltower SHO properties within 3 miles of new construction for the component of our project that potentially competes with the project under construction.
(5) Total population and 75+ population growth data represents simple averages of Claritas estimates for 2019-2024.
(6) Average population density data represents average population per square mile within a 3-mile ring based on 2019 Claritas estimates.
(7) Household income and household value data are medians weighted by IPNOI.
(8) NIC MAP Data and Analysis Service, 2Q19. Net inventory growth is calculated at the MSA level based on historical deletions from inventory and a 5-6 quarter construction period to reflect our urban locations. Total - Top 25 Net Inventory Growth weighted by IPNOI.
(9) Annual job growth data represents MSA level growth from May 2018-May 2019 per Bureau of Labor Statistics. Total - Top 25 Estimated Annual Job Growth weighted by IPNOI
(10) Reflects net inventory growth for NIC Top 99 Markets.












4

Portfolio
 



(dollars in thousands at Welltower pro rata ownership)
New Supply in Our US Seniors Housing Operating Portfolio
We have strategically acquired and developed properties in major US metro markets that benefit from population growth and density, affluence, job growth, and higher barriers to entry. New supply in a 5-mile ring around our properties potentially impacts just 7.3% of our total annualized In-Place NOI (IPNOI).
5-Mile Ring(1)
 
Welltower
 
Welltower
 
 
 
 
 
 
 
 
MSA
Prop. / Units
Annualized IPNOI(2)
% of US SHO Portfolio
Prop. / Units Under Construction(3)
Prop. / Units Potentially Impacted
IPNOI Potentially Impacted(4)
5 Year Total Pop. Growth(5)
5 Year 75+ Pop. Growth(5)
Avg. Pop. Density(6)
Household Income(7)
Housing Value(7)
Est. Net Annual Inventory Growth(8)
 
Est. Annual Job Growth(9)
Los Angeles
37 / 4,236
$
104,433

14.4
%
9 / 1,162

16 / 1,823

$
19,648

3.3
%
13.8
%
6,713

$
88,967

$
846,374

1.9
 %
 
1.3
 %
New York
30 / 2,598
91,624

12.6
%
13 / 1,659

15 / 1,254

31,213

1.4
%
7.4
%
4,093

103,954

483,535

4.2
 %
 
1.2
 %
San Francisco
13 / 1,523
38,197

5.3
%



4.8
%
15.3
%
6,267

120,111

1,022,412

(0.8
)%
 
2.7
 %
Washington D.C.
12 / 1,358
37,648

5.2
%
8 / 1,003

9 / 1,073

18,829

4.8
%
16.6
%
5,500

121,026

679,674

1.8
 %
 
0.4
 %
Dallas
15 / 2,260
33,350

4.6
%
6 / 1,240

4 / 555

6,336

7.5
%
27.8
%
3,153

77,846

272,831

3.1
 %
 
2.9
 %
San Diego
10 / 1,309
31,087

4.3
%
1 / 200

2 / 249

2,743

4.4
%
17.6
%
4,419

97,880

765,850

2.8
 %
 
1.7
 %
Seattle
17 / 1,986
27,787

3.8
%
1 / 122

3 / 260

2,159

6.5
%
23.1
%
4,692

91,550

531,825

0.3
 %
 
2.7
 %
Chicago
14 / 1,654
21,152

2.9
%
5 / 551

5 / 495

6,145

0.2
%
14.6
%
3,154

88,617

332,374

2.0
 %
 
1.4
 %
Boston
11 / 751
20,017

2.8
%
2 / 252

2 / 127

430

3.4
%
9.1
%
2,537

114,399

611,967

2.8
 %
 
0.6
 %
San Jose
6 / 735
18,612

2.6
%
1 / 200

1 / 95

1,510

5.0
%
15.0
%
5,497

121,469

1,203,236

(1.9
)%
 
2.5
 %
Philadelphia
11 / 885
18,023

2.5
%
6 / 760

5 / 412

7,976

1.3
%
6.2
%
2,339

96,007

344,872

5.7
 %
 
1.2
 %
Boulder, CO
6 / 517
13,410

1.8
%



6.7
%
30.5
%
1,398

98,378

589,349

0.0
 %
 
3.4
 %
Houston
9 / 1,043
11,989

1.7
%
4 / 719

4 / 663

6,413

8.0
%
31.3
%
3,651

78,421

312,006

5.7
 %
 
2.6
 %
Denver
4 / 657
10,933

1.5
%
5 / 708

2 / 248

978

7.0
%
24.9
%
4,543

76,245

425,796

1.5
 %
 
1.2
 %
San Antonio
4 / 1,075
10,507

1.4
%
1 / 258

1 / 350

1,240

9.0
%
29.3
%
2,215

69,654

245,442

2.2
 %
 
1.8
 %
Santa Maria, CA
2 / 605
9,396

1.3
%



4.4
%
8.7
%
1,672

79,406

660,380

N/A

 
2.2
 %
Sacramento
5 / 447
9,004

1.2
%
6 / 783

4 / 381

3,642

4.2
%
14.5
%
3,604

84,261

431,562

8.3
 %
 
2.4
 %
Cincinnati
4 / 662
8,741

1.2
%
1 / 153

1 / 305

2,484

1.5
%
11.7
%
1,657

64,171

186,802

4.1
 %
 
2.0
 %
Buffalo
10 / 1,254
8,636

1.2
%



1.0
%
4.6
%
2,545

65,977

164,491

0.8
 %
 
0.4
 %
Trenton, NJ
2 / 207
8,372

1.2
%



2.2
%
12.4
%
1,094

121,799

460,478

N/A

 
2.1
 %
Columbus
4 / 463
7,871

1.1
%
1 / 124

1 / 50


5.9
%
26.9
%
2,078

89,978

282,050

5.1
 %
 
(0.2
)%
Kansas City
7 / 912
7,471

1.0
%
1 / 156

2 / 278

1,684

3.5
%
13.8
%
2,159

75,767

262,029

1.0
 %
 
1.8
 %
Austin
5 / 527
7,313

1.0
%
2 / 316

2 / 208

794

9.1
%
39.9
%
2,327

94,288

559,170

3.6
 %
 
2.4
 %
Santa Rosa, CA
4 / 511
7,220

1.0
%



3.3
%
10.1
%
1,159

82,472

613,201

0.0
 %
 
1.3
 %
Charlottesville, VA
1 / 302
7,189

1.0
%



5.3
%
13.0
%
1,497

64,875

324,324

N/A

 
0.9
 %
Total - Top 25
243 / 28,477
$
569,982

78.6
%
73 / 10,366

79 / 8,826

$
114,224

4.0
%
16.1
%
4,080

$
96,120

$
603,471

2.4
 %
 
1.6
 %
All Other US SHO Markets
123 / 15,260
155,286

21.4
%
45 / 6,446

42 / 6,044

39,543

3.9
%
13.0
%
2,181

70,889

301,827

 
 
 
Total US SHO
366 / 43,737
$
725,268

100.0
%
118 / 16,812

121 / 14,870

$
153,767

4.0
%
15.1
%
3,449

$
90,170

$
532,333

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Total IPNOI
 
 
 
 
7.3
%
 
 
 
 
 
 
 
 
US National Average
 
 
 
 
 
3.6
%
12.3
%
92

$
63,174

$
226,495

2.8
 %
(10) 
1.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
(1) Based on historical drawing patterns in our portfolio, a 3-mile ring is appropriate for most urban markets, which accounts for the vast majority of our portfolio. A 5-mile ring is appropriate for most suburban markets. A larger ring is appropriate for rural markets. Each market is unique due to population density, town lines, geographic barriers, and roads/infrastructure. In the interest of simplicity, we have applied a 3-mile competitive ring to all of our properties given the preponderance of urban locations. We have also included a sensitivity with a 5-mile ring.
(2) Represents annualized IPNOI. See pages 2 and 22 for a reconciliation.
(3) Construction data provided by NIC, reflects competitive seniors housing properties within 5 miles of Welltower SHO properties for US markets.
(4) Reflects annualized IPNOI for Welltower SHO properties within 5 miles of new construction for the component of our project that potentially competes with the project under construction.
(5) Total population and 75+ population growth data represents simple averages of Claritas estimates for 2019-2024.
(6) Average population density data represents average population per square mile within a 5-mile ring based on 2019 Claritas estimates.
(7) Household income and household value data are medians weighted by IPNOI.
(8) NIC MAP Data and Analysis Service, 2Q19. Net inventory growth is calculated at the MSA level based on historical deletions from inventory and a 5-6 quarter construction period to reflect our urban locations. Total - Top 25 Net Inventory Growth weighted by IPNOI.
(9) Annual job growth data represents MSA level growth from May 2018-May 2019 per Bureau of Labor Statistics. Total -Top 25 Estimated Annual Job Growth weighted by IPNOI.
(10) Reflects net inventory growth for NIC Top 99 Markets.



5

Portfolio
 


(Currency amounts in thousands, except per unit and REVPOR. Company amounts at Welltower pro rata ownership. DNA = data not available.)
Seniors Housing Operating Quality Indicators
 
 
 
 
 
 
 
 
 
US Portfolio(1,3,4)
 
Industry Benchmarks(2)
Property age
 
16
 
20
5 year total population growth
 
4.0
 %
 
3.6
%
5 year 75+ population growth
 
14.8
 %
 
12.3
%
Housing value
 
$
564,821

 
$
226,495

Household income
 
$
94,561

 
$
63,174

REVPOR
 
$
6,297

 
$
4,927

SS REVPOR growth
 
3.7
 %
 
2.6
%
SSNOI per unit
 
$
23,845

 
$
18,930

SSNOI growth
 
4.3
 %
 
DNA

 
 
 
 
 
 
 
UK Portfolio(1,3,4)
 
Industry Benchmarks(5)
Property age
 
11

 
21

Units per property
 
79

 
41

5 year total population growth
 
3.3
 %
 
2.8
%
5 year 75+ population growth
 
17.9
 %
 
18.5
%
Housing value
 
£
488,545

 
£
300,958

REVPOR
 
£
6,530

 
£
3,720

SS REVPOR growth
 
3.2
 %
 
3.3
%
SSNOI per unit
 
£
17,498

 
£
9,544

SSNOI growth
 
10.0
 %
 
DNA

 
 
 
 
 
 
 
Canadian Portfolio(1,3,4)
 
Industry Benchmarks(6)
5 year total population growth
 
5.1
 %
 
5.0
%
5 year 75+ population growth
 
17.4
 %
 
20.3
%
Housing value
 
C$
702,603

 
C$
524,812

Household income
 
C$
108,659

 
C$
98,739

REVPOR
 
C$
3,677

 
C$
2,469

SS REVPOR growth
 
2.2
 %
 
3.4
%
SSNOI per unit
 
C$
14,813

 
DNA

SSNOI growth
 
(2.4
)%
 
DNA


Notes:
(1) Property age, housing value and household income are NOI weighted as of June 30, 2019. The median housing value and household income is used for the US, and the average housing value and household income is used for the UK and Canada. Housing value, household income and population growth are based on a 3-mile radius. Growth figures represent performance of Welltower's same store portfolio for current quarter. See page 24 for reconciliations.
(2) Property age, REVPOR and REVPOR growth per 2Q19 NIC MAP for Majority AL Properties in the primary and secondary markets; AMR is used as a proxy for REVPOR; population growth reflects 2019-2024 Claritas projections; housing value and household income are the US median per Claritas 2019; NOI per unit per The State of Seniors Housing 2018 and represents 2017 results.
(3) REVPOR is based on total 2Q19 results. See page 24 for reconciliation.
(4) SSNOI per unit represents the SSNOI per unit available based on trailing four quarters for those properties in the portfolio for 15 months preceding the end of the current portfolio performance period. SSNOI per unit for UK portfolio in GBP calculated by taking SSNOI per unit in USD divided by a standardized GBP/USD rate of 1.31. SSNOI per unit for Canadian portfolio in CAD calculated by taking SSNOI per unit in USD divided by a standardized USD/CAD rate of 1.32. See page 24 for reconciliation.
(5) Property age, units per property, REVPOR, REVPOR growth and NOI per Unit derived from LaingBuisson, Care of Older People UK Market Report 29th Edition; population growth reflects 2018-2023 CACI projections; housing value represents UK average per CACI 2018.
(6) Population growth reflects 2018-2023 Environics projection; housing value and household income represents Canadian average per Environics WealthScapes 2018; REVPOR and REVPOR growth are calculated weighted averages from 2019 CMHC Seniors Housing reports from each province.


6

Portfolio
 


(dollars in thousands at Welltower pro rata ownership)
Payment Coverage Stratification
 
 
 
EBITDARM Coverage(1)
 
EBITDAR Coverage(1)
% of In-Place NOI
Seniors Housing Triple-net
Long-Term/ Post- Acute Care
Total
 
Weighted Average Maturity
 
Number of Leases
 
Seniors Housing Triple-net
Long-Term/ Post- Acute Care
Total
 
Weighted Average Maturity
 
Number of Leases
<0.85x
0.6
%
0.3
%
0.9
%
 
8

 
6

 
2.8
%
0.9
%
3.7
%
 
7

 
11

0.85x - 0.95x
0.7
%
%
0.7
%
 
7

 
2

 
1.3
%
%
1.3
%
 
10

 
2

0.95x - 1.05x
2.6
%
0.2
%
2.8
%
 
8

 
3

 
1.2
%
1.8
%
3.0
%
 
11

 
7

1.05x - 1.15x
0.4
%
0.4
%
0.8
%
 
6

 
3

 
7.6
%
%
7.6
%
 
10

 
7

1.15x - 1.25x
3.3
%
1.0
%
4.3
%
 
13

 
8

 
3.1
%
%
3.1
%
 
14

 
3

1.25x - 1.35x
5.6
%
0.9
%
6.5
%
 
8

 
6

 
%
3.7
%
3.7
%
 
16

 
1

>1.35x
2.8
%
4.6
%
7.4
%
 
15

 
7

 
%
1.0
%
1.0
%
 
8

 
4

Total
16.0
%
7.4
%
23.4
%
 
11

 
35

 
16.0
%
7.4
%
23.4
%
 
11

 
35

 
Revenue and Lease Maturity(2)
 
 
 
 
 
 
 
 
Rental Income
 
 
 
 
 
 
Year
 
Seniors Housing
Triple-net
 
Outpatient Medical
 
Health
System
 
Long-Term / Post-Acute Care
 
Interest
Income
 
Total
Revenues
 
% of Total
2019
 
$

 
$
21,198

 
$

 
$

 
$
1,599

 
$
22,797

 
1.8
%
2020
 

 
42,613

 

 

 
8,785

 
51,398

 
4.1
%
2021