EX-99.2 3 a2q23supplement992.htm EX-99.2 Document

welltower_supplementalcovea.jpg


Table of Contents

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


Overview

(dollars and occupancy at Welltower pro rata ownership; dollars in thousands)
Portfolio Composition(1)
Beds/Unit Mix
Average AgePropertiesTotalWellness HousingIndependent LivingAssisted LivingMemory CareLong-Term/ Post-Acute Care
Seniors Housing Operating19957 113,00716,89744,44436,00314,871792
Seniors Housing Triple-net1937331,0445,44214,7119,1401,751
Outpatient Medical1743725,987,778(2)n/an/an/an/an/a
Long-Term/Post-Acute Care28234 29,6828241028,848
Total192,001

NOI Performance
Same Store(3)
In-Place Portfolio(4)
Properties2Q22 NOI2Q23 NOI% ChangePropertiesAnnualized
In-Place NOI
% of Total
Seniors Housing Operating674$175,416 $217,863 24.2 %859$1,072,692 49.0 %
Seniors Housing Triple-net32790,740 93,575 3.1 %354396,116 18.1 %
Outpatient Medical374109,547 113,097 3.2 %419489,144 22.3 %
Long-Term/Post-Acute Care4818,52319,662 6.1 %204233,084 10.6 %
Total1,423$394,226 $444,197 12.7 %1,836$2,191,036 100.0 %

Portfolio PerformanceFacility Revenue Mix
Stable Portfolio(5)
Occupancy
EBITDAR Coverage(6)
EBITDARM Coverage(6)
Private PayMedicaidMedicare
Other Government(7)
Seniors Housing Operating80.7 %n/an/a97.3 %1.2 %0.6 %0.9 %
Seniors Housing Triple-net80.4 %0.881.1794.0 %2.3 %0.5 %3.2 %
Outpatient Medical94.4 %n/an/a100.0 %— — — 
Long-Term/Post-Acute Care79.4 %1.481.7827.3 %35.0 %37.7 %— %
Total0.981.2794.2 %2.8 %1.8 %1.2 %
Notes:
(1) Includes land parcels and properties under development.
(2) Indicates the total square footage of Outpatient Medical properties.
(3) See pages 18 and 19 for reconciliation.
(4) Excludes land parcels, loans, developments and investments held for sale. See page 18 for reconciliation.
(5) Data as of June 30, 2023 for Seniors Housing Operating and Outpatient Medical and March 31, 2023 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 PropertiesSeniors Housing OperatingSeniors Housing
Triple-net
Outpatient
Medical
Long-Term/ Post-Acute CareTotal% of Total
Sunrise Senior Living120 $192,868 $— $— $— $192,868 8.8 %
Integra Healthcare Properties147 — — — 152,088 152,088 6.9 %
Avery Healthcare91 38,080 67,424 — — 105,504 4.8 %
StoryPoint Senior Living75 41,764 44,476 — — 86,240 3.9 %
Cogir Management Corporation49 85,584 — — — 85,584 3.9 %
Atria Senior Living92 78,736 — — — 78,736 3.6 %
Oakmont Management Group35 76,344 — — — 76,344 3.5 %
Belmont Village21 76,172 — — — 76,172 3.5 %
Sagora Senior Living40 42,944 23,708 — — 66,652 3.0 %
Brookdale Senior Living73 — 60,940 — — 60,940 2.8 %
Remaining1,093 440,200 199,568 489,144 80,996 1,209,908 55.3 %
Total1,836 $1,072,692 $396,116 $489,144 $233,084 $2,191,036 100.0 %
By Country:
United States1,567 $889,728 $314,576 $489,144 $226,236 $1,919,684 87.6 %
United Kingdom129 63,928 78,048 — — 141,976 6.5 %
Canada140 119,036 3,492 — 6,848 129,376 5.9 %
Total1,836 $1,072,692 $396,116 $489,144 $233,084 $2,191,036 100.0 %
By MSA:
Los Angeles73$86,084 $19,496 $33,376 $— $138,956 6.3 %
New York / New Jersey7666,244 11,316 37,328 3,512 118,400 5.4 %
Washington D.C.5649,832 8,040 24,388 30,240 112,500 5.1 %
Dallas6449,220 6,168 30,224 4,384 89,996 4.1 %
Philadelphia4514,104 5,216 18,628 25,520 63,468 2.9 %
Greater London4942,404 16,704 — — 59,108 2.7 %
San Francisco2234,700 10,336 2,084 — 47,120 2.2 %
Chicago4522,016 11,492 7,512 5,784 46,804 2.1 %
Houston358,288 3,308 32,304 — 43,900 2.0 %
San Diego1920,748 6,868 8,744 2,912 39,272 1.8 %
Charlotte261,368 10,592 24,096 — 36,056 1.6 %
Seattle2615,132 1,084 15,192 4,176 35,584 1.6 %
Montréal2434,188 — — — 34,188 1.6 %
Raleigh137,340 22,312 3,156 — 32,808 1.5 %
Boston2423,420 5,280 2,584 — 31,284 1.4 %
Minneapolis20(608)16,992 13,548 — 29,932 1.4 %
Indianapolis175,140 13,892 552 9,000 28,584 1.3 %
Atlanta313,824 — 19,192 1,632 24,648 1.1 %
Kansas City248,036 9,812 652 6,100 24,600 1.1 %
Miami36(216)1,364 16,312 6,684 24,144 1.1 %
Remaining1,111 581,428215,844199,272133,1401,129,68451.7 %
Total1,836 $1,072,692 $396,116 $489,144 $233,084 $2,191,036 100.0 %
Notes:
(1) Represents current quarter annualized In-Place NOI. See page 18 for reconciliation.


2

Portfolio

(dollars, units and occupancy at Welltower pro rata ownership; dollars in thousands)
Seniors Housing Operating
Total Portfolio Performance(1)
2Q223Q224Q221Q232Q23
Properties836 870 882 885 886 
Units84,782 87,375 88,783 89,240 89,932 
Total occupancy77.1 %78.0 %78.3 %79.0 %79.6 %
Total revenues$1,000,962 $1,061,753 $1,095,146 $1,143,744 $1,178,975 
Operating expenses777,178 831,556 866,482 894,981 902,068 
NOI$223,784 $230,197 $228,664 $248,763 $276,907 
NOI margin22.4 %21.7 %20.9 %21.7 %23.5 %
Recurring cap-ex$26,806 $31,513 $36,923 $26,848 $32,791 
Other cap-ex$57,225 $56,878 $75,545 $45,557 $66,002 

Same Store Performance(2)
2Q223Q224Q221Q232Q23
Properties674 674 674 674 674 
Occupancy78.3 %79.2 %79.6 %79.8 %80.2 %
Same store revenues$797,156 $819,487 $838,616 $854,088 $875,900 
Compensation365,500 373,765 379,361 381,631 387,005 
Utilities37,009 43,710 43,259 46,681 39,066 
Food34,060 34,839 36,571 34,704 36,259 
Repairs and maintenance24,883 24,989 24,856 24,934 26,631 
Property taxes32,991 32,883 28,983 32,979 32,290 
All other127,297 130,096 136,103 130,909 136,786 
Same store operating expenses621,740 640,282 649,133 651,838 658,037 
Same store NOI$175,416 $179,205 $189,483 $202,250 $217,863 
Same store NOI margin %22.0 %21.9 %22.6 %23.7 %24.9 %
Year over year NOI growth rate24.2 %
Year over year revenue growth rate9.9 %
Partners(3)
PropertiesPro Rata Units
Welltower Ownership %(4)
Top Markets2Q23 NOI% of Total
Sunrise Senior Living120 9,895 100.0 %Southern California$32,815 11.9 %
Cogir Management Corporation49 7,168 88.4 %Northern California21,383 7.7 %
Atria Senior Living92 10,924 100.0 %New York / New Jersey16,364 5.9 %
Oakmont Management Group35 4,428 100.0 %Greater London, UK11,387 4.1 %
Belmont Village21 2,804 95.0 %Washington D.C.12,138 4.4 %
Legend Senior Living37 2,809 93.3 %Montréal, QC8,660 3.1 %
Brandywine Living29 2,704 99.4 %Toronto, ON7,173 2.6 %
Sagora Senior Living18 2,884 99.5 %Boston, MA5,505 2.0 %
StoryPoint Senior Living43 4,523 100.0 %Seattle, WA3,153 1.1 %
Revera64 5,870 75.0 %Vancouver, BC2,404 0.9 %
Avery Healthcare41 3,239 100.0 %Birmingham, UK2,164 0.8 %
Clover36 3,950 90.4 %Manchester, UK1,625 0.6 %
Pegasus35 3,791 99.0 %Ottawa, ON1,189 0.4 %
Chartwell42 4,479 49.6 %Top Markets125,960 45.5 %
Remaining 197 18,675 All Other150,947 54.5 %
Total859 88,143 Total$276,907 100.0 %
Notes:
(1) Properties, units and occupancy exclude land parcels and properties under development.
(2) See pages 18 and 19 for reconciliation.
(3) Represents partner concentration based on annualized In Place NOI for the quarter ended June 30, 2023. Property count and pro rata units represent the In Place portfolio.
(4) Welltower ownership percentage weighted based on In-Place NOI. See page 18 for reconciliation.

3

Portfolio

(dollars in thousands at Welltower pro rata ownership)
Payment Coverage Stratification
EBITDARM Coverage(1)
EBITDAR Coverage(1)
% of In-Place NOISeniors Housing Triple-netLong-Term/ Post- Acute CareTotalWeighted Average MaturityNumber of LeasesSeniors Housing Triple-netLong-Term/ Post- Acute CareTotalWeighted Average MaturityNumber of Leases
<.85x2.6 %0.1 %2.7 %12 4.6 %0.1 %4.7 %11 
.85x-.95x0.6 %— %0.6 %14 5.4 %0.5 %5.9 %10 
.95x-1.05x1.9 %— %1.9 %0.3 %— %0.3 %23 
1.05x-1.15x1.7 %0.5 %2.2 %6.1 %— %6.1 %
1.15x-1.25x1.2 %— %1.2 %14 1.2 %1.0 %2.2 %11 
1.25x-1.35x7.2 %0.1 %7.3 %10 — %— %— %— — 
>1.352.3 %2.4 %4.7 %10 — %1.4 %1.4 %12 
Total17.6 %3.0 %20.6 %10 27 17.6 %3.0 %20.6 %10 27 
Revenue and Lease Maturity(2)
Rental Income
YearSeniors Housing
Triple-net
Outpatient MedicalLong-Term / Post-Acute CareInterest
Income
Total
Revenues
% of Total
2023$— $41,796 $2,159 $8,073 $52,028 4.0 %
202413,088 58,182 — 24,546 95,816 7.4 %
20255,667 42,430 — 10,591 58,688 4.5 %
20263,529 45,527 9,355 103,528 161,939 12.4 %
2027— 40,949 1,211 3,173 45,333 3.5 %
2028— 34,331 5,246 360 39,937 3.1 %
20291,004 33,416 — 416 34,836 2.7 %
203040,895 34,480 28,411 140 103,926 8.0 %
20316,390 45,841 4,310 226 56,767 4.4 %
203290,850 37,025 — — 127,875 9.8 %
Thereafter226,963 117,076 179,976 1,535 525,550 40.2 %
$388,386 $531,053 $230,668 $152,588 $1,302,695 100.0 %
Weighted Avg Maturity Years11 15 
Notes:
(1) Represents trailing twelve month coverage metrics as of March 31, 2023 for stable portfolio only. Agreements included represent 68% of total Seniors Housing Triple-net and Long-Term/Post-Acute Care In-Place NOI. See page 18 for a reconciliation. Agreements with mixed units use the predominant type based on investment balance.
(2) Excludes all land parcels, developments and investments held for sale. Rental income represents annualized cash base rent for effective lease agreements. The amounts are derived from the current contracted monthly cash base rent, net of collectability reserves, if applicable. Rental income does not include common area maintenance charges, the amortization of above/below market lease intangibles or other non cash income. Interest income represents contractual rate of interest for loans, net of collectability reserves if applicable.




4

Portfolio

(dollars, square feet and occupancy at Welltower pro rata ownership; dollars in thousands except per square feet)
Outpatient Medical
Total Portfolio Performance(1)
2Q223Q224Q221Q232Q23
Properties384 386 389 419 420 
Square feet18,452,459 18,665,903 18,844,516 20,188,159 20,236,315 
Occupancy94.5 %94.5 %94.2 %94.0 %94.4 %
Total revenues$166,220 $171,990 $176,816 $185,190 $186,802 
Operating expenses51,177 53,684 53,259 58,977 59,358 
NOI$115,043 $118,306 $123,557 $126,213 $127,444 
NOI margin69.2 %68.8 %69.9 %68.2 %68.2 %
Revenues per square foot$36.03 $37.15 $37.53 $36.69 $36.92 
NOI per square foot$24.94 $25.55 $26.23 $25.01 $25.19 
Recurring cap-ex$12,752 $13,470 $25,200 $10,666 $7,400 
Other cap-ex$2,303 $2,472 $5,633 $5,118 $4,397 

Same Store Performance(2)
2Q223Q224Q221Q232Q23
Properties374 374 374 374 374 
Occupancy95.1 %95.0 %95.1 %95.0 %95.1 %
Same store revenues$158,414 $159,654 $160,439 $164,810 $163,301 
Same store operating expenses48,867 49,766 48,755 52,638 50,204 
Same store NOI$109,547 $109,888 $111,684 $112,172 $113,097 
NOI margin69.2 %68.8 %69.6 %68.1 %69.3 %
Year over year NOI growth rate3.2 %

Portfolio Diversification
by Tenant(3)
Rental Income% of TotalQuality Indicators
Kelsey-Seybold$29,851 5.6 %
Health system affiliated properties as % of NOI(3)
88.8 %
Common Spirit Health19,729 3.7 %
Health system affiliated tenants as % of rental income(3)
59.7 %
Novant Health15,763 3.0 %
Retention (trailing twelve months)(3)
92.5 %
Summit Health14,888 2.8 %
In-house managed properties as % of square feet(3,4)
86.4 %
Providence Health & Services14,238 2.7 %
Average remaining lease term (years)(3)
6.3 
Remaining portfolio436,584 82.2 %
Average building size (square feet)(3)
59,928 
Total$531,053 100.0 %Average age (years)17 

Expirations(3)
20232024202520262027Thereafter
Occupied square feet1,525,700 1,976,071 1,459,723 1,702,638 1,472,142 10,933,742 
% of occupied square feet8.0 %10.4 %7.7 %8.9 %7.7 %57.3 %
Notes:
(1) Property count, occupancy, square feet and per square foot metrics exclude properties under development and all land parcels. Per square foot amounts are annualized.
(2) Includes 374 same store properties representing 17,875,716 square feet. See pages 18 and 19 for reconciliation.
(3) Excludes all land parcels, developments and investments held for sale. Rental income represents annualized cash base rent for effective lease agreements. The amounts are derived from the current contracted monthly cash base rent, net of collectability reserves, if applicable. Rental income does not include common area maintenance charges, the amortization of above/below market lease intangibles or other non cash income. Retention includes month-to-month tenants retained.
(4) Excludes tenant managed properties.








5

Investment

(dollars in thousands at Welltower pro rata ownership)
Relationship Investment History
chart-ba941f971e454e7ab7ba.jpg
Detail of Acquisitions/JVs(1)
20192020202120221Q232Q2319-23 Total
Count27 12 35 27 11 114 
Total$4,073,554 $910,217 $4,101,534 $2,785,739 $443,240 $145,094 $12,459,378 
Low7,550 6,201 5,000 6,485 19,967 34,532 5,000 
Median38,800 48,490 45,157 66,074 78,250 72,547 48,793 
High1,250,000 235,387 1,576,642 389,149 140,172 110,562 1,576,642 

Investment Timing
Acquisitions and Loan Funding(2)
Yield
Construction Conversions(3)
Year 1 YieldDispositions and Loan PayoffsYield
April$41,636 4.1 %$55,319 1.0 %$24,385 9.6 %
May2,887 6.1 %23,604 2.4 %182,090 4.1 %
June119,513 4.0 %245,220 4.3 %226,745 3.9 %
Total$164,036 4.1 %$324,143 3.6 %$433,220 4.3 %

Notes:
(1) Includes non-yielding asset acquisitions.
(2) Excludes land acquisitions and includes advances for non-real estate loans and excludes advances for development loans.
(3) Includes expansion conversions.
6

Investment
(dollars in thousands at Welltower pro rata ownership, except per bed / unit / square foot)
Gross Investment Activity
Second Quarter 2023
PropertiesBeds / Units / Square FeetInvestment Per
Bed / Unit /
SqFt
Pro Rata
Amount
Yield
Acquisitions and Loan Funding(1)
Seniors Housing Operating 1204 units$169,275 $145,094 
Loan funding18,942 
Total acquisitions and loan funding(2)
1164,036 4.1 %
Development Funding(3)
Development projects:
Seniors Housing Operating376,221units140,744 
Seniors Housing Triple-net1191units7,311 
Outpatient Medical8675,386sf59,891 
Total development projects46207,946 
Expansion projects:
Seniors Housing Operating2160units6,212 
Outpatient Medical7323,449sf35,700 
Total expansion projects941,912 
Total development funding55249,858 7.0 %
Total gross investments413,894 5.8 %
Dispositions and Loan Payoffs(4)
Seniors Housing Operating4371units559,960 207,745 
Loan payoffs43,385 
Leasehold termination71,112beds163,750 182,090 
Total dispositions and loan payoffs(5)
11433,220 4.3 %
Net investments (dispositions)$(19,326)

Notes:
(1) Acquisitions represent purchase price excluding accounting adjustments pursuant to U.S. GAAP for all consolidated and unconsolidated property acquisitions and pro rata amounts include joint venture real estate loans receivable. Loan advances represent cash funded for real estate and non-real estate loans receivable, excluding development loans.
(2) Acquisition yields represents annualized contractual or projected cash rent/NOI to be generated divided by investment amount, excluding land parcels. Loan funding yield represents annualized contractual interest divided by investment amount.
(3) Amounts represent cash funded for all developments/expansions including construction in progress, loans and in-substance real estate. Yield represents projected annualized cash rent/NOI to be generated upon conversion/stabilization divided by commitment amount.
(4) Amounts represent proceeds received for loan payoffs and consolidated and unconsolidated property sales.
(5) Yield represents annualized cash rent/interest/NOI that was being generated pre-disposition divided by proceeds. Pro rata amounts include joint venture real estate loans receivable.




7

Investment
(dollars in thousands, except per bed / unit / square foot, at Welltower pro rata ownership)
Gross Investment Activity
Year-To-Date 2023
PropertiesBeds / Units / Square FeetInvestment Per
Bed / Unit /
SqFt
Pro Rata
Amount
Yield
Acquisitions and Loan Funding(1)
Seniors Housing Operating3395 units$137,972 $165,061 
Seniors Housing Triple-net8612 units122,217 74,797 
Outpatient Medical291,297,917 sf268 348,476 
Loan funding104,234 
Total acquisitions and loan funding(2)
40692,568 6.8 %
Development Funding(3)
Development projects:
Seniors Housing Operating406,638 units290,043 
Seniors Housing Triple-net1191 units13,264 
Outpatient Medical9692,221 sf125,292 
Total development projects50428,599 
Expansion projects:
Seniors Housing Operating2160 units9,554 
Outpatient Medical8355,294sf68,650 
Total expansion projects1078,204 
Total development funding60506,803 6.9 %
Total gross investments1,199,371 6.9 %
Dispositions and Loan Payoffs(4)
Seniors Housing Operating5389 units534,923 208,068 
Seniors Housing Triple-net157 units35,088 2,000 
Long-Term/Post-Acute Care— beds— 74,279 
Loan payoffs58,855 
Leasehold termination71,112 beds163,750 182,090 
Total dispositions and loan payoffs(5)
13525,292 5.2 %
Net investments (dispositions)$674,079 
Notes:
(1) Acquisitions represent purchase price excluding accounting adjustments pursuant to U.S. GAAP for all consolidated and unconsolidated property acquisitions and pro rata amounts include joint venture real estate loans receivable. Loan advances represent cash funded for real estate and non-real estate loans receivable, excluding development loans. Includes acquisition of additional ownership interest in existing properties which are excluded from property, unit and per unit metrics.
(2) Acquisition yields represents annualized contractual or projected cash rent/NOI to be generated divided by investment amount, excluding land parcels. Loan funding yield represents annualized contractual interest divided by investment amount.
(3) Amounts represent cash funded and capitalized interest for all developments/expansions including construction in progress, loans and in-substance real estate. Yield represents projected annualized cash rent/NOI to be generated upon conversion/stabilization divided by commitment amount.
(4) Amounts represent proceeds received for loan payoffs and consolidated and unconsolidated property sales.
(5) Yield represents annualized cash rent/interest/NOI that was being generated pre-disposition divided by proceeds. Pro rata amounts include joint venture real estate loans receivable.

8

Investment
(dollars in thousands at Welltower pro rata ownership)
Development Summary(1)
Unit Mix
Facility MSATotalWellness HousingIndependent LivingAssisted LivingMemory CareCommitment AmountBalance at 06/30/23
Estimated Conversion(3)
Seniors Housing Operating
Austin, TX108 108 — — — $21,293 $16,051 3Q23
Boston, MA167 — 91 48 28 72,790 54,026 4Q23
Charlotte, NC328 328 — — — 59,233 53,072 3Q23 - 4Q23
Hartford, CT128 128 — — — 21,934 21,934 4Q23
Hartford, CT122 122 — — — 20,578 20,578 4Q23
Tampa, FL206 206 — — — 49,685 17,477 4Q23 - 1Q24
Austin, TX188 188 — — — 39,627 30,024 3Q23 - 1Q24
Cincinnati, OH122 122 — — — 16,385 10,293 1Q24
Washington DC302 — 190 89 23 156,276 107,099 2Q24
Phoenix, AZ199 199 — — — 51,794 32,825  4Q23 - 2Q24
Phoenix, AZ204 204 — — — 50,496 32,646  4Q23 - 2Q24
Kansas City, MO134 134 — — — 20,887 20,887 2Q24
Dallas, TX60 60 — — — 17,298 4,035 3Q23 - 2Q24
Washington DC137 — 10 90 37 115,127 50,576 3Q24
Naples, FL188 188 — — — 54,370 18,154 2Q24 - 3Q24
Sacramento, CA100 — — 70 30 48,486 10,784 3Q24
Dallas, TX55 55 — — — 16,035 8,248 1Q24 - 3Q24
Burley, UK70 — — 45 25 10,284 2,467 3Q24
Peterborough, UK80 — — 52 28 9,669 2,568 3Q24
Boston, MA160 — 82 37 41 148,590 89,968 4Q24
Sherman, TX237 237 — — — 75,626 8,311 2Q24 - 4Q24
Phoenix, AZ110 110 — — — 40,195 9,220  2Q24 - 4Q24
Houston, TX130 130 — — — 31,100 23,329 3Q23 - 4Q24
San Jose, CA685 509 — 143 33 175,381 171,139 1Q25
San Jose, CA158 — — 158 — 61,929 33,444 1Q25
Columbus, OH409 409 — — — 82,069 20,855 2Q25
Killeen, TX256 256 — — — 64,133 10,717 4Q23 - 2Q25
Little Rock, AR283 283 — — — 13,893 5,920 3Q25
Sunrise Developments(2)
362 — — 208 154 86,281 57,137 3Q23 - 4Q24
Subtotal5,688 3,976 373 940 399 1,631,444 943,784 
Outpatient MedicalRentable Square FtPreleased %Health System AffiliationCommitment AmountBalance at 06/30/23Estimated Conversion
Houston, TX16,830 100 %Yes8,8477,806 3Q23
Houston, TX178,446 100 %Yes108,06850,749 4Q23
Houston, TX121,368 100 %Yes84,38430,930 4Q23
Oklahoma City, OK134,285 100 %Yes89,928 79,363 2Q24
Santa Fe, NM90,000 100 %Yes45,977 10,171 3Q24
Houston, TX50,323 100 %Yes30,156 3,485 3Q24
Houston, TX51,134 100 %Yes28,723 416 3Q24
Subtotal642,386 396,083 182,920 
Total Development Projects$2,027,527 $1,126,704 
(1) Includes development projects (construction in progress, development loans and in-substance real estate) and excludes redevelopments and expansion projects. Commitment amount represents current cash amount funded plus unfunded commitments to complete development but excludes capitalized interest.
(2) Relates to four properties with a weighted-average ownership of 34%.
(3) Estimated conversion ranges relate to projects to be delivered in phases.
9

Investment
(dollars in thousands at Welltower pro rata ownership)
Development Funding Projections(1)
Projected Future Funding
ProjectsBeds / Units / Square Feet
Stable Yields(2)
2023 FundingFunding ThereafterTotal Unfunded CommitmentsCommitted Balances
Seniors Housing Operating325,6887.3 %$299,773 $387,887 $687,660 $1,631,444 
Outpatient Medical7642,3866.1 %141,045 72,118 213,163 396,083 
Total397.1 %$440,818 $460,005 $900,823 $2,027,527 

Development Project Conversion Estimates(1)
Quarterly ConversionsAnnual Conversions
Amount
Year 1 Yields(2)
Stable Yields(2)
Amount
Year 1 Yields(2)
Stable Yields(2)
1Q23 actual$57,473 0.4 %6.7 %2023 actual$372,735 2.6 %8.0 %
2Q23 actual315,2623.0 %8.2 %2023 estimate436,701 2.9 %6.6 %
3Q23 estimate69,7140.2 %7.4 %2024 estimate1,193,421 0.9 %7.3 %
4Q23 estimate366,9873.4 %6.4 %2025 estimate397,4054.5 %7.2 %
1Q24 estimate105,697— %6.4 %Total$2,400,262 2.1 %7.2 %
2Q24 estimate432,6561.0 %7.1 %
3Q24 estimate336,7001.2 %7.4 %
4Q24 estimate318,3680.6 %7.6 %
1Q25 estimate237,3106.8 %6.8 %
2Q25 estimate146,2020.8 %7.8 %
3Q25 estimate13,8934.1 %6.9 %
Total$2,400,262 2.1 %7.2 %

Unstabilized Properties
3/31/2023 PropertiesStabilizations
Construction Conversions(3)
Acquisitions/ Dispositions6/30/2023 PropertiesBeds / Units
Seniors Housing Operating50(3)5(9)436,111
Seniors Housing Triple-net15(1)— 141,556
Total65(4)5(9)577,667
Occupancy3/31/2023 PropertiesStabilizations
Construction Conversions(3)
Acquisitions/ DispositionsProgressions6/30/2023 Properties
0% - 50%30 — (6)(3)26 
50% - 70%24 — — (3)(3)18 
70% +11 (4)— — 13 
Total65 (4)(9)— 57 
Occupancy6/30/2023 PropertiesMonths In OperationRevenues
% of Total Revenues(4)
Gross Investment Balance% of Total Gross Investment
0% - 50%26 13 $57,430 0.9 %$888,438 2.1 %
50% - 70%18 27 77,868 1.2 %569,222 1.3 %
70% +13 31 93,897 1.4 %518,127 1.2 %
Total57 22 $229,195 3.5 %$1,975,787 4.6 %
Notes:
(1) Includes development projects (construction in progress, development loans and in-substance real estate) and excludes expansion projects. Projects expected to be delivered in phases over multiple quarters are reflected in the last quarter.
(2) Actual yields may vary.
(3) Includes expansion and development loan conversions.
(4) Percent of total revenues based on current quarter annualized pro rata total revenues on page 12.
10

Financial

(dollars in thousands at Welltower pro rata ownership)
Components of NAV
Stabilized NOIPro rata beds/units/square feet
Seniors Housing Operating(1)
$1,072,692 88,143 units
Seniors Housing Triple-net396,116 27,097 units
Outpatient Medical489,144 20,236,315 square feet
Long-Term/Post-Acute Care233,084 24,553 beds
Total In-Place NOI(2)
2,191,036 
Incremental stabilized NOI(3)
96,338 
Total stabilized NOI$2,287,374 
Obligations
Lines of credit and commercial paper(4)
$— 
Senior unsecured notes(4)
13,695,104 
Secured debt(4)
3,468,103 
Financing lease liabilities49,393 
Total debt$17,212,600 
Add (Subtract):
Other liabilities (assets), net(5)
$451,087 
Cash and cash equivalents and restricted cash(2,299,069)
Net obligations$15,364,618 
Other Assets
Land parcels$261,039 
Effective Interest Rate(8)
Real estate loans receivable(6)
1,586,864 11.0%
Non-real estate loans receivable(7)
257,218 11.4%
Joint venture real estate loans receivables(9)
254,961 5.7%
Other investments(10)
15,205 
Property dispositions(11)
960,846 
Development properties:(12)
Current balance1,208,758 
Unfunded commitments1,064,081 
Committed balances$2,272,839 
Projected yield7.1 %
Projected NOI$161,372 
Common Shares Outstanding(13)
510,024 
Notes:
(1) Includes $20,830,000 attributable to our proportional share of income from unconsolidated management company investments.
(2) See page 18 for reconciliation.
(3) Represents incremental NOI from Seniors Housing Operating unstabilized properties.
(4) Represents principal amounts due and do not include unamortized premiums/discounts, deferred loan expenses or other fair value adjustments as reflected on the balance sheet. Includes $1,059,628,000 of foreign secured debt.
(5) Includes liabilities / (assets) that impact cash or NOI and excludes non real estate loans and non-cash items such as the following (in thousands):
Unearned revenues$414,089 
Below market tenant lease intangibles, net25,300 
Deferred taxes, net(39,829)
Intangible assets, net(156,749)
Other non-cash liabilities / (assets), net8,181 
Total non-cash liabilities/(assets), net$250,992 
(6) Represents $1,599,770,000 of real estate loans, excluding development loans and including certain in substance real estate developments and held to maturity debt securities, and net of $12,906,000 of credit allowances.
(7) Represents $430,110,000 of non-real estate loans, net of $172,892,000 of credit allowances.
(8) Average cash-pay interest rates are 7.1%,1.1% and 5.7% for real estate, non-real estate loans and joint venture real estate loans, respectively. Rates exclude non-accrual/interest-free loans.
(9) Represents partners' share of Welltower loans made to our partners in select joint ventures, secured by their interest in the joint venture properties.
(10) Primarily represents the estimated fair value of 3.4% ownership in Seniors Housing Operating portfolios excluded from IPNOI.
(11) Represents proceeds from expected property dispositions in the next twelve months.
(12) See pages 9-10. Also includes expansion projects.
(13) Includes OP Units and DownREIT Units.
11

Financial
(dollars in thousands at Welltower pro rata ownership)
Net Operating Income(1,2)
2Q223Q224Q221Q232Q23
Revenues:
Seniors Housing Operating
Resident fees and services$1,000,571 $1,057,814 $1,091,043 $1,138,916 $1,173,630 
Interest income1,642 2,210 2,388 2,318 1,850 
Other income(1,251)1,729 1,715 2,510 3,495 
Total revenues1,000,962 1,061,753 1,095,146 1,143,744 1,178,975 
Seniors Housing Triple-net
Rental income123,557 116,233 122,267 119,786 118,115 
Interest income31,725 32,726 31,837 31,540 32,657 
Other income1,786 1,307 1,361 1,675 1,202 
Total revenues157,068 150,266 155,465 153,001 151,974 
Outpatient Medical
Rental income163,808 170,051 174,182 182,044 185,133 
Interest income65 80 86 91 95 
Other income2,347 1,859 2,548 3,055 1,574 
Total revenues166,220 171,990 176,816 185,190 186,802 
Long-Term/Post-Acute Care
Rental income68,598 70,356 71,021 80,423 75,766 
Interest income5,499 5,760 5,982 6,367 8,264 
Other income— 513 153 193 65,490 
Total revenues74,097 76,629 77,156 86,983 149,520 
Corporate
Other income3,665 3,942 7,714 5,147 16,807 
Total revenues3,665 3,942 7,714 5,147 16,807 
Total
Rental income355,963 356,640 367,470 382,253 379,014 
Resident fees and services1,000,571 1,057,814 1,091,043 1,138,916 1,173,630 
Interest Income38,931 40,776 40,293 40,316 42,866 
Other Income6,547 9,350 13,491 12,580 88,568 
Total revenues1,402,012 1,464,580 1,512,297 1,574,065 1,684,078 
Property operating expenses:
Seniors Housing Operating777,178 831,556 866,482 894,981 902,068 
Seniors Housing Triple-net7,799 7,710 6,924 7,917 7,996 
Outpatient Medical51,177 53,684 53,259 58,977 59,358 
Long-Term/Post-Acute Care3,916 4,034 3,426 4,040 2,827 
Corporate2,645 5,794 5,086 3,877 4,135 
Total property operating expenses842,715 902,778 935,177 969,792 976,384 
Net operating income:
Seniors Housing Operating223,784 230,197 228,664 248,763 276,907 
Seniors Housing Triple-net149,269 142,556 148,541 145,084 143,978 
Outpatient Medical115,043 118,306 123,557 126,213 127,444 
Long-Term/Post-Acute Care70,181 72,595 73,730 82,943 146,693 
Corporate1,020 (1,852)2,628 1,270 12,672 
Net operating income$559,297 $561,802 $577,120 $604,273 $707,694 
Note:
(1) Please see discussion of Supplemental Reporting Measures on page 17. Includes amounts from investments sold or held for sale. NOI related to DownREITs included at 100%. Excludes NOI recognized from the leasehold interest for the NHI leasehold portfolio. The lease was terminated effective April 1, 2022, and the related lease termination income was excluded from NOI.
(2) The results related to the 205 properties previously reported as Health System have been reclassified to Seniors Housing Triple-net and Long-Term/Post-Acute Care for all periods.
12

Financial
(dollars in thousands)
Leverage and EBITDA Reconciliations(1)
Twelve Months EndedThree Months Ended
June 30, 2023June 30, 2023
Net income (loss)$134,122 $106,342 
Interest expense576,813 152,337 
Income tax expense (benefit)5,717 3,503 
Depreciation and amortization1,377,042 341,945 
EBITDA2,093,694 604,127 
Loss (income) from unconsolidated entities58,751 40,332 
Stock-based compensation32,299 10,491 
Loss (gain) on extinguishment of debt, net95 
Loss (gain) on real estate dispositions, net4,780 2,168 
Impairment of assets31,217 1,086 
Provision for loan losses, net14,192 2,456 
Loss (gain) on derivatives and financial instruments, net9,373 1,280 
Other expenses74,249 11,069 
Leasehold interest termination(2)
(65,485)(65,485)
Casualty losses, net of recoveries15,760 3,568 
Total adjustments175,231 6,966 
Adjusted EBITDA$2,268,925 $611,093 
Interest Coverage Ratios
Interest expense$576,813 $152,337 
Capitalized interest40,830 11,870 
Non-cash interest expense(21,946)(5,824)
Total interest$595,697 $158,383 
EBITDA$2,093,694 $604,127 
Interest coverage ratio3.51  x3.81  x
Adjusted EBITDA$2,268,925 $611,093 
Adjusted Interest coverage ratio3.81  x3.86  x
Fixed Charge Coverage Ratios
Total interest$595,697 $158,383 
Secured debt principal amortization56,545 13,839 
Total fixed charges$652,242 $172,222 
EBITDA$2,093,694 $604,127 
Fixed charge coverage ratio3.21  x3.51  x
Adjusted EBITDA$2,268,925 $611,093 
Adjusted Fixed charge coverage ratio3.48  x3.55  x
Net Debt to EBITDA Ratios
Total debt(3)
$16,040,530 
  Less: cash and cash equivalents and restricted cash(2,299,069)
Net debt