Investments in Unconsolidated Entities

6 Months Ended

Jun. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

We participate in a number of joint ventures, which generally invest in seniors housing and healthcare real estate. Our share of the results of operations for these properties has been included in our consolidated results of operations from the date of acquisition by the joint ventures and are reflected in our Consolidated Statements of Comprehensive Income as income or loss from unconsolidated entities. The following is a summary of our investments in unconsolidated entities (dollars in thousands):


	Percentage Ownership (1)	June 30, 2025		December 31, 2024
Seniors Housing Operating	10% to 95%	$	1,638,479	$	1,412,708
Triple-net	10% to 25%	25,626		35,066
Outpatient Medical	15% to 50%	227,125		249,889
Non-segment/Corporate	21% to 88%	73,037		71,109
Total		$	1,964,267	$	1,768,772

(1) As of June 30, 2025 and includes ownership of investments classified as liabilities and excludes ownership of in substance real estate.

At June 30, 2025, the aggregate unamortized basis difference of our joint venture investments of $184,125,000 is primarily attributable to the difference between the amount for which we purchased our interest in the entity, including transaction costs, and the historical carrying value of the net assets of the joint venture. This difference is being amortized over the remaining useful life of the related properties and included in the reported amount of income from unconsolidated entities.

We have made loans related to 26 properties as of June 30, 2025 for the development and construction of certain properties that have a carrying value of $975,332,000. We believe that such borrowers typically represent VIEs in accordance with ASC 810, "Consolidation." VIEs are required to be consolidated by their primary beneficiary, which is the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impacts the entity's economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. We have concluded that we are not the primary beneficiary of such borrowers, therefore, the loan arrangements were assessed based on, among other factors, the amount and timing of expected residual profits, the estimated fair value of the collateral and the significance of the borrower's equity in the project. Based on these assessments, the arrangements have been classified as in substance real estate investments. We are obligated to fund an additional $99,534,000 related to these investments.

In January 2025, we announced the formation of a private funds management business in conjunction with the launch of our first seniors housing investment fund. The Fund was formed with the intent to invest in U.S. seniors housing properties that are either stable or with a near-term path to stabilization. Welltower serves as the general partner and asset manager, and has a

limited partner interest in the Fund, which is unconsolidated due to certain rights held by third-party limited partners. As of June 30, 2025, our unconsolidated investment balance in the Fund was $279,338,000.