Table of Contents |
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 | 16 | 596 | 71,275 | 35,324 | 24,849 | 10,610 | 492 | ||||||||||
Seniors Housing Triple-net | 14 | 340 | 27,667 | 4,963 | 16,136 | 6,150 | 418 | ||||||||||
Outpatient Medical | 14 | 364 | 22,215,145 | (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 | 18 | 138 | 16,204 | 40 | 873 | — | 15,291 | ||||||||||
Total | 17 | 1,656 |
NOI Performance | Same Store(2) | In-Place Portfolio(3) | ||||||||||||||||||||
Properties | 3Q18 NOI | 3Q19 NOI | % Change | Properties | Annualized In-Place NOI | % of Total | ||||||||||||||||
Seniors Housing Operating | 418 | $ | 200,325 | $ | 205,982 | 2.8 | % | 555 | $ | 939,936 | 44.2 | % | ||||||||||
Seniors Housing Triple-net(4) | 291 | 87,446 | 90,443 | 3.4 | % | 317 | 402,608 | 18.9 | % | |||||||||||||
Outpatient Medical | 239 | 82,872 | 84,004 | 1.4 | % | 343 | 457,468 | 21.5 | % | |||||||||||||
Health System | — | — | — | n/a | 218 | 144,512 | 6.8 | % | ||||||||||||||
Long-Term/Post-Acute Care(4) | 115 | 40,254 | 41,253 | 2.5 | % | 136 | 180,936 | 8.6 | % | |||||||||||||
Total | 1,063 | $ | 410,897 | $ | 421,682 | 2.6 | % | 1,569 | $ | 2,125,460 | 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 | 87.4 | % | n/a | n/a | 97.5 | % | 0.7 | % | 0.5 | % | 1.3 | % | ||||||
Seniors Housing Triple-net | 86.1 | % | 1.04 | 1.21 | 92.4 | % | 3.1 | % | 0.6 | % | 3.9 | % | ||||||
Outpatient Medical | 93.7 | % | n/a | n/a | 99.5 | % | — | — | 0.5 | % | ||||||||
Health System(8) | 84.0 | % | n/a | n/a | 36.2 | % | 41.3 | % | 22.5 | % | — | |||||||
Long-Term/Post-Acute Care | 83.2 | % | 1.23 | 1.54 | 28.5 | % | 41.8 | % | 29.7 | % | — | |||||||
Total | 1.10 | 1.31 | 92.7 | % | 3.7 | % | 2.3 | % | 1.3 | % | ||||||||
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 | $ | 248,416 | $ | — | $ | — | $ | — | $ | — | $ | 248,416 | 11.7 | % | |||||||||||||
Sunrise Senior Living United Kingdom | 44 | 69,374 | — | — | — | — | 69,374 | 3.3 | % | |||||||||||||||||||
ProMedica | 218 | — | — | — | 144,512 | — | 144,512 | 6.8 | % | |||||||||||||||||||
Revera | 94 | 108,207 | — | — | — | — | 108,207 | 5.1 | % | |||||||||||||||||||
Genesis HealthCare | 76 | — | — | — | — | 84,171 | 84,171 | 4.0 | % | |||||||||||||||||||
Belmont Village | 21 | 76,468 | — | — | — | — | 76,468 | 3.6 | % | |||||||||||||||||||
Senior Resource Group | 24 | 71,555 | — | — | — | — | 71,555 | 3.4 | % | |||||||||||||||||||
Brandywine Living | 27 | 66,666 | — | — | — | — | 66,666 | 3.1 | % | |||||||||||||||||||
Avery | 54 | 5,149 | 58,133 | — | — | — | 63,282 | 3.0 | % | |||||||||||||||||||
Sagora Senior Living | 31 | 36,761 | 24,978 | — | — | — | 61,739 | 2.9 | % | |||||||||||||||||||
Brookdale Senior Living | 84 | — | 57,918 | — | — | — | 57,918 | 2.7 | % | |||||||||||||||||||
Brookdale Senior Living - Transitions(2) | 6 | 2,785 | — | — | — | — | 2,785 | 0.1 | % | |||||||||||||||||||
Remaining | 767 | 254,555 | 261,579 | 457,468 | — | 96,765 | 1,070,367 | 50.3 | % | |||||||||||||||||||
Total | 1,569 | $ | 939,936 | $ | 402,608 | $ | 457,468 | $ | 144,512 | $ | 180,936 | $ | 2,125,460 | 100.0 | % | |||||||||||||
By Country: | ||||||||||||||||||||||||||||
United States | 1,308 | $ | 699,931 | $ | 320,623 | $ | 438,006 | $ | 144,512 | $ | 174,333 | $ | 1,777,405 | 83.6 | % | |||||||||||||
United Kingdom | 113 | 76,962 | 78,610 | 19,462 | — | — | 175,034 | 8.2 | % | |||||||||||||||||||
Canada | 148 | 163,043 | 3,375 | — | — | 6,603 | 173,021 | 8.1 | % | |||||||||||||||||||
Total | 1,569 | 939,936 | 402,608 | 457,468 | 144,512 | 180,936 | 2,125,460 | 100.0 | % | |||||||||||||||||||
By MSA: | ||||||||||||||||||||||||||||
New York | 70 | $ | 91,971 | $ | 30,216 | $ | 19,118 | $ | 3,497 | $ | 11,848 | $ | 156,650 | 7.4 | % | |||||||||||||
Los Angeles | 66 | 84,306 | 18,074 | 29,672 | 420 | — | 132,472 | 6.2 | % | |||||||||||||||||||
Greater London | 50 | 49,763 | 33,934 | 19,462 | — | — | 103,159 | 4.9 | % | |||||||||||||||||||
Dallas | 57 | 27,907 | 18,687 | 33,604 | 736 | 3,931 | 84,865 | 4.0 | % | |||||||||||||||||||
Philadelphia | 50 | 19,411 | 1,205 | 24,395 | 12,079 | 22,984 | 80,074 | 3.8 | % | |||||||||||||||||||
Washington D.C. | 41 | 40,596 | 1,000 | 6,749 | 11,040 | 2,998 | 62,383 | 2.9 | % | |||||||||||||||||||
Chicago | 38 | 29,410 | 9,453 | 5,382 | 9,495 | — | 53,740 | 2.5 | % | |||||||||||||||||||
Houston | 28 | 15,193 | 4,370 | 30,554 | — | — | 50,117 | 2.4 | % | |||||||||||||||||||
San Francisco | 19 | 35,225 | 9,670 | — | 4,248 | — | 49,143 | 2.3 | % | |||||||||||||||||||
Seattle | 31 | 28,014 | 3,020 | 14,491 | 1,579 | — | 47,104 | 2.2 | % | |||||||||||||||||||
San Diego | 18 | 23,826 | 6,251 | 6,182 | — | 2,823 | 39,082 | 1.8 | % | |||||||||||||||||||
Toronto | 25 | 38,793 | — | — | — | — | 38,793 | 1.8 | % | |||||||||||||||||||
Miami | 35 | 5,048 | — | 21,395 | 5,055 | — | 31,498 | 1.5 | % | |||||||||||||||||||
Minneapolis | 19 | 2,389 | 14,658 | 13,936 | — | — | 30,983 | 1.5 | % | |||||||||||||||||||
Montréal | 19 | 28,907 | — | — | — | — | 28,907 | 1.4 | % | |||||||||||||||||||
Boston | 16 | 23,086 | — | 2,537 | — | 1,985 | 27,608 | 1.3 | % | |||||||||||||||||||
Indianapolis | 18 | — | 8,381 | 10,106 | 689 | 8,218 | 27,394 | 1.3 | % | |||||||||||||||||||
Kansas City | 23 | 6,477 | 8,157 | 6,002 | — | 5,578 | 26,214 | 1.2 | % | |||||||||||||||||||
Atlanta | 23 | 5,247 | — | 19,008 | 1,751 | — | 26,006 | 1.2 | % | |||||||||||||||||||
Raleigh | 12 | 6,151 | 17,320 | 978 | — | — | 24,449 | 1.2 | % | |||||||||||||||||||
Remaining | 911 | 378,216 | 218,212 | 193,897 | 93,923 | 120,571 | 1,004,819 | 47.3 | % | |||||||||||||||||||
Total | 1,569 | $ | 939,936 | $ | 402,608 | $ | 457,468 | $ | 144,512 | $ | 180,936 | $ | 2,125,460 | 100.0 | % | |||||||||||||
Portfolio |
(dollars in thousands at Welltower pro rata ownership) | |||||||||||||||||||||
Seniors Housing Operating | |||||||||||||||||||||
Total Portfolio Performance(1) | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | ||||||||||||||||
Properties | 575 | 554 | 582 | 619 | 566 | ||||||||||||||||
Units | 68,243 | 66,002 | 69,209 | 74,145 | 68,918 | ||||||||||||||||
Total occupancy | 86.9 | % | 87.2 | % | 86.2 | % | 85.7 | % | 86.0 | % | |||||||||||
Total revenues | $ | 849,054 | $ | 834,356 | $ | 841,938 | $ | 880,320 | $ | 805,251 | |||||||||||
Operating expenses | 585,525 | 582,412 | 580,917 | 607,836 | 554,782 | ||||||||||||||||
NOI | $ | 263,529 | $ | 251,944 | $ | 261,021 | $ | 272,484 | $ | 250,469 | |||||||||||
NOI margin | 31.0 | % | 30.2 | % | 31.0 | % | 31.0 | % | 31.1 | % | |||||||||||
Recurring cap-ex | $ | 13,750 | $ | 22,569 | $ | 15,226 | $ | 20,275 | $ | 27,306 | |||||||||||
Other cap-ex | $ | 38,984 | $ | 49,813 | $ | 27,366 | $ | 30,320 | $ | 40,117 |
Same Store Performance(2) | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | ||||||||||||||||
Properties | 418 | 418 | 418 | 418 | 418 | ||||||||||||||||
Occupancy | 88.0 | % | 88.3 | % | 87.9 | % | 87.5 | % | 87.6 | % | |||||||||||
Same store revenues | $ | 613,172 | $ | 616,267 | $ | 620,831 | $ | 624,801 | $ | 631,809 | |||||||||||
Compensation | 254,019 | 257,776 | 258,781 | 262,198 | 266,315 | ||||||||||||||||
Utilities | 23,566 | 23,246 | 24,762 | 20,602 | 22,868 | ||||||||||||||||
Food | 22,740 | 23,553 | 22,517 | 22,609 | 23,245 | ||||||||||||||||
Repairs and maintenance | 14,492 | 14,272 | 14,102 | 14,863 | 15,405 | ||||||||||||||||
Property taxes | 18,837 | 19,299 | 19,930 | 19,864 | 18,931 | ||||||||||||||||
All other | 79,193 | 77,876 | 78,855 | 80,833 | 79,063 | ||||||||||||||||
Same store operating expenses | 412,847 | 416,022 | 418,947 | 420,969 | 425,827 | ||||||||||||||||
Same store NOI | $ | 200,325 | $ | 200,245 | $ | 201,884 | $ | 203,832 | $ | 205,982 | |||||||||||
Year over year growth rate | 2.8 | % |
Partners | Properties(3) | Units(3) | Welltower Ownership %(4) | Core Markets | 3Q19 NOI | % of Total | ||||||||||||
Sunrise Senior Living | 167 | 14,201 | 97.2 | % | Southern California | $ | 33,951 | 13.6 | % | |||||||||
Revera | 94 | 11,823 | 75.0 | % | New York / New Jersey | 22,786 | 9.1 | % | ||||||||||
Belmont Village | 21 | 2,952 | 95.0 | % | Northern California | 19,137 | 7.6 | % | ||||||||||
Senior Resource Group | 24 | 4,656 | 67.6 | % | Greater London | 12,452 | 5.0 | % | ||||||||||
Brandywine Living | 27 | 2,599 | 99.3 | % | Washington D.C. | 11,385 | 4.5 | % | ||||||||||
Chartwell Retirement Residences | 39 | 7,726 | 51.9 | % | Toronto | 9,727 | 3.9 | % | ||||||||||
Sagora Senior Living | 14 | 2,697 | 90.0 | % | Boston | 7,858 | 3.1 | % | ||||||||||
Cogir | 18 | 3,269 | 88.8 | % | Montréal | 7,250 | 2.9 | % | ||||||||||
Frontier Management | 26 | 1,377 | 97.2 | % | Seattle | 7,004 | 2.8 | % | ||||||||||
Merrill Gardens | 11 | 1,508 | 80.0 | % | Ottawa | 4,570 | 1.8 | % | ||||||||||
Senior Star Living | 11 | 2,064 | 90.0 | % | Vancouver | 3,073 | 1.2 | % | ||||||||||
Clover Management | 30 | 3,679 | 89.7 | % | Birmingham, UK | 1,860 | 0.7 | % | ||||||||||
Pegasus Senior Living | 35 | 3,812 | 98.0 | % | Manchester, UK | 1,753 | 0.7 | % | ||||||||||
Discovery Senior Living | 9 | 2,701 | 60.0 | % | Core Markets | 142,806 | 56.9 | % | ||||||||||
Remaining | 29 | 2,932 | All Other | 107,663 | 43.1 | % | ||||||||||||
Total | 555 | 67,996 | Total | $ | 250,469 | 100.0 | % |
Portfolio |
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) | |||||||||||||||||
New York | 30 / 2,598 | $ | 91,971 | 13.1 | % | 7 / 734 | 7 / 531 | $ | 13,926 | 0.4 | % | 5.9 | % | 4,096 | $ | 115,511 | $ | 541,452 | 5.2 | % | 1.4 | % | ||||||||
Los Angeles | 30 / 3,578 | 84,306 | 12.0 | % | 4 / 688 | 5 / 587 | 8,272 | 2.6 | % | 12.5 | % | 6,739 | 98,072 | 1,005,724 | 2.7 | % | 1.2 | % | ||||||||||||
Washington D.C. | 12 / 1,358 | 40,596 | 5.8 | % | 5 / 615 | 5 / 407 | 7,123 | 3.7 | % | 13.9 | % | 5,554 | 140,721 | 749,521 | 2.5 | % | 1.2 | % | ||||||||||||
San Francisco | 12 / 1,531 | 35,225 | 5.0 | % | — | — | — | 3.9 | % | 13.0 | % | 7,675 | 130,149 | 1,163,576 | (0.7 | )% | 2.4 | % | ||||||||||||
Chicago | 16 / 1,724 | 29,410 | 4.2 | % | 2 / 188 | 3 / 257 | 2,905 | -0.1 | % | 10.3 | % | 3,416 | 93,568 | 339,441 | 1.6 | % | 1.0 | % | ||||||||||||
Seattle | 17 / 1,987 | 28,014 | 4.0 | % | 1 / 122 | 2 / 145 | 1,810 | 6.3 | % | 21.7 | % | 5,195 | 98,660 | 627,333 | 0.8 | % | 3.1 | % | ||||||||||||
Dallas | 15 / 2,180 | 27,907 | 4.0 | % | 1 / 83 | 1 / 52 | 529 | 7.4 | % | 28.8 | % | 3,366 | 84,762 | 320,377 | 3.1 | % | 3.1 | % | ||||||||||||
San Diego | 8 / 1,086 | 23,826 | 3.4 | % | — | — | — | 3.5 | % | 18.0 | % | 4,970 | 107,290 | 867,344 | (0.7 | )% | 1.8 | % | ||||||||||||
Boston | 11 / 751 | 23,086 | 3.3 | % | — | — | — | 3.3 | % | 8.4 | % | 2,613 | 128,601 | 708,581 | 3.8 | % | 1.4 | % | ||||||||||||
Philadelphia | 11 / 885 | 19,411 | 2.8 | % | 3 / 488 | 3 / 242 | 5,037 | 0.9 | % | 5.0 | % | 2,143 | 110,965 | 376,437 | 1.7 | % | 1.4 | % | ||||||||||||
San Jose | 6 / 735 | 18,079 | 2.6 | % | — | — | — | 4.3 | % | 14.1 | % | 6,386 | 128,338 | 1,314,820 | (1.9 | )% | 2.6 | % | ||||||||||||
Houston | 9 / 878 | 15,193 | 2.2 | % | 3 / 539 | 3 / 317 | 3,438 | 7.3 | % | 27.4 | % | 3,637 | 83,821 | 417,422 | 7.0 | % | 2.7 | % | ||||||||||||
Boulder, CO | 6 / 517 | 11,965 | 1.7 | % | — | — | — | 6.0 | % | 31.4 | % | 2,029 | 103,042 | 681,506 | N/A | 1.4 | % | |||||||||||||
San Antonio | 4 / 1,075 | 10,313 | 1.5 | % | 1 / 258 | 1 / 350 | 883 | 8.8 | % | 30.5 | % | 2,370 | 72,422 | 259,741 | 2.2 | % | 2.1 | % | ||||||||||||
Denver | 4 / 661 | 10,064 | 1.4 | % | 3 / 458 | 1 / 163 | 353 | 7.0 | % | 25.3 | % | 5,056 | 85,921 | 584,641 | 1.7 | % | 1.9 | % | ||||||||||||
Cincinnati | 4 / 662 | 9,702 | 1.4 | % | 1 / 153 | 1 / 305 | 2,677 | 1.2 | % | 9.4 | % | 1,981 | 70,840 | 190,732 | 2.2 | % | 2.5 | % | ||||||||||||
Santa Maria, CA | 2 / 605 | 9,204 | 1.3 | % | — | — | — | 3.1 | % | 6.8 | % | 2,807 | 98,803 | 694,911 | N/A | 2.4 | % | |||||||||||||
Sacramento | 5 / 447 | 8,824 | 1.3 | % | 3 / 319 | 3 / 261 | 1,956 | 3.8 | % | 13.3 | % | 3,956 | 87,435 | 483,918 | 9.3 | % | 1.4 | % | ||||||||||||
Trenton, NJ | 2 / 207 | 8,560 | 1.2 | % | — | — | — | 2.2 | % | 9.9 | % | 819 | 137,147 | 495,343 | N/A | 2.1 | % | |||||||||||||
Buffalo | 10 / 1,254 | 8,325 | 1.2 | % | — | — | — | 0.4 | % | 3.5 | % | 2,799 | 70,242 | 181,754 | 5.1 | % | 0.7 | % | ||||||||||||
Pittsburgh | 4 / 434 | 7,718 | 1.1 | % | 4 / 554 | 3 / 174 | 3,068 | 0.2 | % | 6.6 | % | 1,899 | 89,327 | 237,847 | 3.1 | % | 0.5 | % | ||||||||||||
Phoenix | 7 / 767 | 7,428 | 1.1 | % | 2 / 264 | 2 / 263 | 1,035 | 6.7 | % | 13.6 | % | 3,659 | 77,361 | 393,145 | 3.3 | % | 2.7 | % | ||||||||||||
Columbus | 4 / 463 | 7,257 | 1.0 | % | 1 / 136 | 1 / 199 | 762 | 5.7 | % | 29.5 | % | 2,280 | 98,051 | 331,581 | 5.5 | % | (0.3 | )% | ||||||||||||
Salisbury, MD | 2 / 214 | 7,198 | 1.0 | % | — | — | — | 8.6 | % | 10.7 | % | 643 | 72,730 | 426,632 | N/A | 0.1 | % | |||||||||||||
Austin | 5 / 427 | 7,004 | 1.0 | % | 1 / 230 | 1 / 118 | 130 | 8.8 | % | 43.0 | % | 2,338 | 136,070 | 735,242 | 6.2 | % | 2.1 | % | ||||||||||||
Total - Top 25 | 236 / 27,024 | $ | 550,586 | 78.7 | % | 42 / 5,829 | 42 / 4,371 | $ | 53,904 | 3.5 | % | 14.9 | % | 4,261 | $ | 106,734 | $ | 667,129 | 2.8 | % | 1.7 | % | ||||||||
All Other US SHO Markets | 125 / 15,623 | 149,345 | 21.3 | % | 22 / 3,181 | 23 / 2,889 | 19,520 | 3.4 | % | 11.8 | % | 2,406 | 78,152 | 353,329 | ||||||||||||||||
Total US SHO | 361 / 42,647 | $ | 699,931 | 100.0 | % | 64 / 9,010 | 65 / 7,260 | $ | 73,424 | 3.5 | % | 13.8 | % | 3,619 | $ | 99,937 | $ | 592,502 | ||||||||||||
% of Total IPNOI | 3.5 | % | ||||||||||||||||||||||||||||
US National Average | 3.3 | % | 11.7 | % | 94 | $ | 66,010 | $ | 245,219 | 2.7 | % | (10) | 1.4 | % | ||||||||||||||||
Portfolio |
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) | |||||||||||||||||
New York | 30 / 2,598 | $ | 91,971 | 13.1 | % | 13 / 1,659 | 15 / 1,254 | $ | 30,356 | 0.6 | % | 5.8 | % | 4,022 | $ | 109,797 | $ | 507,132 | 5.2 | % | 1.4 | % | ||||||||
Los Angeles | 30 / 3,578 | 84,306 | 12.0 | % | 7 / 1,064 | 13 / 1,619 | 21,489 | 2.6 | % | 13.1 | % | 6,543 | 91,821 | 922,210 | 2.7 | % | 1.2 | % | ||||||||||||
Washington D.C. | 12 / 1,358 | 40,596 | 5.8 | % | 7 / 901 | 9 / 1,073 | 14,593 | 4.1 | % | 14.6 | % | 5,489 | 130,584 | 715,286 | 2.5 | % | 1.2 | % | ||||||||||||
San Francisco | 12 / 1,531 | 35,225 | 5.0 | % | — | — | — | 4.0 | % | 13.3 | % | 6,706 | 127,140 | 1,118,359 | (0.7 | )% | 2.4 | % | ||||||||||||
Chicago | 16 / 1,724 | 29,410 | 4.2 | % | 6 / 1,015 | 6 / 485 | 7,033 | -0.2 | % | 11.0 | % | 3,283 | 94,163 | 344,536 | 1.6 | % | 1.0 | % | ||||||||||||
Seattle | 17 / 1,987 | 28,014 | 4.0 | % | 1 / 122 | 3 / 260 | 2,209 | 6.4 | % | 22.8 | % | 4,775 | 98,429 | 624,096 | 0.8 | % | 3.1 | % | ||||||||||||
Dallas | 15 / 2,180 | 27,907 | 4.0 | % | 5 / 1,075 | 4 / 392 | 4,232 | 7.3 | % | 27.8 | % | 3,209 | 78,549 | 309,358 | 3.1 | % | 3.1 | % | ||||||||||||
San Diego | 8 / 1,086 | 23,826 | 3.4 | % | 1 / 200 | 2 / 249 | 3,196 | 3.6 | % | 16.5 | % | 4,761 | 103,852 | 802,596 | (0.7 | )% | 1.8 | % | ||||||||||||
Boston | 11 / 751 | 23,086 | 3.3 | % | 4 / 425 | 3 / 261 | 3,000 | 3.3 | % | 8.4 | % | 2,551 | 118,142 | 645,141 | 3.8 | % | 1.4 | % | ||||||||||||
Philadelphia | 11 / 885 | 19,411 | 2.8 | % | 5 / 672 | 4 / 311 | 6,945 | 1.0 | % | 5.4 | % | 2,330 | 101,377 | 340,013 | 1.7 | % | 1.4 | % | ||||||||||||
San Jose | 6 / 735 | 18,079 | 2.6 | % | 1 / 200 | 1 / 95 | 1,545 | 4.3 | % | 14.0 | % | 5,477 | 128,919 | 1,314,620 | (1.9 | )% | 2.6 | % | ||||||||||||
Houston | 9 / 878 | 15,193 | 2.2 | % | 4 / 719 | 4 / 614 | 5,872 | 7.5 | % | 30.5 | % | 3,689 | 80,515 | 317,500 | 7.0 | % | 2.7 | % | ||||||||||||
Boulder, CO | 6 / 517 | 11,965 | 1.7 | % | — | — | — | 6.4 | % | 28.7 | % | 1,406 | 109,860 | 669,382 | N/A | 1.4 | % | |||||||||||||
San Antonio | 4 / 1,075 | 10,313 | 1.5 | % | 1 / 258 | 1 / 350 | 883 | 8.6 | % | 29.4 | % | 2,254 | 68,515 | 245,028 | 2.2 | % | 2.1 | % | ||||||||||||
Denver | 4 / 661 | 10,064 | 1.4 | % | 5 / 708 | 2 / 252 | 384 | 6.7 | % | 25.0 | % | 4,589 | 84,740 | 486,262 | 1.7 | % | 1.9 | % | ||||||||||||
Cincinnati | 4 / 662 | 9,702 | 1.4 | % | 1 / 153 | 1 / 305 | 2,677 | 1.3 | % | 10.4 | % | 1,662 | 69,399 | 190,499 | 2.2 | % | 2.5 | % | ||||||||||||
Santa Maria, CA | 2 / 605 | 9,204 | 1.3 | % | — | — | — | 3.8 | % | 7.9 | % | 1,667 | 91,093 | 731,981 | N/A | 2.4 | % | |||||||||||||
Sacramento | 5 / 447 | 8,824 | 1.3 | % | 5 / 646 | 4 / 381 | 3,803 | 3.8 | % | 14.1 | % | 3,615 | 84,592 | 475,884 | 9.3 | % | 1.4 | % | ||||||||||||
Trenton, NJ | 2 / 207 | 8,560 | 1.2 | % | — | — | — | 1.4 | % | 9.8 | % | 1,079 | 126,109 | 457,147 | N/A | 2.1 | % | |||||||||||||
Buffalo | 10 / 1,254 | 8,325 | 1.2 | % | — | — | — | 0.2 | % | 3.5 | % | 2,522 | 66,903 | 173,122 | 5.1 | % | 0.7 | % | ||||||||||||
Pittsburgh | 4 / 434 | 7,718 | 1.1 | % | 4 / 554 | 3 / 174 | 3,068 | 0.6 | % | 5.7 | % | 1,730 | 83,691 | 220,546 | 3.1 | % | 0.5 | % | ||||||||||||
Phoenix | 7 / 767 | 7,428 | 1.1 | % | 7 / 1,178 | 5 / 620 | 4,632 | 7.1 | % | 15.1 | % | 3,463 | 75,274 | 355,099 | 3.3 | % | 2.7 | % | ||||||||||||
Columbus | 4 / 463 | 7,257 | 1.0 | % | 1 / 136 | 1 / 199 | 762 | 5.5 | % | 27.2 | % | 2,104 | 87,905 | 304,373 | 5.5 | % | (0.3 | )% | ||||||||||||
Salisbury, MD | 2 / 214 | 7,198 | 1.0 | % | — | — | — | 8.1 | % | 10.2 | % | 556 | 76,660 | 403,363 | N/A | 0.1 | % | |||||||||||||
Austin | 5 / 427 | 7,004 | 1.0 | % | 2 / 316 | 2 / 170 | 948 | 8.6 | % | 40.9 | % | 2,371 | 103,032 | 609,268 | 6.2 | % | 2.1 | % | ||||||||||||
Total - Top 25 | 236 / 27,024 | $ | 550,586 | 78.7 | % | 80 / 12,001 | 83 / 9,064 | $ | 117,627 | 3.6 | % | 15.1 | % | 4,036 | $ | 101,612 | $ | 627,635 | 2.8 | % | 1.7 | % | ||||||||
All Other US SHO Markets | 125 / 15,623 | 149,345 | 21.3 | % | 38 / 5,219 | 37 / 5,363 | 27,461 | 3.4 | % | 12.4 | % | 2,087 | 74,584 | 343,190 | ||||||||||||||||
Total US SHO | 361 / 42,647 | $ | 699,931 | 100.0 | % | 118 / 17,220 | 120 / 14,427 | $ | 145,088 | 3.5 | % | 14.1 | % | 3,362 | $ | 95,185 | $ | 559,989 | ||||||||||||
% of Total IPNOI | 6.8 | % | ||||||||||||||||||||||||||||
US National Average | 3.3 | % | 11.7 | % | 94 | $ | 66,010 | $ | 245,219 | 2.7 | % | (10) | 1.4 | % | ||||||||||||||||
Portfolio |
Seniors Housing Operating Quality Indicators | ||||||||
US Portfolio(1,3,4) | Industry Benchmarks(2) | |||||||
Property age | 15 | 20 | ||||||
5 year total population growth | 3.5 | % | 3.3 | % | ||||
5 year 75+ population growth | 13.8 | % | 11.7 | % | ||||
Housing value | $ | 592,502 | $ | 245,219 | ||||
Household income | $ | 99,937 | $ | 66,010 | ||||
REVPOR | $ | 6,250 | $ | 4,961 | ||||
SS REVPOR growth | 3.3 | % | 2.4 | % | ||||
SSNOI per unit | $ | 23,880 | $ | 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 | £ | 489,791 | £ | 300,958 | ||||
REVPOR | £ | 6,556 | £ | 3,720 | ||||
SS REVPOR growth | 3.8 | % | 3.3 | % | ||||
SSNOI per unit | £ | 17,259 | £ | 9,544 | ||||
SSNOI growth | 1.8 | % | DNA | |||||
Canadian Portfolio(1,3,4) | Industry Benchmarks(6) | |||||||
5 year total population growth | 5.6 | % | 5.5 | % | ||||
5 year 75+ population growth | 19.0 | % | 22.2 | % | ||||
Housing value | C$ | 580,902 | C$ | 456,053 | ||||
Household income | C$ | 112,137 | C$ | 102,231 | ||||
REVPOR | C$ | 3,653 | C$ | 2,469 | ||||
SS REVPOR growth | 2.2 | % | 3.4 | % | ||||
SSNOI per unit | C$ | 14,811 | DNA | |||||
SSNOI growth | (1.9 | )% | DNA |
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 | 0.4 | % | 0.1 | % | 0.5 | % | 7 | 5 | 3.0 | % | 0.6 | % | 3.6 | % | 6 | 11 | |||||||||
0.85x - 0.95x | 0.7 | % | — | % | 0.7 | % | 7 | 2 | 1.1 | % | 0.5 | % | 1.6 | % | 11 | 2 | |||||||||
0.95x - 1.05x | 1.9 | % | 0.1 | % | 2.0 | % | 7 | 3 | 2.0 | % | 0.9 | % | 2.9 | % | 14 | 7 | |||||||||
1.05x - 1.15x | 1.8 | % | 0.9 | % | 2.7 | % | 10 | 5 | 5.7 | % | 0.9 | % | 6.6 | % | 9 | 6 | |||||||||
1.15x - 1.25x | 3.0 | % | — | % | 3.0 | % | 13 | 6 | 4.2 | % | 3.7 | % | 7.9 | % | 13 | 5 | |||||||||
1.25x - 1.35x | 5.5 | % | 0.9 | % | 6.4 | % | 9 | 6 | — | % | — | % | — | % | — | — | |||||||||
>1.35x | 2.7 | % | 5.2 | % | 7.9 | % | 14 | 7 | — | % | 0.6 | % | 0.6 | % | 9 | 3 | |||||||||
Total | 16.0 | % | 7.2 | % | 23.2 | % | 11 | 34 | 16.0 | % | 7.2 | % | 23.2 | % | 11 | 34 | |||||||||
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 | $ | — | $ | 10,611 | $ | — | $ | — | $ | — | $ | 10,611 | 0.8 | % | |||||||||||||
2020 | — | 41,408 | — | — | 7,598 | 49,006 | 3.8 | % | |||||||||||||||||||
2021 | 3,543 | 52,599 | — | 8,749 | 20,370 | 85,261 | 6.6 | % | |||||||||||||||||||
2022 | 4,322 | 54,716 | — | 5,631 | 20,130 | 84,799 | 6.6 | % | |||||||||||||||||||
2023 | — | 54,564 | — | 1,331 | 2,363 | 58,258 | 4.5 | % | |||||||||||||||||||
2024 | 11,096 | 59,884 | — | — | 1,161 | 72,141 | 5.6 | % | |||||||||||||||||||
2025 | 50,587 | 30,295 | — | — | 215 | 81,097 | 6.3 | % | |||||||||||||||||||
2026 | 88,449 | 37,501 | — | 34,080 | — | 160,030 | 12.4 | % | |||||||||||||||||||
2027 | 31,621 | 19,450 | — | 1,041 | 227 | 52,339 | 4.1 | % | |||||||||||||||||||
2028 | 6,849 | 22,532 | — | 19,571 | 175 | 49,127 | 3.8 | % | |||||||||||||||||||
Thereafter | 197,648 | 129,782 | 145,169 | 112,017 | 2,353 | 586,969 | 45.5 | % | |||||||||||||||||||
$ | 394,115 | $ | 513,342 | $ | 145,169 | $ | 182,420 | $ | 54,592 | $ | 1,289,638 | 100.0 | % | ||||||||||||||
Weighted Avg Maturity Years | 10 | 6 | 14 | 11 | 3 | 9 | |||||||||||||||||||||
Portfolio |
(dollars in thousands at Welltower pro rata ownership) | ||||||||||||||||||||
Outpatient Medical | ||||||||||||||||||||
Total Portfolio Performance(1) | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | |||||||||||||||
Properties | 253 | 274 | 283 | 340 | 348 | |||||||||||||||
Square feet | 16,287,174 | 17,292,516 | 17,649,227 | 21,098,926 | 21,472,874 | |||||||||||||||
Occupancy | 93.0 | % | 93.1 | % | 92.9 | % | 93.3 | % | 93.6 | % | ||||||||||
Total revenues | $ | 130,344 | $ | 134,844 | $ | 139,735 | $ | 154,443 | $ | 175,000 | ||||||||||
Operating expenses | 42,524 | 40,136 | 44,868 | 47,894 | 57,272 | |||||||||||||||
NOI | $ | 87,820 | $ | 94,708 | $ | 94,867 | $ | 106,549 | $ | 117,728 | ||||||||||
NOI margin | 67.4 | % | 70.2 | % | 67.9 | % | 69.0 | % | 67.3 | % | ||||||||||
Revenues per square foot | $ | 33.71 | $ | 32.73 | $ | 33.20 | $ | 30.45 | $ | 33.90 | ||||||||||
NOI per square foot | $ | 22.71 | $ | 22.99 | $ | 22.54 | $ | 21.01 | $ | 22.80 | ||||||||||
Recurring cap-ex | $ | 8,729 | $ | 9,095 | $ | 6,400 | $ | 8,528 | $ | 7,296 | ||||||||||
Other cap-ex | $ | 3,938 | $ | 4,852 | $ | 2,860 | $ | 2,374 | $ | 5,989 |
Same Store Performance(2) | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | |||||||||||||||
Properties | 239 | 239 | 239 | 239 | 239 | |||||||||||||||
Occupancy | 93.6 | % | 93.4 | % | 93.5 | % | 93.4 | % | 93.8 | % | ||||||||||
Same store revenues | $ | 122,789 | $ | 120,316 | $ | 121,963 | $ | 122,349 | $ | 125,341 | ||||||||||
Same store operating expenses | 39,917 | 36,192 | 38,143 | 37,892 | 41,337 | |||||||||||||||
Same store NOI | $ | 82,872 | $ | 84,124 | $ | 83,820 | $ | 84,457 | $ | 84,004 | ||||||||||
Year over year growth rate | 1.4 | % |
Portfolio Diversification by Tenant(3) | Rental Income | % of Total | Quality Indicators | ||||||||
Kelsey-Seybold | $ | 20,940 | 4.1 | % | Health system affiliated properties as % of NOI(3) | 94.3 | % | ||||
NMC Health | 19,422 | 3.8 | % | Health system affiliated tenants as % of rental income(3) | 67.1 | % | |||||
CommonSpirit Health | 19,088 | 3.7 | % | Retention (trailing twelve months)(3) | 79.4 | % | |||||
Virtua | 16,219 | 3.2 | % | In-house managed properties as % of square feet(3,4) | 80.1 | % | |||||
Novant Health | 14,865 | 2.9 | % | Average remaining lease term (years)(3) | 6.3 | ||||||
Remaining portfolio | 422,808 | 82.3 | % | Average building size (square feet)(3) | 61,983 | ||||||
Total | $ | 513,342 | 100.0 | % | Average age (years) | 14 |
Expirations(3) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||
Occupied square feet | 410,524 | 1,614,257 | 2,018,110 | 2,160,279 | 2,132,110 | 11,564,358 | ||||||||||||
% of occupied square feet | 2.1 | % | 8.1 | % | 10.1 | % | 10.9 | % | 10.7 | % | 58.1 | % | ||||||
Investment |
Detail of Acquisitions/JVs(1) | ||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 1Q19 | 2Q19 | 3Q19 | 15-19 Total | |||||||||||||||||||||||||
Count | 44 | 22 | 18 | 15 | 5 | 8 | 7 | 119 | ||||||||||||||||||||||||
Total | $ | 3,765,912 | $ | 2,287,973 | $ | 742,020 | $ | 3,788,261 | $ | 258,771 | $ | 2,402,549 | $ | 294,193 | $ | 13,539,679 | ||||||||||||||||
Low | 6,080 | 10,618 | 7,310 | 4,950 | 8,300 | 22,800 | 7,550 | 4,950 | ||||||||||||||||||||||||
Median | 33,513 | 27,402 | 24,025 | 73,727 | 56,812 | 214,371 | 30,638 | 34,992 | ||||||||||||||||||||||||
High | 437,472 | 1,150,000 | 149,400 | 2,481,723 | 79,544 | 1,250,000 | 140,000 | 2,481,723 |
Investment Timing | ||||||||||||||||||
Acquisitions/Joint Ventures(2) | Yield | Construction Conversions | Yield | Dispositions | Yield | |||||||||||||
July | $ | 116,005 | 6.0 | % | $ | — | — | % | $ | 1,760,798 | 5.4 | % | ||||||
August | 178,188 | 5.3 | % | 22,456 | 6.1 | % | 254,204 | 10.9 | % | |||||||||
September | — | — | % | — | — | % | 33,704 | 5.6 | % | |||||||||
Total | $ | 294,193 | 5.6 | % | $ | 22,456 | 6.1 | % | $ | 2,048,706 | 6.1 | % |
Investment |
(dollars in thousands, except per bed / unit / square foot, at Welltower pro rata ownership) | |||||||||||||
Gross Investment Activity | |||||||||||||
Third Quarter 2019 | |||||||||||||
Properties | Beds / Units / Square Feet | Pro Rata Amount | Investment Per Bed / Unit / SqFt | Yield | |||||||||
Acquisitions / Joint Ventures(1) | |||||||||||||
Seniors Housing Operating | 2 | 313 | units | $ | 65,907 | 210,565 | 4.6 | % | |||||
Seniors Housing Triple-net | 2 | 154 | units | 35,591 | 231,110 | 7.2 | % | ||||||
Outpatient Medical | 9 | 428,960 | sf | 192,695 | 449 | 5.6 | % | ||||||
Total acquisitions | 13 | 294,193 | 5.6 | % | |||||||||
Development(2) | |||||||||||||
Development projects: | |||||||||||||
Seniors Housing Operating | 21 | 2,357 | units | 62,339 | |||||||||
Seniors Housing Triple-net | 8 | 781 | units | 26,956 | |||||||||
Outpatient Medical | 8 | 742,271 | sf | 42,511 | |||||||||
Total development projects | 37 | 131,806 | |||||||||||
Expansion projects: | |||||||||||||
Seniors Housing Operating | 3 | 114 | units | 9,083 | |||||||||
Total development | 40 | 140,889 | 8.1 | % | |||||||||
Total gross investments | 435,082 | 6.4 | % | ||||||||||
Dispositions(3) | |||||||||||||
Seniors Housing Operating | 48 | 4,137 | units | 1,760,798 | 425,622 | 5.4 | % | ||||||
Long-Term/Post-Acute Care | 22 | 1,882 | beds | 287,908 | 152,980 | 10.3 | % | ||||||
Real property dispositions | 70 | 2,048,706 | 6.1 | % | |||||||||
Loan payoffs | 62,071 | 9.4 | % | ||||||||||
Total dispositions | 70 | 2,110,777 | 6.2 | % | |||||||||
Net investments | $ | (1,675,695 | ) |
Investment |
(dollars in thousands, except per bed / unit / square foot, at Welltower pro rata ownership) | ||||||||||||||
Gross Investment Activity | ||||||||||||||
Year-To-Date 2019 | ||||||||||||||
Properties | Beds / Units / Square Feet | Pro Rata Amount | Investment Per Bed / Unit / SqFt | Yield | ||||||||||
Acquisitions / Joint Ventures(1) | ||||||||||||||
Seniors Housing Operating | 53 | 6,339 | units | $ | 1,225,771 | 193,370 | 5.1 | % | ||||||
Seniors Housing Triple-net | 6 | 540 | units | 137,935 | 255,435 | 6.6 | % | |||||||
Outpatient Medical | 75 | 4,241,332 | sf | 1,591,807 | 375 | 5.7 | % | |||||||
Total acquisitions | 134 | 2,955,513 | 5.5 | % | ||||||||||
Development(2) | ||||||||||||||
Development projects: | ||||||||||||||
Seniors Housing Operating | 24 | 2,946 | units | 180,009 | ||||||||||
Seniors Housing Triple-net | 9 | 854 | units | 71,309 | ||||||||||
Outpatient Medical | 8 | 742,271 | sf | 101,676 | ||||||||||
Total development projects | 41 | 352,994 | ||||||||||||
Expansion projects: | ||||||||||||||
Seniors Housing Operating | 3 | 114 | units | 20,309 | ||||||||||
Total development | 44 | 373,303 | 7.6 | % | ||||||||||
Loan advances(3) | 27,660 | 8.0 | % | |||||||||||
Total gross investments | 3,356,476 | 5.7 | % | |||||||||||
Dispositions(4) | ||||||||||||||
Seniors Housing Operating | 51 | 4,285 | units | 1,772,276 | 413,600 | 5.4 | % | |||||||
Seniors Housing Triple-net | 9 | 1,344 | units | 344,340 | 256,205 | 5.1 | % | |||||||
Long-Term/Post-Acute Care | 48 | 5,841 | beds | 558,391 | 95,599 | 9.6 | % | |||||||
Real property dispositions | 108 | 2,675,007 | 6.3 | % | ||||||||||
Loan payoffs | 76,428 | 0.1001275407 | 10.0 | % | ||||||||||
Total dispositions | 108 | 2,751,435 | 6.4 | % | ||||||||||
Net investments | $ | 605,041 | ||||||||||||
Investment |
Property Acquisitions/Joint Ventures Detail | ||||||||||
Operator | Units | Location | MSA | |||||||
Seniors Housing Operating | ||||||||||
LCB Senior Living | 106 | 7 Canal Road | Suffield | Connecticut | US | Hartford | ||||
Senior Resource Group | 207 | 165 Pierce Street | Daly City | California | US | San Francisco | ||||
Total | 313 | |||||||||
Seniors Housing Triple-Net | ||||||||||
Avery | 78 | Tenniscourt Road | Bristol | United Kingdom | UK | Bristol | ||||
Avery | 76 | 339 Badminton Road | Bristol | United Kingdom | UK | Bristol | ||||
Total | 154 | |||||||||
Outpatient Medical | ||||||||||
Health System | Square Feet | Location | MSA | |||||||
Baylor Scott & White Health | 44,888 | 925 E. Southlake Boulevard | Southlake | Texas | US | Dallas | ||||
Summit Medical Group(1) | 270,000 | 1 Diamond Hill Road | Berkeley Heights | New Jersey | US | New York | ||||
TriHealth Health System | 41,015 | 4685 Forest Avenue | Norwood | Ohio | US | Cincinnati | ||||
Novant Health | 73,057 | 15195 Heathcote Blvd | Haymarket | Virginia | US | Washington D.C. | ||||
Total | 428,960 |
Investment |
(dollars in thousands at Welltower pro rata ownership) | ||||||||||||||||||
Development Summary(1) | ||||||||||||||||||
Unit Mix | ||||||||||||||||||
Facility | Total | Independent Living | Assisted Living | Memory Care | Commitment Amount | Balance at 9/30/19 | Estimated Conversion | |||||||||||
Seniors Housing Operating | ||||||||||||||||||
Shrewsbury, NJ | 81 | — | 52 | 29 | $ | 11,696 | $ | 9,914 | 4Q19 | |||||||||
Wandsworth, UK | 97 | — | 77 | 20 | 54,403 | 43,466 | 1Q20 | |||||||||||
Wilton, CT | 90 | — | 59 | 31 | 13,974 | 11,542 | 1Q20 | |||||||||||
Taylor, PA | 113 | 113 | — | — | 13,209 | 9,546 | 1Q20 | |||||||||||
Beavercreek, OH | 100 | 100 | — | — | 11,136 | 9,706 | 1Q20 | |||||||||||
New York, NY | 151 | — | 69 | 82 | 93,549 | 77,451 | 2Q20 | |||||||||||
Scarborough, ON | 172 | 141 | — | 31 | 24,307 | 7,450 | 3Q20 | |||||||||||
Newton, MA | 85 | — | 43 | 42 | 15,169 | 3,079 | 3Q20 | |||||||||||
Potomac, MD | 120 | — | 90 | 30 | 55,302 | 16,903 | 4Q20 | |||||||||||
Medina, OH | 166 | 166 | — | — | 20,520 | 4,613 | 4Q20 | |||||||||||
Collierville, TN | 164 | 164 | — | — | 18,949 | 7,472 | 4Q20 | |||||||||||
Fairfield, CT | 83 | — | 54 | 29 | 12,648 | 10,726 | 4Q20 | |||||||||||
Redwood City, CA | 90 | — | 56 | 34 | 18,054 | 1,421 | 1Q21 | |||||||||||
Fairfax, VA | 84 | — | 51 | 33 | 15,946 | 2,623 | 1Q21 | |||||||||||
Mountain Lakes, NJ | 90 | — | 57 | 33 | 15,062 | 2,345 | 1Q21 | |||||||||||
Boynton Beach, FL | 82 | — | 52 | 30 | 11,356 | 4,689 | 2Q21 | |||||||||||
Beckenham, UK | 100 | — | 76 | 24 | 43,467 | 20,429 | 3Q21 | |||||||||||
Orange, CA | 91 | — | 49 | 42 | 18,564 | 2,694 | 3Q21 | |||||||||||
Coral Gables, FL | 91 | — | 55 | 36 | 18,224 | 3,238 | 4Q21 | |||||||||||
San Francisco, CA | 214 | 11 | 170 | 33 | 87,389 | 49,453 | 1Q22 | |||||||||||
Alexandria, VA | 93 | — | 66 | 27 | 20,624 | 6,497 | 1Q22 | |||||||||||
Subtotal | 2,357 | 695 | 1,076 | 586 | $ | 593,548 | $ | 305,257 | ||||||||||
Seniors Housing Triple-net | ||||||||||||||||||
Union, KY | 162 | 162 | — | — | 34,600 | 20,557 | 1Q20 | |||||||||||
Apex, NC | 152 | 98 | 30 | 24 | 30,883 | 11,756 | 1Q20 | |||||||||||
Westerville, OH | 90 | — | 63 | 27 | 22,800 | 17,049 | 1Q20 | |||||||||||
Edenbridge, UK | 85 | — | 51 | 34 | 18,432 | 11,464 | 2Q20 | |||||||||||
Droitwich, UK | 70 | — | 45 | 25 | 15,584 | 8,787 | 2Q20 | |||||||||||
Thousand Oaks, CA | 82 | — | — | 82 | 24,763 | 8,199 | 4Q20 | |||||||||||
Leicester, UK | 60 | — | 36 | 24 | 13,782 | 3,247 | 1Q21 | |||||||||||
Subtotal | 701 | 260 | 225 | 216 | $ | 160,844 | $ | 81,059 | ||||||||||
Outpatient Medical | ||||||||||||||||||
Rentable Square Ft | Preleased % | Health System Affiliation | Commitment Amount | Balance at 9/30/19 | Estimated Conversion | |||||||||||||
Mission Viejo, CA | 104,500 | 100 | % | Yes | $ | 71,372 | $ | 49,885 | 4Q19 | |||||||||
Houston, TX | 73,500 | 100 | % | Yes | 23,455 | 16,126 | 4Q19 | |||||||||||
Porter, TX | 55,000 | 100 | % | Yes | 20,800 | 12,041 | 1Q20 | |||||||||||
Lowell, MA | 50,668 | 100 | % | Yes | 8,700 | 6,559 | 1Q20 | |||||||||||
Brooklyn, NY | 140,955 | 100 | % | Yes | 105,306 | 77,097 | 2Q20 | |||||||||||
Charlotte, NC | 176,640 | 100 | % | Yes | 95,703 | 49,695 | 2Q20 | |||||||||||
Katy, TX | 36,500 | 100 | % | Yes | 12,028 | 1,077 | 2Q20 | |||||||||||
Charlotte, NC | 104,508 | 100 | % | Yes | 52,255 | 10,763 | 3Q20 | |||||||||||
Subtotal | 742,271 | $ | 389,619 | $ | 223,243 | |||||||||||||
Total Development Projects | $ | 1,144,011 | $ | 609,559 | ||||||||||||||
Investment |
(dollars in thousands at Welltower pro rata ownership) | ||||||||||||||||||||||||
Development Funding Projections(1) | ||||||||||||||||||||||||
Projected Future Funding | ||||||||||||||||||||||||
Projects | Beds / Units / Square Feet | Projected Yields(2) | 2019 Funding | Funding Thereafter | Total Unfunded Commitments | Committed Balances | ||||||||||||||||||
Seniors Housing Operating | 21 | 2,357 | 8.4 | % | $ | 67,378 | $ | 220,913 | $ | 288,291 | $ | 593,548 | ||||||||||||
Seniors Housing Triple-net | 7 | 701 | 7.0 | % | 38,487 | 41,298 | 79,785 | 160,844 | ||||||||||||||||
Outpatient Medical | 8 | 742,271 | 6.4 | % | 76,706 | 89,670 | 166,376 | 389,619 | ||||||||||||||||
Total | 36 | 7.6 | % | $ | 182,571 | $ | 351,881 | $ | 534,452 | $ | 1,144,011 |
Development Project Conversion Estimates(1) | ||||||||||||||||
Quarterly Conversions | Annual Conversions | |||||||||||||||
Amount | Projected Yields(2) | Amount | Projected Yields(2) | |||||||||||||
1Q19 actual | $ | 34,389 | 7.6 | % | 2019 estimate | $ | 199,608 | 6.8 | % | |||||||
2Q19 actual | 36,240 | 7.8 | % | 2020 estimate | 775,020 | 7.6 | % | |||||||||
3Q19 actual | 22,456 | 6.1 | % | 2021 estimate | 154,455 | 8.9 | % | |||||||||
4Q19 estimate | 106,523 | 6.3 | % | 2022 estimate | 108,013 | 7.0 | % | |||||||||
1Q20 estimate | 210,505 | 8.3 | % | Total | $ | 1,237,096 | 7.6 | % | ||||||||
2Q20 estimate | 340,602 | 6.8 | % | |||||||||||||
3Q20 estimate | 91,731 | 7.0 | % | |||||||||||||
4Q20 estimate | 132,182 | 8.9 | % | |||||||||||||
1Q21 estimate | 62,844 | 8.5 | % | |||||||||||||
2Q21 estimate | 11,356 | 8.9 | % | |||||||||||||
3Q21 estimate | 62,031 | 9.3 | % | |||||||||||||
4Q21 estimate | 18,224 | 9.2 | % | |||||||||||||
1Q22 estimate | 108,013 | 7.0 | % | |||||||||||||
Total | $ | 1,237,096 | 7.6 | % |
Unstabilized Properties | |||||||||||||||||
6/30/2019 Properties | Stabilizations | Construction Conversions(3) | Acquisitions/ Dispositions | 9/30/2019 Properties | Beds / Units | ||||||||||||
Seniors Housing Operating | 30 | (3 | ) | — | — | 27 | 3,442 | ||||||||||
Seniors Housing Triple-net | 11 | (3 | ) | 1 | — | 9 | 1,001 | ||||||||||
Long-Term/Post-Acute Care | 4 | (2 | ) | — | — | 2 | 244 | ||||||||||
Total | 45 | (8 | ) | 1 | — | 38 | 4,687 |
Occupancy | 6/30/2019 Properties | Stabilizations | Construction Conversions(3) | Acquisitions/ Dispositions | Progressions | 9/30/2019 Properties | |||||||||||||
0% - 50% | 17 | — | 1 | — | (6 | ) | 12 | ||||||||||||
50% - 70% | 13 | (2 | ) | — | — | 3 | 14 | ||||||||||||
70% + | 15 | (6 | ) | — | — | 3 | 12 | ||||||||||||
Total | 45 | (8 | ) | 1 | — | — | 38 | ||||||||||||
Occupancy | 9/30/2019 Properties | Months In Operation | Revenues | % of Total Revenues(4) | Gross Investment Balance | % of Total Gross Investment | |||||||||||||
0% - 50% | 12 | 10 | $ | 29,252 | 0.6 | % | $ | 368,278 | 1.1 | % | |||||||||
50% - 70% | 14 | 14 | 50,725 | 1.0 | % | 499,072 | 1.4 | % | |||||||||||
70% + | 12 | 21 | 71,962 | 1.5 | % | 380,049 | 1.1 | % | |||||||||||
Total | 38 | 15 | $ | 151,939 | 3.1 | % | $ | 1,247,399 | 3.6 | % | |||||||||
Financial |
(dollars in thousands at Welltower pro rata ownership) | ||||||||
Components of NAV | ||||||||
Stabilized NOI | Pro rata beds/units/square feet | |||||||
Seniors Housing Operating(1) | $ | 939,936 | 55,582 | units | ||||
Seniors Housing Triple-net | 402,608 | 24,000 | units | |||||
Outpatient Medical | 457,468 | 20,409,465 | square feet | |||||
Health System | 144,512 | 20,970 | units/beds | |||||
Long-Term/Post-Acute Care | 180,936 | 13,664 | beds | |||||
Total In-Place NOI(2) | 2,125,460 | |||||||
Incremental stabilized NOI(3) | 42,952 | |||||||
Total stabilized NOI | $ | 2,168,412 | ||||||
Obligations | ||||||||
Lines of credit and commercial paper(4) | $ | 1,335,000 | ||||||
Senior unsecured notes(4) | 9,817,276 | |||||||
Secured debt(4) | 2,861,716 | |||||||
Financing lease liabilities | 110,623 | |||||||
Total Debt | $ | 14,124,615 | ||||||
Add (Subtract): | ||||||||
Other liabilities (assets), net(5) | $ | 173,953 | ||||||
Cash and cash equivalents and restricted cash | (330,735 | ) | ||||||
Net obligations | $ | 13,967,833 | ||||||
Other Assets | ||||||||
Land parcels | $ | 162,467 | Effective Interest Rate(7) | |||||
Real estate loans receivable(6) | 351,502 | 8.0% | ||||||
Non real estate loans receivable | 276,857 | 8.5% | ||||||
Other investments(8) | 38,447 | |||||||
Investments held for sale(9) | 348,655 | |||||||
Development properties:(10) | ||||||||
Current balance | $ | 634,471 | ||||||
Unfunded commitments | 553,681 | |||||||
Committed balances | $ | 1,188,152 | ||||||
Projected yield | 7.6 | % | ||||||
Projected NOI | $ | 90,300 | ||||||
Common Shares Outstanding | 405,758 | |||||||
Unearned revenues | $ | 185,559 | ||
Below market tenant lease intangibles, net | 47,060 | |||
Deferred taxes, net | (12,583 | ) | ||
Available-for-sale equity investments | (10,617 | ) | ||
In place lease intangibles, net | (47,367 | ) | ||
Other non-cash liabilities / (assets), net | 3,727 | |||
Total non-cash liabilities/(assets), net | $ | 165,779 |
Financial |
(dollars in thousands at Welltower pro rata ownership) | ||||||||||||||||||||
Net Operating Income(1) | ||||||||||||||||||||
3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Seniors Housing Operating | ||||||||||||||||||||
Resident fees and services | $ | 847,712 | $ | 833,134 | $ | 837,866 | $ | 878,933 | $ | 803,904 | ||||||||||
Interest income | 159 | 157 | — | — | — | |||||||||||||||
Other income | 1,183 | 1,065 | 4,072 | 1,387 | 1,347 | |||||||||||||||
Total revenues | 849,054 | 834,356 | 841,938 | 880,320 | 805,251 | |||||||||||||||
Seniors Housing Triple-net | ||||||||||||||||||||
Rental income | 102,205 | 104,431 | 113,874 | 107,220 | 114,419 | |||||||||||||||
Interest income | 6,911 | 5,749 | 5,660 | 7,701 | 5,910 | |||||||||||||||
Other income | 1,303 | 637 | 945 | 1,105 | 1,312 | |||||||||||||||
Total revenues | 110,419 | 110,817 | 120,479 | 116,026 | 121,641 | |||||||||||||||
Outpatient Medical | ||||||||||||||||||||
Rental income | 129,953 | 130,076 | 139,295 | 154,044 | 174,330 | |||||||||||||||
Interest income | 85 | 170 | 173 | 238 | 358 | |||||||||||||||
Other income | 306 | 4,598 | 267 | 161 | 312 | |||||||||||||||
Total revenues | 130,344 | 134,844 | 139,735 | 154,443 | 175,000 | |||||||||||||||
Health System | ||||||||||||||||||||
Rental income | 30,614 | 43,033 | 43,036 | 43,036 | 43,036 | |||||||||||||||
Total revenues | 30,614 | 43,033 | 43,036 | 43,036 | 43,036 | |||||||||||||||
Long-Term/Post-Acute Care | ||||||||||||||||||||
Rental income | 63,868 | 64,216 | 65,456 | 62,640 | 60,479 | |||||||||||||||
Interest income | 7,468 | 7,006 | 9,286 | 9,417 | 9,369 | |||||||||||||||
Other income | 390 | 201 | 375 | 173 | 517 | |||||||||||||||
Total revenues | 71,726 | 71,423 | 75,117 | 72,230 | 70,365 | |||||||||||||||
Corporate | ||||||||||||||||||||
Other income | 572 | 591 | 2,031 | 327 | 712 | |||||||||||||||
Total revenues | 572 | 591 | 2,031 | 327 | 712 | |||||||||||||||
Total | ||||||||||||||||||||
Rental income | 326,640 | 341,756 | 361,661 | 366,940 | 392,264 | |||||||||||||||
Resident fees and services | 847,712 | 833,134 | 837,866 | 878,933 | 803,904 | |||||||||||||||
Interest income | 14,623 | 13,082 | 15,119 | 17,356 | 15,637 | |||||||||||||||
Other income | 3,754 | 7,092 | 7,690 | 3,153 | 4,200 | |||||||||||||||
Total revenues | $ | 1,192,729 | $ | 1,195,064 | $ | 1,222,336 | $ | 1,266,382 | $ | 1,216,005 | ||||||||||
Property operating expenses: | ||||||||||||||||||||
Seniors Housing Operating | $ | 585,525 | $ | 582,412 | $ | 580,917 | $ | 607,836 | $ | 554,782 | ||||||||||
Seniors Housing Triple-net | (1 | ) | 21 | 8,935 | 7,219 | 8,282 | ||||||||||||||
Outpatient Medical | 42,524 | 40,136 | 44,868 | 47,894 | 57,272 | |||||||||||||||
Health System | 12 | 17 | 20 | 20 | 20 | |||||||||||||||
Long-Term/Post-Acute Care | 412 | 287 | 5,905 | 5,475 | 5,503 | |||||||||||||||
Total property operating expenses | $ | 628,472 | $ | 622,873 | $ | 640,645 | $ | 668,444 | $ | 625,859 | ||||||||||
Net operating income: | ||||||||||||||||||||
Seniors Housing Operating | $ | 263,529 | $ | 251,944 | $ | 261,021 | $ | 272,484 | $ | 250,469 | ||||||||||
Seniors Housing Triple-net | 110,420 | 110,796 | 111,544 | 108,807 | 113,359 | |||||||||||||||
Outpatient Medical | 87,820 | 94,708 | 94,867 | 106,549 | 117,728 | |||||||||||||||
Health System | 30,602 | 43,016 | 43,016 | 43,016 | 43,016 | |||||||||||||||
Long-Term/Post-Acute Care | 71,314 | 71,136 | 69,212 | 66,755 | 64,862 | |||||||||||||||
Corporate | 572 | 591 | 2,031 | 327 | 712 | |||||||||||||||
Net operating income | $ | 564,257 | $ | 572,191 | $ | 581,691 | $ | 597,938 | $ | 590,146 | ||||||||||
Financial |
(dollars in thousands) | ||||||||
Leverage and EBITDA Reconciliations(1) | ||||||||
Twelve Months Ended | Three Months Ended | |||||||
9/30/2019 | 9/30/2019 | |||||||
Net income (loss) | $ | 1,214,970 | $ | 647,932 | ||||
Interest expense | 568,280 | 137,343 | ||||||
Income tax expense (benefit) | 9,293 | 3,968 | ||||||
Depreciation and amortization | 1,007,263 | 272,445 | ||||||
EBITDA | $ | 2,799,806 | $ | 1,061,688 | ||||
Loss (income) from unconsolidated entities | 14,791 | (3,262 | ) | |||||
Stock-based compensation(2) | 25,347 | 5,309 | ||||||
Loss (gain) on extinguishment of debt, net | 81,596 | 65,824 | ||||||
Loss (gain) on real estate dispositions, net | (777,890 | ) | (570,250 | ) | ||||
Impairment of assets | 104,057 | 18,096 | ||||||
Provision for loan losses | 18,690 | — | ||||||
Loss (gain) on derivatives and financial instruments, net | 2,296 | 1,244 | ||||||
Other expenses(2) | 45,512 | 5,885 | ||||||
Additional other income(3) | (4,027 | ) | — | |||||
Total adjustments | (489,628 | ) | (477,154 | ) | ||||
Adjusted EBITDA | $ | 2,310,178 | $ | 584,534 | ||||
Interest Coverage Ratios | ||||||||
Interest expense | $ | 568,280 | $ | 137,343 | ||||
Capitalized interest | 11,952 | 4,148 | ||||||
Non-cash interest expense | (11,218 | ) | (1,988 | ) | ||||
Total interest | $ | 569,014 | $ | 139,503 | ||||
EBITDA | $ | 2,799,806 | $ | 1,061,688 | ||||
Interest coverage ratio | 4.92 | x | 7.61 | x | ||||
Adjusted EBITDA | $ | 2,310,178 | $ | 584,534 | ||||
Adjusted Interest coverage ratio | 4.06 | x | 4.19 | x | ||||
Fixed Charge Coverage Ratios | ||||||||
Total interest | $ | 569,014 | $ | 139,503 | ||||
Secured debt principal amortization | 54,342 | 13,121 | ||||||
Preferred dividends | 11,676 | — | ||||||
Total fixed charges | $ | 635,032 | $ | 152,624 | ||||
EBITDA | $ | 2,799,806 | $ | 1,061,688 | ||||
Fixed charge coverage ratio | 4.41 | x | 6.96 | x | ||||
Adjusted EBITDA | $ | 2,310,178 | $ | 584,534 | ||||
Adjusted Fixed charge coverage ratio | 3.64 | x | 3.83 | x | ||||
Net Debt to EBITDA Ratios | ||||||||
Total debt(4) | $ | 13,798,266 | ||||||
Less: cash and cash equivalents(5) | (265,788 | ) | ||||||
Net debt | $ | 13,532,478 | ||||||
EBITDA Annualized | $ | 4,246,752 | ||||||
Net debt to EBITDA ratio | 3.19 | x | ||||||
Adjusted EBITDA Annualized | $ | 2,338,136 | ||||||
Net debt to Adjusted EBITDA ratio | 5.79 | x | ||||||
Financial |
(in thousands except share price) | |||||||||
Leverage and Current Capitalization(1) | |||||||||
% of Total | |||||||||
Book Capitalization | |||||||||
Lines of credit and commercial paper(2) | $ | 1,334,586 | 4.41 | % | |||||
Long-term debt obligations(2) | 12,463,680 | 41.24 | % | ||||||
Cash and cash equivalents(3) | (265,788 | ) | (0.88 | )% | |||||
Net debt to consolidated book capitalization | $ | 13,532,478 | 44.77 | % | |||||
Total equity(4) | 16,696,070 | 55.23 | % | ||||||
Consolidated book capitalization | $ | 30,228,548 | 100.00 | % | |||||
Joint venture debt, net(5) | 222,701 | ||||||||
Total book capitalization | $ | 30,451,249 | |||||||
Undepreciated Book Capitalization | |||||||||
Lines of credit and commercial paper(2) | $ | 1,334,586 | 3.71 | % | |||||
Long-term debt obligations(2) | 12,463,680 | 34.62 | % | ||||||
Cash and cash equivalents(3) | (265,788 | ) | (0.74 | )% | |||||
Net debt to consolidated undepreciated book capitalization | $ | 13,532,478 | 37.59 | % | |||||
Accumulated depreciation and amortization | 5,769,843 | 16.03 | % | ||||||
Total equity(4) | 16,696,070 | 46.38 | % | ||||||
Consolidated undepreciated book capitalization | $ | 35,998,391 | 100.00 | % | |||||
Joint venture debt, net(5) | 222,701 | 186.271 | |||||||
Total undepreciated book capitalization | $ | 36,221,092 | |||||||
Enterprise Value | |||||||||
Lines of credit and commercial paper(2) | $ | 1,334,586 | 2.58 | % | |||||
Long-term debt obligations(2) | 12,463,680 | 24.09 | % | ||||||
Cash and cash equivalents(3) | (265,788 | ) | (0.51 | )% | |||||
Net debt to consolidated enterprise value | $ | 13,532,478 | 26.16 | % | |||||
Common shares outstanding | 405,758 | ||||||||
Period end share price | 90.65 | ||||||||
Common equity market capitalization | $ | 36,781,963 | 71.08 | % | |||||
Noncontrolling interests(4) | 1,430,005 | 2.76 | % | ||||||
Consolidated enterprise value | $ | 51,744,446 | 100.00 | % | |||||
Joint venture debt, net(5) | 222,701 | ||||||||
Total enterprise value | $ | 51,967,147 | |||||||
Secured Debt as % of Total Assets | |||||||||
Secured debt(2) | $ | 2,623,010 | 8.23 | % | |||||
Total assets | $ | 31,863,955 | |||||||
Total Debt as % of Total Assets | |||||||||
Total debt(2) | $ | 13,798,266 | 43.30 | % | |||||
Total assets | $ | 31,863,955 | |||||||
Unsecured Debt as % of Unencumbered Assets | |||||||||
Unsecured debt(2) | $ | 11,064,633 | 37.70 | % | |||||
Unencumbered assets | $ | 29,350,210 | |||||||
Financial |
(dollars in thousands) | |||||||||||||||||||||||||||||
Debt Maturities and Principal Payments(1) | |||||||||||||||||||||||||||||
Year | Lines of Credit and Commercial Paper(2) | Senior Unsecured Notes(3,4,5,6) | Consolidated Secured Debt | Share of Unconsolidated Secured Debt | Noncontrolling Interests' Share of Consolidated Secured Debt | Combined Debt(7) | % of Total | Wtd. Avg. Interest Rate | |||||||||||||||||||||
2019 | $ | 835,000 | $ | — | $ | 256,322 | $ | 11,817 | $ | (61,227 | ) | $ | 1,041,912 | 7.43 | % | 2.50 | % | ||||||||||||
2020 | — | 226,501 | 160,897 | 55,754 | (37,012 | ) | 406,140 | 2.90 | % | 3.56 | % | ||||||||||||||||||
2021 | — | — | 380,866 | 19,882 | (120,240 | ) | 280,508 | 2.00 | % | 3.80 | % | ||||||||||||||||||
2022 | — | 10,000 | 353,548 | 27,417 | (52,808 | ) | 338,157 | 2.41 | % | 3.62 | % | ||||||||||||||||||
2023 | 500,000 | 1,788,750 | 329,449 | 33,596 | (104,698 | ) | 2,547,097 | 18.18 | % | 3.09 | % | ||||||||||||||||||
2024 | — | 1,350,000 | 288,133 | 37,113 | (80,763 | ) | 1,594,483 | 11.38 | % | 3.86 | % | ||||||||||||||||||
2025 | — | 1,250,000 | 199,260 | 405,886 | (34,223 | ) | 1,820,923 | 12.99 | % | 3.96 | % | ||||||||||||||||||
2026 | — | 700,000 | 38,798 | 17,098 | (9,096 | ) | 746,800 | 5.33 | % | 4.17 | % | ||||||||||||||||||
2027 | — | — | 137,486 | 61,849 | (34,818 | ) | 164,517 | 1.17 | % | 3.62 | % | ||||||||||||||||||
2028 | — | 1,426,775 | 78,216 | 22,672 | (13,292 | ) | 1,514,371 | 10.81 | % | 4.47 | % | ||||||||||||||||||
Thereafter | — | 3,065,250 | 416,040 | 107,141 | (29,347 | ) | 3,559,084 | 25.40 | % | 4.25 | % | ||||||||||||||||||
Totals | $ | 1,335,000 | $ | 9,817,276 | $ | 2,639,015 | $ | 800,225 | $ | (577,524 | ) | $ | 14,013,992 | 100.00 | % | ||||||||||||||
Weighted Avg Interest Rate(8) | 2.53 | % | 4.12 | % | 3.66 | % | 3.75 | % | 3.61 | % | 3.88 | % | |||||||||||||||||
Weighted Avg Maturity Years | 1.4 | (2) | 9.0 | 5.4 | 8.7 | 4.5 | 7.8 | (2) | |||||||||||||||||||||
% Floating Rate Debt | 100.00 | % | 7.12 | % | 43.74 | % | 9.69 | % | 57.56 | % | 20.93 | % |
Debt by Local Currency(1) | |||||||||||||||||||||||||||||
Lines of Credit and Commercial Paper | Senior Unsecured Notes | Consolidated Secured Debt | Share of Unconsolidated Secured Debt | Noncontrolling Interests' Share of Consolidated Secured Debt | Combined Debt | Investment Hedges(9) | |||||||||||||||||||||||
United States | $ | 1,335,000 | $ | 8,110,000 | $ | 1,361,621 | $ | 581,196 | $ | (286,300 | ) | $ | 11,101,517 | $ | — | ||||||||||||||
United Kingdom | — | 1,292,025 | 165,724 | — | (41,431 | ) | 1,416,318 | 1,649,741 | |||||||||||||||||||||
Canada | — | 415,251 | 1,111,670 | 219,029 | (249,793 | ) | 1,496,157 | 547,376 | |||||||||||||||||||||
Totals | $ | 1,335,000 | $ | 9,817,276 | $ | 2,639,015 | $ | 800,225 | $ | (577,524 | ) | $ | 14,013,992 | $ | 2,197,117 | ||||||||||||||
Glossary |
Supplemental Reporting Measures |
Supplemental Reporting Measures |
(dollars in thousands) | |||||||||||||||||||||||
Non-GAAP Reconciliations | |||||||||||||||||||||||
NOI Reconciliation | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | ||||||||||||||||||
Net income (loss) | $ | 84,226 | $ | 124,696 | $ | 292,302 | $ | 150,040 | $ | 647,932 | |||||||||||||
Loss (gain) on real estate dispositions, net | (24,723 | ) | (41,913 | ) | (167,409 | ) | 1,682 | (570,250 | ) | ||||||||||||||
Loss (income) from unconsolidated entities | (344 | ) | (195 | ) | 9,199 | 9,049 | (3,262 | ) | |||||||||||||||
Income tax expense (benefit) | 1,741 | 1,504 | 2,222 | 1,599 | 3,968 | ||||||||||||||||||
Other expenses | 88,626 | 10,502 | 8,756 | 21,628 | 6,186 | ||||||||||||||||||
Impairment of assets | 6,740 | 76,022 | — | 9,939 | 18,096 | ||||||||||||||||||
Provision for loan losses | — | — | 18,690 | — | — | ||||||||||||||||||
Loss (gain) on extinguishment of debt, net | 4,038 | 53 | 15,719 | — | 65,824 | ||||||||||||||||||
Loss (gain) on derivatives and financial instruments, net | 8,991 | 1,626 | (2,487 | ) | 1,913 | 1,244 | |||||||||||||||||
General and administrative expenses | 28,746 | 31,101 | 35,282 | 33,741 | 31,019 | ||||||||||||||||||
Depreciation and amortization | 243,149 | 242,834 | 243,932 | 248,052 | 272,445 | ||||||||||||||||||
Interest expense | 138,032 | 144,369 | 145,232 | 141,336 | 137,343 | ||||||||||||||||||
Consolidated net operating income | 579,222 | 590,599 | 601,438 | 618,979 | 610,545 | ||||||||||||||||||
NOI attributable to unconsolidated investments(1) | 22,247 | 21,933 | 21,827 | 21,518 | 21,957 | ||||||||||||||||||
NOI attributable to noncontrolling interests(2) | (37,212 | ) | (40,341 | ) | (41,574 | ) | (42,559 | ) | (42,356 | ) | |||||||||||||
Pro rata net operating income (NOI)(3) | $ | 564,257 | $ | 572,191 | $ | 581,691 | $ | 597,938 | $ | 590,146 |
In-Place NOI Reconciliation | ||||||||||||||||||||||||||||
At Welltower pro rata ownership | Seniors Housing Operating | Seniors Housing Triple-net | Outpatient Medical | Health System | Long-Term /Post-Acute Care | Corporate | Total | |||||||||||||||||||||
Revenues | $ | 805,251 | $ | 121,641 | $ | 175,000 | $ | 43,036 | $ | 70,365 | $ | 712 | $ | 1,216,005 | ||||||||||||||
Property operating expenses | (554,782 | ) | (8,282 | ) | (57,272 | ) | (20 | ) | (5,503 | ) | — | (625,859 | ) | |||||||||||||||
NOI(3) | 250,469 | 113,359 | 117,728 | 43,016 | 64,862 | 712 | 590,146 | |||||||||||||||||||||
Adjust: | ||||||||||||||||||||||||||||
Interest income | — | (5,910 | ) | (358 | ) | — | (9,369 | ) | — | (15,637 | ) | |||||||||||||||||
Other income | (1,347 | ) | (1,312 | ) | (312 | ) | — | (517 | ) | (712 | ) | (4,200 | ) | |||||||||||||||
Sold / held for sale | (7,530 | ) | (701 | ) | (294 | ) | — | (5,782 | ) | — | (14,307 | ) | ||||||||||||||||
Developments / land | 594 | — | 35 | — | — | — | 629 | |||||||||||||||||||||
Non In-Place NOI(4) | (7,512 | ) | (4,851 | ) | (3,506 | ) | (6,888 | ) | (3,960 | ) | — | (26,717 | ) | |||||||||||||||
Timing adjustments(5) | 310 | 67 | 1,074 | — | — | — | 1,451 | |||||||||||||||||||||
Total adjustments | (15,485 | ) | (12,707 | ) | (3,361 | ) | (6,888 | ) | (19,628 | ) | (712 | ) | (58,781 | ) | ||||||||||||||
In-Place NOI | 234,984 | 100,652 | 114,367 | 36,128 | 45,234 | — | 531,365 | |||||||||||||||||||||
Annualized In-Place NOI | $ | 939,936 | $ | 402,608 | $ | 457,468 | $ | 144,512 | $ | 180,936 | $ | — | $ | 2,125,460 | ||||||||||||||
Same Store Property Reconciliation | ||||||||||||||||||
Seniors Housing Operating | Seniors Housing Triple-net | Outpatient Medical | Health System | Long-Term /Post-Acute Care | Total | |||||||||||||
Total properties | 596 | 340 | 364 | 218 | 138 | 1,656 | ||||||||||||
Recent acquisitions/ development conversions | (49 | ) | (6 | ) | (103 | ) | (218 | ) | (12 | ) | (388 | ) | ||||||
Under development/redevelopment | (33 | ) | (5 | ) | (7 | ) | — | (1 | ) | (46 | ) | |||||||
Current held for sale | (12 | ) | (6 | ) | (5 | ) | — | (2 | ) | (25 | ) | |||||||
Land parcels, loans and sub-leases | (8 | ) | (13 | ) | (10 | ) | — | (7 | ) | (38 | ) | |||||||
Transitions | (75 | ) | (19 | ) | — | — | (1 | ) | (95 | ) | ||||||||
Other(6) | (1 | ) | — | — | — | — | (1 | ) | ||||||||||
Same store properties | 418 | 291 | 239 | — | 115 | 1,063 |
Supplemental Reporting Measures |
(dollars in thousands at Welltower pro rata ownership) | ||||||||||||||||||||||
Same Store NOI Reconciliation | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | Y/o/Y | ||||||||||||||||
Seniors Housing Operating | ||||||||||||||||||||||
NOI | $ | 263,529 | $ | 251,944 | $ | 261,021 | $ | 272,484 | $ | 250,469 | ||||||||||||
Non-cash NOI on same store properties | (1,680 | ) | (1,092 | ) | 852 | 209 | (3,567 | ) | ||||||||||||||
NOI attributable to non-same store properties | (61,789 | ) | (52,709 | ) | (54,988 | ) | (70,881 | ) | (42,452 | ) | ||||||||||||
Currency and ownership adjustments(1) | 258 | 1,501 | 1,734 | 1,500 | 1,136 | |||||||||||||||||
Other normalizing adjustments(2) | 7 | 601 | (6,735 | ) | 520 | 396 | ||||||||||||||||
SSNOI | 200,325 | 200,245 | 201,884 | 203,832 | 205,982 | 2.8 | % | |||||||||||||||
Seniors Housing Triple-net | ||||||||||||||||||||||
NOI | 110,420 | 110,796 | 111,544 | 108,807 | 113,359 | |||||||||||||||||
Non-cash NOI on same store properties | (2,928 | ) | (172 | ) | (3,973 | ) | (4,809 | ) | (4,300 | ) | ||||||||||||
NOI attributable to non-same store properties | (18,798 | ) | (21,886 | ) | (18,100 | ) | (14,523 | ) | (19,476 | ) | ||||||||||||
Currency and ownership adjustments(1) | (113 | ) | 180 | 81 | 384 | 1,191 | ||||||||||||||||
Normalizing adjustment for lease restructuring(3) | (1,390 | ) | (199 | ) | (9 | ) | — | — | ||||||||||||||
Other normalizing adjustments(2) | 255 | (882 | ) | (859 | ) | (204 | ) | (331 | ) | |||||||||||||
SSNOI | 87,446 | 87,837 | 88,684 | 89,655 | 90,443 | 3.4 | % | |||||||||||||||
Outpatient Medical | ||||||||||||||||||||||
NOI | 87,820 | 94,708 | 94,867 | 106,549 | 117,728 | |||||||||||||||||
Non-cash NOI on same store properties | (2,003 | ) | (6,104 | ) | (1,739 | ) | (1,347 | ) | (1,165 | ) | ||||||||||||
NOI attributable to non-same store properties | (2,582 | ) | (4,363 | ) | (9,454 | ) | (20,877 | ) | (32,861 | ) | ||||||||||||
Currency and ownership adjustments(1) | 20 | 92 | 31 | 98 | 303 | |||||||||||||||||
Other normalizing adjustments(2) | (383 | ) | (209 | ) | 115 | 34 | (1 | ) | ||||||||||||||
SSNOI | 82,872 | 84,124 | 83,820 | 84,457 | 84,004 | 1.4 | % | |||||||||||||||
Health System | ||||||||||||||||||||||
NOI | 30,602 | 43,016 | 43,016 | 43,016 | 43,016 | |||||||||||||||||
NOI attributable to non-same store properties | (30,602 | ) | (43,016 | ) | (43,016 | ) | (43,016 | ) | (43,016 | ) | ||||||||||||
SSNOI | — | — | — | — | — | |||||||||||||||||
Long-Term/Post-Acute Care | ||||||||||||||||||||||
NOI | 71,314 | 71,136 | 69,212 | 66,755 | 64,862 | |||||||||||||||||
Non-cash NOI on same store properties | (3,057 | ) | (2,912 | ) | (3,765 | ) | (3,392 | ) | (3,694 | ) | ||||||||||||
NOI attributable to non-same store properties | (27,923 | ) | (28,168 | ) | (24,467 | ) | (22,216 | ) | (19,871 | ) | ||||||||||||
Currency and ownership adjustments(1) | (11 | ) | 7 | 17 | 27 | 6 | ||||||||||||||||
Other normalizing adjustments(2) | (69 | ) | (32 | ) | (51 | ) | (50 | ) | (50 | ) | ||||||||||||
SSNOI | 40,254 | 40,031 | 40,946 | 41,124 | 41,253 | 2.5 | % | |||||||||||||||
Corporate | ||||||||||||||||||||||
NOI | 572 | 591 | 2,031 | 327 | 712 | |||||||||||||||||
NOI attributable to non-same store properties | (572 | ) | (591 | ) | (2,031 | ) | (327 | ) | (712 | ) | ||||||||||||
SSNOI | — | — | — | — | — | |||||||||||||||||
Total | ||||||||||||||||||||||
NOI | 564,257 | 572,191 | 581,691 | 597,938 | 590,146 | |||||||||||||||||
Non-cash NOI on same store properties | (9,668 | ) | (10,280 | ) | (8,625 | ) | (9,339 | ) | (12,726 | ) | ||||||||||||
NOI attributable to non-same store properties | (142,266 | ) | (150,733 | ) | (152,056 | ) | (171,840 | ) | (158,388 | ) | ||||||||||||
Currency and ownership adjustments(1) | 154 | 1,780 | 1,863 | 2,009 | 2,636 | |||||||||||||||||
Normalizing adjustments, net | (1,580 | ) | (721 | ) | (7,539 | ) | 300 | 14 | ||||||||||||||
SSNOI | $ | 410,897 | $ | 412,237 | $ | 415,334 | $ | 419,068 | $ | 421,682 | 2.6 | % | ||||||||||
Supplemental Reporting Measures |
(dollars in thousands, except REVPOR, SS REVPOR and SSNOI/unit) | ||||||||||||||||
SHO REVPOR Reconciliation | United States | United Kingdom | Canada | Total | ||||||||||||
Consolidated SHO revenues | $ | 641,395 | $ | 79,834 | $ | 114,267 | $ | 835,496 | ||||||||
Unconsolidated SHO revenues attributable to Welltower(1) | 21,766 | — | 21,169 | 42,935 | ||||||||||||
SHO revenues attributable to noncontrolling interests(2) | (40,689 | ) | (6,954 | ) | (25,537 | ) | (73,180 | ) | ||||||||
Pro rata SHO revenues(3) | 622,472 | 72,880 | 109,899 | 805,251 | ||||||||||||
SHO interest and other income | (1,128 | ) | (27 | ) | (190 | ) | (1,345 | ) | ||||||||
SHO revenues attributable to sold and held for sale properties | (24,043 | ) | (1,173 | ) | (2,045 | ) | (27,261 | ) | ||||||||
Currency and ownership adjustments(4) | — | 4,477 | 390 | 4,867 | ||||||||||||
SHO local revenues | 597,301 | 76,157 | 108,054 | 781,512 | ||||||||||||
Average occupied units/month | 31,598 | 2,932 | 12,868 | 47,398 | ||||||||||||
REVPOR/month in USD | $ | 6,250 | $ | 8,588 | $ | 2,776 | $ | 5,451 | ||||||||
REVPOR/month in local currency(4) | £ | 6,556 | C$ | 3,653 |
Reconciliations of SHO SS REVPOR Growth, SSNOI Growth and SSNOI/Unit | |||||||||||||||||||||||||||||||
United States | United Kingdom | Canada | Total | ||||||||||||||||||||||||||||
3Q18 | 3Q19 | 3Q18 | 3Q19 | 3Q18 | 3Q19 | 3Q18 | 3Q19 | ||||||||||||||||||||||||
SHO SS REVPOR Growth | |||||||||||||||||||||||||||||||
Consolidated SHO revenues | $ | 681,387 | $ | 641,395 | $ | 79,971 | $ | 79,834 | $ | 115,147 | $ | 114,267 | $ | 876,505 | $ | 835,496 | |||||||||||||||
Unconsolidated SHO revenues attributable to WELL(1) | 23,009 | 21,766 | — | — | 20,314 | 21,169 | 43,323 | 42,935 | |||||||||||||||||||||||
SHO revenues attributable to noncontrolling interests(2) | (38,627 | ) | (40,689 | ) | (6,446 | ) | (6,954 | ) | (25,701 | ) | (25,537 | ) | (70,774 | ) | (73,180 | ) | |||||||||||||||
SHO pro rata revenues(3) | 665,769 | 622,472 | 73,525 | 72,880 | 109,760 | 109,899 | 849,054 | 805,251 | |||||||||||||||||||||||
Non-cash revenues on same store properties | (809 | ) | (596 | ) | (19 | ) | (4 | ) | — | — | (828 | ) | (600 | ) | |||||||||||||||||
Revenues attributable to non-same store properties | (220,211 | ) | (157,993 | ) | (14,635 | ) | (14,544 | ) | (4,500 | ) | (4,726 | ) | (239,346 | ) | (177,263 | ) | |||||||||||||||
Currency and ownership adjustments(4) | 4,435 | — | 325 | 3,644 | (720 | ) | 381 | 4,040 | 4,025 | ||||||||||||||||||||||
Other normalizing adjustments(5) | 858 | 383 | (606 | ) | 13 | — | — | 252 | 396 | ||||||||||||||||||||||
SHO SS revenues(6) | 450,042 | 464,266 | 58,590 | 61,989 | 104,540 | 105,554 | 613,172 | 631,809 | |||||||||||||||||||||||
Avg. occupied units/month(7) | 21,274 | 21,244 | 2,395 | 2,440 | 12,847 | 12,689 | 36,516 | 36,373 | |||||||||||||||||||||||
SHO SS REVPOR(8) | $ | 6,994 | $ | 7,225 | $ | 8,088 | $ | 8,399 | $ | 2,690 | $ | 2,750 | $ | 5,552 | $ | 5,743 | |||||||||||||||
SS REVPOR YOY growth | — | % | 3.3 | % | — | % | 3.8 | % | — | % | 2.2 | % | — | 3.4 | % | ||||||||||||||||
SHO SSNOI Growth | |||||||||||||||||||||||||||||||
Consolidated SHO NOI | $ | 201,639 | $ | 192,140 | $ | 20,852 | $ | 20,322 | $ | 43,355 | $ | 41,693 | $ | 265,846 | $ | 254,155 | |||||||||||||||
Unconsolidated SHO NOI attributable to WELL(1) | 8,217 | 7,807 | — | — | 8,547 | 8,627 | 16,764 | 16,434 | |||||||||||||||||||||||
SHO NOI attributable to noncontrolling interests(2) | (8,347 | ) | (9,740 | ) | (1,090 | ) | (986 | ) | (9,644 | ) | (9,394 | ) | (19,081 | ) | (20,120 | ) | |||||||||||||||
SHO pro rata NOI(3) | 201,509 | 190,207 | 19,762 | 19,336 | 42,258 | 40,926 | 263,529 | 250,469 | |||||||||||||||||||||||
Non-cash NOI on same store properties | (1,661 | ) | (3,567 | ) | (19 | ) | — | — | — | (1,680 | ) | (3,567 | ) | ||||||||||||||||||
NOI attributable to non-same store properties | (58,081 | ) | (38,090 | ) | (2,562 | ) | (3,370 | ) | (1,146 | ) | (992 | ) | (61,789 | ) | (42,452 | ) | |||||||||||||||
Currency and ownership adjustments(4) | 449 | (5 | ) | 92 | 992 | (283 | ) | 149 | 258 | 1,136 | |||||||||||||||||||||
Other normalizing adjustments(5) | 564 | 383 | (606 | ) | 13 | 49 | — | 7 | 396 | ||||||||||||||||||||||
SHO pro rata SSNOI(6) | $ | 142,780 | $ | 148,928 | $ | 16,667 | $ | 16,971 | $ | 40,878 | $ | 40,083 | $ | 200,325 | $ | 205,982 | |||||||||||||||
SHO SSNOI growth | 4.3 | % | 1.8 | % | (1.9 | )% | 2.8 | % | |||||||||||||||||||||||
SHO SSNOI/Unit | |||||||||||||||||||||||||||||||
Trailing four quarters' SSNOI(6) | $ | 585,524 | $ | 66,419 | $ | 160,000 | $ | 811,943 | |||||||||||||||||||||||
Average units in service(9) | 24,519 | 2,938 | 14,216 | 41,673 | |||||||||||||||||||||||||||
SSNOI/unit in USD | $ | 23,880 | $ | 22,607 | $ | 11,255 | $ | 19,484 | |||||||||||||||||||||||
SSNOI/unit in local currency(4) | £ | 17,259 | C$ | 14,811 |
Forward-Looking Statement and Risk Factors |