Recent Highlights
- Reported net income attributable to common stockholders of
$0.42 per diluted share - Reported quarterly normalized funds from operations attributable to common stockholders of
$1.05 per diluted share, an increase of 16.7% over the prior year or 19.3% exclusive of government subsidies - Reported total portfolio year-over-year same store NOI ("SSNOI") growth of 11.3%, driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio of 21.7%
- During the second quarter, we completed
$1.7 billion of pro rata gross investments, including$1.4 billion in acquisitions and loan funding and$251 million in development funding - Since the beginning of the year, we have closed or have definitive agreements to close
$4.9 billion in pro rata acquisitions and loan funding - During the quarter, converted or reached agreements to convert 47 triple-net leased properties to SHO (RIDEA) structures, allowing us to directly participate in the underlying cash flow growth of the communities
- Reported further balance sheet strengthening as of
June 30, 2024 with net debt to Adjusted EBITDA of 3.68x and approximately$6.9 billion of available liquidity inclusive of$2.9 billion of available cash and restricted cash and full capacity under our$4.0 billion line of credit - Credit rating outlook revised to positive from stable by each of S&P Global and Moody's, citing strong seniors housing industry tailwinds and a materially improved balance sheet
- In July, closed on a new expanded
$5.0 billion senior unsecured revolving credit facility, which incorporates a maturity extension to 2029 and a 7.5bps improvement in pricing from the previous$4.0 billion facility - Board of Directors announced a 10% increase in the quarterly dividend per share, reflecting our solid financial performance, low payout ratio owing to outsized levels of cash flow growth and the Board's confidence in the Company's strong growth prospects going forward
- Announced the appointment of
Andrew Gundlach to the Board of Directors
Capital Activity and Liquidity
Liquidity Update During the second quarter, net debt to consolidated enterprise value improved to 14.8% as of
Expanded Senior Unsecured Revolving Credit Facility In July, we closed on an expanded
Exchangeable Senior Unsecured Notes Issuance In July, Welltower OP issued
Notable Portfolio Activity
In the second quarter, we completed
Private Equity Acquisition and Loan Funding During the second quarter, we acquired a portfolio of seniors housing communities for
Atria Senior Living As previously announced, we entered into an agreement to transition 89 Holiday by Atria communities to six of
Triple-net to Seniors Housing Operating Transitions During the second quarter, we reached agreements to convert 47 triple-net leased properties to Seniors Housing Operating (RIDEA) structures, allowing us to directly participate in the underlying cash flow growth of the communities. The transition to highly-aligned RIDEA 4.0 structures will deepen our partnership with several leading managers, build on success within their existing portfolios, and ensure that both
Announced Future Investment Activity
Subsequent to quarter end, announced
Environmental, Social and Governance ("ESG")
During the second quarter, we achieved an MSCI ESG rating of "AA", reflecting our robust corporate governance practices, ESG risk management relative to peers and ongoing commitment to advancing sustainability initiatives. Additionally, in June, we released our 2023 ESG Report, which is available on our website, summarizing our progress and achievements across a range of ESG initiatives, including those related to diversity and inclusion, environmental responsibility and corporate governance.
Dividend On
Outlook for 2024 Net income attributable to common stockholders guidance has been revised to a range of
- Same Store NOI: We expect average blended SSNOI growth of 10.0% to 12.5%, which is comprised of the following components:
- Seniors Housing Operating approximately 19.0% to 23.0%
- Seniors Housing Triple-net approximately 3.0% to 4.0%
- Outpatient Medical approximately 2.0% to 3.0%
- Long-Term/Post-Acute Care approximately 2.0% to 3.0%
- Investments: Our earnings guidance includes only those acquisitions announced or closed to date. Furthermore, no transitions or restructures beyond those announced to date are included.
- General and Administrative Expenses: We anticipate general and administrative expenses to be approximately
$205 million to$211 million and stock-based compensation expense to be approximately$40 million . - Development: We anticipate funding an additional
$328 million of development in 2024 relating to projects underway as ofJune 30, 2024 . - Dispositions: We expect pro rata disposition proceeds of
$643 million at a blended yield of 6.9% in the next twelve months. This includes approximately$601 million of consideration from expected property sales and$42 million of expected proceeds from loan repayments. - Pandemic Relief Funds: Our initial 2024 earnings guidance did not include the recognition of any pandemic relief funds which may be received during the year. During the six months ended
June 30, 2024 , we recognized approximately$2 million at our share related to Provider Relief Funds and similar programs in theUnited Kingdom andCanada . Our updated guidance does not include any additional funds in 2024. In 2023, we recognized approximately$13 million at our share relating to Provider Relief Funds and similar programs in theUnited Kingdom andCanada .
Our guidance does not include any additional investments, dispositions or capital transactions beyond those we have announced, nor any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items. Please see the Supplemental Reporting Measures section for further discussion and our definition of normalized FFO and SSNOI and Exhibit 3 for a reconciliation of the outlook for net income available to common stockholders to normalized FFO attributable to common stockholders. We will provide additional detail regarding our 2024 outlook and assumptions on the second quarter 2024 conference call.
Conference Call Information We have scheduled a conference call on
Supplemental Reporting Measures We believe that net income and net income attributable to common stockholders ("NICS"), as defined by
Historical cost accounting for real estate assets in accordance with
We define NOI as total revenues, including tenant reimbursements, less property operating expenses. Property operating expenses represent costs associated with managing, maintaining and servicing tenants for our properties. These expenses include, but are not limited to, property-related payroll and benefits, property management fees paid to managers, marketing, housekeeping, food service, maintenance, utilities, property taxes and insurance. General and administrative expenses represent general overhead costs that are unrelated to property operations and unallocable to the properties. These expenses include, but are not limited to, payroll and benefits related to corporate employees, professional services, office expenses and depreciation of corporate fixed assets. SSNOI is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. As used herein, same store is generally defined as those revenue-generating properties in the portfolio for the relevant year-over-year reporting periods. Acquisitions and development conversions are included in the same store amounts five full quarters after acquisition or being placed into service. Land parcels, loans and sub-leases, as well as any properties sold or classified as held for sale during the period, are excluded from the same store amounts. Redeveloped properties (including major refurbishments of a Seniors Housing Operating property where 20% or more of units are simultaneously taken out of commission for 30 days or more or Outpatient Medical properties undergoing a change in intended use) are excluded from the same store amounts until five full quarters post completion of the redevelopment. Properties undergoing operator transitions and/or segment transitions are also excluded from the same store amounts until five full quarters post completion of the operator transition or segment transition. In addition, properties significantly impacted by force majeure, acts of God or other extraordinary adverse events are excluded from same store amounts until five full quarters after the properties are placed back into service. SSNOI excludes non-cash NOI and includes adjustments to present consistent property ownership percentages and to translate Canadian properties and
We measure our credit strength both in terms of leverage ratios and coverage ratios. The leverage ratios indicate how much of our balance sheet capitalization is related to long-term debt, net of cash and restricted cash. We expect to maintain capitalization ratios and coverage ratios sufficient to maintain a capital structure consistent with our current profile. The ratios are based on EBITDA and Adjusted EBITDA. EBITDA is defined as earnings (net income per income statement) before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding unconsolidated entities and including adjustments for stock-based compensation expense, provision for loan losses, gains/losses on extinguishment of debt, gains/losses/impairments on properties, gains/losses on derivatives and financial instruments, other expenses, other impairment charges and other adjustments deemed appropriate in management's opinion. We believe that EBITDA and Adjusted EBITDA, along with net income, are important supplemental measures because they provide additional information to assess and evaluate the performance of our operations. Our leverage ratios include net debt to Adjusted EBITDA and consolidated enterprise value. Net debt is defined as total long-term debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash. Consolidated enterprise value represents the sum of net debt, the fair market value of our common stock and noncontrolling interests.
Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with
About
Forward-Looking Statements and Risk Factors This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When
Financial Exhibits |
||||
Consolidated Balance Sheets (unaudited) |
||||
(in thousands) |
||||
|
||||
2024 |
2023 |
|||
Assets |
||||
Real estate investments: |
||||
Land and land improvements |
$ 4,839,036 |
$ 4,262,745 |
||
Buildings and improvements |
38,540,623 |
34,127,012 |
||
Acquired lease intangibles |
2,192,386 |
1,950,349 |
||
Real property held for sale, net of accumulated depreciation |
81,033 |
404,071 |
||
Construction in progress |
1,474,024 |
1,108,773 |
||
Less accumulated depreciation and intangible amortization |
(9,908,007) |
(8,599,622) |
||
Net real property owned |
37,219,095 |
33,253,328 |
||
Right of use assets, net |
360,282 |
322,316 |
||
Real estate loans receivable, net of credit allowance |
1,791,202 |
965,509 |
||
Net real estate investments |
39,370,579 |
34,541,153 |
||
Other assets: |
||||
Investments in unconsolidated entities |
1,709,558 |
1,650,133 |
||
|
68,321 |
68,321 |
||
Cash and cash equivalents |
2,776,628 |
2,203,788 |
||
Restricted cash |
86,970 |
95,281 |
||
Straight-line rent receivable |
420,666 |
389,381 |
||
Receivables and other assets |
1,101,215 |
1,116,078 |
||
Total other assets |
6,163,358 |
5,522,982 |
||
Total assets |
$ 45,533,937 |
$ 40,064,135 |
||
Liabilities and equity |
||||
Liabilities: |
||||
Unsecured credit facility and commercial paper |
$ — |
$ — |
||
Senior unsecured notes |
12,169,775 |
13,530,788 |
||
Secured debt |
1,765,992 |
2,460,349 |
||
Lease liabilities |
393,670 |
348,770 |
||
Accrued expenses and other liabilities |
1,515,921 |
1,531,114 |
||
Total liabilities |
15,845,358 |
17,871,021 |
||
Redeemable noncontrolling interests |
262,273 |
369,191 |
||
Equity: |
||||
Common stock |
609,859 |
509,805 |
||
Capital in excess of par value |
36,693,283 |
28,085,297 |
||
|
(114,674) |
(112,032) |
||
Cumulative net income |
9,526,904 |
8,933,663 |
||
Cumulative dividends |
(17,492,484) |
(16,116,698) |
||
Accumulated other comprehensive income |
(246,462) |
(95,594) |
||
|
28,976,426 |
21,204,441 |
||
Noncontrolling interests |
449,880 |
619,482 |
||
Total equity |
29,426,306 |
21,823,923 |
||
Total liabilities and equity |
$ 45,533,937 |
$ 40,064,135 |
Consolidated Statements of Income (unaudited) |
|||||||||
(in thousands, except per share data) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
|
|
||||||||
2024 |
2023 |
2024 |
2023 |
||||||
Revenues: |
|||||||||
Resident fees and services |
$ 1,393,473 |
$ 1,159,449 |
$ 2,753,747 |
$ 2,291,134 |
|||||
Rental income |
335,811 |
383,439 |
753,463 |
767,498 |
|||||
Interest income |
63,453 |
38,710 |
116,117 |
75,115 |
|||||
Other income |
32,147 |
83,880 |
61,298 |
92,460 |
|||||
Total revenues |
1,824,884 |
1,665,478 |
3,684,625 |
3,226,207 |
|||||
Expenses: |
|||||||||
Property operating expenses |
1,111,297 |
958,672 |
2,208,210 |
1,916,425 |
|||||
Depreciation and amortization |
382,045 |
341,945 |
747,908 |
681,057 |
|||||
Interest expense |
133,424 |
152,337 |
280,742 |
296,740 |
|||||
General and administrative expenses |
55,565 |
44,287 |
108,883 |
88,658 |
|||||
Loss (gain) on derivatives and financial instruments, net |
(5,825) |
1,280 |
(8,879) |
2,210 |
|||||
Loss (gain) on extinguishment of debt, net |
1,705 |
1 |
1,711 |
6 |
|||||
Provision for loan losses, net |
5,163 |
2,456 |
6,177 |
3,233 |
|||||
Impairment of assets |
2,394 |
1,086 |
45,725 |
13,715 |
|||||
Other expenses |
48,684 |
11,069 |
62,815 |
33,814 |
|||||
Total expenses |
1,734,452 |
1,513,133 |
3,453,292 |
3,035,858 |
|||||
Income (loss) from continuing operations before income taxes |
|||||||||
and other items |
90,432 |
152,345 |
231,333 |
190,349 |
|||||
Income tax (expense) benefit |
(1,101) |
(3,503) |
(7,292) |
(6,548) |
|||||
Income (loss) from unconsolidated entities |
4,896 |
(40,332) |
(2,887) |
(47,403) |
|||||
Gain (loss) on real estate dispositions, net |
166,443 |
(2,168) |
171,150 |
(1,421) |
|||||
Income (loss) from continuing operations |
260,670 |
106,342 |
392,304 |
134,977 |
|||||
Net income (loss) |
260,670 |
106,342 |
392,304 |
134,977 |
|||||
Less: Net income (loss) attributable to noncontrolling interests(1) |
5,956 |
3,302 |
10,444 |
6,264 |
|||||
Net income (loss) attributable to common stockholders |
$ 254,714 |
$ 103,040 |
$ 381,860 |
$ 128,713 |
|||||
Average number of common shares outstanding: |
|||||||||
Basic |
600,545 |
499,023 |
587,297 |
495,561 |
|||||
Diluted |
604,563 |
501,970 |
591,047 |
498,305 |
|||||
Net income (loss) attributable to common stockholders per share: |
|||||||||
Basic |
$ 0.42 |
$ 0.21 |
$ 0.65 |
$ 0.26 |
|||||
Diluted(2) |
$ 0.42 |
$ 0.20 |
$ 0.65 |
$ 0.26 |
|||||
Common dividends per share |
$ 0.61 |
$ 0.61 |
$ 1.22 |
$ 1.22 |
|||||
(1) Includes amounts attributable to redeemable noncontrolling interests. |
|||||||||
(2) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units. |
FFO Reconciliations |
Exhibit 1 |
|||||||||
(in thousands, except per share data) |
Three Months Ended |
Six Months Ended |
||||||||
|
|
|||||||||
2024 |
2023 |
2024 |
2023 |
|||||||
Net income (loss) attributable to common stockholders |
$ 254,714 |
$ 103,040 |
$ 381,860 |
$ 128,713 |
||||||
Depreciation and amortization |
382,045 |
341,945 |
747,908 |
681,057 |
||||||
Impairments and losses (gains) on real estate dispositions, net |
(164,049) |
3,254 |
(125,425) |
15,136 |
||||||
Noncontrolling interests(1) |
(6,348) |
(12,841) |
(18,344) |
(26,168) |
||||||
Unconsolidated entities(2) |
27,411 |
30,784 |
64,477 |
53,506 |
||||||
NAREIT FFO attributable to common stockholders |
493,773 |
466,182 |
1,050,476 |
852,244 |
||||||
Normalizing items, net(3) |
143,759 |
(15,318) |
172,264 |
18,153 |
||||||
Normalized FFO attributable to common stockholders |
637,532 |
450,864 |
1,222,740 |
870,397 |
||||||
Government subsidies recognized(4) |
(753) |
(10,220) |
(2,158) |
(12,506) |
||||||
Government subsidies attributable to noncontrolling interests and unconsolidated entities, net |
(19) |
557 |
242 |
1,057 |
||||||
Normalized FFO attributable to common stockholders, excluding government subsidies |
$ 636,760 |
$ 441,201 |
$ 1,220,824 |
$ 858,948 |
||||||
Average diluted common shares outstanding |
604,563 |
501,970 |
591,047 |
498,305 |
||||||
Per diluted share data attributable to common stockholders: |
||||||||||
Net income (loss)(5) |
$ 0.42 |
$ 0.20 |
$ 0.65 |
$ 0.26 |
||||||
NAREIT FFO |
$ 0.82 |
$ 0.93 |
$ 1.78 |
$ 1.71 |
||||||
Normalized FFO |
$ 1.05 |
$ 0.90 |
$ 2.07 |
$ 1.75 |
||||||
Normalized FFO, excluding government subsidies |
$ 1.05 |
$ 0.88 |
$ 2.07 |
$ 1.72 |
||||||
Normalized FFO Payout Ratio: |
||||||||||
Dividends per common share |
$ 0.61 |
$ 0.61 |
$ 1.22 |
$ 1.22 |
||||||
Normalized FFO attributable to common stockholders per share |
$ 1.05 |
$ 0.90 |
$ 2.07 |
$ 1.75 |
||||||
Normalized FFO payout ratio |
58 % |
68 % |
59 % |
70 % |
||||||
Other items:(6) |
||||||||||
Net straight-line rent and above/below market rent amortization(7) |
$ (37,104) |
$ (30,336) |
$ (72,108) |
$ (63,720) |
||||||
Non-cash interest expenses(8) |
9,812 |
6,574 |
19,198 |
12,452 |
||||||
Recurring cap-ex, tenant improvements, and lease commissions |
(67,348) |
(40,694) |
(118,964) |
(77,607) |
||||||
Stock-based compensation |
10,026 |
10,491 |
21,368 |
19,615 |
||||||
(1) Represents noncontrolling interests' share of net FFO adjustments. |
||||||||||
(2) Represents Welltower's share of net FFO adjustments from unconsolidated entities. |
||||||||||
(3) See Exhibit 2. |
||||||||||
(4) Represents amounts recognized related to Health and and |
||||||||||
(5) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units. |
||||||||||
(6) Amounts presented net of noncontrolling interests' share and including |
||||||||||
(7) Excludes normalized other impairment (see Exhibit 2). |
||||||||||
(8) Excludes normalized foreign currency loss (gain) (see Exhibit 2). |
||||||||||
Normalizing Items |
Exhibit 2 |
|||||||
(in thousands, except per share data) |
Three Months Ended |
Six Months Ended |
||||||
|
|
|||||||
2024 |
2023 |
2024 |
2023 |
|||||
Loss (gain) on derivatives and financial instruments, net |
$ (5,825) |
(1) |
$ 1,280 |
$ (8,879) |
$ 2,210 |
|||
Loss (gain) on extinguishment of debt, net |
1,705 |
(2) |
1 |
1,711 |
6 |
|||
Provision for loan losses, net |
5,163 |
(3) |
2,456 |
6,177 |
3,233 |
|||
Income tax benefits |
— |
— |
— |
(246) |
||||
Other impairment |
88,318 |
(4) |
— |
97,674 |
— |
|||
Other expenses |
48,684 |
(5) |
11,069 |
62,815 |
33,814 |
|||
Leasehold interest termination |
— |
(65,485) |
— |
(65,485) |
||||
Casualty losses, net of recoveries |
1,953 |
(6) |
3,568 |
4,111 |
8,055 |
|||
Foreign currency loss (gain) |
(200) |
(7) |
(345) |
409 |
(572) |
|||
Normalizing items attributable to noncontrolling interests and unconsolidated entities, net |
3,961 |
(8) |
32,138 |
8,246 |
37,138 |
|||
Net normalizing items |
$ 143,759 |
$ (15,318) |
$ 172,264 |
$ 18,153 |
||||
Average diluted common shares outstanding |
604,563 |
501,970 |
591,047 |
498,305 |
||||
Net normalizing items per diluted share |
$ 0.24 |
$ (0.03) |
$ 0.29 |
$ 0.04 |
||||
(1) Primarily related to mark-to-market of the equity warrants received as part of the Safanad/ |
||||||||
(2) Primarily related to the extinguishment of secured debt. |
||||||||
(3) Primarily related to reserves for loan losses under the current expected credit losses accounting standard. |
||||||||
(4) Primarily represents the write-off of straight-line rent receivable and unamortized lease incentive balances relating to the conversion of triple-net leased properties to SHO (RIDEA) structures and leases placed on cash recognition. |
||||||||
(5) Primarily related to costs associated with the termination of the Atria management agreement and non-capitalizable transaction costs. |
||||||||
(6) Primarily relates to casualty losses net of any insurance recoveries. |
||||||||
(7) Primarily relates to foreign currency gains and losses related to accrued interest on intercompany loans and third party debt denominated in a foreign currency. |
||||||||
(8) Primarily related to hypothetical liquidation at book value adjustments related to in substance real estate investments. |
Outlook Reconciliation: Year Ending |
Exhibit 3 |
|||||||||
(in millions, except per share data) |
Prior Outlook |
Current Outlook |
||||||||
Low |
High |
Low |
High |
|||||||
FFO Reconciliation: |
||||||||||
Net income attributable to common stockholders |
$ 868 |
$ 940 |
$ 918 |
$ 966 |
||||||
Impairments and losses (gains) on real estate dispositions, net(1,2) |
(154) |
(154) |
(249) |
(249) |
||||||
Depreciation and amortization(1) |
1,653 |
1,653 |
1,650 |
1,650 |
||||||
NAREIT FFO attributable to common stockholders |
2,367 |
2,439 |
2,319 |
2,367 |
||||||
Normalizing items, net(1,3) |
55 |
55 |
172 |
172 |
||||||
Normalized FFO attributable to common stockholders |
$ 2,422 |
$ 2,494 |
$ 2,491 |
$ 2,539 |
||||||
Diluted per share data attributable to common stockholders: |
||||||||||
Net income |
$ 1.45 |
$ 1.57 |
$ 1.52 |
$ 1.60 |
||||||
NAREIT FFO |
$ 3.96 |
$ 4.08 |
$ 3.84 |
$ 3.92 |
||||||
Normalized FFO |
$ 4.05 |
$ 4.17 |
$ 4.13 |
$ 4.21 |
||||||
Other items:(1) |
||||||||||
Net straight-line rent and above/below market rent amortization |
$ (138) |
$ (138) |
$ (144) |
$ (144) |
||||||
Non-cash interest expenses |
48 |
48 |
44 |
44 |
||||||
Recurring cap-ex, tenant improvements, and lease commissions |
(235) |
(235) |
(251) |
(251) |
||||||
Stock-based compensation |
40 |
40 |
41 |
41 |
||||||
(1) Amounts presented net of noncontrolling interests' share and |
||||||||||
(2) Includes estimated gains on projected dispositions. |
||||||||||
(3) See Exhibit 2. |
SSNOI Reconciliation |
Exhibit 4 |
|||||||
(in thousands) |
Three Months Ended |
|||||||
|
||||||||
2024 |
2023 |
% growth |
||||||
Net income (loss) |
$ 260,670 |
$ 106,342 |
||||||
Loss (gain) on real estate dispositions, net |
(166,443) |
2,168 |
||||||
Loss (income) from unconsolidated entities |
(4,896) |
40,332 |
||||||
Income tax expense (benefit) |
1,101 |
3,503 |
||||||
Other expenses |
48,684 |
11,069 |
||||||
Impairment of assets |
2,394 |
1,086 |
||||||
Provision for loan losses, net |
5,163 |
2,456 |
||||||
Loss (gain) on extinguishment of debt, net |
1,705 |
1 |
||||||
Loss (gain) on derivatives and financial instruments, net |
(5,825) |
1,280 |
||||||
General and administrative expenses |
55,565 |
44,287 |
||||||
Depreciation and amortization |
382,045 |
341,945 |
||||||
Interest expense |
133,424 |
152,337 |
||||||
Consolidated NOI |
713,587 |
706,806 |
||||||
NOI attributable to unconsolidated investments(1) |
32,720 |
25,150 |
||||||
NOI attributable to noncontrolling interests(2) |
(17,296) |
(24,262) |
||||||
Pro rata NOI |
729,011 |
707,694 |
||||||
Non-cash NOI attributable to same store properties |
66,066 |
(28,888) |
||||||
NOI attributable to non-same store properties |
(262,613) |
(190,353) |
||||||
Currency and ownership adjustments(3) |
(262) |
3,131 |
||||||
Normalizing adjustments, net(4) |
5,621 |
(8,342) |
||||||
Same Store NOI (SSNOI) |
$ 537,823 |
$ 483,242 |
11.3 % |
|||||
Seniors Housing Operating |
261,784 |
215,079 |
21.7 % |
|||||
Seniors Housing Triple-net |
90,935 |
87,221 |
4.3 % |
|||||
Outpatient Medical |
125,840 |
123,246 |
2.1 % |
|||||
Long-Term/Post-Acute Care |
59,264 |
57,696 |
2.7 % |
|||||
Total SSNOI |
$ 537,823 |
$ 483,242 |
11.3 % |
|||||
(1) Represents Welltower's interests in joint ventures where |
||||||||
(2) Represents minority partners' interests in joint ventures where |
||||||||
(3) Includes adjustments to reflect consistent property ownership percentages and foreign currency exchange rates for properties in the |
||||||||
(4) Includes other adjustments described in the accompanying Supplement. |
||||||||
Net Debt to Adjusted EBITDA Reconciliation |
Exhibit 5 |
|||
(in thousands) |
Three Months Ended |
|||
|
||||
Net income (loss) |
$ 260,670 |
|||
Interest expense |
133,424 |
|||
Income tax expense (benefit) |
1,101 |
|||
Depreciation and amortization |
382,045 |
|||
EBITDA |
777,240 |
|||
Loss (income) from unconsolidated entities |
(4,896) |
|||
Stock-based compensation |
10,026 |
|||
Loss (gain) on extinguishment of debt, net |
1,705 |
|||
Loss (gain) on real estate dispositions, net |
(166,443) |
|||
Impairment of assets |
2,394 |
|||
Provision for loan losses, net |
5,163 |
|||
Loss (gain) on derivatives and financial instruments, net |
(5,825) |
|||
Other expenses |
48,684 |
|||
Casualty losses, net of recoveries |
1,953 |
|||
Other impairment(1) |
88,318 |
|||
Adjusted EBITDA |
$ 758,319 |
|||
Total debt(2) |
$ 14,027,128 |
|||
Cash and cash equivalents and restricted cash |
(2,863,598) |
|||
Net debt |
$ 11,163,530 |
|||
Adjusted EBITDA annualized |
$ 3,033,276 |
|||
Net debt to Adjusted EBITDA ratio |
3.68x |
|||
(1) Represents the write-off of straight-line rent receivable and unamortized lease incentive balances for leases placed on cash recognition. |
||||
(2) Amounts include unamortized premiums/discounts, other fair value adjustments and financing lease liabilities. Excludes operating lease liabilities related to ASC 842 of |
||||
Net Debt to Consolidated Enterprise Value |
Exhibit 6 |
|||||
(in thousands, except share price) |
||||||
|
|
|||||
Common shares outstanding |
608,151 |
564,241 |
||||
Period end share price |
$ 104.25 |
$ 90.17 |
||||
Common equity market capitalization |
$ 63,399,742 |
$ 50,877,611 |
||||
Net debt |
$ 11,163,530 |
$ 13,739,143 |
||||
Noncontrolling interests(1) |
712,153 |
967,351 |
||||
Consolidated enterprise value |
$ 75,275,425 |
$ 65,584,105 |
||||
Net debt to consolidated enterprise value |
14.8 % |
20.9 % |
||||
(1) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests as reflected on our consolidated balance sheets. |
||||||
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SOURCE
Tim McHugh (419) 247-2800