Recent Highlights
- Reported net income attributable to common stockholders of
$0.15 per diluted share - Reported quarterly normalized funds from operations ("FFO") attributable to common stockholders of
$0.96 per diluted share, an increase of 15.7% over the prior year - Reported total portfolio year-over-year same store NOI ("SSNOI") growth of 12.5%, driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio of 23.7%
- SHO portfolio year-over-year same store ("SS") revenue increased 9.7% in the fourth quarter, with 330 basis points ("bps") of year-over-year average occupancy growth
- SHO portfolio year-over-year SSNOI margin expanded by 290 bps driven primarily by strong Revenue per
Occupied Room ("RevPOR" or "Unit Revenue") growth which continued to meaningfully outpace Expense perOccupied Room ("ExpPOR" or "Unit Expense") growth - During the fourth quarter, we completed
$3.0 billion of pro rata gross investments, including$2.8 billion in acquisitions and loan funding and$277 million in development funding - As of
December 31, 2023 , we had approximately$6.1 billion of available liquidity inclusive of$2.1 billion of available cash and restricted cash and full capacity under our$4.0 billion line of credit
Annual Highlights
- Reported net income attributable to common stockholders of
$0.66 per diluted share - Reported annual normalized FFO attributable to common stockholders of
$3.64 per diluted share - Reported total portfolio year-over-year average SSNOI growth of 12.6%, driven by SSNOI growth in our SHO portfolio of 24.4%
- Completed
$5.9 billion of pro rata gross investments during 2023, including property acquisitions at substantial discounts to replacement cost and highly-structured debt and equity investments with significant downside protection - Improved net debt to Adjusted EBITDA to 5.03x at
December 31, 2023 from 6.31x atDecember 31, 2022 - Announced dissolution of joint ventures with Revera and Chartwell, representing key milestones in our seven-year contract modernization initiative and driving regional density and improved operator alignment across our Canadian portfolio. Additionally, unwound our Outpatient Medical joint venture with Canadian Pension Plan Investment Board ("CPPIB") through the acquisition of CPPIB's 45% interest in the 10-property portfolio, principally located in
Beverly Hills, CA for a pro rata investment of$161 million - Continued to deepen relationships with best-in-class operators including
Avery Healthcare ,Cogir Management Corporation ("Cogir"),Kisco Senior Living , Legend Senior Living ("Legend"),Oakmont Management Group , StoryPoint Senior Living ("StoryPoint") andRetirement Unlimited, Inc. ("RUI"), in a further expansion of our regional densification strategy
Capital Activity and Liquidity During the fourth quarter, net debt to consolidated enterprise value improved to 20.9% at
Notable Investment Activity Completed During the Quarter In the fourth quarter, we completed
Cogir As previously disclosed, we continued to grow our relationship with Cogir, closing on a portfolio of 12 best-in-class senior living communities in
Seniors Housing Operating Portfolio Acquisition During the quarter, we expanded our relationship with StoryPoint, Legend and RUI, through the acquisition of eight class-A seniors housing communities from a joint venture between a global real estate investment manager and global financial institution. The portfolio carries an average age of less than four years and was acquired for a total purchase price of
Quality Senior Living ("QSL") In the fourth quarter, we expanded our relationship with QSL through the acquisition of seven properties in the Mid-Atlantic and
Other Transactions Additionally during the fourth quarter, we acquired properties totaling
Notable Investment Activity Completed During 2023
During 2023, we completed
Revera Joint Venture As previously disclosed, during the second quarter we entered into definitive agreements to dissolve our existing Revera joint venture relationship across the
Announced Future Investment Activity
Chartwell As previously disclosed, we entered into a mutually beneficial, definitive agreement to dissolve the existing Chartwell joint venture relationship across 39 properties in
Affinity Living Communities ("Affinity") Subsequent to quarter end, we entered into a definitive agreement, which is subject to customary closing conditions, to acquire a portfolio of 25 age-restricted active adult communities for
Environmental, Social and Governance ("ESG") We released our 2023 Green Bond Allocation report, highlighting the full allocation of
Dividend On
Outlook for 2024 We are introducing our 2024 earnings guidance and expect to report net income attributable to common stockholders in a range of
- Same Store NOI: We expect average blended SSNOI growth of 8.25% to 11.50%, which is comprised of the following components:
- Seniors Housing Operating approximately 15% to 21%
- Seniors Housing Triple-net approximately 2.5% to 4.0%
- Outpatient Medical approximately 2% to 3%
- Long-Term/Post-Acute Care approximately 2% to 3%
- 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
$195 million to$205 million and stock-based compensation expense to be approximately$37 million . - Development: We anticipate funding an additional
$819 million of development in 2024 relating to projects underway onDecember 31, 2023 . - Dispositions: We expect pro rata disposition proceeds of
$1.0 billion at a blended yield of 5.8% in the next twelve months. This includes approximately$950 million of consideration from expected property sales and$78 million of expected proceeds from loan repayments. - Pandemic Relief Funds: Our 2024 earnings guidance does not include the recognition of any pandemic relief funds which may be received during the year. 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 fourth quarter 2023 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
RevPOR represents the average revenues generated per occupied room per month and ExpPOR represents the average expenses per occupied room per month at our Seniors Housing Operating properties. These metrics are calculated as our pro rata version of total resident fees and services revenues or property operating expenses from the income statement, divided by average monthly occupied room days. SS RevPOR and SS ExpPOR are used to evaluate the RevPOR and ExpPOR performance of our properties under a consistent population, which eliminates changes in the composition of our portfolio. They are based on the same pool of properties used for SSNOI and includes any revenue or expense normalizations used for SSNOI. We use RevPOR, ExpPOR, SS RevPOR and SS ExpPOR to evaluate the revenue-generating capacity and profit potential of our Seniors Housing Operating portfolio independent of fluctuating occupancy rates. They are also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our Seniors Housing Operating portfolio.
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. 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) |
||||
|
||||
2023 |
2022 |
|||
Assets |
||||
Real estate investments: |
||||
Land and land improvements |
$ 4,697,824 |
$ 4,249,834 |
||
Buildings and improvements |
37,796,553 |
33,651,336 |
||
Acquired lease intangibles |
2,166,470 |
1,945,458 |
||
Real property held for sale, net of accumulated depreciation |
372,883 |
133,058 |
||
Construction in progress |
1,304,441 |
1,021,080 |
||
Less accumulated depreciation and intangible amortization |
(9,274,814) |
(8,075,733) |
||
Net real property owned |
37,063,357 |
32,925,033 |
||
Right of use assets, net |
350,969 |
323,942 |
||
Real estate loans receivable, net of credit allowance |
1,361,587 |
890,844 |
||
Net real estate investments |
38,775,913 |
34,139,819 |
||
Other assets: |
||||
Investments in unconsolidated entities |
1,636,531 |
1,499,790 |
||
|
68,321 |
68,321 |
||
Cash and cash equivalents |
1,993,646 |
631,681 |
||
Restricted cash |
82,437 |
90,611 |
||
Straight-line rent receivable |
443,800 |
322,173 |
||
Receivables and other assets |
1,011,518 |
1,140,838 |
||
Total other assets |
5,236,253 |
3,753,414 |
||
Total assets |
$ 44,012,166 |
$ 37,893,233 |
||
Liabilities and equity |
||||
Liabilities: |
||||
Unsecured credit facility and commercial paper |
$ — |
$ — |
||
Senior unsecured notes |
13,552,222 |
12,437,273 |
||
Secured debt |
2,183,327 |
2,110,815 |
||
Lease liabilities |
383,230 |
415,824 |
||
Accrued expenses and other liabilities |
1,521,660 |
1,535,325 |
||
Total liabilities |
17,640,439 |
16,499,237 |
||
Redeemable noncontrolling interests |
290,605 |
384,443 |
||
Equity: |
||||
Common stock |
565,894 |
491,919 |
||
Capital in excess of par value |
32,741,949 |
26,742,750 |
||
|
(111,578) |
(111,001) |
||
Cumulative net income |
9,145,044 |
8,804,950 |
||
Cumulative dividends |
(16,773,773) |
(15,514,097) |
||
Accumulated other comprehensive income |
(163,160) |
(119,707) |
||
|
25,404,376 |
20,294,814 |
||
Noncontrolling interests |
676,746 |
714,739 |
||
Total equity |
26,081,122 |
21,009,553 |
||
Total liabilities and equity |
$ 44,012,166 |
$ 37,893,233 |
Consolidated Statements of Income (unaudited) |
||||||||||
(in thousands, except per share data) |
||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||
|
|
|||||||||
2023 |
2022 |
2023 |
2022 |
|||||||
Revenues: |
||||||||||
Resident fees and services |
$ 1,262,862 |
$ 1,100,671 |
$ 4,753,804 |
$ 4,173,711 |
||||||
Rental income |
404,068 |
372,002 |
1,556,073 |
1,451,786 |
||||||
Interest income |
51,019 |
36,646 |
168,354 |
150,571 |
||||||
Other income |
31,826 |
9,212 |
159,764 |
84,547 |
||||||
Total revenues |
1,749,775 |
1,518,531 |
6,637,995 |
5,860,615 |
||||||
Expenses: |
||||||||||
Property operating expenses |
1,036,078 |
938,838 |
3,947,776 |
3,558,770 |
||||||
Depreciation and amortization |
380,730 |
342,286 |
1,401,101 |
1,310,368 |
||||||
Interest expense |
154,574 |
140,391 |
607,846 |
529,519 |
||||||
General and administrative expenses |
44,327 |
41,319 |
179,091 |
150,390 |
||||||
Loss (gain) on derivatives and financial instruments, net |
(7,215) |
258 |
(2,120) |
8,334 |
||||||
Loss (gain) on extinguishment of debt, net |
— |
87 |
7 |
680 |
||||||
Provision for loan losses, net |
2,517 |
10,469 |
9,809 |
10,320 |
||||||
Impairment of assets |
14,994 |
13,146 |
36,097 |
17,502 |
||||||
Other expenses |
36,307 |
24,954 |
108,341 |
101,670 |
||||||
Total expenses |
1,662,312 |
1,511,748 |
6,287,948 |
5,687,553 |
||||||
Income (loss) from continuing operations before income taxes |
||||||||||
and other items |
87,463 |
6,783 |
350,047 |
173,062 |
||||||
Income tax (expense) benefit |
4,768 |
4,088 |
(6,364) |
(7,247) |
||||||
Income (loss) from unconsolidated entities |
(2,008) |
(4,650) |
(53,442) |
(21,290) |
||||||
Gain (loss) on real estate dispositions, net |
(1,783) |
(4,423) |
67,898 |
16,043 |
||||||
Income (loss) from continuing operations |
88,440 |
1,798 |
358,139 |
160,568 |
||||||
Net income (loss) |
88,440 |
1,798 |
358,139 |
160,568 |
||||||
Less: |
Net income (loss) attributable to noncontrolling interests (1) |
4,529 |
5,526 |
18,045 |
19,354 |
|||||
Net income (loss) attributable to common stockholders |
$ 83,911 |
$ (3,728) |
$ 340,094 |
$ 141,214 |
||||||
Average number of common shares outstanding: |
||||||||||
Basic |
548,892 |
483,305 |
515,629 |
462,185 |
||||||
Diluted |
552,380 |
483,305 |
518,701 |
465,158 |
||||||
Net income (loss) attributable to common stockholders per share: |
||||||||||
Basic |
$ 0.15 |
$ (0.01) |
$ 0.66 |
$ 0.31 |
||||||
Diluted(2) |
$ 0.15 |
$ (0.01) |
$ 0.66 |
$ 0.30 |
||||||
Common dividends per share |
$ 0.61 |
$ 0.61 |
$ 2.44 |
$ 2.44 |
||||||
(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 |
Twelve Months Ended |
||||||||||
|
|
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
Net income (loss) attributable to common stockholders |
$ 83,911 |
$ (3,728) |
$ 340,094 |
$ 141,214 |
||||||||
Depreciation and amortization |
380,730 |
342,286 |
1,401,101 |
1,310,368 |
||||||||
Impairments and losses (gains) on real estate dispositions, net |
16,777 |
17,569 |
(31,801) |
1,459 |
||||||||
Noncontrolling interests(1) |
(11,436) |
(13,989) |
(46,393) |
(56,529) |
||||||||
Unconsolidated entities(2) |
21,877 |
15,847 |
100,226 |
81,560 |
||||||||
NAREIT FFO attributable to common stockholders |
491,859 |
357,985 |
1,763,227 |
1,478,072 |
||||||||
Normalizing items, net(3) |
37,760 |
46,247 |
122,317 |
80,198 |
||||||||
Normalized FFO attributable to common stockholders |
$ 529,619 |
$ 404,232 |
$ 1,885,544 |
$ 1,558,270 |
||||||||
Average diluted common shares outstanding |
||||||||||||
For net income (loss) purposes |
552,380 |
483,305 |
518,701 |
465,158 |
||||||||
For FFO purposes |
552,380 |
486,419 |
518,701 |
465,158 |
||||||||
Per diluted share data attributable to common stockholders: |
||||||||||||
Net income (loss)(4) |
$ 0.15 |
$ (0.01) |
$ 0.66 |
$ 0.30 |
||||||||
NAREIT FFO |
$ 0.89 |
$ 0.74 |
$ 3.40 |
$ 3.18 |
||||||||
Normalized FFO |
$ 0.96 |
$ 0.83 |
$ 3.64 |
$ 3.35 |
||||||||
Normalized FFO Payout Ratio: |
||||||||||||
Dividends per common share |
$ 0.61 |
$ 0.61 |
$ 2.44 |
$ 2.44 |
||||||||
Normalized FFO attributable to common stockholders per share |
$ 0.96 |
$ 0.83 |
$ 3.64 |
$ 3.35 |
||||||||
Normalized FFO payout ratio |
64 % |
73 % |
67 % |
73 % |
||||||||
Other items:(5) |
||||||||||||
Net straight-line rent and above/below market rent amortization(6) |
$ (39,296) |
$ (26,539) |
$ (135,356) |
$ (106,496) |
||||||||
Non-cash interest expenses(7) |
7,609 |
6,167 |
27,252 |
21,805 |
||||||||
Recurring cap-ex, tenant improvements, and lease commissions |
(71,726) |
(62,122) |
(199,359) |
(179,133) |
||||||||
Stock-based compensation |
8,418 |
6,569 |
36,611 |
26,027 |
||||||||
(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) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units. |
||||||||||||
(5) Amounts presented net of noncontrolling interests' share and including |
||||||||||||
(6) Excludes normalized other impairment (see Exhibit 2). |
||||||||||||
(7) Excludes normalized foreign currency loss (gain) (see Exhibit 2). |
||||||||||||
Normalizing Items |
Exhibit 2 |
||||||||
(in thousands, except per share data) |
Three Months Ended |
Twelve Months Ended |
|||||||
|
|
||||||||
2023 |
2022 |
2023 |
2022 |
||||||
Loss (gain) on derivatives and financial instruments, net |
$ (7,215) |
(1) |
$ 258 |
$ (2,120) |
$ 8,334 |
||||
Loss (gain) on extinguishment of debt, net |
— |
87 |
7 |
680 |
|||||
Provision for loan losses, net |
2,517 |
(2) |
10,469 |
9,809 |
10,320 |
||||
Income tax benefits |
(6,731) |
(3) |
(6,784) |
(6,977) |
(6,784) |
||||
Other impairment |
4,333 |
(4) |
— |
16,642 |
(620) |
||||
Other expenses |
36,307 |
(5) |
24,954 |
108,341 |
101,670 |
||||
Leasehold interest termination |
— |
— |
(65,485) |
(64,854) |
|||||
Casualty losses, net of recoveries |
1,038 |
(6) |
7,377 |
10,107 |
10,391 |
||||
Foreign currency loss (gain) |
(1,139) |
(7) |
(1,090) |
(1,629) |
2,787 |
||||
Normalizing items attributable to noncontrolling interests and unconsolidated entities, net |
8,650 |
(8) |
10,976 |
53,622 |
18,274 |
||||
Net normalizing items |
$ 37,760 |
$ 46,247 |
$ 122,317 |
$ 80,198 |
|||||
Average diluted common shares outstanding |
552,380 |
486,419 |
518,701 |
465,158 |
|||||
Net normalizing items per diluted share |
$ 0.07 |
$ 0.10 |
$ 0.24 |
$ 0.17 |
|||||
(1) Primarily related to mark-to-market of the equity warrants received as part of the Safanad/ |
|||||||||
(2) Primarily related to reserves for loan losses under the current expected credit losses accounting standard. |
|||||||||
(3) Primarily related to the release of valuation allowances. |
|||||||||
(4) Represents the write off of straight-line rent receivable balances relating to leases placed on cash recognition. |
|||||||||
(5) Primarily related to non-capitalizable transaction costs and expenses associated with operator transitions. |
|||||||||
(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) |
Current Outlook |
||||
Low |
High |
||||
FFO Reconciliation: |
|||||
Net income attributable to common stockholders |
$ 694 |
$ 785 |
|||
Impairments and losses (gains) on real estate dispositions, net(1,2) |
(78) |
(78) |
|||
Depreciation and amortization(1) |
1,636 |
1,636 |
|||
NAREIT FFO and Normalized FFO attributable to common stockholders |
2,252 |
2,343 |
|||
Diluted per share data attributable to common stockholders: |
|||||
Net income |
$ 1.21 |
$ 1.37 |
|||
NAREIT FFO and Normalized FFO |
$ 3.94 |
$ 4.10 |
|||
Other items:(1) |
|||||
Net straight-line rent and above/below market rent amortization |
$ (138) |
$ (138) |
|||
Non-cash interest expenses |
36 |
36 |
|||
Recurring cap-ex, tenant improvements, and lease commissions |
(226) |
(226) |
|||
Stock-based compensation |
39 |
39 |
|||
(1) Amounts presented net of noncontrolling interests' share and |
|||||
(2) Includes estimated gains on projected dispositions. |
SSNOI Reconciliations |
Exhibit 4 |
|||||||||||||||||
(in thousands) |
Three Months Ended |
|||||||||||||||||
March 31, |
June 30, |
September 30, |
December 31, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|||||||||||
Net income (loss) |
$ 28,635 |
$ 65,751 |
|
$ 95,672 |
|
$ (2,653) |
$ 88,440 |
$ 1,798 |
||||||||||
Loss (gain) on real estate dispositions, net |
(747) |
(22,934) |
2,168 |
3,532 |
(71,102) |
(1,064) |
1,783 |
4,423 |
||||||||||
Loss (income) from unconsolidated entities |
7,071 |
2,884 |
40,332 |
7,058 |
4,031 |
6,698 |
2,008 |
4,650 |
||||||||||
Income tax expense (benefit) |
3,045 |
5,013 |
3,503 |
3,065 |
4,584 |
3,257 |
(4,768) |
(4,088) |
||||||||||
Other expenses |
22,745 |
26,069 |
11,069 |
35,166 |
38,220 |
15,481 |
36,307 |
24,954 |
||||||||||
Impairment of assets |
12,629 |
— |
1,086 |
— |
7,388 |
4,356 |
14,994 |
13,146 |
||||||||||
Provision for loan losses, net |
777 |
(804) |
2,456 |
165 |
4,059 |
490 |
2,517 |
10,469 |
||||||||||
Loss (gain) on extinguishment of debt, net |
5 |
(12) |
1 |
603 |
1 |
2 |
— |
87 |
||||||||||
Loss (gain) on derivatives and financial instruments, net |
930 |
2,578 |
1,280 |
(1,407) |
2,885 |
6,905 |
(7,215) |
258 |
||||||||||
General and administrative expenses |
44,371 |
37,706 |
44,287 |
36,554 |
46,106 |
34,811 |
44,327 |
41,319 |
||||||||||
Depreciation and amortization |
339,112 |
304,088 |
341,945 |
310,295 |
339,314 |
353,699 |
380,730 |
342,286 |
||||||||||
Interest expense |
144,403 |
121,696 |
152,337 |
127,750 |
156,532 |
139,682 |
154,574 |
140,391 |
||||||||||
Consolidated NOI |
602,976 |
542,035 |
706,806 |
618,453 |
666,740 |
561,664 |
713,697 |
579,693 |
||||||||||
NOI attributable to unconsolidated investments(1) |
26,354 |
20,142 |
25,150 |
23,648 |
29,488 |
27,374 |
30,785 |
24,950 |
||||||||||
NOI attributable to noncontrolling interests(2) |
(25,057) |
(34,999) |
(24,262) |
(82,804) |
(22,838) |
(27,236) |
(22,402) |
(27,523) |
||||||||||
Pro rata NOI |
604,273 |
527,178 |
707,694 |
559,297 |
673,390 |
561,802 |
722,080 |
577,120 |
||||||||||
Non-cash NOI attributable to same store properties |
(19,694) |
(13,669) |
(15,671) |
(18,162) |
(14,036) |
(16,045) |
(10,999) |
(17,233) |
||||||||||
NOI attributable to non-same store properties |
(144,558) |
(106,506) |
(242,710) |
(133,593) |
(190,461) |
(134,532) |
(243,171) |
(148,387) |
||||||||||
Currency and ownership(3) |
(576) |
(4,787) |
(1,738) |
(1,713) |
(1,513) |
2,746 |
(992) |
4,456 |
||||||||||
Other adjustments(4) |
4,558 |
(2,123) |
(3,378) |
(11,603) |
(1,489) |
(5,758) |
458 |
(362) |
||||||||||
Same Store NOI (SSNOI) |
|
$ 400,093 |
|
$ 394,226 |
|
$ 408,213 |
|
|
||||||||||
Seniors Housing Operating |
|
$ 175,325 |
|
$ 175,416 |
|
$ 189,440 |
|
|
||||||||||
Seniors Housing Triple-net |
94,408 |
94,203 |
93,575 |
90,740 |
89,929 |
86,573 |
90,599 |
88,689 |
||||||||||
Outpatient Medical |
109,983 |
108,201 |
113,097 |
109,547 |
117,217 |
113,344 |
118,912 |
115,643 |
||||||||||
Long-Term/Post-Acute Care |
23,308 |
22,364 |
19,662 |
18,523 |
19,863 |
18,856 |
19,917 |
18,938 |
||||||||||
Total SSNOI |
|
$ 400,093 |
|
$ 394,226 |
|
$ 408,213 |
|
|
||||||||||
Average |
||||||||||||||||||
Seniors Housing Operating |
23.4 % |
24.2 % |
26.1 % |
23.7 % |
24.4 % |
|||||||||||||
Seniors Housing Triple-net |
0.2 % |
3.1 % |
3.9 % |
2.2 % |
2.4 % |
|||||||||||||
Outpatient Medical |
1.6 % |
3.2 % |
3.4 % |
2.8 % |
2.8 % |
|||||||||||||
Long-Term/Post-Acute Care |
4.2 % |
6.1 % |
5.3 % |
5.2 % |
5.2 % |
|||||||||||||
Total SSNOI growth |
11.0 % |
12.7 % |
14.1 % |
12.5 % |
12.6 % |
|||||||||||||
Note: |
(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 Supplements. |
Net Debt to Adjusted EBITDA Reconciliation |
Exhibit 5 |
|||||||
(in thousands) |
Three Months Ended |
|||||||
|
|
|||||||
Net income (loss) |
$ 88,440 |
$ 1,798 |
||||||
Interest expense |
154,574 |
140,391 |
||||||
Income tax expense (benefit) |
(4,768) |
(4,088) |
||||||
Depreciation and amortization |
380,730 |
342,286 |
||||||
EBITDA |
618,976 |
480,387 |
||||||
Loss (income) from unconsolidated entities |
2,008 |
4,650 |
||||||
Stock-based compensation |
8,418 |
6,569 |
||||||
Loss (gain) on extinguishment of debt, net |
— |
87 |
||||||
Loss (gain) on real estate dispositions, net |
1,783 |
4,423 |
||||||
Impairment of assets |
14,994 |
13,146 |
||||||
Provision for loan losses, net |
2,517 |
10,469 |
||||||
Loss (gain) on derivatives and financial instruments, net |
(7,215) |
258 |
||||||
Other expenses |
36,307 |
24,954 |
||||||
Casualty losses, net of recoveries |
1,038 |
7,377 |
||||||
Other impairment(1) |
4,333 |
— |
||||||
Adjusted EBITDA |
$ 683,159 |
$ 552,320 |
||||||
Total debt(2) |
$ 15,815,226 |
$ 14,661,552 |
||||||
Cash and cash equivalents and restricted cash |
(2,076,083) |
(722,292) |
||||||
Net debt |
$ 13,739,143 |
$ 13,939,260 |
||||||
Adjusted EBITDA annualized |
$ 2,732,636 |
$ 2,209,280 |
||||||
Net debt to Adjusted EBITDA ratio |
5.03 x |
6.31 x |
||||||
(1) Represents the write off of straight-line rent receivable 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 |
564,241 |
490,509 |
||||
Period end share price |
$ 90.17 |
$ 65.55 |
||||
Common equity market capitalization |
$ 50,877,611 |
$ 32,152,865 |
||||
Net debt |
$ 13,739,143 |
$ 13,939,260 |
||||
Noncontrolling interests(1) |
967,351 |
1,099,182 |
||||
Consolidated enterprise value |
$ 65,584,105 |
$ 47,191,307 |
||||
Net debt to consolidated enterprise value |
20.9 % |
29.5 % |
||||
(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