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4Q19 Corporate Presentation

This document provides an overview of Welltower's corporate presentation on driving the future of health care real estate. Welltower is the world's largest health and wellness real estate platform, with a focus on seniors housing, outpatient medical, and post-acute care. Key investment themes discussed include the transition from inpatient to outpatient care, growing acceptance of seniors housing options, and the need to reimagine health care infrastructure to address challenges of an aging population. Welltower has a large, diversified real estate portfolio and strategic partnerships with leading health systems that position it for continued growth across the health care continuum.

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Driving the Future of Health Care Real Estate 4Q 2019 Corporate Presentation
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 we use words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “pro forma,” “estimate” or similar expressions that do not relate solely to historical matters, we are making forward-looking statements. In particular, these forward-looking statements include, but are not limited to, those relating to our opportunities to acquire, develop or sell properties; our ability to close anticipated acquisitions, investments or dispositions on currently anticipated terms, or within currently anticipated timeframes; the expected performance of our operators/tenants and properties; our expected occupancy rates; our ability to declare and to make distributions to shareholders; our investment and financing opportunities and plans; our continued qualification as a REIT; our ability to access capital markets or other sources of funds; and our ability to meet our earnings guidance. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause our actual results to differ materially from our expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; uncertainty from the expected discontinuance of LIBOR and the transition to any other interest rate benchmark; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; our ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters and other acts of God affecting our properties; our ability to re lease space at similar rates as vacancies occur; our ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting our properties; changes in rules or practices governing our financial reporting; the movement of U.S. and foreign currency exchange rates; our ability to maintain our qualification as a REIT; key management personnel recruitment and retention; and other risks described in our reports filed from time to time with the Securities and Exchange Commission. Finally, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements. 2
Secular Themes The need for innovation and disruption 3
$3.7 $4.9 $8.0 $10.2 $17.0 $32.9 $0K $5K $10K $15K $20K $25K $30K $35K 0-18 19-44 U.S. Average 45-64 65-84 85+ 12.9M 15.1M 18.9M 0% 1% 2% 3% 4% 5% 6% 7% 9 11 13 15 17 19 21 23 25 Population 80+ (M) YoY Growth (%) Secular Theme | An Aging Population 4 1. United States Census Bureau: Projected Population by Single Year of Age, Sex, Race, Hispanic Origin and Nativity for the United States: 2016 to 2060. 2. Centers for Medicare & Medicaid Services: Health Expenditures by Age and Gender; 2014. The Aging Population is growing exponentially, and outspends every other age cohort combined on health care 80+ U.S. Population Growth(1) Personal Health Care Per-Capita Spend by Age(2) 4.1X
Secular Theme | The Need for Value-Based Care 5 1. The Common Wealth Fund 2. Organization for Economic Cooperation and Development. Data as of 2017 0% 5% 10% 15% 20% 25% 30% 35% FR SWE SWIZ GER NETH US NOR UK NZ CAN AUS Health Care Spend Social Care Spend Health Care Spend (% GDP) 74 76 78 80 82 84 4% 6% 8% 10% 12% 14% 16% 18% FR SWE SWIZ GER NETH NOR UK NZ CAN AUS OECD Average USA LifeExpectancyatBirth(years) Investing in social care leads to better health outcomes Health and Social Spending as % of GDP (1) Health Care Spend vs. Life Expectancy(2) The US spends the most per capita on health care, yet achieves significantly lower health outcomes
Secular Theme | Social Determinants of Health 6 1. Source: Artiga, S., & Hinton, E. (2019, May 29). Beyond Health Care: The Role of Social Determinants in Promoting Health and Health Equity. 40% 30% 20% 10% Socioeconomic factors Health Behaviors Health Care Physical Environment Drivers of Health 80%of an individual’s health and wellness is influenced by social determinants(1) Health & Medical Care Exercise & Activity Safety & Accessibility Food Security & Nutrition Community & Socialization Sleep Transportation Hygiene Health and wellness can be directly impacted by where you live and age
Investment Theme | The Built Environment Must Change 7 Growth Opportunity Fee-for-service model is ineffective, costly, and unsustainable given secular trends in demographics Health Systems Retail Pharmacy & PBM Physician Groups Payor Entities Home-Based Services Industry ResponseKey Drivers of Change Vertically integrated care models increase care coordination, lower health costs and improve health outcomes Changing capital needs present an opportunity in health care infrastructure, and the built environment must change to deliver wellness & consumer centered sites of care Better OUTCOMES Triple Aim $
Investment Thesis The built environment must be reimagined and reinvested to address the challenges of the aging population 8
CONSUMER DRIVEN VENUES AND SERVICES Investment Theme | The Health and Wellness Ecosystem 9 Hospital Skilled Nursing (LTC) Inpatient Rehab Facility Long-Term Care Hospital Specialty Inpatient Care Virtual Health Outpatient Medical Urgent Care Retail Health Home Health Digital Innovation Payor Programs RELATIVE COST OF CARE $$$$ ACUTE CARE SENIORS HOUSINGPOST-ACUTE CARE Memory Care Assisted Living Independent Living Home
Investment Theme | A $1 Trillion Opportunity 10SOURCE: Revista; based on square feet owned as of 10/01/2019 Properties Total Value Total Sq. Feet Hospital 5,479 $616B 1.5B Outpatient 36,433 $420B 1.5B TOTALS 41,912 $1,036 3.0B 52% 13% 11% 24% Outpatient Medical Real Estate OwnershipREITs Investor / Private Health Systems & Providers ~65% Health system real estate offers significant investment opportunity to drive synergies across the health care continuum
The Welltower Platform 11
Welltower at a Glance 12 World’s largest health and wellness real estate platform Dow Jones Sustainability World Index 500S&P ~24Msq. ft. of Outpatient Facilities $50B Enterprise Value (1) ~1,300 Senior Living Communities Bloomberg Gender Equality Index BBB+ / BBB+ / Baa1 Strong Balance Sheet 32% 5 yr total return 1. Source: Bloomberg as of 12/31/2019.
Welltower Platform | Market Leading Strengths 13 Access to Capital Predictive Analytics Population and Scale Asset Management and Development Unique Partnerships Competitive Advantage Direct Investment Capabilities
The Welltower Platform 14 Seniors Housing
Strong Case for Seniors Housing 15 1. Penetration rate calculated based on NIC MAP Occupancy and Inventory, 2Q19 and 80+ population. 2. Combined for US, CA, and UK. Sources: UK = ONS (Office for National Statistics) www.ons.gov.uk-Canada = StatCan(Statistics Canada) www.statcan.gc.ca-US = US Census Bureau www.census.gov. Fundamental Drivers Social Benefits Social factors drive health outcomes. 80% of outcomes can be attributed to where you live Demographics 75+ population to double in next 20 years(2) Penetration Rate 10.5% penetration rate(1) indicates significant opportunity to increase market acceptance Dependency Ratio Demands of the aging population outpacing supply of caregivers
Investment Theme | Growing Product Acceptance 16 Seniors Housing Inventory and Penetration 2010 – 2019(1) 1. Source: NIC MAP Primary and Secondary Markets, 2Q19 and US Census Bureau, Population Division. Penetration rate calculated based on NIC MAP Occupancy and Inventory, 2Q19 and 80+ population. 9.9% 10.5% 9.5% 9.6% 9.7% 9.8% 9.9% 10.0% 10.1% 10.2% 10.3% 10.4% 10.5% 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NIC MAP Inventory Penetration Rate
89% 92% 94% 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Occupancy (ΔP=0 bps) Occupancy (ΔP=60 bps) Occupancy (ΔP=100 bps) Investment Theme | National Seniors Housing Outlook 171. Source: US Census Bureau, Population Division for population; 1-year population estimates 2010-2018; projections based on national US Census population projections 2019-2025; Population estimates based on NIC Primary and Secondary Markets. Historical penetration rate calculated based on NIC MAP Occupancy and Inventory and 80+ population. Assumes 3% annual supply growth. ProjectedHistorical Occupancy and Penetration Rates : 2010 – 2025(1) If the penetration rate increased 100 bps today, occupancy would reach 94% in 2025 If the penetration rate increased to 60 bps today, occupancy would reach 92% in 2025 If the penetration rate stayed the same, occupancy would reach 89% in 2025 Base penetration rate is 10.5%
The Strength of the Welltower Seniors Housing Platform 18 High Barrier to Entry Premier Markets 47 Best-In-Class Operating Partners Innovative and Aligned Structuring RIDEA 3.0 Next Generation Physical Infrastructure Brandywine Living at Alexandria, VA The Sumach by Chartwell | Toronto, CA Sunrise of Pleasanton | San Francisco, CABalfour at Riverfront Park | Denver, CO
Seniors Housing Map | Urban, High Barrier to Entry 19Based on In-Place NOI. Please see Supplemental Financial Measures at the end of this presentation for reconciliations. SHO SH NNN 91% SH Operating NOI in London & Southern England 81% SH Operating NOI in Top 10 MSAs 78% SH Operating NOI in Top 25 MSAs
Welltower Operator Platform 20 Operators diversified across geographies and acuity mix
RIDEA 3.0: Next Generation Management Contracts 21 Maximizing Value of Real Estate, Aligning Interests and Protecting Downside Ownership Structure & Key Relationship Terms RIDEA 3.0 Contract Legacy RIDEA Contract Real Estate Ownership Operator has ownership stake in real estate ✓ Same Structure Base Management Fee Tied to bottom line with incentive fee based on NOI ✓ % of Revenues Promote Promote at set intervals based on CAGR NOI growth ✓ Some Partners Termination Rights Portfolio and community based relative to budget ✓ Non-performance-based
The Welltower Platform 22 Outpatient Medical
Investment Theme | Inpatient to Outpatient 231. Source: American Hospital Association 2018 Hospital Statistics Report; data represents the change in inpatient admissions and outpatient visits for Community Hospitals. 0% 10% 20% 30% 40% 50% 60% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Outpatient Visits Inpatient Admissions 51% increase in outpatient visits since 1999, compared to a 3% increase in inpatient admissions(1)
Welltower Platform | What We Do – Outpatient Medical 24 Strategic Health System Partnerships Predictive Market Analytics Consumer-focused Care Settings Integrated Real Estate Management Team Midtown Medical Plaza | Charlotte, NC StamfordVirtua Voorhees | Voorhees, NJ Alpharetta Pediatric Center | GA416 N Bedford | Beverly Hills, CA
Growing Relationships with Key Health System Partners 25 Strategic Health Care Alliances & Innovative Care Delivery Models
Medical Office | Market Leading Platform 26 Diversified portfolio across geographies and health systems Growing Relationships with Key Health System Partners SQ. FT. 0 300K
Case Study | Summit Medical Group 27 Premier Multispecialty Medical Practice 1 2 3 6 5 4 Summit Berkeley Heights Summit Florham Park Largest physician-owned multispecialty medical practice in NJ with 800+ practitioners across over 80 specialties in 7 counties 4-story, 130K RSF, 100% Master Leased to SMG • Property located on 10.4 acres in Florham Park, NJ (New York MSA) • Houses over 30 specialties and services, including ambulatory surgery, urgent care, geriatric services, imaging & radiology, and primary care. • Epicenter for Cancer Treatment: comprehensive, next generation oncology services Largest and most comprehensive care “hub” in hub-and-spoke platform, increasing the total WELL-owned, Summit-leased footprint to 500K sq.ft.
Case Study | Atrium Development - Charlotte, NC 28 Consumer-oriented Class “A+” Health Care Anchored Mixed-Use Development Site Metropolitan Shopping Center Downtown Charlotte Buildings to house integrated specialty clinical practices for Atrium Health including the Sanger Heart and Vascular Institute Two building, 5.5-acre multi-phase development 100% master leased by Atrium Health (Moody’s: Aa3) Adjacent to Carolinas Medical Center campus with 286K sq. ft. of future development opportunities Anticipated Delivery Q2 – Q3 2020
Case Study | Providence St. Joseph - Mission Viejo, CA 29 Delivered Q4 2019 The Shops at Mission Viejo Mission Viejo Medical Center 105K RSF, on-campus medical office building with 611-space parking structure built on a former parking lot at The Shops at Mission Viejo, a high-end mall owned by Simon Property Group Strategic joint venture with Mission Hospital, a 345-bed acute care hospital and member of the Providence St. Joseph Health System. Long term ground lease with SPG, 100% master leased by Mission Hospital Innovative Care Delivery Model and Advanced Oncology Programs
Welltower and ProMedica | Strategic Joint Venture 30 Care communities post-acute, assisted living, memory care, hospice and home health Employees across 30 states of properties with CMS 4 Star rating and above Innovative partnership creates $7B, fully integrated care platform 15th largest national health system with acute, post-acute and ambulatory care, 600K covered lives and 2,700 providers Diversified portfolio positioned for internal and external growth, investment grade balance sheet and outstanding access to capital 45050K 91% Properties with CMS 4 Star rating and above
Synergistic Partnership Drives Alignment across the Care Continuum 31 Large population of seniors living in a controlled assisted living environment now eligible for Medicare Advantage products Expansion of use of seniors housing real estate Ability to leverage seniors housing real estate for clinical purposes Increased length of stay Demonstrated outcomes showing length of stay increase of 17 months Integrated Clinical and Wellness Program
The Welltower Platform 32 Our Competitive Advantage
Sustainable Competitive Advantage 33 Fundamental Drivers People Diverse workforce and board, disciplined G&A and skilled governance Operator Platform Diverse operating partners across geography, acuity, operating leverage Predictive Analytics Data-driven, granular approach to market presence and growth Health System Relationships Integrated across asset types and settings (payors, providers, residential and retail)
34 Demographics/ Psychographics Housing Income/ Employment Education Health Indicators Population Projections Competition Data-Driven Capital Allocation 10+ years of property-level historical performance data Business Insights | Integrating Operator & 3rd Party Data NOI LaborOccupancy Welltower’s competitive advantage: Third party data integration
Micro Market Analysis | Looks can be deceiving 35 Demographic and Psychographic Analysis across 8.2 Million Micro Markets # Households in Target Demographic ABILITY to pay WILLINGNESS to pay Demographics Housing, Affluence, Density, Economic Indicators Psychographics Interests, Lifestyle, Values, Attitudes, Behaviors Demand Hex Grid with Competition Overlay Top MSA | New York Demand Analysis for a Target Property located in a Top MSA indicates unfavorable market conditions 5mi Driving Radius Competitor PropertyTarget Property 0.2mi Demand Hexagon
Micro Market Analysis | Beauty is in the eye of the beholder 36 Demographic and Psychographic Analysis across 8.2 Million Micro Markets # Households in Target Demographic ABILITY to pay WILLINGNESS to pay Demographics Housing, Affluence, Density, Economic Indicators Psychographics Interests, Lifestyle, Values, Attitudes, Behaviors Demand Hex Grid with Competition Overlay Secondary MSA | Kansas Demand Analysis for a Target Property located in a Secondary MSA indicates favorable market conditions 5mi Driving Radius Competitor PropertyTarget Property 0.2mi Demand Hexagon
Business Insights | Key Takeaways 37 Statistical Similar Location Anywhere in USA Outlook Defined by MSA SIMILAR PROPERTIES4. Predictive Labor CostLABOR Uncertain/ Price Taker3. Quantifiable and Consistent (ACUs™) COMPETITION Gut feel 1. MARKETS 8.2M Micro MarketsSub-markets 2. Physician Net Need Based Subjective/ Unsystematic OUTPATIENT MEDICAL5.
Operator Diversification across Acuity Spectrum Seniors Housing Operator Platform | Power of Diversification 38 $ $$$ MonthlyRent Low HighAverage Portfolio Acuity ✓ Acuity AL, IL, MC ✓ Geography Micro Markets ✓ Operating Leverage RIDEA 3.0 Diversity Across Platform :
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 2 0.12 3 0.03 -0.34 4 0.78 0.35 -0.03 5 -0.17 0.26 -0.09 -0.69 6 -0.39 0.44 -0.16 -0.71 0.31 7 0.25 0.48 -0.49 0.16 0.14 0.31 8 -0.05 0.63 -0.38 0.34 0.47 0.4 0.58 9 0.07 0.53 -0.15 0.51 0 0.28 0.52 0.47 10 -0.13 0.68 -0.74 -0.17 0.04 0.68 0.35 0.65 0.32 11 0.07 0.64 -0.18 0.41 0.24 0.45 0.68 0.55 0.44 0.65 12 -0.32 0.39 -0.14 -0.77 0.52 0.8 0.44 0.52 0.4 0.62 0.53 13 -0.06 0.07 0.03 -0.13 -0.19 0.29 0.63 0 0.27 0.86 0.31 0.18 14 -0.15 0.69 -0.18 0.04 0.23 0.51 0.59 0.54 0.61 0.8 0.48 0.66 0.32 15 -0.38 0.34 -0.16 -0.75 0.29 0.69 0.36 0.44 0.48 0.54 0.56 0.87 0.71 0.57 16 -0.19 0.39 -0.09 -0.4 0.4 0.42 0.52 0.37 0.28 0.72 0.45 0.82 0.32 0.47 0.71 17 0.07 0.4 -0.17 -0.78 0.04 0.48 0.13 0.3 0.23 0.3 0.39 0.48 0.22 0.51 0.41 0.29 18 -0.04 -0.21 0.4 0.48 -0.15 -0.37 -0.12 -0.24 0.12 -0.48 -0.01 -0.34 -0.29 -0.35 -0.3 -0.22 -0.29 19 0.11 0.07 -0.01 0.68 -0.19 -0.31 -0.08 -0.01 -0.04 -0.11 0 -0.36 -0.07 0 -0.34 -0.22 -0.31 -0.13 20 -0.07 -0.03 0.2 -0.68 0.27 0.17 -0.34 0.07 -0.02 0.15 -0.04 0.14 -0.19 -0.09 0.2 0.19 -0.1 -0.52 -0.17 Portfolio Diversity | Operator Correlation* 39 OPERATOR *Correlation of NOI Per Available Unit Days
40 Commitment to Environmental, Social and Governance (ESG)
Environmental | Leadership through Sustainability 41Reductions in 2018 as compared to 2017 for properties where utility data was available. Source: utility bills from operating partners and Engie Insights. 26,535 MWh reduction in energy consumption(1) Consumed 32,467 MWh of renewable electricity in 2018 Avoided 6,837 metric tons of greenhouse gas emissions(1) 11,453 gallon reduction in water consumption Recycled 7,347 Tons in 2018 78 63 26 12 12 Energy, Water and Waste Green Buildings Recognized for Sustainable Business Practices 405K sq ft of executed green leases ~$1M of sustainable building related purchases
Social | Wellness at our Core 42 Caregiver Leave $8.4M+ invested in the workforce in 2018 Learning & Professional Development Employee Initiatives WELL +CORE WELL+BEING DIVERSITY COUNCIL Employee Profit Sharing Contribution 401K Match 100% up to 5% Student Debt $100/month up to $10k Over 15% employee participation Healthcare 76% of employee healthcare premiums paid Employer Match to HSA Workforce DevelopmentDiversity and Inclusion 1:1 Gender parity across the Organization 45% of hires to revenue generating roles in 2018 were female Social Recognition
Governance | Great Governance is Good Business 43 1. Data as of 5/7/2019. 2. ISS Governance Score is a weighted average of scores assigned for (a) board structure, (b) compensation, (c) shareholder rights and (d) audit. 3. Ventas (VTR), PEAK, Crown Castle International (CCI), Equinix (EQIX), Iron Mountain (IRM), Weyerhaeuser Company (WY), American Tower Corporation (AMT), Boston Properties (BXP), Equity Residential (EQR), Prologis (PLD), Public Storage (PSA), Simon Property Group (SPG), Vornado Realty Trust (VNO), AvalonBay Communities (AVB), Alexandria Real Estate Equities (ARE). G&A as % of Enterprise Value(1) 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% MPT HR CTRE HTA SBRA OHI VTR HCP WELL HC REIT Average Female and Minority Independent Director Leadership on the Board of Directors(1) 75% of Employees received refresher training on insider trading and anti-corruption 95% RISKLOW (0) HIGH (10) Peers(3) 4.0 6.4 Governance Score(2)
Capitalizing the Opportunity 44
Performance Driven Financing Strategy 45 Superior Internal & External Growth Significant & Stable Dividend Income Investment Grade Balance Sheet Outstanding Access To Capital
Strategic Portfolio Optimization | Capital Recycling 461. Investment amounts pro rata as of 12/31/2019. $18B $10B $6B gross investments since 2015 dispositions since 2015 invested in Outpatient Medical and Health System Capital Recycling 2015 – 4Q19(1) 56% 38% $0B $2B $4B $6B $8B $10B $12B $14B $16B $18B Non-Core Property Dispositions Strategic Acquisitions SH LT/PAC OM HS
Portfolio Optimization Enhances Quality of Cash Flow(1) 47 1. Based on In-Place NOI. See Supplemental Financial Measures at the end of this presentation for reconciliations. 2. Based on In-Place NOI. 3. Based on facility revenue mix. Strategic Capital Deployment into Outpatient Medical & Health Systems 93% Private Pay(2) 42% 28% 13% 17% 4Q 2016 93% Private Pay(3) 43% 20% 8% 22% 7% 4Q 2019 Seniors Housing Operating Seniors Housing Triple Net Long-Term / Post-Acute Care Health SystemOutpatient Medical
Continued Portfolio Optimization 48 Strategic Acquisitions with Next-Gen Operators into High Quality Urban Seniors Housing Aligning with Premier Care Providers by Financing New Models of Health Care Delivery
Balanced and Manageable Debt Maturity Profile(1) 49 1. Data as of 12/31/2019 in USD. Represents pro rata principal amounts due and excluding unamortized premiums/discounts or other fair value adjustments as reflected on the balance sheet. Excludes lease liabilities relating to both finance and operating leases. 2. The 2020 maturity reflects the $643,600,000 in principal outstanding on our unsecured commercial paper program as of December 31, 2019. The 2023 maturity reflects the $945,000,000 in principal outstanding on our unsecured revolving credit facility that matures on July 19, 2022 (with an option to extend for two successive terms of six months each at our discretion). These borrowings reduce the available borrowing capacity of our unsecured revolving credit facility to $1,411,400,000. If the commercial paper was refinanced using the unsecured revolving credit facility, the weighted average years to maturity of our combined debt would be 7.8 years with extensions. Weighted Average Maturity of 7.6 years(2) 2.56% 3.81% 3.79% 3.24% 3.89% 3.96% 4.17% 2.96% 4.48% 3.86% 4.42% $0M $500M $1,000M $1,500M $2,000M $2,500M $3,000M $3,500M 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 After USD Unsecured USD Secured GBP Unsecured GBP Secured CAD Unsecured CAD Secured Lines of Credit & Commercial Paper Weighted Avg. Interest (in millions USD) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 After Unsecured Debt -- -- $10 $1,793 $1,350 $1,250 $700 $731 $1,480 $550 $2,563 Secured Debt $327 $326 $395 $415 $265 $575 $62 $180 $90 $277 $266 Lines of Credit & Commercial Paper $644 -- -- $945 -- -- -- -- -- -- -- Total $971 $326 $405 $3,153 $1,615 $1,825 $762 $911 $1,570 $827 $2,829
50 Supplemental Financial Measures
Non-GAAP Financial Measures We believe that revenues, net income and net income attributable to common stockholders (NICS), as defined by U.S. generally accepted accounting principles (U.S. GAAP), are the most appropriate earnings measurements. However, the company considers Net Operating Income (NOI) and In-Place NOI (IPNOI) to be useful supplemental measures of our operating performance. These supplemental measures are disclosed on our pro rata ownership basis. Pro rata amounts are derived by reducing consolidated amounts for minority partners’ noncontrolling ownership interests and adding our minority ownership share of unconsolidated amounts. We do not control unconsolidated investments. While we consider pro rata disclosures useful, they may not accurately depict the legal and economic implications of our joint venture arrangements and should be used with caution. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and rating 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, these measures are utilized by the Board of Directors to evaluate management. None of the supplemental reporting measures represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Multi-period amounts may not equal the sum of the individual quarterly amounts due to rounding. 51
NOI and IPNOI 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 operators, marketing, housekeeping, food service, maintenance, utilities, property taxes and insurance. General and administrative expenses represent costs unrelated to property operations and transaction costs. These expenses include, but are not limited to, payroll and benefits, professional services, office expenses and depreciation of corporate fixed assets. IPNOI represents NOI excluding interest income, other income and non-IPNOI and adjusted for timing of current quarter portfolio changes such as acquisitions, development conversions, segment transitions, dispositions and investments held for sale. We believe NOI and IPNOI provide investors relevant and useful information because they measure the operating performance of our properties at the property level on an unleveraged basis. We use these metrics to make decisions about resource allocations and to assess the property level performance of our properties. 52
In-Place NOI Reconciliations (dollars in thousands) 4Q19 4Q16 Annualized In-Place NOI by property type 4Q19 % of Total Net income (loss) $ 240,136 $ 351,108 Seniors Housing Operating $ 904,136 43.0 % Loss (gain) on real estate dispositions, net (12,064) (200,165) Seniors Housing Triple-Net 411,968 19.6 % Loss (income) from unconsolidated entities (57,420) 2,829 Outpatient Medical 464,820 22.1 % Income tax expense (benefit) (4,832 ) (16,585 ) Health System 143,168 6.8 % Other expenses 16,042 8,838 Long-Term/Post-Acute Care 179,780 8.5 % Impairment of assets 98 13,187 Total In-Place NOI $ 2,103,872 100.0 % Provision for loan losses — 10,215 Loss (gain) on extinguishment of debt, net 2,612 68 4Q16 % of Total Loss (gain) on derivatives and financial instruments, net (5,069) 17,204 Seniors Housing Operating $ 822,932 42.1 % Transaction Cost — 9,704 Seniors Housing Triple-Net 535,112 27.4 % General and administrative expenses 26,507 32,807 Outpatient Medical 338,648 17.3 % Depreciation and amortization 262,644 227,916 Long-Term/Post-Acute Care 259,792 13.2 % Interest expense 131,648 126,360 Total In-Place NOI $ 1,956,484 100.0 % Consolidated net operating income 600,302 583,486 NOI attributable to unconsolidated investments(1) 22,031 16,467 NOI attributable to noncontrolling interests(2) (41,035) (28,151) Pro rata net operating income (NOI) $ 581,298 $ 571,802 Adjust: Interest income (15,718) $ (23,689 ) Other income (6,011) (6,657 ) Sold / held for sale (21,673) (48,611 ) Developments / land 588 — Non In-Place NOI(3) (23,445) (13,111 ) Timing adjustments(4) 10,929 9,387 In-Place NOI 525,968 489,121 Annualized In-Place NOI $ 2,103,872 $ 1,956,484 (1) Represents Welltower's combined interests in joint ventures where Welltower is the minority partner. (2) Represents minority partners' interests in joint ventures where Welltower is the majority partner. (2) Primarily represents non-cash NOI. (4) Represents timing adjustments for current quarter acquisitions, construction conversions and segment or operator transitions. 53
In-Place NOI Concentration Reconciliation (dollars in thousands at Welltower pro rata ownership) 4Q19 Annualized Seniors Housing Operating % of SHO by Country New York $ 90,134 13.7% Los Angeles 85,535 13.0% Washington D.C. 40,086 6.1% San Francisco 34,146 5.2% Dallas 26,410 4.0% San Diego 22,729 3.4% Boston 21,437 3.3% Chicago 19,672 3.0% Philadelphia 17,204 2.6% Houston 15,328 2.3% Other Top 25 US MSAs 140,670 21.4% Remaining United States 145,495 22.0% Total United States $ 658,846 100.0% Toronto $ 39,336 24.1% Montréal 28,346 17.4% Ottawa 19,524 12.0% Calgary 8,120 5.0% Vancouver 10,532 6.4% Québec 8,752 5.4% Winnipeg 5,412 3.3% Edmonton 4,776 2.9% Victoria 3,368 2.1% London 3,272 2.0% Remaining Canada 31,934 19.4% Total Canada $ 163,372 100.0% Greater London $ 52,977 64.7% Other Southern England 21,790 26.6% Other United Kingdom 7,151 8.7% Total United Kingdom $ 81,918 100.0% Total In-Place NOI(1) $ 904,136 (1) Please refer to "In-Place NOI Reconciliations" for a reconciliation of annualized In-Place NOI to net income. 54

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4Q19 Corporate Presentation

  • 1.
    Driving the Futureof Health Care Real Estate 4Q 2019 Corporate Presentation
  • 2.
    Forward Looking Statementsand Risk Factors This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When we use words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “pro forma,” “estimate” or similar expressions that do not relate solely to historical matters, we are making forward-looking statements. In particular, these forward-looking statements include, but are not limited to, those relating to our opportunities to acquire, develop or sell properties; our ability to close anticipated acquisitions, investments or dispositions on currently anticipated terms, or within currently anticipated timeframes; the expected performance of our operators/tenants and properties; our expected occupancy rates; our ability to declare and to make distributions to shareholders; our investment and financing opportunities and plans; our continued qualification as a REIT; our ability to access capital markets or other sources of funds; and our ability to meet our earnings guidance. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause our actual results to differ materially from our expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; uncertainty from the expected discontinuance of LIBOR and the transition to any other interest rate benchmark; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; our ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters and other acts of God affecting our properties; our ability to re lease space at similar rates as vacancies occur; our ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting our properties; changes in rules or practices governing our financial reporting; the movement of U.S. and foreign currency exchange rates; our ability to maintain our qualification as a REIT; key management personnel recruitment and retention; and other risks described in our reports filed from time to time with the Securities and Exchange Commission. Finally, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements. 2
  • 3.
    Secular Themes The needfor innovation and disruption 3
  • 4.
    $3.7 $4.9 $8.0 $10.2 $17.0 $32.9 $0K $5K $10K $15K $20K $25K $30K $35K 0-18 19-44 U.S. Average 45-6465-84 85+ 12.9M 15.1M 18.9M 0% 1% 2% 3% 4% 5% 6% 7% 9 11 13 15 17 19 21 23 25 Population 80+ (M) YoY Growth (%) Secular Theme | An Aging Population 4 1. United States Census Bureau: Projected Population by Single Year of Age, Sex, Race, Hispanic Origin and Nativity for the United States: 2016 to 2060. 2. Centers for Medicare & Medicaid Services: Health Expenditures by Age and Gender; 2014. The Aging Population is growing exponentially, and outspends every other age cohort combined on health care 80+ U.S. Population Growth(1) Personal Health Care Per-Capita Spend by Age(2) 4.1X
  • 5.
    Secular Theme |The Need for Value-Based Care 5 1. The Common Wealth Fund 2. Organization for Economic Cooperation and Development. Data as of 2017 0% 5% 10% 15% 20% 25% 30% 35% FR SWE SWIZ GER NETH US NOR UK NZ CAN AUS Health Care Spend Social Care Spend Health Care Spend (% GDP) 74 76 78 80 82 84 4% 6% 8% 10% 12% 14% 16% 18% FR SWE SWIZ GER NETH NOR UK NZ CAN AUS OECD Average USA LifeExpectancyatBirth(years) Investing in social care leads to better health outcomes Health and Social Spending as % of GDP (1) Health Care Spend vs. Life Expectancy(2) The US spends the most per capita on health care, yet achieves significantly lower health outcomes
  • 6.
    Secular Theme |Social Determinants of Health 6 1. Source: Artiga, S., & Hinton, E. (2019, May 29). Beyond Health Care: The Role of Social Determinants in Promoting Health and Health Equity. 40% 30% 20% 10% Socioeconomic factors Health Behaviors Health Care Physical Environment Drivers of Health 80%of an individual’s health and wellness is influenced by social determinants(1) Health & Medical Care Exercise & Activity Safety & Accessibility Food Security & Nutrition Community & Socialization Sleep Transportation Hygiene Health and wellness can be directly impacted by where you live and age
  • 7.
    Investment Theme |The Built Environment Must Change 7 Growth Opportunity Fee-for-service model is ineffective, costly, and unsustainable given secular trends in demographics Health Systems Retail Pharmacy & PBM Physician Groups Payor Entities Home-Based Services Industry ResponseKey Drivers of Change Vertically integrated care models increase care coordination, lower health costs and improve health outcomes Changing capital needs present an opportunity in health care infrastructure, and the built environment must change to deliver wellness & consumer centered sites of care Better OUTCOMES Triple Aim $
  • 8.
    Investment Thesis The builtenvironment must be reimagined and reinvested to address the challenges of the aging population 8
  • 9.
    CONSUMER DRIVEN VENUESAND SERVICES Investment Theme | The Health and Wellness Ecosystem 9 Hospital Skilled Nursing (LTC) Inpatient Rehab Facility Long-Term Care Hospital Specialty Inpatient Care Virtual Health Outpatient Medical Urgent Care Retail Health Home Health Digital Innovation Payor Programs RELATIVE COST OF CARE $$$$ ACUTE CARE SENIORS HOUSINGPOST-ACUTE CARE Memory Care Assisted Living Independent Living Home
  • 10.
    Investment Theme |A $1 Trillion Opportunity 10SOURCE: Revista; based on square feet owned as of 10/01/2019 Properties Total Value Total Sq. Feet Hospital 5,479 $616B 1.5B Outpatient 36,433 $420B 1.5B TOTALS 41,912 $1,036 3.0B 52% 13% 11% 24% Outpatient Medical Real Estate OwnershipREITs Investor / Private Health Systems & Providers ~65% Health system real estate offers significant investment opportunity to drive synergies across the health care continuum
  • 11.
  • 12.
    Welltower at aGlance 12 World’s largest health and wellness real estate platform Dow Jones Sustainability World Index 500S&P ~24Msq. ft. of Outpatient Facilities $50B Enterprise Value (1) ~1,300 Senior Living Communities Bloomberg Gender Equality Index BBB+ / BBB+ / Baa1 Strong Balance Sheet 32% 5 yr total return 1. Source: Bloomberg as of 12/31/2019.
  • 13.
    Welltower Platform |Market Leading Strengths 13 Access to Capital Predictive Analytics Population and Scale Asset Management and Development Unique Partnerships Competitive Advantage Direct Investment Capabilities
  • 14.
  • 15.
    Strong Case forSeniors Housing 15 1. Penetration rate calculated based on NIC MAP Occupancy and Inventory, 2Q19 and 80+ population. 2. Combined for US, CA, and UK. Sources: UK = ONS (Office for National Statistics) www.ons.gov.uk-Canada = StatCan(Statistics Canada) www.statcan.gc.ca-US = US Census Bureau www.census.gov. Fundamental Drivers Social Benefits Social factors drive health outcomes. 80% of outcomes can be attributed to where you live Demographics 75+ population to double in next 20 years(2) Penetration Rate 10.5% penetration rate(1) indicates significant opportunity to increase market acceptance Dependency Ratio Demands of the aging population outpacing supply of caregivers
  • 16.
    Investment Theme |Growing Product Acceptance 16 Seniors Housing Inventory and Penetration 2010 – 2019(1) 1. Source: NIC MAP Primary and Secondary Markets, 2Q19 and US Census Bureau, Population Division. Penetration rate calculated based on NIC MAP Occupancy and Inventory, 2Q19 and 80+ population. 9.9% 10.5% 9.5% 9.6% 9.7% 9.8% 9.9% 10.0% 10.1% 10.2% 10.3% 10.4% 10.5% 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NIC MAP Inventory Penetration Rate
  • 17.
    89% 92% 94% 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% 2010 2011 20122013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Occupancy (ΔP=0 bps) Occupancy (ΔP=60 bps) Occupancy (ΔP=100 bps) Investment Theme | National Seniors Housing Outlook 171. Source: US Census Bureau, Population Division for population; 1-year population estimates 2010-2018; projections based on national US Census population projections 2019-2025; Population estimates based on NIC Primary and Secondary Markets. Historical penetration rate calculated based on NIC MAP Occupancy and Inventory and 80+ population. Assumes 3% annual supply growth. ProjectedHistorical Occupancy and Penetration Rates : 2010 – 2025(1) If the penetration rate increased 100 bps today, occupancy would reach 94% in 2025 If the penetration rate increased to 60 bps today, occupancy would reach 92% in 2025 If the penetration rate stayed the same, occupancy would reach 89% in 2025 Base penetration rate is 10.5%
  • 18.
    The Strength ofthe Welltower Seniors Housing Platform 18 High Barrier to Entry Premier Markets 47 Best-In-Class Operating Partners Innovative and Aligned Structuring RIDEA 3.0 Next Generation Physical Infrastructure Brandywine Living at Alexandria, VA The Sumach by Chartwell | Toronto, CA Sunrise of Pleasanton | San Francisco, CABalfour at Riverfront Park | Denver, CO
  • 19.
    Seniors Housing Map| Urban, High Barrier to Entry 19Based on In-Place NOI. Please see Supplemental Financial Measures at the end of this presentation for reconciliations. SHO SH NNN 91% SH Operating NOI in London & Southern England 81% SH Operating NOI in Top 10 MSAs 78% SH Operating NOI in Top 25 MSAs
  • 20.
    Welltower Operator Platform 20 Operatorsdiversified across geographies and acuity mix
  • 21.
    RIDEA 3.0: NextGeneration Management Contracts 21 Maximizing Value of Real Estate, Aligning Interests and Protecting Downside Ownership Structure & Key Relationship Terms RIDEA 3.0 Contract Legacy RIDEA Contract Real Estate Ownership Operator has ownership stake in real estate ✓ Same Structure Base Management Fee Tied to bottom line with incentive fee based on NOI ✓ % of Revenues Promote Promote at set intervals based on CAGR NOI growth ✓ Some Partners Termination Rights Portfolio and community based relative to budget ✓ Non-performance-based
  • 22.
  • 23.
    Investment Theme |Inpatient to Outpatient 231. Source: American Hospital Association 2018 Hospital Statistics Report; data represents the change in inpatient admissions and outpatient visits for Community Hospitals. 0% 10% 20% 30% 40% 50% 60% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Outpatient Visits Inpatient Admissions 51% increase in outpatient visits since 1999, compared to a 3% increase in inpatient admissions(1)
  • 24.
    Welltower Platform |What We Do – Outpatient Medical 24 Strategic Health System Partnerships Predictive Market Analytics Consumer-focused Care Settings Integrated Real Estate Management Team Midtown Medical Plaza | Charlotte, NC StamfordVirtua Voorhees | Voorhees, NJ Alpharetta Pediatric Center | GA416 N Bedford | Beverly Hills, CA
  • 25.
    Growing Relationships withKey Health System Partners 25 Strategic Health Care Alliances & Innovative Care Delivery Models
  • 26.
    Medical Office |Market Leading Platform 26 Diversified portfolio across geographies and health systems Growing Relationships with Key Health System Partners SQ. FT. 0 300K
  • 27.
    Case Study |Summit Medical Group 27 Premier Multispecialty Medical Practice 1 2 3 6 5 4 Summit Berkeley Heights Summit Florham Park Largest physician-owned multispecialty medical practice in NJ with 800+ practitioners across over 80 specialties in 7 counties 4-story, 130K RSF, 100% Master Leased to SMG • Property located on 10.4 acres in Florham Park, NJ (New York MSA) • Houses over 30 specialties and services, including ambulatory surgery, urgent care, geriatric services, imaging & radiology, and primary care. • Epicenter for Cancer Treatment: comprehensive, next generation oncology services Largest and most comprehensive care “hub” in hub-and-spoke platform, increasing the total WELL-owned, Summit-leased footprint to 500K sq.ft.
  • 28.
    Case Study |Atrium Development - Charlotte, NC 28 Consumer-oriented Class “A+” Health Care Anchored Mixed-Use Development Site Metropolitan Shopping Center Downtown Charlotte Buildings to house integrated specialty clinical practices for Atrium Health including the Sanger Heart and Vascular Institute Two building, 5.5-acre multi-phase development 100% master leased by Atrium Health (Moody’s: Aa3) Adjacent to Carolinas Medical Center campus with 286K sq. ft. of future development opportunities Anticipated Delivery Q2 – Q3 2020
  • 29.
    Case Study |Providence St. Joseph - Mission Viejo, CA 29 Delivered Q4 2019 The Shops at Mission Viejo Mission Viejo Medical Center 105K RSF, on-campus medical office building with 611-space parking structure built on a former parking lot at The Shops at Mission Viejo, a high-end mall owned by Simon Property Group Strategic joint venture with Mission Hospital, a 345-bed acute care hospital and member of the Providence St. Joseph Health System. Long term ground lease with SPG, 100% master leased by Mission Hospital Innovative Care Delivery Model and Advanced Oncology Programs
  • 30.
    Welltower and ProMedica| Strategic Joint Venture 30 Care communities post-acute, assisted living, memory care, hospice and home health Employees across 30 states of properties with CMS 4 Star rating and above Innovative partnership creates $7B, fully integrated care platform 15th largest national health system with acute, post-acute and ambulatory care, 600K covered lives and 2,700 providers Diversified portfolio positioned for internal and external growth, investment grade balance sheet and outstanding access to capital 45050K 91% Properties with CMS 4 Star rating and above
  • 31.
    Synergistic Partnership DrivesAlignment across the Care Continuum 31 Large population of seniors living in a controlled assisted living environment now eligible for Medicare Advantage products Expansion of use of seniors housing real estate Ability to leverage seniors housing real estate for clinical purposes Increased length of stay Demonstrated outcomes showing length of stay increase of 17 months Integrated Clinical and Wellness Program
  • 32.
    The Welltower Platform 32 OurCompetitive Advantage
  • 33.
    Sustainable Competitive Advantage 33 Fundamental Drivers People Diverseworkforce and board, disciplined G&A and skilled governance Operator Platform Diverse operating partners across geography, acuity, operating leverage Predictive Analytics Data-driven, granular approach to market presence and growth Health System Relationships Integrated across asset types and settings (payors, providers, residential and retail)
  • 34.
    34 Demographics/ Psychographics Housing Income/ Employment Education Health Indicators Population Projections Competition Data-Driven Capital Allocation 10+years of property-level historical performance data Business Insights | Integrating Operator & 3rd Party Data NOI LaborOccupancy Welltower’s competitive advantage: Third party data integration
  • 35.
    Micro Market Analysis| Looks can be deceiving 35 Demographic and Psychographic Analysis across 8.2 Million Micro Markets # Households in Target Demographic ABILITY to pay WILLINGNESS to pay Demographics Housing, Affluence, Density, Economic Indicators Psychographics Interests, Lifestyle, Values, Attitudes, Behaviors Demand Hex Grid with Competition Overlay Top MSA | New York Demand Analysis for a Target Property located in a Top MSA indicates unfavorable market conditions 5mi Driving Radius Competitor PropertyTarget Property 0.2mi Demand Hexagon
  • 36.
    Micro Market Analysis| Beauty is in the eye of the beholder 36 Demographic and Psychographic Analysis across 8.2 Million Micro Markets # Households in Target Demographic ABILITY to pay WILLINGNESS to pay Demographics Housing, Affluence, Density, Economic Indicators Psychographics Interests, Lifestyle, Values, Attitudes, Behaviors Demand Hex Grid with Competition Overlay Secondary MSA | Kansas Demand Analysis for a Target Property located in a Secondary MSA indicates favorable market conditions 5mi Driving Radius Competitor PropertyTarget Property 0.2mi Demand Hexagon
  • 37.
    Business Insights |Key Takeaways 37 Statistical Similar Location Anywhere in USA Outlook Defined by MSA SIMILAR PROPERTIES4. Predictive Labor CostLABOR Uncertain/ Price Taker3. Quantifiable and Consistent (ACUs™) COMPETITION Gut feel 1. MARKETS 8.2M Micro MarketsSub-markets 2. Physician Net Need Based Subjective/ Unsystematic OUTPATIENT MEDICAL5.
  • 38.
    Operator Diversification acrossAcuity Spectrum Seniors Housing Operator Platform | Power of Diversification 38 $ $$$ MonthlyRent Low HighAverage Portfolio Acuity ✓ Acuity AL, IL, MC ✓ Geography Micro Markets ✓ Operating Leverage RIDEA 3.0 Diversity Across Platform :
  • 39.
    1 2 34 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 2 0.12 3 0.03 -0.34 4 0.78 0.35 -0.03 5 -0.17 0.26 -0.09 -0.69 6 -0.39 0.44 -0.16 -0.71 0.31 7 0.25 0.48 -0.49 0.16 0.14 0.31 8 -0.05 0.63 -0.38 0.34 0.47 0.4 0.58 9 0.07 0.53 -0.15 0.51 0 0.28 0.52 0.47 10 -0.13 0.68 -0.74 -0.17 0.04 0.68 0.35 0.65 0.32 11 0.07 0.64 -0.18 0.41 0.24 0.45 0.68 0.55 0.44 0.65 12 -0.32 0.39 -0.14 -0.77 0.52 0.8 0.44 0.52 0.4 0.62 0.53 13 -0.06 0.07 0.03 -0.13 -0.19 0.29 0.63 0 0.27 0.86 0.31 0.18 14 -0.15 0.69 -0.18 0.04 0.23 0.51 0.59 0.54 0.61 0.8 0.48 0.66 0.32 15 -0.38 0.34 -0.16 -0.75 0.29 0.69 0.36 0.44 0.48 0.54 0.56 0.87 0.71 0.57 16 -0.19 0.39 -0.09 -0.4 0.4 0.42 0.52 0.37 0.28 0.72 0.45 0.82 0.32 0.47 0.71 17 0.07 0.4 -0.17 -0.78 0.04 0.48 0.13 0.3 0.23 0.3 0.39 0.48 0.22 0.51 0.41 0.29 18 -0.04 -0.21 0.4 0.48 -0.15 -0.37 -0.12 -0.24 0.12 -0.48 -0.01 -0.34 -0.29 -0.35 -0.3 -0.22 -0.29 19 0.11 0.07 -0.01 0.68 -0.19 -0.31 -0.08 -0.01 -0.04 -0.11 0 -0.36 -0.07 0 -0.34 -0.22 -0.31 -0.13 20 -0.07 -0.03 0.2 -0.68 0.27 0.17 -0.34 0.07 -0.02 0.15 -0.04 0.14 -0.19 -0.09 0.2 0.19 -0.1 -0.52 -0.17 Portfolio Diversity | Operator Correlation* 39 OPERATOR *Correlation of NOI Per Available Unit Days
  • 40.
  • 41.
    Environmental | Leadershipthrough Sustainability 41Reductions in 2018 as compared to 2017 for properties where utility data was available. Source: utility bills from operating partners and Engie Insights. 26,535 MWh reduction in energy consumption(1) Consumed 32,467 MWh of renewable electricity in 2018 Avoided 6,837 metric tons of greenhouse gas emissions(1) 11,453 gallon reduction in water consumption Recycled 7,347 Tons in 2018 78 63 26 12 12 Energy, Water and Waste Green Buildings Recognized for Sustainable Business Practices 405K sq ft of executed green leases ~$1M of sustainable building related purchases
  • 42.
    Social | Wellnessat our Core 42 Caregiver Leave $8.4M+ invested in the workforce in 2018 Learning & Professional Development Employee Initiatives WELL +CORE WELL+BEING DIVERSITY COUNCIL Employee Profit Sharing Contribution 401K Match 100% up to 5% Student Debt $100/month up to $10k Over 15% employee participation Healthcare 76% of employee healthcare premiums paid Employer Match to HSA Workforce DevelopmentDiversity and Inclusion 1:1 Gender parity across the Organization 45% of hires to revenue generating roles in 2018 were female Social Recognition
  • 43.
    Governance | GreatGovernance is Good Business 43 1. Data as of 5/7/2019. 2. ISS Governance Score is a weighted average of scores assigned for (a) board structure, (b) compensation, (c) shareholder rights and (d) audit. 3. Ventas (VTR), PEAK, Crown Castle International (CCI), Equinix (EQIX), Iron Mountain (IRM), Weyerhaeuser Company (WY), American Tower Corporation (AMT), Boston Properties (BXP), Equity Residential (EQR), Prologis (PLD), Public Storage (PSA), Simon Property Group (SPG), Vornado Realty Trust (VNO), AvalonBay Communities (AVB), Alexandria Real Estate Equities (ARE). G&A as % of Enterprise Value(1) 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% MPT HR CTRE HTA SBRA OHI VTR HCP WELL HC REIT Average Female and Minority Independent Director Leadership on the Board of Directors(1) 75% of Employees received refresher training on insider trading and anti-corruption 95% RISKLOW (0) HIGH (10) Peers(3) 4.0 6.4 Governance Score(2)
  • 44.
  • 45.
    Performance Driven FinancingStrategy 45 Superior Internal & External Growth Significant & Stable Dividend Income Investment Grade Balance Sheet Outstanding Access To Capital
  • 46.
    Strategic Portfolio Optimization| Capital Recycling 461. Investment amounts pro rata as of 12/31/2019. $18B $10B $6B gross investments since 2015 dispositions since 2015 invested in Outpatient Medical and Health System Capital Recycling 2015 – 4Q19(1) 56% 38% $0B $2B $4B $6B $8B $10B $12B $14B $16B $18B Non-Core Property Dispositions Strategic Acquisitions SH LT/PAC OM HS
  • 47.
    Portfolio Optimization EnhancesQuality of Cash Flow(1) 47 1. Based on In-Place NOI. See Supplemental Financial Measures at the end of this presentation for reconciliations. 2. Based on In-Place NOI. 3. Based on facility revenue mix. Strategic Capital Deployment into Outpatient Medical & Health Systems 93% Private Pay(2) 42% 28% 13% 17% 4Q 2016 93% Private Pay(3) 43% 20% 8% 22% 7% 4Q 2019 Seniors Housing Operating Seniors Housing Triple Net Long-Term / Post-Acute Care Health SystemOutpatient Medical
  • 48.
    Continued Portfolio Optimization 48 StrategicAcquisitions with Next-Gen Operators into High Quality Urban Seniors Housing Aligning with Premier Care Providers by Financing New Models of Health Care Delivery
  • 49.
    Balanced and ManageableDebt Maturity Profile(1) 49 1. Data as of 12/31/2019 in USD. Represents pro rata principal amounts due and excluding unamortized premiums/discounts or other fair value adjustments as reflected on the balance sheet. Excludes lease liabilities relating to both finance and operating leases. 2. The 2020 maturity reflects the $643,600,000 in principal outstanding on our unsecured commercial paper program as of December 31, 2019. The 2023 maturity reflects the $945,000,000 in principal outstanding on our unsecured revolving credit facility that matures on July 19, 2022 (with an option to extend for two successive terms of six months each at our discretion). These borrowings reduce the available borrowing capacity of our unsecured revolving credit facility to $1,411,400,000. If the commercial paper was refinanced using the unsecured revolving credit facility, the weighted average years to maturity of our combined debt would be 7.8 years with extensions. Weighted Average Maturity of 7.6 years(2) 2.56% 3.81% 3.79% 3.24% 3.89% 3.96% 4.17% 2.96% 4.48% 3.86% 4.42% $0M $500M $1,000M $1,500M $2,000M $2,500M $3,000M $3,500M 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 After USD Unsecured USD Secured GBP Unsecured GBP Secured CAD Unsecured CAD Secured Lines of Credit & Commercial Paper Weighted Avg. Interest (in millions USD) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 After Unsecured Debt -- -- $10 $1,793 $1,350 $1,250 $700 $731 $1,480 $550 $2,563 Secured Debt $327 $326 $395 $415 $265 $575 $62 $180 $90 $277 $266 Lines of Credit & Commercial Paper $644 -- -- $945 -- -- -- -- -- -- -- Total $971 $326 $405 $3,153 $1,615 $1,825 $762 $911 $1,570 $827 $2,829
  • 50.
  • 51.
    Non-GAAP Financial Measures Webelieve that revenues, net income and net income attributable to common stockholders (NICS), as defined by U.S. generally accepted accounting principles (U.S. GAAP), are the most appropriate earnings measurements. However, the company considers Net Operating Income (NOI) and In-Place NOI (IPNOI) to be useful supplemental measures of our operating performance. These supplemental measures are disclosed on our pro rata ownership basis. Pro rata amounts are derived by reducing consolidated amounts for minority partners’ noncontrolling ownership interests and adding our minority ownership share of unconsolidated amounts. We do not control unconsolidated investments. While we consider pro rata disclosures useful, they may not accurately depict the legal and economic implications of our joint venture arrangements and should be used with caution. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and rating 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, these measures are utilized by the Board of Directors to evaluate management. None of the supplemental reporting measures represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Multi-period amounts may not equal the sum of the individual quarterly amounts due to rounding. 51
  • 52.
    NOI and IPNOI Wedefine 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 operators, marketing, housekeeping, food service, maintenance, utilities, property taxes and insurance. General and administrative expenses represent costs unrelated to property operations and transaction costs. These expenses include, but are not limited to, payroll and benefits, professional services, office expenses and depreciation of corporate fixed assets. IPNOI represents NOI excluding interest income, other income and non-IPNOI and adjusted for timing of current quarter portfolio changes such as acquisitions, development conversions, segment transitions, dispositions and investments held for sale. We believe NOI and IPNOI provide investors relevant and useful information because they measure the operating performance of our properties at the property level on an unleveraged basis. We use these metrics to make decisions about resource allocations and to assess the property level performance of our properties. 52
  • 53.
    In-Place NOI Reconciliations (dollarsin thousands) 4Q19 4Q16 Annualized In-Place NOI by property type 4Q19 % of Total Net income (loss) $ 240,136 $ 351,108 Seniors Housing Operating $ 904,136 43.0 % Loss (gain) on real estate dispositions, net (12,064) (200,165) Seniors Housing Triple-Net 411,968 19.6 % Loss (income) from unconsolidated entities (57,420) 2,829 Outpatient Medical 464,820 22.1 % Income tax expense (benefit) (4,832 ) (16,585 ) Health System 143,168 6.8 % Other expenses 16,042 8,838 Long-Term/Post-Acute Care 179,780 8.5 % Impairment of assets 98 13,187 Total In-Place NOI $ 2,103,872 100.0 % Provision for loan losses — 10,215 Loss (gain) on extinguishment of debt, net 2,612 68 4Q16 % of Total Loss (gain) on derivatives and financial instruments, net (5,069) 17,204 Seniors Housing Operating $ 822,932 42.1 % Transaction Cost — 9,704 Seniors Housing Triple-Net 535,112 27.4 % General and administrative expenses 26,507 32,807 Outpatient Medical 338,648 17.3 % Depreciation and amortization 262,644 227,916 Long-Term/Post-Acute Care 259,792 13.2 % Interest expense 131,648 126,360 Total In-Place NOI $ 1,956,484 100.0 % Consolidated net operating income 600,302 583,486 NOI attributable to unconsolidated investments(1) 22,031 16,467 NOI attributable to noncontrolling interests(2) (41,035) (28,151) Pro rata net operating income (NOI) $ 581,298 $ 571,802 Adjust: Interest income (15,718) $ (23,689 ) Other income (6,011) (6,657 ) Sold / held for sale (21,673) (48,611 ) Developments / land 588 — Non In-Place NOI(3) (23,445) (13,111 ) Timing adjustments(4) 10,929 9,387 In-Place NOI 525,968 489,121 Annualized In-Place NOI $ 2,103,872 $ 1,956,484 (1) Represents Welltower's combined interests in joint ventures where Welltower is the minority partner. (2) Represents minority partners' interests in joint ventures where Welltower is the majority partner. (2) Primarily represents non-cash NOI. (4) Represents timing adjustments for current quarter acquisitions, construction conversions and segment or operator transitions. 53
  • 54.
    In-Place NOI ConcentrationReconciliation (dollars in thousands at Welltower pro rata ownership) 4Q19 Annualized Seniors Housing Operating % of SHO by Country New York $ 90,134 13.7% Los Angeles 85,535 13.0% Washington D.C. 40,086 6.1% San Francisco 34,146 5.2% Dallas 26,410 4.0% San Diego 22,729 3.4% Boston 21,437 3.3% Chicago 19,672 3.0% Philadelphia 17,204 2.6% Houston 15,328 2.3% Other Top 25 US MSAs 140,670 21.4% Remaining United States 145,495 22.0% Total United States $ 658,846 100.0% Toronto $ 39,336 24.1% Montréal 28,346 17.4% Ottawa 19,524 12.0% Calgary 8,120 5.0% Vancouver 10,532 6.4% Québec 8,752 5.4% Winnipeg 5,412 3.3% Edmonton 4,776 2.9% Victoria 3,368 2.1% London 3,272 2.0% Remaining Canada 31,934 19.4% Total Canada $ 163,372 100.0% Greater London $ 52,977 64.7% Other Southern England 21,790 26.6% Other United Kingdom 7,151 8.7% Total United Kingdom $ 81,918 100.0% Total In-Place NOI(1) $ 904,136 (1) Please refer to "In-Place NOI Reconciliations" for a reconciliation of annualized In-Place NOI to net income. 54