Welltower Reports Third Quarter 2026 Results
Toledo, Ohio, October 26, 2026.…Welltower Inc. (NYSE:WELL) today announced results for the quarter ended September 30, 2026.
• Reported net income of $415 million and net income attributable to common stockholde rs of $0.54 p er diluted share
• Reported quarterly normalized funds from operations attributable to common stockholders of $1.67 per diluted share, an increase of 24.6% over the prior year
• Reported total portfolio year-over-year same store NOI ("SSNOI") growth of 15.8%, driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio of 21.0%
• SHO portfolio organic same store revenue growth increased 9.1% year-over-year in the third quarter, resulting from 320 basis points ("bps") of average occupancy growth and 5.3% growth in Revenue Per Occupied Room ("RevPOR")
• Year-to-date, closed or under contract to close $21.0 billion of pro rata gross investments, including $13.3 billion completed in the nine months ended September 30, 2026 and $7.7 billion closed or under contract to close subsequent to quarter end, excluding development funding. Expected investments not yet closed are subject to customary closing conditions
• During the third quarter, we completed $484 million of pro rata dispositions and loan repayments. For the year, we have completed $4.1 billion of pro rata dispositions and loan repayments, including $2.1 billion of OM dispositions and $1.2 billion of loan repayments
• As of September 30, 2026, reported Net Debt to Adjusted EBITDA of 3.02x and approximately $9.5 billion of available liquidity inclusive of available cash and restricted cash, available capacity under our line of credit and expected proceeds from property sales and loan payoffs
• In July, we issued C$1.15 billion of senior unsecured notes with a weighted- average coupon of 3.95%
Liquidity Update Net debt to consolidated enterprise value is 9.2% as of September 30, 2026. During the quarter, we sourced more than $4 billion of capital globally to fund accretive capital deployment opportunities, highlighting our access to multiple sources of funding across capital markets and geographies, allowing us to optimize our cost of capital and remain highly flexible in how we fund growth.
Canadian Note Issuance In July 2026, we completed the issuance of C$1.15 billion aggregate principal amount of Canadian dollar-denominated senior unsecured notes, consisting of C$750 million of 3.850% notes due August 15, 2031 and C$400 million of 4.150% notes due August 15, 2033.
In the third quarter, we completed $4.1 billion of pro rata gross investments, inclusive of development funding. Additionally, we completed pro rata property dispositions of $284 million and loan repayments of $200 million.
Seniors Housing Acquisitions In the third quarter, we completed $2.7 billion of pro rata gross investments across 43 seniors housing properties.
Dispositions During the third quarter, we disposed of 25 OM properties for a pro rata purchase price of $139 million. Additionally, we disposed of seven seniors housing properties for a pro rata purchase price of $145 million.
O n October 26, 2026, the Board of Directors declared a cash dividend for the quarter ended September 30, 2026 of $0.85 per share. This dividend, which will be paid on November 19, 2026 to stockholders of record as of November 10, 2026, will be our 222nd consecutive quarterly cash dividend. The declaration and payment of future quarterly dividends remains subject to review and approval by the Board of Directors.
We have scheduled a conference c all on Tuesday, October 27, 2026 at 9:00 a.m. Eastern Time to discuss ou r third quarter 2026 results, industry trends and portfolio performance. Telephone access will be available by dialing (888) 340-5024 or (646) 960-0135 (international). For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through November 3, 2026. To access the rebroadcast, dial (800) 770-2030 or (609) 800-9909 (international). The conference ID number is 8230248. To particip ate in the webcast, log on to www.welltower.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days. 1
Net income attributable to common stockholders guidance has been revised to a range of $3.31 to $3.37 per diluted share from the previous range of $3.11 to $3.19. We also increased the guidance range of full year normalized FFO attributable to common stockholders to a range of $6.47 to $6.53 per diluted share from the previous range of $6.36 to $6.44. In preparing our guidance, we have updated or confirmed the following assumptions:
• Same Store NOI: We expect average blended SSNOI growth of 15.0% to 16.25%, which is comprised of the following components:
• Investments: Our earnings guidance includes only those acquisitions announced or closed to date. Furthermore, no transitions, restructures or capital activity beyond those announced to date are included.
• General and Administrative Expenses: We anticipate general and administrative expenses to be approximately $267 million to $272 million, inclusive of stock- based compensation expense of approximately $60 million.
• Dispositions: We expect pro rata disposition proceeds of $1.9 billion at a blended yield of 6.5% in the next twelve months. This includes approximately $1.5 billion of consideration from expected property sales, as well as $328 million of expected proceeds from loan repayments.
Our guidance does not include any additional investments, dispositions or capital transactions, nor any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items beyond those disclosed. Please see the Supplemental Reporting Measures section for further discussion and our definition of normalized FFO and SSNOI and the Outlook Reconciliation table for a reconciliation of the outlook for net income attributable to common stockholders to normalized FFO attributable to common stockholders. We will provide additional detail regarding our 2026 outlook and assumptions on the third quarter 2026 conference call.
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, we consider Funds from Operations ("FFO"), Normalized FFO, net operating income ("NOI"), same store NOI ("SSNOI"), revenue per occupied room ("RevPOR"), same store RevPOR ("SS RevPOR"), EBITDA and Adjusted EBITDA to be useful supplemental measures of our operating performance. Excluding EBITDA and Adjusted EBITDA, 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.
Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In response, the National Association of Real Estate Investment Trusts ("NAREIT") created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO attributable to common stockholders, as defined by NAREIT, means net income attributable to common stockholders, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and acquisitions of controlling interests, impairments of depreciable assets, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests. Normalized FFO attributable to common stockholders represents FFO attributable to common stockholders adjusted for certain items detailed in the Normalizing Items table below. We believe that normalized FFO attributable to common stockholders is a useful supplemental measure of operating performance because investors and equity analysts may use this measure to compare the operating performance of Welltower between periods or as compared to other REITs or other companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items.
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 are 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 leased properties, 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 2 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 U.K. properties using a consistent exchange rate. Normalizers include adjustments that in management’s opinion are appropriate in considering SSNOI, a supplemental, non-GAAP performance measure. None of these adjustments, which may increase or decrease SSNOI, are reflected in our financial statements prepared in accordance with U.S. GAAP. Significant normalizers (defined as any that individually exceed 0.50% of SSNOI growth per property type) are separately disclosed and explained. We believe NOI and SSNOI 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 NOI and SSNOI to make decisions about resource allocations and to assess the property level performance of our portfolio. No reconciliation of the forecasted range for SSNOI on a combined basis or by property type is included in this release because we are unable to quantify certain amounts that would be required to be included in the comparable GAAP financial measure without unreasonable efforts, and we believe such reconciliation would imply a degree of precision that could be confusing or misleading to investors.
RevPOR represents the average revenues generated per occupied room per month at our Seniors Housing Operating properties. This metric is calculated as our pro rata share of total resident fees and services revenues from the income statement, divided by average monthly occupied room days. SS RevPOR is used to evaluate the RevPOR performance of our properties under a consistent population, which eliminates changes in the composition of our portfolio. It is based on the same pool of properties used for SSNOI and includes any revenue normalizations used for SSNOI. We use RevPOR and SS RevPOR to evaluate the revenue-generating capacity 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 on disposition of properties and acquisitions of controlling interests, impairment of assets, gains/losses on derivatives and financial instruments, other expenses, other impairment charges and other adjustments deemed appropriate in management's opinion. We believe that EBITDA and Adjusted EBITDA, along with net income, are important supplemental measures because they provide additional information to assess and evaluate the performance of our operations. Our leverage ratios include net debt to Adjusted EBITDA and consolidated enterprise value. Net debt is defined as total long-term debt, excluding operating lease liabilities, less cash and cash equivalents and restricted cash. Consolidated enterprise value represents the sum of net debt, the fair market value of our common stock and noncontrolling interests.
Our supplemental reporting measures and similarly titled 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 performance. 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 titled items reported by other real estate investment trusts or other companies. Please see the following tables for reconciliations of supplemental reporting measures and the Earnings Release and Supplemental Information report for the quarter ended September 30, 2026, which is available on Welltower's website (www.welltower.com), for information and reconciliations of additional supplemental reporting measures.
Welltower Inc. (NYSE: WELL), an S&P 500 company, is positioned at the center of the silver economy, focusing on rental housing for aging seniors across the United States, United Kingdom and Canada. Our portfolio of seniors and wellness housing communities is uniquely situated at the intersection of housing and hospitality, creating vibrant communities for mature renters and older adults. We believe our real estate portfolio is unmatched, located in highly attractive micromarkets with stunning built environments. Yet, we are an unusual real estate organization as we view ourselves as an operating company in a real estate wrapper, driven by highly-aligned partnerships and an unconventional culture. Through our disciplined approach to capital allocation powered by our Data Science platform and superior operating results driven by the Welltower Business System - our end-to-end operating and technology platform - we aspire to deliver long-term compounding of per share growth for our existing investors, our North Star.
We routinely post important information on our website at www.welltower.com in the "Investors" section, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website under the heading "Investors." Accordingly, investors should monitor such portion of our website in addition to following our press releases, public conference calls and filings with the Securities and Exchange Commission. The information on our website is not incorporated by reference in this press release and our web address is included as an inactive textual reference only. 3
This document contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses 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, Welltower is making forward-looking statements. These statements include, among others, management's expectations regarding the favorable impact of the acquisitions made and additional acquisition pipeline and our statements under the section "Outlook for 2026." Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the impact of macroeconomic and geopolitical developments, including economic downturns, elevated inflation and interest rates, political or social conflict, unrest or violence or similar events; the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the healthcare industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements, public perception of the healthcare industry and operators’/tenants’ difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the healthcare 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; Welltower's ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters, public health emergencies and extreme weather affecting Welltower's properties; Welltower's ability to re-lease space at similar rates as vacancies occur; Welltower's 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 Welltower's properties; changes in rules or practices governing Welltower's financial reporting; the movement of U.S. and foreign currency exchange rates and changes to U.S. and global monetary, fiscal or trade policies; Welltower's approach to artificial intelligence; Welltower's ability to maintain its qualification as a REIT; key management personnel recruitment and retention; geopolitical tensions or conflicts, such as the ongoing conflict between Russia and Ukraine and in the Middle East, and other risks described in Welltower's reports filed from time to time with the SEC. Welltower undertakes 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.
Investor Relations: Krishna Soma ksoma@welltower.com; Matthew Carrus mcarrus@welltower.com
Consolidated Balance Sheets (unaudited) Dollars in thousands September 30, 2025 September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Assets: Real estate investments: Land and land improvements $ 5,146,696 $ 7,535,251 Buildings and improvements 42,496,555 60,990,495 Acquired lease intangibles 2,189,639 3,298,487 Real property held for sale, net of 5,091,216 306,776 accumulated depreciation Construction in progress 511,574 1,239,412 Less accumulated depreciation and -10,107,309 -12,125,154 intangible amortization Net real property owned 45,328,371 61,245,267 Right of use assets, net 1,250,447 1,922,667 Real estate loans receivable, net of 1,773,788 3,047,269 credit allowance Net real estate 48,352,606 66,215,203 investments Other assets: Investments in 1,835,979 2,049,911 unconsolidated entities Cash and cash equivalents 6,806,507 2,274,910 Restricted cash 134,066 141,097 Receivables and other 2,375,644 3,030,212 assets Total other assets 11,152,196 7,496,130 Total assets $ 59,504,802 $ 73,711,333 Liabilities and equity Liabilities: Unsecured credit facility and commercial $ — $ 1,041,054 paper Senior unsecured notes 14,365,008 14,686,972 Secured debt 2,487,354 3,467,126 Lease liabilities 1,311,600 1,968,069 Accrued expenses and other 2,028,458 2,684,098 liabilities Total liabilities 20,192,420 23,847,319 Redeemable noncontrolling 284,364 237,081 interests Equity: Common stock 684,229 732,160 Capital in excess of par 47,054,892 57,547,521 value Treasury stock -14,340 -26,641 Cumulative net income 10,937,128 12,603,830 Cumulative dividends -19,687,645 -21,859,441 Accumulated other -217,446 -415,436 comprehensive income Total Welltower Inc. stockholders' 38,756,818 48,581,993 equity Noncontrolling interests 271,200 1,044,940 Total equity 39,028,018 49,626,933 Total liabilities and $ 59,504,802 $ 73,711,333 equity
(2) Represents Welltower's share of net FFO adjustments from unconsolidated entities.
(4) Includes adjustment to the numerator for income (loss) attributable to OP Units and DownREIT Units, where applicable.
(5) Amounts presented net of noncontrolling interests' share and including Welltower's share of unconsolidated entities.
(7) Reflects recurring cap-ex on owned operational properties and excludes acquisition related cap-ex.
(8) Excludes normalized stock compensation expense related to the 2021 Special Performance Option and OPP Awards. 7
(2) Primarily related to adjustments to reserves for loan losses based upon our current assessment of expected credit losses in the portfolio.
(3) Primarily related to the write off of straight-line rent receivable balances relating to the conversion of triple-net leased properties to a SHO (RIDEA) structure.
(4) Primarily related to non-capitalizable transaction costs and legal fees, including related to the HC-One Group operator restructuring.
(5) Primarily related to expenses recognized on the 2021 Special Performance Option Awards.
(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 relates to hypothetical liquidation at book value adjustments related to in substance real estate investments.
(1) Amounts presented net of noncontrolling interests' share and Welltower's share of unconsolidated entities.
(3) Reflects recurring cap-ex on owned operational properties and excludes acquisition related cap-ex. 8
SSNOI Reconciliation Dollars in Three Months Ended thousands September 30, 2025 2026 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 282,186 $ 414,823 Loss (gain) on real estate dispositions -4,025 -114,678 and acquisitions of controlling interests, net Loss (income) from unconsolidated 12,610 30,689 entities Income tax expense 2,335 7,116 (benefit) Other expenses 44,699 124,687 Impairment of 3,081 33,452 assets Provision for loan 1,088 230 losses, net Loss (gain) on extinguishment of — 6,822 debt, net Loss (gain) on derivatives and 31,682 — financial instruments, net General and administrative 63,124 67,169 expenses Depreciation and 509,812 706,786 amortization Interest expense 162,052 192,655 Consolidated NOI 1,108,644 1,469,751 NOI attributable to unconsolidated 29,337 37,665 investments(1) NOI attributable to noncontrolling -12,280 -10,954 interests(2) Pro rata NOI 1,125,701 1,496,462 Non-same store properties and -376,118 -625,216 non-property NOI Non-cash NOI on same store -41,746 -46,237 properties Currency and ownership -2,320 -638 adjustments(3) Normalizing adjustments, 2,828 -4,384 net(4) Same Store NOI $ 708,345 $ 819,987 15.8% (SSNOI) Seniors Housing $ 499,497 $ 604,319 21.0% Operating Seniors Housing 75,098 78,243 4.2% Triple-net Outpatient Medical 27,832 28,499 2.4% Skilled Nursing 105,918 108,926 2.8% Total SSNOI $ 708,345 $ 819,987 15.8% (1) Represents Welltower's interests in joint ventures where Welltower is the minority partner. (2) Represents minority partners' interests in joint ventures where Welltower is the majority partner. (3) Includes where appropriate adjustments to reflect consistent property ownership percentages, to translate Canadian properties at a USD/CAD rate of 1.43 and to translate U.K. properties at a GBP/USD rate of 1.23. (4) Includes other adjustments described in the accompanying Earnings Release & Supplemental Information report.
SHO SS RevPOR Growth Reconciliation Dollars in thousands, Three Months Ended except SS RevPOR September 30, 2025 2026 ────────────────────────────────────────────────────────────────────────────── Consolidated SHO $ 2,063,618 $ 3,125,101 revenues Unconsolidated SHO revenues attributable 60,435 64,416 to WELL(1) SHO revenues attributable to -20,860 -23,310 noncontrolling interests(2) SHO pro rata 2,103,193 3,166,207 revenues(3) Non-property related -1,542 -1,627 revenues Revenues attributable to non-same store -340,577 -1,254,008 properties Non-cash and non-RevPOR revenues on same -3,207 -2,646 store properties Currency and ownership -9,793 -1,623 adjustments(4) SHO SS RevPOR $ 1,748,074 $ 1,906,303 revenues(5) Average occupied 100,357 103,899 units/month(6) SHO SS RevPOR(7) $ 5,759 $ 6,066 SS RevPOR YOY growth 5.3 % (1) Represents Welltower's interests in joint ventures where Welltower is the minority partner. (2) Represents minority partners’ interests in joint ventures where Welltower is the majority partner. (3) Represents SHO revenues at Welltower pro rata ownership. (4) Includes adjustments to reflect consistent property ownership percentages and foreign currency exchange rates for properties in the U.K. and Canada. (5) Represents SS SHO RevPOR revenues at Welltower pro rata ownership. (6) Represents average occupied units for SS properties on a pro rata basis. (7) Represents pro rata SS average revenues generated per occupied room per month.
Adjusted EBITDA Reconciliation Three months ended Dollars in thousands September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 414,823 Interest expense 192,655 Income tax expense (benefit) 7,116 Depreciation and amortization 706,786 EBITDA 1,321,380 Loss (income) from unconsolidated 30,689 entities Stock-based compensation 15,889 Loss (gain) on extinguishment of debt, 6,822 net Loss (gain) on real estate dispositions and acquisitions of controlling -114,678 interests, net Impairment of assets 33,452 Provision for loan losses, net 230 Other expenses 124,687 Casualty losses, net of recoveries 9,586 Other impairment(1) 2,463 Total adjustments 109,347 Adjusted EBITDA $ 1,430,727 Total debt(2) $ 19,672,086 Less: cash and cash equivalents and -2,416,007 restricted cash Net debt $ 17,256,079 Adjusted EBITDA annualized $ 5,722,908 Net debt to Adjusted EBITDA ratio 3.02 x (1) Represents the write-off of straight-line rent receivable and unamortized lease incentive balances relating to the conversion of triple-net leased properties to a SHO (RIDEA) structure. (2) Includes unamortized premiums/discounts, other fair value adjustments, financing lease liabilities. Excludes operating lease liabilities of $1,491,135,000 related to ASC 842.
Net Debt to Consolidated Enterprise Value Dollars in thousands, except per share data September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Common shares outstanding 731,995 Period end share price $ 230.24 Common equity market capitalization $ 168,534,529 Net debt 17,256,079 Noncontrolling interests(1) 1,282,021 Consolidated enterprise value $ 187,072,629 Net debt to consolidated enterprise 9.2 % value (1) Includes all noncontrolling interests (redeemable and permanent) as reflected on our consolidated balance sheet.
Full text with the tables
Welltower Reports Third Quarter 2026 Results
Toledo, Ohio, October 26, 2026.…Welltower Inc. (NYSE:WELL) today announced
results for the quarter ended September 30, 2026.
Third Quarter and Other Recent Highlights
• Reported net income of $415 million and net income attributable to common
stockholde rs of $0.54 p er diluted share
• Reported quarterly normalized funds from operations attributable to common
stockholders of $1.67 per diluted share, an increase of 24.6% over the prior
year
• Reported total portfolio year-over-year same store NOI ("SSNOI") growth of
15.8%, driven by SSNOI growth in our Seniors Housing Operating ("SHO") portfolio
of 21.0%
• SHO portfolio organic same store revenue growth increased 9.1% year-over-year
in the third quarter, resulting from 320 basis points ("bps") of average
occupancy growth and 5.3% growth in Revenue Per Occupied Room ("RevPOR")
• Year-to-date, closed or under contract to close $21.0 billion of pro rata
gross investments, including $13.3 billion completed in the nine months ended
September 30, 2026 and $7.7 billion closed or under contract to close subsequent
to quarter end, excluding development funding. Expected investments not yet
closed are subject to customary closing conditions
• During the third quarter, we completed $484 million of pro rata dispositions
and loan repayments. For the year, we have completed $4.1 billion of pro rata
dispositions and loan repayments, including $2.1 billion of OM dispositions and
$1.2 billion of loan repayments
• As of September 30, 2026, reported Net Debt to Adjusted EBITDA of 3.02x and
approximately $9.5 billion of available liquidity inclusive of available cash
and restricted cash, available capacity under our line of credit and expected
proceeds from property sales and loan payoffs
• In July, we issued C$1.15 billion of senior unsecured notes with a weighted-
average coupon of 3.95%
Capital Activity and Liquidity
Liquidity Update Net debt to consolidated enterprise value is 9.2% as of
September 30, 2026. During the quarter, we sourced more than $4 billion of
capital globally to fund accretive capital deployment opportunities,
highlighting our access to multiple sources of funding across capital markets
and geographies, allowing us to optimize our cost of capital and remain highly
flexible in how we fund growth.
Canadian Note Issuance In July 2026, we completed the issuance of C$1.15 billion
aggregate principal amount of Canadian dollar-denominated senior unsecured
notes, consisting of C$750 million of 3.850% notes due August 15, 2031 and C$400
million of 4.150% notes due August 15, 2033.
Recent Investment Activity
In the third quarter, we completed $4.1 billion of pro rata gross investments,
inclusive of development funding. Additionally, we completed pro rata property
dispositions of $284 million and loan repayments of $200 million.
Seniors Housing Acquisitions In the third quarter, we completed $2.7 billion of
pro rata gross investments across 43 seniors housing properties.
Dispositions During the third quarter, we disposed of 25 OM properties for a pro
rata purchase price of $139 million. Additionally, we disposed of seven seniors
housing properties for a pro rata purchase price of $145 million.
Dividend
O n October 26, 2026, the Board of Directors declared a cash dividend for the
quarter ended September 30, 2026 of $0.85 per share. This dividend, which will
be paid on November 19, 2026 to stockholders of record as of November 10, 2026,
will be our 222nd consecutive quarterly cash dividend. The declaration and
payment of future quarterly dividends remains subject to review and approval by
the Board of Directors.
Conference Call Information
We have scheduled a conference c all on Tuesday, October 27, 2026 at 9:00 a.m.
Eastern Time to discuss ou r third quarter 2026 results, industry trends and
portfolio performance. Telephone access will be available by dialing (888)
340-5024 or (646) 960-0135 (international). For those unable to listen to the
call live, a taped rebroadcast will be available beginning two hours after
completion of the call through November 3, 2026. To access the rebroadcast, dial
(800) 770-2030 or (609) 800-9909 (international). The conference ID number is
8230248. To particip ate in the webcast, log on to www.welltower.com 15 minutes
before the call to download the necessary software. Replays will be available
for 90 days.
1
Outlook for 2026
Net income attributable to common stockholders guidance has been revised to a
range of $3.31 to $3.37 per diluted share from the previous range of $3.11 to
$3.19. We also increased the guidance range of full year normalized FFO
attributable to common stockholders to a range of $6.47 to $6.53 per diluted
share from the previous range of $6.36 to $6.44. In preparing our guidance, we
have updated or confirmed the following assumptions:
• Same Store NOI: We expect average blended SSNOI growth of 15.0% to 16.25%,
which is comprised of the following components:
◦ Seniors Housing Operating approximately 20.25% to 21.75%
◦ Seniors Housing Triple-net approximately 3.5% to 4.5%
◦ Outpatient Medical approximately 2.0% to 3.0%
◦ Skilled Nursing approximately 2.0% to 3.0%
• Investments: Our earnings guidance includes only those acquisitions announced
or closed to date. Furthermore, no transitions, restructures or capital activity
beyond those announced to date are included.
• General and Administrative Expenses: We anticipate general and administrative
expenses to be approximately $267 million to $272 million, inclusive of stock-
based compensation expense of approximately $60 million.
• Dispositions: We expect pro rata disposition proceeds of $1.9 billion at a
blended yield of 6.5% in the next twelve months. This includes approximately
$1.5 billion of consideration from expected property sales, as well as $328
million of expected proceeds from loan repayments.
Our guidance does not include any additional investments, dispositions or
capital transactions, nor any other expenses, impairments, unanticipated
additions to the loan loss reserve or other additional normalizing items beyond
those disclosed. Please see the Supplemental Reporting Measures section for
further discussion and our definition of normalized FFO and SSNOI and the
Outlook Reconciliation table for a reconciliation of the outlook for net income
attributable to common stockholders to normalized FFO attributable to common
stockholders. We will provide additional detail regarding our 2026 outlook and
assumptions on the third quarter 2026 conference call.
Supplemental Reporting 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, we consider Funds from Operations ("FFO"), Normalized FFO, net
operating income ("NOI"), same store NOI ("SSNOI"), revenue per occupied room
("RevPOR"), same store RevPOR ("SS RevPOR"), EBITDA and Adjusted EBITDA to be
useful supplemental measures of our operating performance. Excluding EBITDA and
Adjusted EBITDA, 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.
Historical cost accounting for real estate assets in accordance with U.S. GAAP
implicitly assumes that the value of real estate assets diminishes predictably
over time as evidenced by the provision for depreciation. However, since real
estate values have historically risen or fallen with market conditions, many
industry investors and analysts have considered presentations of operating
results for real estate companies that use historical cost accounting to be
insufficient. In response, the National Association of Real Estate Investment
Trusts ("NAREIT") created FFO as a supplemental measure of operating performance
for REITs that excludes historical cost depreciation from net income. FFO
attributable to common stockholders, as defined by NAREIT, means net income
attributable to common stockholders, computed in accordance with U.S. GAAP,
excluding gains (or losses) from sales of real estate and acquisitions of
controlling interests, impairments of depreciable assets, plus real estate
depreciation and amortization, and after adjustments for unconsolidated entities
and noncontrolling interests. Normalized FFO attributable to common stockholders
represents FFO attributable to common stockholders adjusted for certain items
detailed in the Normalizing Items table below. We believe that normalized FFO
attributable to common stockholders is a useful supplemental measure of
operating performance because investors and equity analysts may use this measure
to compare the operating performance of Welltower between periods or as compared
to other REITs or other companies on a consistent basis without having to
account for differences caused by unanticipated and/or incalculable items.
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 are 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 leased properties, 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
2
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 U.K. properties using a consistent exchange rate. Normalizers include
adjustments that in management’s opinion are appropriate in considering SSNOI, a
supplemental, non-GAAP performance measure. None of these adjustments, which may
increase or decrease SSNOI, are reflected in our financial statements prepared
in accordance with U.S. GAAP. Significant normalizers (defined as any that
individually exceed 0.50% of SSNOI growth per property type) are separately
disclosed and explained. We believe NOI and SSNOI 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 NOI and SSNOI
to make decisions about resource allocations and to assess the property level
performance of our portfolio. No reconciliation of the forecasted range for
SSNOI on a combined basis or by property type is included in this release
because we are unable to quantify certain amounts that would be required to be
included in the comparable GAAP financial measure without unreasonable efforts,
and we believe such reconciliation would imply a degree of precision that could
be confusing or misleading to investors.
RevPOR represents the average revenues generated per occupied room per month at
our Seniors Housing Operating properties. This metric is calculated as our pro
rata share of total resident fees and services revenues from the income
statement, divided by average monthly occupied room days. SS RevPOR is used to
evaluate the RevPOR performance of our properties under a consistent population,
which eliminates changes in the composition of our portfolio. It is based on the
same pool of properties used for SSNOI and includes any revenue normalizations
used for SSNOI. We use RevPOR and SS RevPOR to evaluate the revenue-generating
capacity 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
on disposition of properties and acquisitions of controlling interests,
impairment of assets, gains/losses on derivatives and financial instruments,
other expenses, other impairment charges and other adjustments deemed
appropriate in management's opinion. We believe that EBITDA and Adjusted EBITDA,
along with net income, are important supplemental measures because they provide
additional information to assess and evaluate the performance of our operations.
Our leverage ratios include net debt to Adjusted EBITDA and consolidated
enterprise value. Net debt is defined as total long-term debt, excluding
operating lease liabilities, less cash and cash equivalents and restricted cash.
Consolidated enterprise value represents the sum of net debt, the fair market
value of our common stock and noncontrolling interests.
Our supplemental reporting measures and similarly titled 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 performance. 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 titled items reported by other
real estate investment trusts or other companies. Please see the following
tables for reconciliations of supplemental reporting measures and the Earnings
Release and Supplemental Information report for the quarter ended September 30,
2026, which is available on Welltower's website (www.welltower.com), for
information and reconciliations of additional supplemental reporting measures.
About Welltower
Welltower Inc. (NYSE: WELL), an S&P 500 company, is positioned at the center of
the silver economy, focusing on rental housing for aging seniors across the
United States, United Kingdom and Canada. Our portfolio of seniors and wellness
housing communities is uniquely situated at the intersection of housing and
hospitality, creating vibrant communities for mature renters and older adults.
We believe our real estate portfolio is unmatched, located in highly attractive
micromarkets with stunning built environments. Yet, we are an unusual real
estate organization as we view ourselves as an operating company in a real
estate wrapper, driven by highly-aligned partnerships and an unconventional
culture. Through our disciplined approach to capital allocation powered by our
Data Science platform and superior operating results driven by the Welltower
Business System - our end-to-end operating and technology platform - we aspire
to deliver long-term compounding of per share growth for our existing investors,
our North Star.
We routinely post important information on our website at www.welltower.com in
the "Investors" section, including corporate and investor presentations and
financial information. We intend to use our website as a means of disclosing
material, non-public information and for complying with our disclosure
obligations under Regulation FD. Such disclosures will be included on our
website under the heading "Investors." Accordingly, investors should monitor
such portion of our website in addition to following our press releases, public
conference calls and filings with the Securities and Exchange Commission. The
information on our website is not incorporated by reference in this press
release and our web address is included as an inactive textual reference only.
3
Forward-Looking Statements and Risk Factors
This document contains "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. When Welltower uses 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, Welltower is making forward-looking statements. These
statements include, among others, management's expectations regarding the
favorable impact of the acquisitions made and additional acquisition pipeline
and our statements under the section "Outlook for 2026." Forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties that may cause Welltower's actual results to differ materially
from Welltower's expectations discussed in the forward-looking statements. This
may be a result of various factors, including, but not limited to: the impact of
macroeconomic and geopolitical developments, including economic downturns,
elevated inflation and interest rates, political or social conflict, unrest or
violence or similar events; the status of the economy; the status of capital
markets, including availability and cost of capital; issues facing the
healthcare industry, including compliance with, and changes to, regulations and
payment policies, responding to government investigations and punitive
settlements, public perception of the healthcare industry and
operators’/tenants’ difficulty in cost effectively obtaining and maintaining
adequate liability and other insurance; changes in financing terms; competition
within the healthcare 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; Welltower's
ability to transition or sell properties with profitable results; the failure to
make new investments or acquisitions as and when anticipated; natural disasters,
public health emergencies and extreme weather affecting Welltower's properties;
Welltower's ability to re-lease space at similar rates as vacancies occur;
Welltower's 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 Welltower's properties; changes in rules or
practices governing Welltower's financial reporting; the movement of U.S. and
foreign currency exchange rates and changes to U.S. and global monetary, fiscal
or trade policies; Welltower's approach to artificial intelligence; Welltower's
ability to maintain its qualification as a REIT; key management personnel
recruitment and retention; geopolitical tensions or conflicts, such as the
ongoing conflict between Russia and Ukraine and in the Middle East, and other
risks described in Welltower's reports filed from time to time with the SEC.
Welltower undertakes 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.
Contact
Investor Relations: Krishna Soma ksoma@welltower.com; Matthew Carrus
mcarrus@welltower.com
Media: Tara Gallagher tgallagher@welltower.com
4
Consolidated Balance
Sheets (unaudited)
Dollars in thousands September 30, 2025 September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Assets:
Real estate investments:
Land and land improvements $ 5,146,696 $ 7,535,251
Buildings and improvements 42,496,555 60,990,495
Acquired lease intangibles 2,189,639 3,298,487
Real property held for
sale, net of 5,091,216 306,776
accumulated depreciation
Construction in progress 511,574 1,239,412
Less accumulated
depreciation and -10,107,309 -12,125,154
intangible amortization
Net real property owned 45,328,371 61,245,267
Right of use assets, net 1,250,447 1,922,667
Real estate loans
receivable, net of 1,773,788 3,047,269
credit allowance
Net real estate 48,352,606 66,215,203
investments
Other assets:
Investments in 1,835,979 2,049,911
unconsolidated entities
Cash and cash equivalents 6,806,507 2,274,910
Restricted cash 134,066 141,097
Receivables and other 2,375,644 3,030,212
assets
Total other assets 11,152,196 7,496,130
Total assets $ 59,504,802 $ 73,711,333
Liabilities and equity
Liabilities:
Unsecured credit facility
and commercial $ — $ 1,041,054
paper
Senior unsecured notes 14,365,008 14,686,972
Secured debt 2,487,354 3,467,126
Lease liabilities 1,311,600 1,968,069
Accrued expenses and other 2,028,458 2,684,098
liabilities
Total liabilities 20,192,420 23,847,319
Redeemable noncontrolling 284,364 237,081
interests
Equity:
Common stock 684,229 732,160
Capital in excess of par 47,054,892 57,547,521
value
Treasury stock -14,340 -26,641
Cumulative net income 10,937,128 12,603,830
Cumulative dividends -19,687,645 -21,859,441
Accumulated other -217,446 -415,436
comprehensive income
Total Welltower Inc.
stockholders' 38,756,818 48,581,993
equity
Noncontrolling interests 271,200 1,044,940
Total equity 39,028,018 49,626,933
Total liabilities and $ 59,504,802 $ 73,711,333
equity
5
Con…
Sta…
of
Inc…
(un…
Dol…
in
tho… Three Nine
exc… Mont… Mont…
per Ended Ended
sha… Sept… Sept…
data 30, 30,
Rev… 2025 2026 2025 2026
──────────────────────────────────────────────────────────────────────────────
Resi…
fees $ 2,06… $ 3,12… $ 5,89… $ 8,886…
and
serv…
Rent… 499,… 488,… 1,44… 1,402…
inco…
Inte… 67,2… 83,2… 191,… 231,5…
inco…
Other 57,6… 22,7… 124,… 91,554
inco…
Total 2,68… 3,71… 7,65… 10,61…
reve…
Exp…
Prop…
oper… 1,57… 2,24… 4,55… 6,451…
expe…
Depr…
and 509,… 706,… 1,49… 2,067…
amor…
Inte… 162,… 192,… 448,… 567,2…
expe…
Gene…
and 63,1… 67,1… 191,… 202,1…
admi…
expe…
Loss
(gai…
on
deri… 31,6… — 28,0… —
and
fina…
inst…
net
Loss
(gai…
on
exti… — 6,822 6,156 9,533
of
debt,
net
Prov…
for
loan 1,088 230 -2,0… 4,045
loss…
net
Impa…
of 3,081 33,4… 75,3… 64,052
asse…
Other 44,6… 124,… 75,3… 242,7…
expe…
Total 2,39… 3,37… 6,86… 9,608…
expe…
Inc…
(lo…
from
con…
ope…
bef… 293,… 337,… 790,… 1,003…
inc…
tax…
and
oth…
ite…
Inc…
tax -2,3… -7,1… 2,131 43,230
(ex…
ben…
Inc…
(lo…
from -12,… -30,… -18,… -50,3…
unc…
ent…
Gain
(lo…
on
real
est…
dis… 4,025 114,… 70,6… 633,6…
and
acq…
of
con…
int…
net
Inc…
(lo…
from 282,… 414,… 844,… 1,630…
con…
ope…
Net
inc… 282,… 414,… 844,… 1,630…
(lo…
Les…
Net
inc…
(lo… 1,627 18,2… 3,666 59,861
att…
to
non…
int…
Net
inc…
(lo…
att… $ 280,… $ 396,… $ 840,… $ 1,570…
to
com…
sto…
Ave…
num…
of
com…
sha…
out…
Basic 672,… 724,… 657,… 711,3…
Dilu… 685,… 754,… 669,… 739,7…
Net
inc…
(lo…
att…
to
com…
sto…
per
sha…
Basic $ 0.42 $ 0.55 $ 1.28 $ 2.21
Dilu… $ 0.41 $ 0.54 $ 1.26 $ 2.16
Com…
div… $ 0.74 $ 0.85 $ 2.08 $ 2.33
per
sha…
(1)…
amo…
att…
to
red…
non…
int…
(2)…
adj…
to
the
num…
for
inc…
(lo…
att…
to
OP
Uni…
and
Dow…
Uni…
6
Do…
in
th… Th… Ni…
F… ex… Mo… Mo…
F… per En… En…
O… sh… Se… Se…
R… da… 2025 30, 2026 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
N…
i…
(…
a… $ 28… $ 39… $ 84… $ 1,…
to
c…
s…
D…
a… 50… 70… 1,… 2,…
a…
I…
a…
l…
(…
on
r…
e… -9… -8… 4,… -5…
d…
a…
a…
of
c…
i…
n…
N… -9… 9,… -2… 37…
i…
U… 44… 38… 10… 10…
e…
N…
F…
a… 82… 1,… 2,… 3,…
to
c…
s…
N…
i… 94… 18… 14… 29…
n…
N…
F…
a… $ 91… $ 1,… $ 2,… $ 3,…
to
c…
s…
A…
d…
c… 68… 75… 66… 73…
s…
o…
P…
d…
s…
d…
a…
to
c…
s…
Net
in… $ 0.… $ 0.… $ 1.… $ 2.…
(l…
NA… $ 1.… $ 1.… $ 3.… $ 4.…
FFO
No… $ 1.… $ 1.… $ 3.… $ 4.…
FFO
N…
F…
P…
R…
Di…
per $ 0.… $ 0.… $ 2.… $ 2.…
co…
sh…
No…
FFO
at…
to $ 1.… $ 1.… $ 3.… $ 4.…
co…
st…
per
sh…
No…
FFO 55 % 51 % 54 % 49 %
pa…
ra…
O…
i…
N…
s…
r…
a… $ -5… $ -9… $ -1… $ -2…
a…
m…
r…
a…
N…
i… 12… 12… 38… 38…
e…
R… -9… -1… -2… -3…
c…
S… 12… 15… 40… 48…
c…
( 1) Represents noncontrolling interests' share of net FFO adjustments.
(2) Represents Welltower's share of net FFO adjustments from unconsolidated
entities.
(3) See Normalizing Items table for details.
(4) Includes adjustment to the numerator for income (loss) attributable to OP
Units and DownREIT Units, where applicable.
(5) Amounts presented net of noncontrolling interests' share and including
Welltower's share of unconsolidated entities.
(6) Excludes normalized foreign currency loss (gain).
(7) Reflects recurring cap-ex on owned operational properties and excludes
acquisition related cap-ex.
(8) Excludes normalized stock compensation expense related to the 2021 Special
Performance Option and OPP Awards.
7
Doll…
in
thou… Three Nine
exce… Mont… Mont…
per Ended Ended
Nor… share Sept… Sept…
Ite… data 2025 30, 2026 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Loss
(ga…
on
der… $ 31,6… $ — $ 28,0… $ —
and
fin…
ins…
net
Loss
(ga…
on
ext… — 6,822 -1 6,156 9,533
of
deb…
net
Pro…
for
loan 1,088 230 -2 -2,0… 4,045
los…
net
Inc…
tax — — -8,1… -71,3…
ben…
Oth… — 2,463 -3 604 2,463
imp…
Oth… 44,6… 124,… -4 75,3… 242,7…
exp…
Spe…
inc… 2,568 267 -5 7,970 722
plan
com…
Cas…
los…
net 1,914 9,793 -6 8,252 17,871
of
rec…
For…
cur… 1,753 6,124 -7 -2 6,496
loss
(ga…
Nor…
ite…
att…
to
non… 11,1… 37,3… -8 32,1… 85,703
int…
and
unc…
ent…
net
Net
nor… $ 94,8… $ 187,… $ 148,… $ 298,2…
ite…
Ave…
dil…
com… 685,… 754,… 669,… 739,7…
sha…
out…
Net
nor…
ite… $ 0.14 $ 0.25 $ 0.22 $ 0.40
per
dil…
sha…
(1) Primarily related to the extinguishment of unsecured debt.
(2) Primarily related to adjustments to reserves for loan losses based upon our
current assessment of expected credit losses in the portfolio.
(3) Primarily related to the write off of straight-line rent receivable balances
relating to the conversion of triple-net leased properties to a SHO (RIDEA)
structure.
(4) Primarily related to non-capitalizable transaction costs and legal fees,
including related to the HC-One Group operator restructuring.
(5) Primarily related to expenses recognized on the 2021 Special Performance
Option Awards.
(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 relates to hypothetical liquidation at book value adjustments
related to in substance real estate investments.
Outlook
Reconci…
Year
ending
December
31, 2026
──────────────────────────────────────────────────────────────────────────────
Dollars
in
million…
except
per
share
data
Prior Current
Outlook Outlook
FFO
Outlook Low High
Reconci…
Net
income
attribu… $ 2,302 $ 2,362 $ 2,470 $ 2,515
to
common
stockho…
Impairm…
and
losses
(gains)
on real
estate
disposi… -545 -545 -862 -862
and
acquisi…
of
control…
interes…
net(1)
Depreci…
and 2,845 2,845 2,928 2,928
amortiz…
NAREIT
FFO
attribu… 4,602 4,662 4,536 4,581
to
common
stockho…
Normali…
items, 111 111 298 298
net(1,2)
Normali…
FFO
attribu… $ 4,713 $ 4,773 $ 4,834 $ 4,879
to
common
stockho…
Diluted
per
share
data
attribu…
to
common
stockho…
Net $ 3.11 $ 3.19 $ 3.31 $ 3.37
income
NAREIT $ 6.21 $ 6.29 $ 6.07 $ 6.13
FFO
Normali… $ 6.36 $ 6.44 $ 6.47 $ 6.53
FFO
Other
items:(…
Net
straigh…
rent and
above/b… $ -341 $ -341 $ -342 $ -342
market
rent
amortiz…
Non-cash
interest 50 50 51 51
expenses
Recurri… -465 -465 -465 -465
cap-ex(…
Stock-b… 63 63 63 63
compens…
(1) Amounts presented net of noncontrolling interests' share and Welltower's
share of unconsolidated entities.
(2) See Normalizing Items table.
(3) Reflects recurring cap-ex on owned operational properties and excludes
acquisition related cap-ex.
8
SSNOI
Reconciliation
Dollars in Three Months Ended
thousands September 30, 2025 2026
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 282,186 $ 414,823
Loss (gain) on
real estate
dispositions -4,025 -114,678
and acquisitions
of controlling
interests, net
Loss (income) from
unconsolidated 12,610 30,689
entities
Income tax expense 2,335 7,116
(benefit)
Other expenses 44,699 124,687
Impairment of 3,081 33,452
assets
Provision for loan 1,088 230
losses, net
Loss (gain) on
extinguishment of — 6,822
debt,
net
Loss (gain) on
derivatives and 31,682 —
financial
instruments, net
General and
administrative 63,124 67,169
expenses
Depreciation and 509,812 706,786
amortization
Interest expense 162,052 192,655
Consolidated NOI 1,108,644 1,469,751
NOI attributable
to unconsolidated 29,337 37,665
investments(1)
NOI attributable
to noncontrolling -12,280 -10,954
interests(2)
Pro rata NOI 1,125,701 1,496,462
Non-same store
properties and -376,118 -625,216
non-property NOI
Non-cash NOI on
same store -41,746 -46,237
properties
Currency and
ownership -2,320 -638
adjustments(3)
Normalizing
adjustments, 2,828 -4,384
net(4)
Same Store NOI $ 708,345 $ 819,987 15.8%
(SSNOI)
Seniors Housing $ 499,497 $ 604,319 21.0%
Operating
Seniors Housing 75,098 78,243 4.2%
Triple-net
Outpatient Medical 27,832 28,499 2.4%
Skilled Nursing 105,918 108,926 2.8%
Total SSNOI $ 708,345 $ 819,987 15.8%
(1) Represents
Welltower's
interests in
joint ventures
where Welltower is
the
minority partner.
(2) Represents
minority partners'
interests in joint
ventures where
Welltower is the
majority partner.
(3) Includes where
appropriate
adjustments to
reflect consistent
property ownership
percentages, to
translate Canadian
properties at a
USD/CAD rate of
1.43 and to
translate
U.K. properties at
a GBP/USD rate of
1.23.
(4) Includes other
adjustments
described
in the
accompanying
Earnings Release &
Supplemental
Information
report.
9
SHO SS RevPOR Growth
Reconciliation
Dollars in thousands, Three Months Ended
except SS RevPOR September 30, 2025 2026
──────────────────────────────────────────────────────────────────────────────
Consolidated SHO $ 2,063,618 $ 3,125,101
revenues
Unconsolidated SHO
revenues attributable 60,435 64,416
to WELL(1)
SHO revenues
attributable to -20,860 -23,310
noncontrolling
interests(2)
SHO pro rata 2,103,193 3,166,207
revenues(3)
Non-property related -1,542 -1,627
revenues
Revenues attributable
to non-same store -340,577 -1,254,008
properties
Non-cash and non-RevPOR
revenues on same -3,207 -2,646
store properties
Currency and ownership -9,793 -1,623
adjustments(4)
SHO SS RevPOR $ 1,748,074 $ 1,906,303
revenues(5)
Average occupied 100,357 103,899
units/month(6)
SHO SS RevPOR(7) $ 5,759 $ 6,066
SS RevPOR YOY growth 5.3 %
(1) Represents
Welltower's interests
in
joint ventures where
Welltower is the
minority partner.
(2) Represents minority
partners’
interests in joint
ventures where
Welltower is the
majority partner.
(3) Represents SHO
revenues at Welltower
pro rata ownership.
(4) Includes
adjustments to reflect
consistent property
ownership
percentages and foreign
currency
exchange rates for
properties in the
U.K. and Canada.
(5) Represents SS SHO
RevPOR revenues at
Welltower pro rata
ownership.
(6) Represents average
occupied units
for SS properties on a
pro rata basis.
(7) Represents pro rata
SS average
revenues generated per
occupied room per
month.
10
Adjusted EBITDA Reconciliation Three months ended
Dollars in thousands September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 414,823
Interest expense 192,655
Income tax expense (benefit) 7,116
Depreciation and amortization 706,786
EBITDA 1,321,380
Loss (income) from unconsolidated 30,689
entities
Stock-based compensation 15,889
Loss (gain) on extinguishment of debt, 6,822
net
Loss (gain) on real estate dispositions
and acquisitions of controlling -114,678
interests, net
Impairment of assets 33,452
Provision for loan losses, net 230
Other expenses 124,687
Casualty losses, net of recoveries 9,586
Other impairment(1) 2,463
Total adjustments 109,347
Adjusted EBITDA $ 1,430,727
Total debt(2) $ 19,672,086
Less: cash and cash equivalents and -2,416,007
restricted cash
Net debt $ 17,256,079
Adjusted EBITDA annualized $ 5,722,908
Net debt to Adjusted EBITDA ratio 3.02 x
(1) Represents the write-off of
straight-line rent receivable and
unamortized lease incentive balances
relating to the conversion of
triple-net
leased properties to a SHO (RIDEA)
structure.
(2) Includes unamortized
premiums/discounts, other fair value
adjustments, financing lease
liabilities. Excludes operating lease
liabilities of $1,491,135,000 related
to
ASC 842.
Net Debt to Consolidated Enterprise
Value
Dollars in thousands, except per share
data September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Common shares outstanding 731,995
Period end share price $ 230.24
Common equity market capitalization $ 168,534,529
Net debt 17,256,079
Noncontrolling interests(1) 1,282,021
Consolidated enterprise value $ 187,072,629
Net debt to consolidated enterprise 9.2 %
value
(1) Includes all noncontrolling
interests (redeemable and permanent)
as
reflected on our consolidated balance
sheet.
11