Welltower Inc. Q2 FY2025 earnings call

• Business Trends: Second quarter marked solid execution across operations, investment activity, and balance sheet strengthening. FFO per share grew 22%, and full-year FFO guidance midpoint was raised to $5.10 per share. - Senior Housing Operating Portfolio: Eleventh consecutive quarter of same-store NOI growth over 20%, top-line growth 10.1%, occupancy growth over 400 basis points, RevPAR growth 5%, ExpPOR growth 0.2%, operating margins up 330 basis points to 30.7%. - Investment Activity: Year-to-date, $9.2 billion worth of acquisitions closed or under contract, including $3.7 billion closed and $5.5 billion under contract. - Balance Sheet: Rated A by S&P and Moody's, net debt to adjusted EBITDA below 3 times, interest coverage over 6 times, total liquidity $9.5 billion.

Senior Housing Operating Portfolio: In Q2, same-store NOI growth was 23.4%, representing the eleventh consecutive quarter with growth exceeding 20%. Organic revenue growth was 10%, driven by 420 basis points of occupancy gains. UK portfolio had a 600 basis points occupancy pickup and 27% same-store NOI growth. Outpatient Medical Business: Same-store NOI growth was 2.6%, leasing velocity healthy, retention rate 94.2%, same-store occupancy 95%. Long-Term Post-Acute: Not explicitly detailed in the initial segment performance but mentioned in financial guidance.

• Full-year FFO guidance midpoint raised to $5.10 per share, up $0.13. - Normalized FFO guidance $5.06 to $5.14 per share, midpoint $5.10. - Total portfolio same-store NOI growth expected 11.25% to 13.25%.

• Factors causing actual results to differ from forward-looking statements as detailed in SEC filings. - Challenges in transitioning and improving underperforming portfolios like the Holiday by Atria portfolio.

Q: About future growth potential A: Shankh Mitra stated Welltower Inc. is still in sprint mode, focused on an audacious dream of transforming the industry and playing to win Q: On senior housing operating portfolio non-same store performance A: John Burkart explained non-same store includes under-occupied/under-optimized assets and new development, with aggregate growth similar to same-store