Welltower Inc. Q4 FY2025 earnings call

• Shankh Mitra mentioned 2025 was transformational with 36% revenue growth, 32% EBITDA growth, 22% FFO per share growth, launched private funds management business, overhauled incentive structure, made progress on Welltower Business System, and created tech quad. • Focus on future, deliberate actions in 2025 to amplify long - term cash flow growth. • Senior housing operating portfolio had thirteenth consecutive quarter of same - store operating net operating income growth >20%, organic revenue growth ~10% from occupancy and rate growth. • Fourth - quarter operating margins expanded 270 basis points, expecting operational leverage to drive margins higher. • Regional densification creates synergies and efficiencies from Welltower Business System. • John Burkart spoke about fourth - quarter results, continued confidence in NOI growth, focus on people, processes, data, technology. • Nikhil Chaudhri discussed 2025 net investment activity, disposition of outpatient medical and skilled nursing assets, progress on Integra portfolio, 2026 acquisition start, and private funds management business. • Tim McHugh covered fourth - quarter results, triple net properties performance, capital activity, balance sheet, and 2026 outlook with FFO guidance.

In the senior housing operating portfolio, ended the strongest year with thirteenth consecutive quarter of same-store operating net operating income growth exceeding 20%. Organic revenue growth around 10% driven by 400 basis points occupancy gains and healthy rate growth. Fourth - quarter operating margins increased by 270 basis points. Total portfolio same - store NOI growth in fourth quarter was 15%, with senior housing operating portfolio growth of 20.4%. For triple net properties, senior housing triple net portfolio same - store NOI increased 2.6% year - over - year with trailing twelve - month EBITDAR coverage of 1.19 times; long - term post - acute portfolio same - store NOI grew 2.6% year - over - year with trailing twelve - month EBITDAR coverage of 1.53 times. Revenue contribution: SHOP portfolio now makes up circa 70% of in - place NOI.

• Full - year 2026 outlook for net income attributable to common stockholders $3.11 to $3.27 per diluted share and normalized FFO $6.09 to $6.25 per diluted share (midpoint $6.17). • Normalized FFO increase composed of 58¢ from higher senior housing operating NOI, 30¢ from investment and financing activity, 2¢ from higher triple net income, offset by 2¢ from G&A. • Total portfolio year - over - year same - store NOI growth 11.25% - 15.75%, with subsegments: outpatient medical 2% - 3%, long - term post - acute 2% - 3%, senior housing triple net 3% - 4%, senior housing operating 15% - 21%. • Revenue growth 9% (4.8% RevPOR growth and 350 basis points occupancy growth), expense growth 5.5% (expense per unit growth just below 1.5%).

• Macro and geopolitical uncertainty could impact business. • Senior housing business is hard with nuanced resident needs. • Transition from prior model was difficult and still ongoing. • Competition in acquisitions and in the senior housing industry. • Dependence on operating partners and ability to execute with them. • Risks related to execution at granular level in a volatile market.

Q: Vikram Malhotra asked about compounding aspect of portfolio and framework to think about it.

A: Shankh Mitra said focus on cash flow earnings and growth, mix shift is important, hard to speculate exact future but future looks bright.

Q: John Kilachowski asked about challenges left in senior housing space and if platforms would be monetizable.

A: Shankh Mitra said data science platform monetization is coming through, operational technology has long way to go, won't monetize operating software to compete.

Q: Farrell Granath asked about SNF portfolio framing as source of funds.

A: Nikhil Chaudhri said skilled nursing portfolio is structured credit investment, will continue to acquire, stabilize, exit, and redeploy proceeds based on opportunities.

Q: Omotayo Okusanya asked about non - same - store pool characteristics.

A: Tim McHugh said same - store makes up over half, non - same - store has less occupancy, heavier in UK.

Q: Ronald Kamdem asked about occupancy performance and Welltower Business System contribution.

A: Shankh Mitra said outperformed industry, John Burkart said combination of marketing, speed to lead, etc. drives occupancy.

Q: Michael Goldsmith asked about continuing to acquire unstabilized SHOP.

A: Shankh Mitra said it's pure function of market opportunities, goal is to create value, currently busy with acquisitions.

Q: Austin Wurschmidt asked about contextualizing SHOP occupancy and RevPOR growth guidance.

A: Shankh Mitra said it's guess, consider leap year comparison and pool change, ultimate goal is cash flow growth.

Q: Nick Yulico asked about spread between RevPOR and expense per unit growth.

A: Tim McHugh said expense per unit growth guidance is based on year - end outlook and probability of events.

Q: Rich Anderson asked about outreach to broader investors.

A: Shankh Mitra said focus on creating shareholder value, company is large enough for investors to find, capital market team teases business.

Q: Seth Bergey asked about trajectory of funds business.

A: Nikhil Chaudhri said opportunistic, Shankh Mitra said won't become asset gatherer.

Q: Juan Sanabria asked about CapEx for seniors housing.

A: John Burkart said acquiring good assets, some need capital, Shankh Mitra mentioned holiday assets and other anomalies.

Q: Michael Carroll asked about spread between RevPOR and expense per unit continuing to widen.

A: Shankh Mitra said generally gap could widen but many factors to consider, bottom - line growth shows portfolio is firing.

Q: Michael Ostroyak asked about NOI growth across U.S. SHOP, UK, Canada, and active adult businesses.

A: Tim McHugh said overall portfolio 15% - 21%, no guidance on sub - portfolios.

Q: James Kammert asked about senior housing customer preference for larger units and portfolio positioning.

A: Shankh Mitra said need to optimize location, product, price point, operating overlay, and larger units are part of product optimization.

Q: Mike Mueller asked about focus of debt fund capital.

A: Nikhil Chaudhri said not loan - to - own, lending on quality products with strong sponsors.