Welltower Inc.

What they do

Welltower is an umbrella partnership REIT that owns and operates over 2,500 seniors and wellness housing communities. It operates through three reportable segments: Seniors Housing Operating, Triple-net, and Outpatient Medical. The company uses RIDEA structures and joint ventures to manage properties, with day-to-day control held by Welltower Inc. through Welltower OP LLC.

Revenue drivers

• Seniors Housing Operating — Largest segment; includes wellness housing, independent living, assisted living, and continuing care retirement communities. Generates revenue from resident rents and services; drove 20.5% SSNOI growth in Q2 2026.
• Triple-net — Leases properties to operators on a triple-net basis, providing stable, contractual rent. Accounted for 70 property acquisitions in H1 2026 with an 8.5% capitalization rate.
• Outpatient Medical — Owns and leases outpatient medical buildings; significant dispositions planned. 74 properties sold in H1 2026; remaining 8 properties from a $7.2 billion portfolio sale expected to close by end of 2026.

Recent performance

In Q2 2026, Welltower reported net income attributable to common stockholders of $0.61 per diluted share and normalized FFO of $1.60 per share, up 25.0% year-over-year. Total portfolio same-store NOI grew 15.5%, led by 20.5% growth in Seniors Housing Operating. The SHO segment saw organic revenue growth of 9.2% from 330 bps of occupancy growth and 5.2% RevPOR growth. Net debt to Adjusted EBITDA was 2.99x as of June 30, 2026. The company completed $6.3 billion of pro rata gross investments in Q2 and $843 million of dispositions and loan repayments.

Strategy

Welltower's strategy centers on disciplined capital allocation powered by its Data Science platform and the 'Welltower Business System' to drive per-share growth. The company is aggressively expanding through acquisitions, with $9.4 billion completed in H1 2026 and over $5 billion of seniors housing acquisitions announced for H2 2026. It is also divesting non-core outpatient medical assets and recycling capital into higher-growth seniors housing. Strong balance sheet enables below-market debt assumption and equity issuance to fund accretive investments. Recent Amica Senior Lifestyles acquisition in Canada adds 38 communities, with additional development properties closing in 2027.

Risks

• Acquisition execution risk — Completed $5.4 billion of SHO acquisitions in H1 2026; planned H2 acquisitions >$5 billion subject to closing conditions and regulatory approvals, which may fail or be delayed.
• Interest rate and refinancing risk — High interest rates can increase borrowing costs; company issued C$1.15 billion in notes at 3.95% in July 2026, but rising rates could pressure future debt costs.
• Pandemic and health crisis risk — Public health crises could amplify risks across operations, including occupancy and revenue, as disclosed in the 10-K risk factors.
• Labor shortage and cost inflation — Labor market constraints and inflation could increase operating expenses, particularly in seniors housing where staffing is critical.

Outlook

Management expects continued strong same-store NOI growth driven by SHO occupancy and RevPOR gains. The company plans to close over $5 billion of seniors housing acquisitions in H2 2026 and complete the remaining $298 million of OM portfolio sales. They raised the quarterly dividend by 15% to $0.85, signaling confidence in durable cash flow growth. Available liquidity is about $9.5 billion, supporting further investment.