Welltower Continues Unprecedented Capital Deployment Through $1.3 Billion In Newly Announced Pro Rata Investments

November 4, 2021

Welltower Inc. (NYSE: WELL) or the “Company” today announced that it has entered into definitive agreements to acquire four distinct seniors housing portfolios for a pro rata gross investment amount of $1.3 billion, subject to customary closing conditions. The execution of these transactions, along with Welltower’s previously announced completion of $4.3 billion of pro rata gross investments exclusive of development funding, will bring the Company’s total pro rata gross investments to $5.6 billion since October 2020.

“Since pivoting to offense 13 months ago, Welltower is pleased to have executed on its value-driven investment thesis, largely through granular and off-market transactions completed at a significant discount to estimated replacement cost,” commented Shankh Mitra, Welltower’s CEO and CIO. “We expect these investments to drive significant per share cash flow growth and generate high single-digit to mid-teens unlevered IRR’s to Welltower. Additionally, we have recently observed a meaningful uptick in potential investment opportunities as the level of motivation from various sellers has risen, coinciding with further industry disruption due to the Delta variant and challenging labor environment. With $5.3 billion of current near-term liquidity, including $1.0 billion of efficiently raised unsettled equity proceeds, we are well positioned to capitalize on the robust near-term capital deployment pipeline and continue to create significant per share value for our shareholders.”

Welltower most recently entered into definitive agreements for a pro rata gross investment amount of approximately $1.3 billion, which are expected to generate high single-digit unlevered IRR’s, across the following four portfolios:

$580 million acquisition of 14 property Seniors Housing portfolio

• The portfolio is comprised of eight rental and six entrance fee communities located in attractive markets across the United States, including Bellevue, WA, Data Point, CA, and Alexandria, VA
• Watermark Retirement Communities will be retained to manage the portfolio under a highly aligned RIDEA 3.0 management agreement
• Transaction price represents a 40% discount to estimated replacement cost

$475 million acquisition of Nine Seniors Apartment communities

• The Class “A” portfolio is 100% private pay and located in highly attractive markets
• An existing Welltower operator will assume operations upon acquisition of the portfolio

$172 million acquisition of Five Class “A” Seniors Housing properties across Mid-Atlantic and Southeastern United States

• Recently developed and operated by a best-in-class operator and developer which will be retained to operate the portfolio under a highly incentivized contract
• Initiated a long term exclusive strategic partnership agreement to develop Class “A” Seniors Housing properties across the Southeast

$119 million acquisition of Three Seniors Housing properties

• Recently developed portfolio carries an average age of 2 years with properties located in fast growing micro-markets in the Midwest
• New Perspective, an existing Welltower operator, will assume operations under a strongly aligned RIDEA 3.0 management contract
• Portfolio has further development and densification opportunities

Welltower’s strong balance sheet and recent capital markets activity provides the Company with ample capacity to fund its robust pipeline of investment opportunities. Since June 30, 2021, Welltower has issued approximately $1.0 billion of equity through its at-the-market program via forward sale agreements at an average price of $84.36 per share. Additionally, the Company’s near-term liquidity totals $5.3 billion, inclusive of $1.3 billion of the aforementioned unsettled forward equity proceeds and expected proceeds from assets classified as held for sale and anticipated loan payoffs as of September 30, 2021, in addition to $4.0 billion in cash and cash equivalents and available capacity under its line of credit.