10-KPeriod: FY2021

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2021

Filed February 16, 2022For Securities:WELL

Summary

Welltower Inc. (WELL) reported its 2021 full-year results, showcasing a resilient portfolio focused on healthcare and seniors housing infrastructure. The company navigated the ongoing impacts of the COVID-19 pandemic, with occupancy in its Seniors Housing Operating segment showing a steady recovery throughout the year, ending at 77.7%. Despite pandemic-related operational cost increases, Welltower maintained strong collections across its segments, with nearly all rent due collected from Triple-net and Outpatient Medical tenants. The company demonstrated active capital management, completing significant debt issuances and repayments to optimize its capital structure. Investments during the year totaled $4.44 billion, primarily in Seniors Housing Operating properties, alongside substantial dispositions totaling $1.07 billion. Welltower remains committed to its dividend, paying its 203rd consecutive quarterly dividend.

Financial Highlights

42 data points
Beta

Revenue

$4.74B

41.5% Gross Margin

Net Income

$336.14M

7.1% Net Margin

EPS (Diluted)

$0.78

Total Assets

$34.91B

Cash & Equivalents

$269.26M

Free Cash Flow

$1.28B

Financial Statements
Beta
Revenue$4.74B
Cost of Revenue$2.77B
Gross Profit$1.97B
SG&A Expenses$126.73M
Operating Expenses$4.57B
Interest Expense$489.85M
Net Income$336.14M
EPS (Basic)$0.79
EPS (Diluted)$0.78
Shares Outstanding (Basic)424.98M
Shares Outstanding (Diluted)426.84M

Key Highlights

  • 1Welltower's Seniors Housing Operating segment occupancy recovered to 77.7% by year-end 2021, a significant increase from pandemic lows, with 94% of communities open for new admissions.
  • 2The company executed a robust capital management strategy, issuing $1.75 billion in senior unsecured notes and repaying $1.53 billion in debt during 2021.
  • 3Total investments in real estate reached $4.44 billion in 2021, with a significant portion ($3.14 billion) allocated to Seniors Housing Operating properties, including the acquisition of 85 properties from Holiday Retirement.
  • 4Property dispositions generated $1.07 billion in proceeds in 2021, reflecting strategic portfolio management.
  • 5The company maintained strong rent collections, with 94% collected from Triple-net operators and virtually all rent collected from Outpatient Medical tenants.
  • 6Welltower's Net Debt to Market Capitalization ratio stood at a healthy 25.9% as of December 31, 2021.
  • 7The company declared and paid its 203rd consecutive quarterly dividend, demonstrating a commitment to shareholder returns.

Frequently Asked Questions

The COVID-19 pandemic led to a decline in occupancy, particularly in the Seniors Housing Operating segment, which reached a low of 72.6% in March 2021. However, occupancy showed a steady recovery throughout the year, ending at 77.7% as of December 31, 2021, with most communities open for new admissions and allowing visitors and communal activities.

Welltower actively managed its capital structure by issuing approximately $1.75 billion in senior unsecured notes and repaying approximately $1.53 billion of existing debt. The company also closed on a new $4.7 billion unsecured credit facility. These actions aimed to optimize pricing, extend maturity profiles, and maintain financial flexibility.

In 2021, Welltower invested $4.44 billion in real estate acquisitions, with a significant focus on Seniors Housing Operating properties, including the $1.58 billion acquisition of 85 properties from Holiday Retirement. The company also strategically disposed of properties, generating $1.07 billion in proceeds, thereby managing portfolio concentration and optimizing asset mix.

While Outpatient Medical tenants experienced temporary disruptions earlier in the pandemic, Welltower collected virtually all rent due in 2021. In the Triple-net segment, collections were also strong at 94%, with no significant rent deferrals or concessions made in 2021, indicating the resilience of its operator base despite pandemic-related cost pressures.