Welltower Inc. · NYSE:WELL
Welltower — Q1 2018 Earnings Presentation
20 slides from Welltower's earnings presentation, May 2018
Slide 1: Non-GAAP Financial Measures, Quarter Ended March 31, 2018
NON-GAAP FINANCIAL MEASURES QUARTER ENDED MARCH 31, 2018 welltower
Slide 2: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Welltower Inc. (HCN) believes that revenues, net income and net income attributable to common stockholders (NICS), as defined by U.S. generally accepted accounting principles (U.S. GAAP), are the most appropriate earnings measurements. However, the company considers Net O
Slide 3: FFO
FFO Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market
Slide 4: FFO Quarterly Reconciliations
FFO QUARTERLY RECONCILIATIONS (in thousands, except per share information) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Net income (loss) attributable to common stockholders $312,639 $188,429 $74,043 $(111,523) $437,671 Depreciation and amortiza
Slide 5: FFO Annual Reconciliations
FFO ANNUAL RECONCILIATIONS (in thousands, except per share information) Year Ended December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Net income (loss) attributable to common stockholders $78,714 $446,745 $818,344 $1,012,397 $463,595 Depreciation and amortizati
Slide 6: Outlook Reconciliations
OUTLOOK RECONCILIATIONS (in millions, except per share data) Prior Outlook Current Outlook Year Ended December 31, 2018 Year Ended December 31, 2018 Low High Low High Net income attributable to common stockholders $892 $930 $957 $995 Impairments and losses (gains) on real estate dispositions, net(1,
Slide 7: NOI, IPNOI, SSNOI, REVPOR and SS REVPOR
NOI, IPNOI, SSNOI, REVPOR AND SS REVPOR We define NOI as total revenues, including tenant reimbursements, less property operating expenses. Property operating expenses represent costs associated with managing, maintaining and servicing tenants for our seniors housing operating and outpatient medical
Slide 8: NOI Quarterly Reconciliations
NOI QUARTERLY RECONCILIATIONS (dollars in thousands) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Net income (loss) $337,610 $203,441 $89,299 $(89,743) $453,555 Loss (gain) on real estate dispositions, net (244,092) (42,155) (1,622) (56,381) (33
Slide 9: NOI Annual Reconciliations
NOI ANNUAL RECONCILIATIONS (dollars in thousands) Year Ended December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Net income $138,280 $512,300 $888,549 $1,082,070 $540,613 Loss (gain) on real estate dispositions, net (49,138) (153,522) (280,387) (364,046) (344,25
Slide 10: Current Quarter SSNOI by Segment
CURRENT QUARTER SSNOI BY SEGMENT (dollars in thousands at Welltower pro rata ownership) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Y/o/Y Seniors Housing Triple-net NOI(1) $162,273 $155,741 $157,815 $153,904 $151,305 Non-cash NOI on same store
Slide 11: IPNOI Reconciliation
IPNOI RECONCILIATION (dollars in thousands at Welltower pro rata ownership) Seniors Long-Term Seniors Housing /Post-Acute Housing Outpatient Corporate & Triple-Net Care Operating Medical Land Total Three months ended March 31, 2018: Revenues $151,322 $71,811 $706,158 $126,979 $393 $1,056,663 Propert
Slide 12: Reconciliations of SHO SS REVPOR Growth, SSNOI Growth and SSNOI/Unit
RECONCILIATIONS OF SHO SS REVPOR GROWTH, SSNOI GROWTH AND SSNOI/UNIT (dollars in thousands, except SSNOI/unit) United States United Kingdom Canada Total 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 SHO SS REVPOR Growth Consolidated SHO revenues(1) $ 498,943 $ 544,194 $ 65,939 $ 79,037 $ 106,985 $ 113,936
Slide 13: Seniors Housing Operating REVPOR
SENIORS HOUSING OPERATING REVPOR (dollars in thousands, except REVPOR) United States United Kingdom Canada Total Three months ended March 31, 2018 Consolidated SHO revenues(1) $ 544,194 $ 79,037 $ 113,936 $ 737,167 Unconsolidated SHO revenues attributable to Welltower(2) 22,203 - 20,692 42,895 SHO r
Slide 14: Outpatient Medical NOI Reconciliations
OUTPATIENT MEDICAL NOI RECONCILIATIONS (dollars in thousands, except per square foot) Three months ended March 31, 2018 Total Non Core(3) Core OM revenues(1) $126,979 $(611) $126,368 OM property operating expenses(1) (41,010) 73 (40,937) OM Core NOI(1) $85,969 $(538) $85,431 OM Core NOI margin 67.6%
Slide 15: EBITDA and A-EBITDA
EBITDA AND A-EBITDA We measure our credit strength both in terms of leverage ratios and coverage ratios. The leverage ratios indicate how much of our balance sheet capitalization is related to long-term debt, net of cash and Internal Revenue Code ("IRC") Section 1031 deposits. We expect to maintain
Slide 16: EBITDA and A-EBITDA Quarterly Reconciliations
EBITDA AND A-EBITDA QUARTERLY RECONCILIATIONS (dollars in thousands) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 30, 2017 March 31, 2018 Net income (loss) $337,610 $203,441 $89,299 $(89,743) $453,555 Interest expense 118,597 116,231 122,578 127,217 122,775 Income tax
Slide 17: EBITDA and A-EBITDA Annual Reconciliations
EBITDA AND A-EBITDA ANNUAL RECONCILIATIONS (dollars in thousands) Year Ended December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Net income $138,280 $512,300 $888,549 $1,082,070 $540,613 Interest expense 462,606 481,196 492,169 521,345 484,622 Income tax expense
Slide 18: EBITDA and A-EBITDA Trailing Twelve Months Reconciliations
EBITDA AND A-EBITDA TRAILING TWELVE MONTHS RECONCILIATIONS (dollars in thousands) Twelve Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Net income $1,254,208 $1,246,899 $981,458 $540,613 $656,551 Interest expense 506,982 490,886 483,765 484,622 488,800
Slide 19: Capitalization Ratios Quarterly
CAPITALIZATION RATIOS QUARTERLY (Amounts in thousands, except share price) As of March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Book capitalization: Borrowings under primary unsecured credit facility $522,000 $385,000 $420,000 $719,000 $865,000 Long-term debt obliga
Slide 20: Capitalization Ratios Annual
CAPITALIZATION RATIOS ANNUAL Year Ended December 31, 2013 2014 2015 2016 2017 Book capitalization: Borrowings under primary unsecured credit facility $ 130,000 $ 0 $ 835,000 $ 645,000 $ 719,000 Long-term debt obligations(1) 10,522,014 10,828,013 12,132,686 11,713,245 11,012,936 Cash & cash equivalen