Welltower (WELL) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Opening remarks and business overview

• Focused on providing residential settings for older adults at the intersection of healthcare and housing.

• Emphasizes professionalizing the sector with modern business processes and technology.

• Management team highlighted for operational and investment expertise.

• Maintains a low-leverage balance sheet and prioritizes disciplined business practices.

• Management demonstrates confidence by retaining all their shares.

Amica acquisition in Canada

• Announced CAD 4.6 billion acquisition of Amica, described as the highest quality senior living portfolio globally.

• Portfolio includes 38 assets with strong operating metrics: 95% occupancy, margins in the low to mid-40s, and 7% CAGR over five years.

• Deal expected to deliver double-digit unlevered IRR and is considered total return accretive.

• Acquisition negotiated directly after a failed formal process, reflecting a relationship-driven approach.

• Growth opportunities include lease-up of new buildings, future acquisitions, and a robust development pipeline.

Market outlook and development trends

• Senior housing development unlikely to accelerate until asset values rise significantly above replacement cost.

• High construction and financing costs, along with disciplined buyers, limit new supply.

• Higher-for-longer interest rates benefit acquisition opportunities due to the company's strong capital structure.

• Regional density strategy focuses on adding assets that enhance existing clusters and customer experience.