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美國證券交易委員會
華盛頓特區20549
表格 10-Q
(標記一個)
☑ 根據1934年證券交易所法第13或15(d)條的季度報告
截至季度結束 2024年9月30日
或
☐ 根據1934年證券交易所法案第13或第15(d)條的過渡報告
過渡期從                     至                      
委員會文件號碼： 1-8923
welltower 公司
 
（註冊人的確切姓名，如其章程中指明) 
特拉華州
34-1096634
(成立的州或其他地區)
的）		(IRS雇主
識別號碼)
4500 Dorr StreetToledo,俄亥俄州43615
(總部辦公地址)（郵政編碼）
(419) -247-2800
（申報人電話號碼，包括區號）
不適用
(如與上次報告不同，列明前名稱、前地址及前財政年度)

根據本法第12(b)條所註冊的證券。
每種類別的名稱交易標的（s）每個註冊交易所的名稱
每股普通股，面額$1.00welltower紐約證券交易所
就Welltower OP LLC發行的到期日為2028年的4.800%票據提供保證WELL/28紐約證券交易所
Welltower OP LLC發行的2034年到期的4.500％票據的擔保well/34紐約證券交易所

請憑核取符號表示：（1）在過去的12個月內（或要求提交此類報告的較短期限內）已按照1934年證券交易法第13或15（d）條的規定提交了所有要提交的報告，並（2）過去90天內一直受到此類報告要求的影響。 是  þ不¨
請用勾選標記表示，是否在過去12個月內，公司已按照Regulation S-t（本章節的§232.405）的規定，以電子方式提交了所有要求提交的互動數據文件（如果有的話），或者在公司需要提交和發帖這些文件的較短期間內。 是 þ否¨
勾選此格以指示登記人是否為大型高速進行申報的申報人、高速進行申報的申報人、非高速進行申報的申報人、較小型報告公司或新興成長公司。請參閱《交易所法令》第120億2條中有關“大型高速進行申報人”、“高速進行申報人”、“較小型報告公司”和“新興成長公司”的定義。
大型加速歸檔人
 þ
 加速歸檔人
¨
 非加速歸檔人
¨
 小型報告公司
☐新興成長型企業☐
如果是新興增長公司，請用勾選號表示發行人是否選擇不使用按照交易所法案第13(a)條提供的遵守任何新的或修訂的財務會計準則的延長過渡期。 ¨
請在核准印章處打勾，表明公司是否為外殼公司（根據《交易所法》第120億2條所定義）。是 ☐ 沒有 þ
截至 2024年10月25日Welltower公司有 622,689,523 股份。




目 錄
 
 
第一部分財務資料頁面
項目一。財務報表 (未經審核)
綜合資產負債表
綜合綜合收益表
綜合股權益表
綜合現金流量報表
未經審核合併財務報表附註
項目二。管理層對財務狀況及營運結果進行討論及分析
第三項目。關於市場風險的定量和定性披露
第四項。控制和程序
第二部分其他資訊 
項目一。法律程序
項目 1A。風險因素
項目二。非登記股份證券銷售及所得款項的使用
第五項。其他資訊
第六項。展品
簽名


第一部分. 財務資訊

合併資產負債表
welltower及其附屬公司
(以千為單位) 
2024年9月30日（未經查核）2023年12月31日（附註）
資產：  
  
房地產投資：  
  
擁有的房地產：
土地及土地改良工程$5,075,391 $4,697,824 
建築物及改良工程40,646,767 37,796,553 
取得的租賃無形資產2,268,889 2,166,470 
持有供出售之房地產，扣除累計折舊110,689 372,883 
施工中1,374,996 1,304,441 
減少累計折舊和攤銷(10,276,509)(9,274,814)
擁有的净房地產39,200,223 37,063,357 
使用權資產，淨額358,160 350,969 
銷售型租賃投資，淨額469,260 — 
應收房地產貸款，扣除信用準備金1,840,453 1,361,587 
凈房地產投資41,868,096 38,775,913 
其他資產：  
對非合併實體的投資 1,742,836 1,636,531 
商譽 68,321 68,321 
現金及現金等價物 3,564,942 1,993,646 
受限現金 219,466 82,437 
直線租金應收款518,387 443,800 
應收款項及其他資產 971,650 1,011,518 
其他資產總額 7,085,602 5,236,253 
總資產  
$48,953,698 $44,012,166 
負債和資本  
負債:  
未經擔保信貸及商業票據$— $— 
已發行無抵押票據 13,295,096 13,552,222 
已抵押債務 2,468,527 2,183,327 
租賃負債392,360 383,230 
應付費用及其他負債 1,733,712 1,521,660 
負債總額  
17,889,695 17,640,439 
可贖回的非控股權益  
270,182 290,605 
權益：  
普通股620,107 565,894 
超額股本37,949,035 32,741,949 
庫藏股(114,876)(111,578)
累積淨利潤9,976,753 9,145,044 
累積分紅派息(17,901,600)(16,773,773)
累計其他綜合收益（損失）(195,138)(163,160)
Welltower股東權益總額30,334,281 25,404,376 
非控股權益459,540 676,746 
股東權益總額  
30,793,821 26,081,122 
負債及股東權益總計  
$48,953,698 $44,012,166 
註： 截至2023年12月31日的綜合資產負債表是從該日期的經過審計的基本報表中派生出來的，但並不包括美國通用會計準則所要求的所有信息和附註，以完成基本報表。

3

綜合收益合併報表（未經審計）
welltower及其附屬公司
（以千計，每股數據除外） 
結束於三個月的期間九個月結束了
九月三十日，九月三十日，
 2024202320242023
收入：  
住戶費用及服務$1,511,524 $1,199,808 $4,265,271 $3,490,942 
租金收入 430,486 384,507 1,183,949 1,152,005 
利息收入69,046 42,220 185,163 117,335 
其他收益44,607 35,478 105,905 127,938 
總收益2,055,663 1,662,013 5,740,288 4,888,220 
費用：
營業費用1,212,701 995,273 3,420,911 2,911,698 
折舊與攤提403,779 339,314 1,151,687 1,020,371 
利息費用139,050 156,532 419,792 453,272 
總部及行政費用77,901 46,106 186,784 134,764 
衍生工具和金融工具的虧損（收益），淨額(9,906)2,885 (18,785)5,095 
債務償還的損益，淨額419 1 2,130 7 
貸款損失提列，淨額4,193 4,059 10,370 7,292 
資產減值23,421 7,388 69,146 21,103 
其他費用20,239 38,220 83,054 72,034 
總支出1,871,797 1,589,778 5,325,089 4,625,636 
扣除所得稅前淨利（淨損）與其他項目後之綜合淨利（淨損）183,866 72,235 415,199 262,584 
所得稅（費用）收益4,706 (4,584)(2,586)(11,132)
投資損益（損失）(4,038)(4,031)(6,925)(51,434)
房地產業處置及併購控制權之損益，淨額272,266 71,102 443,416 69,681 
繼續營運所得(損失)456,800 134,722 849,104 269,699 
凈利潤（損失）456,800 134,722 849,104 269,699 
減：歸屬非控制權益的凈利潤（淨虧損）(1)
6,951 7,252 17,395 13,516 
歸屬於普通股股東之凈利潤（損失）$449,849 $127,470 $831,709 $256,183 
流通的普通股加權平均數量：
基礎611,290 521,848 595,353 504,420 
稀釋618,306 525,138 600,191 507,353 
每股盈餘：
基本每份收益：
繼續營運所得(損失)$0.75 $0.26 $1.43 $0.53 
歸屬於普通股股東之凈利潤（損失）$0.74 $0.24 $1.40 $0.51 
稀釋後：
繼續營運所得(損失)$0.74 $0.26 $1.41 $0.53 
歸屬於普通股股東之凈利潤（損失）(2)
$0.73 $0.24 $1.39 $0.50 
每普通股宣布並支付的股息$0.67 $0.61 $1.89 $1.83 
(1) 包括歸屬於可贖回非控制性股權的金額。
(2) 調整分子以反映應分給經營業務單位和DownREIt單位的收入（損失）。

4


綜合收益表（未經審計）
welltower及其附屬公司
(以千爲單位)
 三個月之內結束九個月結束
2020年9月30日2020年9月30日
 2024202320242023
$456,800 $134,722 $849,104 $269,699 
其他綜合收益（損失）：
外匯翻譯收益（損失）247,194 (165,186)133,024 35,098 
指定爲對沖的衍生品和金融工具獲得（損失）(194,988)106,449 (125,277)(49,173)
其他綜合收益（損失）總額52,206 (58,737)7,747 (14,075)
總綜合收益（損失）509,006 75,985 856,851 255,624 
淨利潤（虧損）歸屬於其他權益減少
歸屬於非控股權益(1)
7,730 2,283 9,938 16,410 
歸屬於普通股股東的綜合收益（損失）$501,276 $73,702 $846,913 $239,214 
(1) 包括歸屬於可贖回非控股權益的金額

5

未經審計的股東權益合併報表
welltower及其附屬公司
（以千爲單位）
2024年9月30日止九個月
普通股資本金
超額收益
票面價值		國庫
股票		外幣折算差額(2)
淨利潤		外幣折算差額(2)
股息		其他積累
綜合
收益（損失）		非控制權益
利益		總費用
2024年1月1日餘額
$565,894 $32,741,949 $(111,578)$9,145,044 $(16,773,773)$(163,160)$676,746 $26,081,122 
綜合收入：
   127,146   4,180 131,326 
其他綜合收益（損失）    (17,677)(6,075)(23,752)
總綜合收益       107,574 
非控制權益淨變動 (19,282)    6,191 (13,091)
根據Welltower OP所有權變動調整成員權益 (18,852)    18,852 — 
贖回OP單位和DownREIT單位19 825    (844)— 
與股票激勵計劃相關的金額，扣除無效112 11,936 (3,264)    8,784 
普通股發行所得淨額26,612 2,388,521      2,415,133 
已支付的分紅派息：
股票送轉    (352,529)  (352,529)
2024年3月31日的結餘
$592,637 $35,105,097 $(114,842)$9,272,190 $(17,126,302)$(180,837)$699,050 $28,246,993 
綜合收入：
254,714 5,806 260,520 
其他綜合收益（損失）(18,656)(95)(18,751)
總綜合收益241,769 
非控制權益淨變動(49,943)(46,969)(256,613)(353,525)
根據Welltower OP所有權變更調整會員權益(1,833)1,833 — 
OP單位和DownREIt單位的贖回476 42,636 (101)43,011 
與股票激勵計劃相關的金額，扣除被取消資格的部分36 11,028 168 11,232 
普通股發行所得淨額16,710 1,586,298 1,603,008 
已支付的紅股和分紅派息：
股票送轉(366,182)(366,182)
2024年6月30日的餘額
$609,859 $36,693,283 $(114,674)$9,526,904 $(17,492,484)$(246,462)$449,880 $29,426,306 
綜合收入：
449,849 5,874 455,723 
其他綜合收益（損失）51,324 87 51,411 
總綜合收益507,134 
非控制權益淨變動(19,175)7,365 (11,810)
由於Welltower OP所有權變更而對成員權益進行調整3,666 (3,666)— 
與股權激勵計劃相關的金額，扣除棄權後淨額6 39,912 (202)39,716 
普通股發行所得淨額10,242 1,231,349 1,241,591 
分紅派息：
股票送轉(409,116)(409,116)
2024年9月30日的餘額
$620,107 $37,949,035 $(114,876)$9,976,753 $(17,901,600)$(195,138)$459,540 $30,793,821 


6

未經審計的股東權益合併報表
welltower及其附屬公司
（以千爲單位）
 2023年9月30日止九個月
 普通股資本金
超額收益
票面價值		國庫
股票		外幣折算差額(2)
淨利潤		外幣折算差額(2)
股息		其他積累
綜合
收益（損失）		非控制權益
利益		總費用
2023年1月1日的餘額
$491,919 $26,742,750 $(111,001)$8,804,950 $(15,514,097)$(119,707)$714,739 $21,009,553 
綜合收入：
25,673 2,688 28,361 
其他綜合收益（損失）8,148 3,023 11,171 
總綜合收益39,532 
非控制權益淨變動(8,304)29,648 21,344 
根據在Welltower OP中所有權變更調整會員利益(6,139)6,139 — 
贖回OP單位和DownREIt單位272 17,515 (432)17,355 
與股票激勵計劃相關的金額，減去被取消的部分後的淨額134 9,330 (1,924)7,540 
普通股發行所得淨額5,603 404,862 410,465 
支付的分紅派息:
股票送轉(301,829)(301,829)
2023年3月31日的餘額
$497,928 $27,160,014 $(112,925)$8,830,623 $(15,815,926)$(111,559)$755,805 $21,203,960 
綜合收入：
103,040 3,505 106,545 
其他綜合收益（損失）28,651 4,410 33,061 
總綜合收益139,606 
非控制權益淨變動8,579 (12,686)(149,013)(153,120)
Welltower OP中所有權變更對成員權益的調整(4,794)4,794 — 
贖回OP單位和DownREIt單位1 18 (19)— 
與股票激勵計劃相關的金額，扣除放棄部分後淨額43 11,088 893 12,024 
普通股發行所得淨額11,833 910,392 922,225 
分紅派息：
股票送轉(300,772)(300,772)
2023年6月30日的餘額
$509,805 $28,085,297 $(112,032)$8,933,663 $(16,116,698)$(95,594)$619,482 $21,823,923 
綜合收入：
127,470 6,586 134,056 
其他綜合收益（損失）(53,768)(4,330)(58,098)
總綜合收益75,958 
非控制權益淨變動56,824 (2,829)53,995 
Welltower OP股權變更對成員權益的調整(3,431)3,431 — 
贖回OP單位和DownREIt單位62 2,488 (2,550)— 
與股票激勵計劃相關金額，扣除被放棄部分8 8,810 (281)8,537 
普通股發行所得淨額24,043 1,906,088 1,930,131 
支付的分紅派息:
股票送轉(318,718)(318,718)
2023年9月30日的餘額
$533,918 $30,056,076 $(112,313)$9,061,133 $(16,435,416)$(149,362)$619,790 $23,573,826 

7

綜合現金流量表（未經審計）
welltower及其附屬公司
（以千爲單位）
九個月結束
2020年9月30日
 20242023
經營活動:   
淨利潤 $849,104 $269,699 
調整淨利潤以協調提供經營活動淨現金的情況:
折舊和攤銷
1,151,687 1,020,371 
其他攤銷費用
43,165 31,002 
貸款減值準備淨額10,370 7,292 
資產減值
69,146 21,103 
基於股票的補償費用
62,308 28,781 
衍生工具和金融工具淨損益
(18,785)5,095 
債務減記利益（損失）淨額
2,130 7 
$
6,925 51,434 
租金收入少於（超過）現金收入
(31,805)(96,345)
與以上（以下）市場租約相關的攤銷淨額
166 (436)
房地產出售和控股權收購的淨利潤（損失）(443,416)(69,681)
利率互換結算款項的收入（支付）(59,555)(65,485)
未納入合併範圍實體派發的款項
12,845 9,055 
應計費用和其他負債的增加（減少）
135,926 95,695 
應收賬款和其他資產的減少（增加）
(93,002)(76,228)
經營活動產生的淨現金流量1,697,209 1,231,359 
投資活動：
用於收購的現金，扣除已獲得現金
(1,669,106)(1,073,627)
用於現有物業的資本改進支出
(538,752)(334,090)
用於在建工程的施工支出
(632,511)(730,712)
資本化利息
(43,955)(36,152)
投資應收款項
(603,619)(328,554)
應收貸款本金收回
250,791 68,404 
其他投資，減去支付
(49,271)(95,366)
對非合併實體的貢獻
(218,974)(267,359)
非合併實體分配
39,693 145,985 
淨投資套期交易結算所得款項10,712 3,933 
房地產業銷售收益
145,774 83,984 
投資活動提供的淨現金(3,309,218)(2,563,554)
籌資活動:
無擔保信貸額度和商業票據下的淨增加（減少）
— — 
發行高級無擔保票據所得淨款項1,015,063 1,011,780 
清償高級無擔保票據的支付
(1,350,000)— 
發行擔保債務的淨款項
3,708 381,369 
擔保債務支付
(356,216)(439,027)
普通股發行的淨收益
5,262,364 3,265,056 
支付遞延融資費用和提前償還罰金
(23,460)(7,619)
非控股權益貢獻(1)
29,009 211,071 
對非控股權益的分配(1)
(104,268)(179,476)
向股東支付現金分配
(1,127,046)(922,288)
其他融資活動
(33,867)(9,763)
融資活動提供的淨現金（使用）3,315,287 3,311,103 
外幣兌換對現金及現金等價物和受限制現金的影響5,047 (14,489)
現金、現金等價物和受限制現金的增加（減少）1,708,325 1,964,419 
期初現金、現金等價物和受限制現金2,076,083 722,292 
期末現金、現金等價物和受限制現金$3,784,408 $2,686,711 
補充現金流量信息：
支付的利息$390,649 $422,327 
所得稅(實際支付)淨額8,383 4,092 
(1) 包括歸屬於可贖回非控股權益的金額

8
welltower及其附屬公司
未經審計的合併基本報表附註

1. 按照我們所處的風險和不確定性的假設，結果和在本招股書或在任何文檔中引用的前瞻性陳述中討論的事件可能不會發生。投資者應謹慎對待這些前瞻性陳述，它們僅在本招股書或在文檔中通過引用作爲參考，其僅在本招股書或在文檔中通過引用作爲參考的文件的日期發表時存在。我們沒有任何義務，並明確聲明不承擔任何義務，更新或更改任何前瞻性陳述，無論是基於新信息、未來事件或其他原因。我們或代表我們行事的任何人作出的所有後續前瞻性陳述，都受到本節中所包含或所提到的警示性聲明的明確限制。
Welltower Inc.，總部位於俄亥俄州托萊多的標普500公司，正在推動醫療保健基礎設施的轉型。我們與領先的老年人住房經營商、亞急性護理提供者和醫療體系合作，資助所需的房地產和製造行業，以擴展創新護理交付模型，並改善人們的健康和整體醫療保健體驗。welltower，一家股權房地產投資信託（"REIT"），擁有集中在美國、加拿大和英國的（"U.k."）主要高增長市場的房地產權益，包括老年人住房和亞急性社區以及門診醫療設施。
我們作爲傘形合夥REIt結構，幾乎所有業務均通過welltower OP LLC進行，該業務的日常管理完全由welltower Inc.控制。除非另有說明或上下文另有要求，「Welltower」指的是Welltower Inc.，「Welltower OP」指的是Welltower OP LLC。關於「我們」，「我們」和「我們」的指的是Welltower，Welltower OP及Welltower和/或Welltower OP擁有或控制的實體/ 子公司。Welltower對Welltower OP的加權平均所有權比例爲 99.730%，截至2024年9月30日的九個月結束。截至2024年9月30日，Welltower擁有Welltower OP已發行和流通單位的 99.701%，其他投資者持有剩餘 0.299%的流通單位。我們在每個期末調整非控股成員的權益，以反映他們對Welltower OP淨資產的權益。welltower OP。
2. 會計政策和相關事項
報告範圍
附註未經審計的合併基本報表已根據美國通用會計準則（"美國通用會計準則"）編制，用於期中基本信息，並遵循第10-Q表格季度報告和《S-X法規》第10條的說明。因此，它們不包括所有美國通用會計準則所要求的所有信息和附註，以獲得完整的基本報表。據管理部門意見，已包括所有必要的調整（如正常循環應計）以進行公正陳述。截至2024年9月30日的九個月的營運成果不一定能夠預示截至2024年12月31日的年度成果。欲獲取更多信息，請參閱附含在我們截至2023年12月31日年度報告中的財務報表和附註。
新的會計準則   
2023年11月，FASB發佈了會計準則更新2023-07號，「分部報告（主題280）：報告性分部披露的改進」（「ASU 2023-07」），旨在通過增強有關重要分部費用的披露來改善報告性分部披露要求。該指南適用於2023年12月15日後開始的財政年度，以及2024年12月15日後開始的財政年度內的中期時段。該指南要求對財務報表中呈現的所有時期進行追溯應用。我們目前正在評估採用ASU 2023-07將對我們的合併基本報表和披露產生的影響。我們目前預計按照新準則的要求提供必要的重要分部費用披露，而在我們的合併基本報表中不會有其他更改。
2023年12月，FASb發佈了《會計準則更新2023-09號：所得稅（主題740）：所得稅披露改進（"ASU 2023-09"）》，修改了有關所得稅披露的規則，要求實體披露(1)在稅率協調中的具體類別，(2)繼續經營前所得稅費用或利潤（國內和國外分開），以及(3)繼續經營的所得稅費用或利潤（按聯邦、州和國外分開）。ASU 2023-09還要求實體披露其向國際、聯邦、州和地方司法管轄區的所得稅支付情況，以及其他變更。該指南自2024年12月15日後開始的年度期間生效。允許提前採納尚未發佈或可用於發佈的年度財務報表適用ASU 2023-09的規定是透視性的基礎上，但允許追溯適用。我們目前正在評估採納這項新指南對我們的合併財務報表和披露可能產生的潛在影響。
3. 房地產收購和開發 
所有資產收購的總購買價格已根據相應公允價值基礎上的有形和可識別無形資產以及負債進行分配。承擔的負債和任何相關的非控股權益按公允價值計入。自收購日期起，這些收購的運營結果已包含在我們的合併運營結果中，並是適當板塊的組成部分。交易成本主要代表與收購相關的成本，包括盡職調查成本、法律和估值服務費、根據收購的資產公允價值計算的終止現有關係的費用、租約終止費用和其他與收購相關的成本。直接與資產收購相關的交易成本作爲購買價的組成部分進行資本化，而所有其他不可資本化的成本反映在我們的綜合收益表的其他費用中。我們對資產的收購有時受限於基於收購資產未來運營績效的盈餘條款，這可能導致將來支付額外款項。我們的政策是在解決潛在條件時確認此類有條件的對價。

9
welltower及其附屬公司
未經審計的合併基本報表附註
並且考慮變得應付。在2024年第四季度，我們預計將支付約$的盈利獎金150 百萬美元。我們將對任何支付的款項進行資本化，作爲收購的額外成本。
以下是我們按分部分類呈現的房地產投資活動摘要（以千爲單位）：
 九個月結束
 2024年9月30日2023年9月30日
老年人住房運營三重淨門診
醫療		總計老年人住房經營三重淨租金門診
醫療		總計
土地及土地附屬物$208,219 $63,075 $10,160 $281,454 $58,049 $58,797 $72,992 $189,838 
建築物和改善1,446,475 621,378 34,481 2,102,334 411,273 430,041 314,892 1,156,206 
取得租賃無形資產89,460 33,232 2,193 124,885 25,617 — 45,936 71,553 
施工進度45,983 — — 45,983 165,934 — — 165,934 
待售的房地產資產— 297,000 — 297,000 — — — — 
使用權資產，淨額— — — — 16,539 — 927 17,466 
房地產資產的淨額合計1,790,137 1,014,685 46,834 2,851,656 677,412 488,838 434,747 1,600,997 
應收賬款和其他資產9,592 1,118 112 10,822 16,789 — 545 17,334 
獲取的總資產(1)
1,799,729 1,015,803 46,946 2,862,478 694,201 488,838 435,292 1,618,331 
有擔保債務 (350,978)(465,820)— (816,798)(292,160)— (40,953)(333,113)
租賃負債— — — — (16,539)— (953)(17,492)
應計費用及其他負債(19,752)(20,309)(182)(40,243)(10,825)— (10,832)(21,657)
全部負債 (370,730)(486,129)(182)(857,041)(319,524)— (52,738)(372,262)
非控制權益(25,787)— — (25,787)— — (775)(775)
非現金收購相關活動(2)
(119,012)(191,532)— (310,544)(171,667)— — (171,667)
用於收購的現金支出1,284,200 338,142 46,764 1,669,106 203,010 488,838 381,779 1,073,627 
在建工程新增424,827 28 269,840 694,695 450,205 25,646 297,862 773,713 
減：資本化利息(36,247)— (7,708)(43,955)(28,289)(2,416)(5,447)(36,152)
應計項(3)
1,217 126 (19,572)(18,229)3,447 (2,692)(7,604)(6,849)
用於施工中的現金支出389,797 154 242,560 632,511 425,363 20,538 284,811 730,712 
對現有房地產的資本改進448,144 19,870 70,738 538,752 261,935 17,933 54,222 334,090 
用於房地產投資的總現金，減去取得的現金$2,122,141 $358,166 $360,062 $2,840,369 $890,308 $527,309 $720,812 $2,138,429 
(1) 不包括$33,577,000 和 $6,431,000 截至2024年9月30日和2023年9月30日的九個月期間所獲得的無限制和限制現金。
(2) 主要涉及之前通過房地產貸款應收款融資的資產的收購，之前被認可爲未合併實體投資的資產的收購，收購在交易時僅部分資金已到位的資產，以及 $179,770,000 下面描述的對控股權收購的收益。
(3) R代表未來時期將支付的非現金應計款項，針對已轉換的資產，並抵消當前期間已支付的金額。
重要的創業公司交易
截至2023年9月30日的三個月期間，我們支付了$69,606,000 以收購 45%可贖回非控股股權 兩個 與加拿大養老基金投資委員會的合併合資企業，該委員會擁有的權益 十 醫療辦公室大樓。與該交易相關，$118,256,000 從可贖回非控股權益中移除，差額記錄在我們的合併資產負債表的超出面值的資本中。該交易不包含在上表中。
2024 年 9 月 30 日，該公司舉行了 25擁有的現有股權法合資企業的少數股權百分比 39 與兩名租戶簽訂三淨租約的房產收購了剩餘的受益權益 $205,029,000 現金，扣除獲得的現金和限制性現金。這些財產被有擔保債務所困擾，總本金餘額爲美元532,575,000。我們對收購進行了評估，確定該實體符合可變權益實體（「VIE」）的標準，並且我們是其主要受益人；因此，在合併後，我們確認了美元的收益179,770,000 截至2024年9月30日的合併綜合收益報表中扣除的房地產處置和控股權收購的收益（虧損）。收購資產和承擔的負債的公允價值包含在上表的三網分部中。
10
Welltower及其子公司
未經審計的合併基本報表附註
親和生活社區
在2024年2月，我們簽署了一份最終協議來收購 25 老年住房運營物業，總購買價格約爲$969百萬，將在Affinity品牌下管理。在截至2024年9月30日的三個月內，我們完成了對 20 物業的收購，購買價格爲$690,510,000 通過現金、發行 203,328 OP單位和假設$364,130,000 的擔保債務。其餘物業的收購預計將於年底前完成，具體取決於慣例交割條件和貸款人的同意。
公告收購
在2024年7月，我們簽署了一項最終協議，收購英國的老年人住房投資組合的 136 物業和租賃權益，交易金額約爲$1.0 十億。交易於2024年10月完成。
施工活動 
以下是已投入服務並開始產生收入的施工項目的總結（以千爲單位）：
 截至九個月
 2024年9月30日2023年9月30日
開發項目:
老年人住房運營
$462,246 $280,333 
三淨租約
— 141,142 
門診醫療
162,699 30,071 
總開發項目
624,945 451,546 
擴展項目
20,229 62,292 
總施工中的改建$645,174 $513,838 
4. 房地產業無形資產 
以下是我們房地產業無形資產的總結，排除與土地租賃相關或分類爲待售的資產，截至所示日期（金額以千美元計）：
 2024年9月30日2023年12月31日
資產:
在位租賃無形資產$2,079,917 $2,001,827 
高於市場的租戶租賃71,892 66,663 
租賃佣金117,080 97,980 
歷史總成本2,268,889 2,166,470 
累計攤銷(1,784,900)(1,651,656)
淨賬面價值$483,989 $514,814 
負債：
市場以下租戶租約$71,224 $70,364 
累計攤銷(51,400)(47,939)
淨賬面價值$19,824 $22,425 
以下是所提供期間的房地產業無形資產攤銷收入（費用）總結（單位：千元）：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
租金收入與（高於）/低於市場的租戶租約相關，淨收入$(189)$152 $(274)$327 
與現有租約無形資產和租賃佣金相關的攤銷(61,872)(47,556)(169,539)(157,481)
5. 處置、待售的不動產和減值
我們定期出售房產，原因包括市場條件有利、租戶行使購買期權或減少集中度（即，房產類型、關係或地理位置）。截至2024年9月30日， 七 老年人住房運營物業和 十 三網物業總體房地產業餘額爲 $110,689,000 被分類爲待售。與這些待售物業相關的預期總銷售收益約爲$131,558,000.
11
Welltower及其子公司
未經審計的合併基本報表附註
擁有的房地產的淨賬面價值按季度進行逐個物業審查，以判斷事實和情況是否表明某個物業可能存在減值。如果預計的未貼現現金流表明該物業的賬面價值無法收回，則物業的賬面價值將減少到估計的公允市場價值，並確認減值損失。符合出售標準的物業按公允價值減去出售成本或賬面價值的較低者記錄。在截至2024年9月30日的九個月期間，我們記錄了減值損失$69,146,000 相關的 14 養老住宅運營物業和 兩個 在截至2023年9月30日的九個月期間，我們記錄了$21,103,000 與 六 養老住宅運營物業相關的減值損失 兩個 三網淨租賃物業。
與出售或分類爲持有待售的物業相關的經營成果，如果不符合終止經營的定義，將不會在我們的綜合收益表中重新分類。我們確認截至2024年9月30日來自持續運營的收入（虧損）在所得稅和其他項目前的情況。f $(15,905,000) 和 $(62,121,000) fo截止2024年9月30日的三個月和九個月， $(4,893,000)於截至2024年9月30日和2023年三個月期間，以及($64,266,000 以及2023年同期。
以下是我們在報告期間內的房地產處置活動摘要（以千爲單位）：
 截至九個月
 2024年9月30日2023年9月30日
房地產業處置：(1)
老年人住房運營$366,255 $371,143 
三淨租約(2)
170 6,391 
門診醫療
42,761 — 
總處置
409,186 377,534 
房地產處置和控股權收購的收益（損失），淨額(3)
171,053 69,681 
淨其他資產/(負債)處置(139)(1,401)
非現金對價 (434,326)(361,830)
房地產處置的現金收益$145,774 $83,984 
(1) 本 九個月期間 截至月份 2024年9月30日 包括擁有的非合併權益法投資的處置 六 老年住宅運營物業和 一個 門診醫療物業。
(2) 不包括$376,695,000 與被註銷的淨房地產相關的 15 在重新分類時的屬性 兩個 將租賃從經營性轉爲銷售型（有關詳細信息，請參見第6條）。
(3) 不包括與創業公司合併相關的$179,770,000 在此之前認可的收益（詳見註釋3）以及$92,593,000 因將 兩個 租賃從運營類型重新分類爲銷售類型所認可的收益（詳見註釋6）。
Revera合資企業的戰略解散
在截至2023年6月30日的季度期間，我們與美國、英國和加拿大的現有Revera合資關係簽訂了解散的正式協議。交易包括收購Revera在各個物業中的剩餘權益， 110 同時向Revera出售在各個物業中的權益。 31
在2023年6月，我們通過收購剩餘的所有權利益，完成了英國投資組合交易的部分。 29 之前在 兩個 單獨合併的創業公司結構中擁有 75% 90%的權益，以換取我們在 四個 物業的處置給Revera。除此之外，我們從Revera收到了現金$107,341,000 與之前提供給創業公司的貸款的淨結算有關。 29 保留的資產已轉交給Avery Healthcare。
與處置的房產相關的總收益爲 四個 ，處置的房產收益爲$222,521,000，其中包括來自Revera的非現金對價$241,728,000，由我們收到的利益的公允價值爲$198,837,000 ，以及Revera非控股權益的分配爲$42,891,000，部分被$抵消9,049,000 與交易相關的費用以及$10,158,000 用於平衡雙方交換價值的現金支付。我們處置了淨房產，價值爲$224,208,000，導致在凝縮合並損益表和綜合損失中記錄了$1,687,000 在我們的綜合收益表中，控制權變更的房地產業處置和收購的收益（損失）中確認。轉移的對價用於獲得額外利益，涉及到的 29 房產包括我們轉移的利益的公允價值爲$198,837,000 和 $5,776,000 用於交易相關費用的現金支付爲$180,497,000 非控制性利益爲$22,270,000 之前應付給Revera的負債爲$，並進行了相應調整。1,846,000 以超過面值的資本進行認可。
我們在2023年第三季度完成了與美國投資組合相關的交易部分，主要通過(i) 收購剩餘的權益， 十 這些物業目前正在由Sunrise Senior Living開發或最近開發，這些物業之前在一個由我們持有的股權法合資企業中， 34%由我們擁有， 66%由Revera擁有， 12 (ii) 處置我們在美國物業中的少數權益， 一個 和在加拿大的開發項目，以及(iii) 處置我們的 34% 在日出老年生活管理公司的股份。我們記錄的淨房地產業投資爲 $479,525,000
12
Welltower及其子公司
未經審計的合併基本報表附註
與該 十 已收購併且現在合併的物業相關，包含31,456,000 現金對價和448,069,000 非現金對價。非現金對價主要包括270,486,000 與所收購物業相關的假設抵押貸款債務，隨後我們在交易後立即全額還款，47,734,000 來自我們先前的 34% 股權法擁有權利和119,258,000 公允價值權益的 13 我們轉讓給Revera的房產。我們還註銷了$56,905,000 與 13 Revera保留的房產相關的權益法投資，並記錄了$62,075,000的房地產業處置收益。與此交易一起， 兩個 現在完全擁有的房產的 26 現有完全擁有的房產的業務轉交給Oakmont管理集團。
在2024年4月，我們通過收購剩餘的所有權權益，完成了加拿大投資組合部分的交易。n 71 之前在我們擁有的合併合資結構中持有的物業 75% 的權益，作爲我們與Revera之間的交易，處置我們在 14 物業的權益。此外，我們收到了與 $60,614,000 相關的現金，用於對以前借給Revera的貸款進行淨結算，以資助其償還合資企業的第三方擔保債務的份額。 71 保留物業的運營之前已過渡到Cogir Senior Living (53Levante Living (12)和Optima Living (6）在2023年。
與處置的 14 物業相關的總淨收益爲 $430,898,000，其中包括來自Revera的非現金對價 $434,326,000，主要由我們收到的淨公允價值組成 $219,940,000，我們解除的債務金額爲 $164,640,000 和Revera在已處置物業中的非控制性權益分配爲 $53,174,000。我們處置的淨所有房地產爲 $293,257,000 並支付了$3,428,000 與銷售相關的現金交易費用爲 14 房地產，因此產生了 $137,641,000 在房地產業處置的收益（損失）中確認 和控股權益的收購，淨額顯示在我們的綜合收益表中。爲獲取額外權益所轉移的對價主要由我們轉移的權益的公允價值組成 71 房地產 $219,940,000，還有一筆現金支付 $51,986,000 以平衡雙方交換的價值和 $17,258,000 支付交易相關費用的現金。我們不再確認 $246,564,000 Revera在收購物業中非控股權益的 $42,619,000 超過面值的資本中確認的調整。
關於將物業出售給Revera的非現金投資活動和關於收購Revera權益的非現金融資活動已被排除在我們的C合併現金流量表之外。
創世紀健康護理
作爲我們於2021年3月2日披露的Genesis HealthCare（"Genesis"）經營關係的重要退出的一部分，我們在2021年第二季度將一系列設施的子租約從Genesis轉移到Complete Care Management。 七 作爲2021年3月交易的一部分，我們簽訂了一項對這些物業的遠期出售協議， 七 其估值爲$182,618,000，預計將在Welltower持有的購買選擇權可執行時完成交易。115,359,000 截至2023年3月31日，與這些物業相關的使用權資產爲$66,530,000 並在我們的合併資產負債表上被列爲待售，相關的租賃負債爲$
在2023年5月1日，我們執行了一系列交易，包括將租賃權益轉讓給一個新成立的三方不合並的The Joint創業公司，該創業公司由Aurora Health Network、Peace Capital（Complete Care Management的附屬公司）和我們共同組成，並以該創業公司的購買選項關閉爲結束。這些交易爲我們帶來了淨現金收益，金額爲$104,240,000 （在上述處置表中排除）在我們保留的$11,571,000 在該The Joint創業公司中的權益以及由於失去控制權和租賃權益的註銷而產生的收益爲$65,485,000，我們在合併綜合收益表中的其他收入中記錄了這筆收益。
6. 租賃
承租人
我們租賃土地、建築物、辦公空間和某些設備。我們的許多租約包括續租期權，以延長從 一個 至 25 年或更長的期限。我們合理確定會行使的續租期權被計入我們的使用權資產和租賃負債中。
13
Welltower及其子公司
未經審計的合併基本報表附註
所呈現期間的租賃費用元件如下（單位：千元）：
截至九個月
 分類2024年9月30日2023年9月30日
營業租賃成本： (1)
房地產業租賃費用物業營業費用$17,837 $16,663 
非房地產業投資租賃費用一般及行政費用4,838 5,392 
融資租賃成本：
租賃資產的攤銷物業營業費用3,278 4,774 
租賃負債的利息利息支出2,923 3,008 
轉租收入租金收入— (3,933)
總計 $28,876 $25,904 
(1) 包括開空租約，這些租約不重大。
我們作爲承租人的租賃相關補充資產負債表信息如下（單位：千）:
 分類2024年9月30日2023年12月31日
使用權資產：
經營租賃 - 房地產業使用權資產，淨額$280,295 $283,293 
融資租賃 - 房地產業使用權資產，淨額77,865 67,676 
房地產業使用權資產，淨額358,160 350,969 
經營租賃 - 非房地產業投資應收款項及其他資產8,734 11,338 
使用權資產總額，淨額$366,894 $362,307 
租賃負債：
經營租賃$301,046 $303,553 
融資租賃91,314 79,677 
總計$392,360 $383,230 
出租方
我們作爲出租方的幾乎所有經營租賃合同均包含逐步遞增的租金結構。通常情況下，具有固定年度租金上漲條款的租賃在初始租賃期內以直線法確認，需進行可收回性評估。與具有或有租金上漲條款的租賃相關的租金收入一般根據當期到期的合同現金租賃支付進行記錄。在截至2024年9月30日的九個月中，我們註銷了之前確認的直線法租金應收款和未攤銷的租賃激勵餘額$97,674,000 通過減少租金收入，這與那些由於達成協議將三網租賃物業轉換爲老年住房運營RIDEA結構而使收回幾乎所有合同租賃付款的可能性不再很高的租賃相關（見註釋19）。在截至2023年9月30日的九個月中，我們註銷了之前確認的直線法租金應收款和未攤銷的租賃激勵餘額$ $12,309,000 對於那些收回不再被認爲可能的租金。
根據ASC 842《租賃》（"ASC 842"），我們在三淨和門診醫療投資組合中的租賃通常包括租戶的某種形式的運營費用報銷。截止到2024年9月30日的九個月中，我們確認了 $1,183,949,000 與經營租賃有關的租金收入，其中 $165,863,000 代表主要運營成本報銷的變量租賃支付，如公共區域維護費用、水電費、保險和房地產業稅。截止到2023年9月30日的九個月中，我們確認了 $1,152,005,000 與經營租賃有關的租金收入，其中 $163,980,000 是用於變量租賃支付。
對於我們大多數的老年住房運營部門，來自居民費用和服務的營業收入主要是基於服務的，因此，居民協議根據ASC 606《客戶合同下的收入》進行覈算。在該可報告的部門內，我們還根據ASC 842確認來自老年公寓租賃的營業收入。與這些租賃相關的營業收入金額是 $417,490,000 和 $341,172,000 截至2024年和2023年9月30日的九個月。
對於銷售型租賃，我們在合併綜合收益表中，將來自於租賃的任何銷售利潤或損失自租賃開始時記錄在房地產處置和收購控制權益的收益（損失）中，淨額。銷售型租賃的投資，淨額代表租賃應收款，其元件包括未來租賃付款和在租賃期結束時預計的基礎資產的任何有擔保或無擔保的剩餘價值，按使用租賃內隱利率折現的淨現值計量。利息收入根據有效利息法在租賃期內在合併綜合收益表中確認。

14
Welltower及其子公司
未經審計的合併基本報表附註
在2024年9月30日，我們與我們的租戶達成協議出售 15 房產，這些房產包括在 兩個 以前被歸類爲經營租賃的主租賃中。因此，出售房產的協議導致 兩個 這些租賃根據ASC 842被歸類爲銷售型租賃，並在綜合收益的合併報表中確認了$92,593,000 的收益，這些收益來自房地產業處置和控制權益的收購，淨額。
7. 應收貸款
應收款項在我們的合併資產負債表中記錄爲房地產應收貸款，扣除信用損失準備金，或對於非房地產應收貸款，記錄在應收款項和其他資產中。房地產應收貸款包括抵押貸款和其他房地產貸款，主要是以第一、第二或第三抵押權、租賃抵押權或相關財產的合夥權益轉讓作爲擔保，以及公司擔保和/或個人擔保。非房地產貸款通常是沒有房地產擔保的企業貸款。貸款的利息收入根據未償本金金額確認，需評估信用損失的風險。應計利息應收款爲$33,992,000 和 $31,798,000 截至2024年9月30日和2023年12月31日，分別包含在合併資產負債表的應收款項和其他資產中。 以下是我們應收貸款的總結（以千爲單位）：
 2024年9月30日2023年12月31日
抵押貸款$1,576,567 $1,057,516 
其他房地產貸款290,419 324,660 
房地產貸款應收款的信用損失準備(26,533)(20,589)
扣除信用準備的房地產貸款應收款1,840,453 1,361,587 
其他貸款274,814 503,993 
其他貸款應收款的信用損失準備(27,396)(173,874)
非房地產業貸款應收款，扣除信用損失準備金247,418 330,119 
總貸款應收款，扣除信用損失準備金$2,087,871 $1,691,706 
以下是我們所呈現期間的貸款活動摘要（單位：千）:
 截至九個月
 2024年9月30日2023年9月30日
應收貸款的收款$603,619 $328,554 
減：應收貸款的收款250,791 68,404 
應收貸款的淨現金收款（收款）$352,828 $260,150 
During the nine months ended September 30, 2024, we provided a first mortgage loan collateralized by a portfolio of seniors housing communities for $456,199,000. The loan bears interest at 10% per annum.
在2024年6月，Genesis向我們支付的某些有擔保和無擔保的債務被修改，將到期日延長至2025年6月30日，條款沒有其他變化。在2024年9月，我們將與Genesis的無擔保應收票據全部售出，現金收入爲$24,246,000，這與申請信用損失準備金和未確認利息後的賬面價值相等。此外，我們還出售了部分與Genesis的有擔保應收票據，現金收入爲$55,504,000。這些銷售的現金收入已包含在上述貸款活動摘要中的應收貸款收入中。此外，有擔保的票據被修改，將到期日延長至2026年6月30日，並自2025年1月1日起轉換爲現金支付利息。
應收貸款的信用損失準備金保持在一個認爲足以吸收潛在損失的水平。信用準備金的確定基於對每筆貸款的季度評估，包括一般經濟狀況和貸款支付的估計可收回性。我們根據一系列信用質量因數的組合評估應收貸款的可收回性，這些因數包括但不限於支付狀態、歷史貸款沖銷、借款人及擔保人的財務實力，以及基礎抵押品的性質、範圍和價值。
當基於當前信息和事件判斷我們可能無法按照貸款合同的條款按時收回所有應收款項時，貸款被視爲信用質量惡化。對於我們識別爲信用質量惡化的貸款，我們按個別貸款判斷信貸損失金額。可能需要將其列爲非應計狀態。與此定義一致，所有處於非應計狀態的貸款被認爲具有惡化的信用質量。如果情況改善並且可收回的風險降低，我們將這些貸款恢復爲收入應計狀態。在貸款處於非應計狀態期間，任何現金收款將用於抵消未償本金餘額。

15
Welltower及其子公司
未經審計的合併基本報表附註
對於其餘的貸款，我們以集體池的方式評估信用損失，並使用我們對類似貸款的歷史損失經驗來判斷信用損失準備。 以下是我們按信用損失類別分類的貸款摘要（單位：千）:
2024年9月30日
貸款類別發放年限貸款賬面價值信用損失準備金淨貸款餘額貸款數量
不良貸款2007 - 2023$28,526 $(26,370)$2,156 4 
集體貸款池2010 - 2019153,610 (1,991)151,619 11 
集體貸款池202033,534 (434)33,100 5 
集體貸款池2021915,539 (12,040)903,499 10 
集體貸款池2022105,701 (1,370)104,331 14 
集體貸款池2023332,429 (4,307)328,122 11 
集體貸款池2024572,461 (7,417)565,044 10 
總貸款$2,141,800 $(53,929)$2,087,871 65 

The total allowance for credit losses balance is deemed sufficient to absorb expected losses relating to our loan portfolio. The following is a summary of the allowance for credit losses on loans receivable for the periods presented (in thousands):                            
截至九個月
2024年9月30日2023年9月30日
期初餘額$194,463 $164,249 
貸款損失準備，淨值(1)
10,370 6,280 
購買不良貸款— 19,077 
加入本金的未確認利息準備— 2,066 
貸款覈銷(151,406)— 
外幣折算502 92 
期末餘額$53,929 $191,764 
(1) 不包括對持有至到期的債務證券的貸款損失準備。
8. 對未合併實體的投資
我們參與了多個合資企業，這些企業通常投資於老年住房和醫療保健房地產業。我們對這些物業經營結果的份額自合資企業收購之日起已計入我們的綜合經營結果，並反映在我們的綜合全面收益表中，作爲來自非合併實體的收入或損失。以下是我們對非合併實體的投資總結（以千美元計）：
 
百分比所有權 (1)
2024年9月30日2023年12月31日
老年人住房運營
10% 到 95%
$1,385,356 $1,248,774 
三淨租約
10% 到 88%
111,278 147,679 
門診醫療
15% 到 50%
246,202 240,078 
總計$1,742,836 $1,636,531 
(1) 截至2024年9月30日，包括分類爲負債的投資所有權，並且不包括實質上的房地產業的所有權。
截至2024年9月30日，我們的創業公司投資的總未攤銷基礎差異爲 $190,830,000 主要是由於我們購買該實體的權益時的金額（包括交易成本）與該創業公司的淨資產的歷史賬面價值之間的差異。該差異正在根據相關資產的剩餘使用壽命進行攤銷，並計入來自未合併實體的報告收入中。
截至2024年9月30日，我們已經爲某些房產的開發和施工提供了貸款。與投資相關的貸款。 25 這些房產的賬面價值爲$901,777,000我們認爲這些借款人通常代表根據ASC 810《合併》規定的VIE。VIE需要由其主要受益人合併，即有權： (i) 指導VIE的活動，該活動對實體的經濟績效影響最大；以及(ii) 承擔損失的義務或獲得VIE收益的權利，這些收益對實體可能是重要的。我們已經得出結論，我們不是這些借款人的主要受益人，因此，貸款安排的評估基於其他因素，包括預計剩餘利潤的金額和時間、抵押品的估計公允價值，以及借款人在項目中的股權的重要性。根據這些評估，這些安排已被歸類爲實質上的房地產業投資。我們有義務爲這些投資再提供$146,367,000 相關對這些投資的其他資金。
16
Welltower及其子公司
未經審計的合併基本報表附註
9. 信用集中度
我們使用合併淨營業收益（「NOI」）作爲我們的信用集中度指標。有關更多信息和調整，請參見第18條。 下表總結了截至2024年9月30日的九個月內有關我們信用集中度的某些信息，排除了我們在未合併實體中的NOI份額（單位：千美元）：
按關係集中度： (1)
房產數量總NOI
淨營業收入的百分比 (2)
Cogir管理公司125 $173,822 7%
Integra醫療資產147 161,430 7%
晨輝養老生活88 127,273 5%
艾弗瑞醫療84 104,667 5%
橡木山管理集團66 101,703 4%
剩餘投資組合1,475 1,650,482 72%
總計1,985 $2,319,377 100%
(1) Cogir管理公司、Sunrise Senior Living和Oakmont管理集團屬於我們的老年住宅經營板塊。Integra醫療保健地產屬於我們的三重淨租賃板塊。Avery醫療保健在我們的老年住宅經營和三重淨租賃板塊均有資產。
(2) 我們前五大關係所佔的 NOI 26截至年度總 NOI 的百分比 2023年12月31日.
在2024年4月，我們達成協議，將 89 Atria Senior Living物業轉移到 六 我們現有經營合作伙伴之一。配合物業管理協議的終止，我們確認了 $26在我們合併全面收益表的其他費用中，第二季度超過了已經計提的金額，達到了百萬。截止到2024年9月30日，我們已完成運營的過渡。 所有板塊 89 房地產.
10. 信用設施和商業票據計劃下的借款
截至2024年9月30日，我們與一個銀團擁有一個主要無擔保的信用設施， 29 其中包括一個$5,000,000,000 無擔保的循環信用設施，一個$1,000,000,000 無擔保的定期信用設施和一個$250,000,000 以加元計的無擔保定期信貸額度。無擔保循環信貸額度由$組成2,000,000,000 於2029年7月24日到期(截至2024年9月30日和2023年12月31日，未發行。 截至2024年9月30日未償還的$3,000,000,000 到期日爲2028年7月24日(截至2024年9月30日和2023年12月31日，未發行。 截至2024年9月30日未償還的。定期信貸額度於2026年7月19日到期。$3,000,000,000 循環信貸額度和定期貸款的部分可延長至 兩個 連續的條款是 六個月 根據我們的選擇。我們有一個選擇，通過擴展功能，增加$5,000,000,000 無擔保循環信用額度和$1,000,000,000 無擔保定期信用額度最多增加$1,250,000,000，總計，和$250,000,000 加元計價的無擔保定期信用額度最多增加$250,000,000. 主要無擔保信貸額度還允許我們借款最高可達$1,000,000,000 以其他貨幣（截至2024年9月30日和2023年12月31日，未發行。 截至2024年9月30日未償還金額）。根據無擔保循環信貸額度的借款需根據適用的利差支付利息，利率以上的擔保隔夜融資利率（"SOFR"）爲基礎。根據我們當前的信用評級，無擔保循環信貸額度下的貸款當前在2024年9月30日的利率爲 0.725%超出調整後的SOFR利率。此外，我們每季度向每家銀行支付一筆設施費用，基於銀行的承諾金額。設施費用取決於我們的債務評級，截至2024年9月30日，費用爲 0.125%。
根據我們的商業票據計劃條款，我們可以發行無擔保的商業票據，期限各不相同，但不得超過 397 天，從發行日期起，最高累計發行的面值或本金金額在任何時候不得超過$2,000,000,000 (截至2024年9月30日和2023年12月31日，未發行。 截至2024年9月30日的未償還餘額。
以下信息涉及在所列期間內，基於無擔保循環信貸額度和商業票據計劃的借款總額（以千美元爲單位）：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
季度末未償還餘額$—$— $—$—
任何月份末的最大未償還金額$—$— $—$205,000
平均未償還金額（每日本金餘額總和除以期間天數）$—$— $—$21,703
加權平均利率（實際利息支出除以平均未償借款）— %— %— %5.05 %
17
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
11. Senior Unsecured Notes and Secured Debt 
At September 30, 2024, the annual principal payments due on our debt obligations were as follows (in thousands):
Senior
Unsecured Notes (1,2)
Secured
Debt (3)
Totals
2024$— $96,016 $96,016 
20251,260,000 279,372 1,539,372 
2026700,000 231,413 931,413 
2027 (4,5)
1,906,945 448,710 2,355,655 
2028 (6)
2,521,890 157,797 2,679,687 
Thereafter (7)
7,054,900 1,368,570 8,423,470 
Total principal balance13,443,735 2,581,878 16,025,613 
Unamortized discounts and premiums, net(23,230)— (23,230)
Unamortized debt issuance costs, net(80,736)(16,747)(97,483)
Fair value adjustments and other, net(44,673)(96,604)(141,277)
Total carrying value of debt$13,295,096 $2,468,527 $15,763,623 
(1) Annual interest rates range from 2.05% to 6.50%. The ending weighted average interest rate, after considering the effects of interest rate swaps, was 3.87% and 4.02% as of September 30, 2024 and September 30, 2023, respectively.
(2) All senior unsecured notes with the exception of the $300,000,000 Canadian-denominated 2.95% senior unsecured notes due 2027 have been issued by Welltower OP and are fully and unconditionally guaranteed by Welltower. The $300,000,000 Canadian-denominated 2.95% senior unsecured notes due 2027 have been issued through private placement by a wholly-owned subsidiary of Welltower OP and are fully and unconditionally guaranteed by Welltower OP.
(3) Annual interest rates range from 1.31% to 8.00%. The ending weighted average interest rate, after considering the effects of interest rate swaps and caps, was 4.34% and 4.83% as of September 30, 2024 and September 30, 2023, respectively. Gross real property value of the properties securing the debt totaled $6,460,936,000 at September 30, 2024.
(4) Includes a $1,000,000,000 unsecured term loan and a $250,000,000 Canadian-denominated unsecured term loan (approximately $184,975,000 based on the Canadian/U.S. Dollar exchange rate on September 30, 2024). Both term loans mature on July 19, 2026 and may be extended for two successive terms of six months at our option. The loans bear interest at adjusted SOFR plus 0.85% (6.05% at September 30, 2024) and adjusted Canadian Overnight Repo Rate Average plus 0.85% (5.44% at September 30, 2024), respectively.
(5) Includes $300,000,000 Canadian-denominated 2.95% senior unsecured notes due 2027 (approximately $221,970,000 based on the Canadian/U.S. Dollar exchange rate on September 30, 2024).
(6) Includes £550,000,000 4.80% senior unsecured notes due 2028 (approximately $736,890,000 based on the Pounds Sterling/U.S. Dollar exchange rate in effect on September 30, 2024).
(7) Includes £500,000,000 4.50% senior unsecured notes due 2034 (approximately $669,900,000 based on the Pounds Sterling/U.S. Dollar exchange rate in effect on September 30, 2024).
The following is a summary of our senior unsecured notes principal activity during the periods presented (dollars in thousands):
 Nine Months Ended
 September 30, 2024September 30, 2023
Beginning balance$13,699,619 $12,584,529 
Debt issued1,035,000 1,035,000 
Debt extinguished(1,350,000)— 
Foreign currency59,116 14,295 
Ending balance$13,443,735 $13,633,824 
Welltower, the parent entity that consolidates Welltower OP and all other subsidiaries, fully and unconditionally guarantees to each holder of all series of senior unsecured notes issued by Welltower OP that the principal of and premium, if any, and interest on the notes will be promptly paid in full when due, whether at the applicable maturity date, by acceleration or redemption or otherwise, and interest on the overdue principal of and interest on the notes, if any, if lawful, and all other obligations of Welltower OP to the holders of the notes will be promptly paid in full or performed. Welltower's guarantees of such notes are its senior unsecured obligation and rank equally with all of Welltower's other future unsecured senior indebtedness and guarantees from time to time outstanding. Welltower's guarantees of such notes are effectively subordinated to all liabilities of its subsidiaries and to its secured indebtedness to the extent of the assets securing such indebtedness. Because Welltower conducts substantially all of its business through its subsidiaries, Welltower's ability to make required payments with respect to the guarantees depends on the financial results and condition of its subsidiaries and its ability to receive funds from its subsidiaries, whether by dividends, loans, distributions or other payments.
18
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
We may repurchase, redeem or refinance senior unsecured notes from time to time, taking advantage of favorable market conditions when available. We may purchase senior notes for cash through open market purchases, privately negotiated transactions, a tender offer or, in some cases, through the early redemption of such securities pursuant to their terms. The senior unsecured notes are redeemable at our option, at any time in whole or from time to time in part, subject to certain contractual restrictions, at a redemption price equal to the sum of: (i) the principal amount of the notes (or portion of such notes) being redeemed plus accrued and unpaid interest thereon up to the redemption date and (ii) any "make-whole" amount due under the terms of the notes in connection with early redemptions. Redemptions and repurchases of debt, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.
Exchangeable Senior Unsecured Notes
In May 2023, Welltower OP issued $1,035,000,000 aggregate principal amount of 2.750% exchangeable senior unsecured notes maturing May 15, 2028 (the "2028 Exchangeable Notes") unless earlier exchanged, purchased or redeemed. The 2028 Exchangeable Notes will pay interest semi-annually in arrears on May 15 and November 15 of each year. We recognized contractual interest expense on the 2028 Exchangeable Notes of approximately $7,116,000 and $21,348,000 for the three and nine months ended September 30, 2024, and $7,116,000 and $11,069,000 for the same periods in 2023, respectively. Additionally, amortization of related issuance costs were $1,168,000 and $3,500,000 for the three and nine ended September 30, 2024, and $1,117,000 and $1,810,000 for the same periods in 2023, respectively. Unamortized issuance costs were $16,790,000 as of September 30, 2024 and $20,245,000 as of December 31, 2023.
In July 2024, Welltower OP issued $1,035,000,000 aggregate principal amount of 3.125% exchangeable senior unsecured notes maturing July 15, 2029 (the "2029 Exchangeable Notes") unless earlier exchanged, purchased or redeemed. The 2029 Exchangeable Notes will pay interest semi-annually in arrears on January 15 and July 15 of each year. The net proceeds from the offering of the 2029 Exchangeable Notes were approximately $1,015,063,000 after deducting the underwriting fees and other expenses. During the quarter ended September 30, 2024, we recognized approximately $7,188,000 of contractual interest expense and amortization of issuance costs of $857,000 related to the 2029 Exchangeable Notes. Unamortized issuance costs were $19,079,000 as of September 30, 2024.
Prior to the close of business on the business day immediately preceding January 15, 2029, the 2029 Exchangeable Notes are exchangeable at the option of the holders only upon certain circumstances and during certain periods. On or after January 15, 2029, the 2029 Exchangeable Notes will be exchangeable at the option of the holders at any time prior to the close of business on the second scheduled trading day preceding the maturity date. Welltower OP will settle exchanges of the 2029 Exchangeable Notes by delivering cash up to the principal amount of the 2029 Exchangeable Notes exchanged and, in respect of the remainder of the exchanged value, if any, in excess thereof, cash or shares of Welltower's common stock, or a combination thereof, at the election of Welltower OP. The exchange rate initially equals 7.8177 shares of common stock per $1,000 principal amount of 2029 Exchangeable Notes (equivalent to an exchange price of approximately $127.91 per share of common stock). The exchange rate is subject to adjustment upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest.
Welltower OP may redeem the 2029 Exchangeable Notes, at its option in whole or in part, on any business day on or after July 20, 2027, if the last reported sales price of the common stock has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Welltower OP provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2029 Exchangeable Notes to be redeemed, plus accrued and unpaid interest, if any, to but excluding the redemption date.
The following is a summary of our secured debt principal activity for the periods presented (dollars in thousands): 
 Nine Months Ended
 September 30, 2024September 30, 2023
Beginning balance$2,222,445 $2,129,954 
Debt issued3,708 381,369 
Debt assumed896,705 344,023 
Debt extinguished(323,805)(397,381)
Debt disposed(1)
(164,640)— 
Principal payments(32,411)(41,646)
Foreign currency(20,124)(188)
Ending balance$2,581,878 $2,416,131 
(1) Please see Note 5 for additional information.
19
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Our debt agreements contain various covenants, restrictions and events of default. Certain agreements require us to maintain certain financial ratios and minimum net worth and impose certain limits on our ability to incur indebtedness, create liens and make investments or acquisitions. As of September 30, 2024, we were in compliance in all material respects with all of the covenants under our debt agreements. 
12. Derivative Instruments
We are exposed to, among other risks, the impact of changes in foreign currency exchange rates as a result of our non-U.S. investments and interest rate risk related to our capital structure. Our risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes foreign currency forward contracts, cross currency swap contracts, interest rate swaps, interest rate locks and debt issued in foreign currencies to offset a portion of these risks.
Cash Flow Hedges and Fair Value Hedges of Interest Rate Risk
We enter into interest rate swaps in order to maintain a capital structure containing targeted amounts of fixed and floating-rate debt and manage interest rate risk. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for our fixed-rate payments. These interest rate swap agreements are used to hedge the variable cash flows associated with variable-rate debt.
Interest rate swaps designated as fair value hedges involve the receipt of fixed amounts from a counterparty in exchange for our variable-rate payments. These interest rate swap agreements hedge the exposure to changes in the fair value of fixed-rate debt attributable to changes in the designated benchmark interest rate. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in earnings. We record the gain or loss on the hedged items in interest expense, the same line item as the offsetting loss or gain on the related interest rate swaps. In March 2022, we entered into a $550,000,000 fixed to floating swap in connection with our March 2022 senior note issuance. This swap was terminated in January 2024 resulting in a loss of $(59,555,000). As of September 30, 2024, the unamortized loss amount was $(54,720,000). In January 2024, we entered into a $550,000,000 forward-starting fixed to floating swap which converts a portion of cash flows on our $750,000,000 2.8% senior unsecured notes to floating rate. The swap is effective beginning in June 2025 and matures in December 2030. As of September 30, 2024, the carrying amount of the notes, exclusive of the hedge, is $743,393,000. The fair value of the swap as of September 30, 2024 was $10,047,000 and was recorded as a derivative asset with an offset to senior unsecured notes on our Consolidated Balance Sheets.
Periodically, we enter into and designate interest rate locks to partially hedge the risk of changes in interest payments attributable to increases in the benchmark interest rate during the period leading up to the probable issuance of fixed-rate debt. We designate our interest rate locks as cash flow hedges. Gains and losses when we settle our interest rate locks are amortized into earnings over the life of the related debt, except where a material amount is deemed to be ineffective, which would be immediately recognized in the Consolidated Statements of Comprehensive Income. Approximately $2,562,000 of losses, which are included in other comprehensive income ("OCI"), are expected to be reclassified into earnings in the next 12 months.
Cash flows from derivatives accounted for as a fair value or cash flow hedge are classified in the same category as the cash flows from the items being hedged in the Consolidated Statement of Cash Flows.
Foreign Currency Forward Contracts and Cross Currency Swap Contracts Designated as Net Investment Hedges
We use foreign currency forward and cross currency forward swap contracts to hedge a portion of the net investment in foreign subsidiaries against fluctuations in foreign exchange rates. For instruments that are designated and qualify as net investment hedges, the variability in the foreign currency to U.S. Dollar of the instrument is recorded as a cumulative translation adjustment component of OCI.
During the nine months ended September 30, 2024 and 2023, we settled certain net investment hedges generating cash proceeds of $9,213,000 and $1,994,000, respectively. The balance of the cumulative translation adjustment will be reclassified to earnings if the hedged investment is sold or substantially liquidated.
Derivative Contracts Undesignated
We use foreign currency exchange contracts to manage existing exposures to foreign currency exchange risk. Gains and losses resulting from the changes in fair value of these instruments are recorded in interest expense on the Consolidated Statements of Comprehensive Income and are substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures.
20
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Equity Warrants
We received equity warrants through our lending activities, which were accounted for as loan origination fees. The warrants provide us the right to participate in the capital appreciation of the underlying HC-One Group real estate portfolio above a designated price upon liquidation and contain net settlement terms qualifying as derivatives under ASC Topic 815. The warrants are classified within receivables and other assets on our Consolidated Balance Sheets. These warrants are measured at fair value with changes in fair value being recognized within loss (gain) on derivatives and financial instruments in our Consolidated Statements of Comprehensive Income.
The following presents the notional amount of derivatives and other financial instruments as of the dates indicated (in thousands): 
 September 30, 2024December 31, 2023
Derivatives designated as net investment hedges:
Denominated in Canadian Dollars$2,900,000 $2,025,000 
Denominated in Pound Sterling£1,660,708 £1,660,708 
Financial instruments designated as net investment hedges:
Denominated in Canadian Dollars$250,000 $250,000 
Denominated in Pound Sterling£1,050,000 £1,050,000 
Interest rate swaps and caps designated as cash flow hedges:
Denominated in U.S. Dollars (1)
$522,601 $872,601 
Interest rate swaps designated as fair value hedges:
Denominated in U.S. Dollars$550,000 $550,000 
Derivative instruments not designated:
Foreign currency exchange contracts denominated in Canadian Dollars$80,000 $80,000 
(1) At September 30, 2024, the maximum maturity date was September 1, 2028.
The following presents the impact of derivative instruments on the Consolidated Statements of Comprehensive Income for the periods presented (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
DescriptionLocation2024202320242023
Gain (loss) on derivative instruments designated as hedges recognized in incomeInterest expense$6,394 $4,833 $17,045 $14,211 
Gain (loss) on derivative instruments not designated as hedges recognized in incomeInterest expense$(678)$1,488 $1,238 $59 
Gain (loss) on equity warrants recognized in incomeGain (loss) on derivatives and financial instruments, net$9,911 $(2,876)$18,790 $(5,003)
Gain (loss) on derivative and financial instruments designated as hedges recognized in OCIOCI$(194,988)$106,449 $(125,277)$(49,173)
13. Commitments and Contingencies
At September 30, 2024, we had 20 outstanding letter of credit obligations totaling $44,672,000 and expiring between 2024 and 2025. At September 30, 2024, we had outstanding construction in progress of $1,374,996,000 and were committed to providing additional funds of approximately $646,763,000 to complete construction. Additionally, at September 30, 2024, we had outstanding investments classified as in substance real estate of $901,777,000 and were committed to provide additional funds of $146,367,000 (see Note 8 for additional information). Purchase obligations at September 30, 2024 also include $75,074,000 of contingent purchase obligations to fund capital improvements. Rents due from the tenants are increased to reflect the additional investment in the property.
21
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
14. Stockholders' Equity 
The following is a summary of our stockholders' equity capital accounts as of the dates indicated: 
 September 30, 2024December 31, 2023
Preferred Stock, $1.00 par value:
Authorized shares50,000,000 50,000,000 
Issued shares— — 
Outstanding shares— — 
Common Stock, $1.00 par value:
Authorized shares1,400,000,000 700,000,000 
Issued shares620,180,281 566,001,632 
Outstanding shares618,395,510 564,241,181 
Common Stock
In April 2024, we entered into an equity distribution agreement whereby we can offer and sell up to $3,500,000,000 aggregate amount of our common stock ("ATM Program"). Our prior equity distribution agreement dated February 15, 2024, allowing us to sell up to $3,500,000,000 aggregate amount of our common stock, was terminated as a result. The ATM Program allows us to enter into forward sale agreements (none outstanding at September 30, 2024). As of September 30, 2024, we had $1,222,550,000 of remaining capacity under the ATM Program. During October 2024, we sold 4,292,963 shares of common stock under our ATM Program.
The following is a summary of our common stock issuances during the nine months ended September 30, 2024 and 2023 (dollars in thousands, except shares and average price amounts): 
 Shares IssuedAverage PriceGross ProceedsNet Proceeds
2023 Option exercises1,708 $63.65 $109 $109 
2023 ATM Program issuances41,477,572 79.08 3,279,956 3,264,947 
2023 Redemption of OP Units and DownREIT Units334,582 — — 
2023 Stock incentive plans, net of forfeitures(54,317)— — 
2023 Totals41,759,545 $3,280,065 $3,265,056 
2024 Option exercises16,578 $65.57 $1,087 $1,087 
2024 ATM Program issuances53,547,363 98.76 5,288,418 5,261,277 
2024 Redemption of OP Units and DownREIT Units494,941 — — 
2024 Stock incentive plans, net of forfeitures95,447 — — 
2024 Totals54,154,329 $5,289,505 $5,262,364 
Dividends 
The following is a summary of our dividend payments (in thousands, except per share amounts): 
 Nine Months Ended
 September 30, 2024September 30, 2023
Per ShareAmountPer ShareAmount
Common stock$1.89 $1,127,827 $1.83 $921,319 
Accumulated Other Comprehensive Income 
The following is a summary of accumulated other comprehensive income (loss) as of the dates presented (in thousands):
September 30, 2024December 31, 2023
Foreign currency translation$(820,376)$(913,675)
Derivative and financial instruments designated as hedges625,238 750,515 
Total accumulated other comprehensive income (loss)$(195,138)$(163,160)
22
WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

15. Stock Incentive Plans
In March 2022, our Board of Directors approved the 2022 Long-Term Incentive Plan ("2022 Plan"), which authorizes up to 10,000,000 shares of common stock or units to be issued at the discretion of the Compensation Committee of the Board of Directors. Awards granted after March 28, 2022 are issued out of the 2022 Plan. The awards granted under the 2016 Long-Term Incentive Plan continue to vest and options expire ten years from the date of grant. Our non-employee directors, officers and key employees are eligible to participate in the 2022 Plan. The 2022 Plan allows for the issuance of, among other things, stock options, stock appreciation rights, restricted stock units, deferred stock units, performance units and dividend equivalent rights. Vesting periods for options, deferred stock units and restricted stock units generally range from three to five years. Options expire ten years from the date of grant. Stock-based compensation expense totaled $39,910,000 and $62,308,000 for the three and nine months ended September 30, 2024, and $8,821,000 and $28,781,000 for the same periods in 2023, respectively.
During December 2021 and January 2022, we granted special non-recurring performance-based stock option and restricted stock awards to executives and key employees. Since the grant dates, the likelihood of achievement of the performance goals related to these awards was deemed to be improbable and as a result no expense was recognized. During the quarter ended September 30, 2024, we determined that the performance goals were probable of being achieved, resulting in a cumulative catch up of stock compensation expense of $29,838,000 recognized in general and administrative expenses in the Consolidated Statements of Comprehensive Income in the current quarter.
16. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Numerator for basic earnings per share - net income (loss) attributable to common stockholders
$449,849 $127,470 $831,709 $256,183 
Adjustment for net income (loss) attributable to OP Units and DownREIT Units1,221 64 1,235 (103)
Numerator for diluted earnings per share
$451,070 $127,534 $832,944 $256,080 
Denominator for basic earnings per share - weighted average shares611,290 521,848 595,353 504,420 
Effect of dilutive securities:
Employee stock options
370 39 181 24 
Non-vested restricted shares and units2,517 1,141 1,686 968 
OP Units and DownREIT Units
2,123 2,085 2,192 1,914 
Employee stock purchase program
22 25 22 27 
2028 Exchangeable Notes1,984 — 757 — 
Dilutive potential common shares7,016 3,290 4,838 2,933 
Denominator for diluted earnings per share - adjusted weighted average shares
618,306 525,138 600,191 507,353 
Basic earnings per share$0.74 $0.24 $1.40 $0.51 
Diluted earnings per share$0.73 $0.24 $1.39 $0.50 
The 2028 Exchangeable Notes were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2023 as they were anti-dilutive. The 2029 Exchangeable Notes issued in 2024 were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2024 as they were anti-dilutive.
17. Disclosure about Fair Value of Financial Instruments 
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level valuation hierarchy exists for disclosures of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Please see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information. The three levels are defined below: 

23
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
•Level 1 - Quoted prices in active markets for identical assets or liabilities. 
•Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value.                                     
Investments in Sales-Type Leases - The fair value of sales-type leases is generally estimated by using Level 2 and Level 3 inputs to discount the estimated future cash flows of the lease using rates implicit in the lease, and an estimate of the unguaranteed residual value.
Mortgage Loans, Other Real Estate Loans and Non-real Estate Loans Receivable — The fair value of mortgage loans, other real estate loans and non-real estate loans receivable is generally estimated by using Level 2 and Level 3 inputs such as discounting the estimated future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.
Cash and Cash Equivalents and Restricted Cash — The carrying amount approximates fair value. 
Equity Warrants — The fair value of equity warrants is estimated using Level 3 inputs and includes data points such as enterprise value of the underlying HC-One Group real estate portfolio, marketability discount for private company warrants, dividend yield, volatility and risk-free rate. The enterprise value is driven by projected cash flows, weighted average cost of capital and a terminal capitalization rate.
Borrowings Under Primary Unsecured Credit Facility and Commercial Paper Program — The carrying amount of the primary unsecured credit facility and commercial paper program approximates fair value because the borrowings are interest rate adjustable. 
Senior Unsecured Notes — The fair value of the senior unsecured notes payable is estimated based on Level 1 publicly available trading prices. The carrying amount of the variable rate senior unsecured notes approximates fair value because they are interest rate adjustable. 
Secured Debt — The fair value of fixed rate secured debt is estimated using Level 2 inputs by discounting the estimated future cash flows using the current rates at which similar loans would be made with similar credit ratings and for the same remaining maturities. The carrying amount of variable rate secured debt approximates fair value because the borrowings are interest rate adjustable. 
Foreign Currency Forward Contracts, Interest Rate Swaps and Cross Currency Swaps — Foreign currency forward contracts, interest rate swaps and cross currency swaps are recorded in other assets or other liabilities on the balance sheet at fair value that is derived from Level 2 observable market data, including yield curves and foreign exchange rates.
Redeemable DownREIT Unitholder Interests — Our redeemable DownREIT Unitholder interests are recorded on the balance sheet at fair value using Level 2 inputs unless the fair value is below the initial amount, in which case the redeemable DownREIT Unitholder interests are recorded at the initial amount adjusted for distributions to the unitholders and income or loss attributable to the unitholders. The fair value is measured using the closing price of our common stock, as units may be redeemed at the election of the holder for cash or, at our option, one share of our common stock per unit, subject to adjustment in certain circumstances. 
24
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The carrying amounts and estimated fair values of our financial instruments are as follows (in thousands):
 September 30, 2024December 31, 2023
 Carrying AmountFair ValueCarrying AmountFair Value
Financial assets:
Investments in sales-type leases, net$469,260 $469,260 $— $— 
Mortgage loans receivable1,555,962 1,622,078 1,043,252 1,105,260 
Other real estate loans receivable284,491 281,644 318,335 319,905 
Cash and cash equivalents3,564,942 3,564,942 1,993,646 1,993,646 
Restricted cash219,466 219,466 82,437 82,437 
Non-real estate loans receivable247,418 247,911 330,119 312,985 
Foreign currency forward contracts, interest rate swaps and cross currency swaps15,332 15,332 37,118 37,118 
Equity warrants57,037 57,037 35,772 35,772 
Financial liabilities:
Senior unsecured notes$13,295,096 $13,670,516 $13,552,222 $13,249,247 
Secured debt2,468,527 2,466,269 2,183,327 2,144,059 
Foreign currency forward contracts, interest rate swaps and cross currency swaps86,801 86,801 96,023 96,023 
Redeemable DownREIT Unitholder interests$50,007 $50,007 $77,928 $77,928 
Items Measured at Fair Value on a Recurring Basis
The market approach is utilized to measure fair value for our financial assets and liabilities reported at fair value on a recurring basis. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The following summarizes items measured at fair value on a recurring basis (in thousands):
 Fair Value Measurements as of September 30, 2024
 TotalLevel 1Level 2Level 3
Equity warrants$57,037 $— $— $57,037 
Foreign currency forward contracts, interest rate swaps and cross currency swaps, net asset (liability) (1)
(71,469)— (71,469)— 
Totals $(14,432)$— $(71,469)$57,037 
(1) Please see Note 12 for additional information.
The following table summarizes the change in fair value for equity warrants using unobservable Level 3 inputs for the periods presented (in thousands):
Nine Months Ended
 September 30, 2024September 30, 2023
Beginning balance$35,772 $30,436 
Mark-to-market adjustment18,791 (5,003)
Foreign currency2,474 423 
Ending balance$57,037 $25,856 
The most significant assumptions utilized in the valuation of the equity warrants are the cash flows of the underlying HC-One Group enterprise, as well as the terminal capitalization rate which was 9.5% and 11.0% at September 30, 2024 and 2023, respectively.
Items Measured at Fair Value on a Nonrecurring Basis 
In addition to items that are measured at fair value on a recurring basis, we also have assets and liabilities in our balance sheet that are measured at fair value on a nonrecurring basis that are not included in the tables above. Assets, liabilities and noncontrolling interests that are measured at fair value on a nonrecurring basis include those acquired, consolidated, exchanged or assumed. Asset impairments (if applicable, see Note 5 for impairments of real property and Note 7 for impairments of loans receivable) are also measured at fair value on a nonrecurring basis. We have determined that the fair value measurements included in each of these assets and liabilities rely primarily on company-specific inputs and our assumptions about the use of the assets and settlement of liabilities, as observable inputs are not available. As such, we have determined that each of these fair value measurements generally resides within Level 3 of the fair value hierarchy. We estimate the fair value of real estate
25
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
and related intangibles using the income approach and unobservable data such as net operating income and estimated capitalization and discount rates. We also consider local and national industry market data including comparable sales, and commonly engage an external real estate appraiser to assist us in our estimation of fair value. We estimate the fair value of assets held for sale based on current sales price expectations or, in the absence of such price expectations, Level 3 inputs described above. We estimate the fair value of loans receivable using projected payoff valuations based on the expected future cash flows and/or the estimated fair value of collateral, net of sales costs, if the repayment of the loan is expected to be provided solely by the collateral. We estimate the fair value of secured debt assumed in asset acquisitions using current interest rates at which similar borrowings could be obtained on the transaction date. 
18. Segment Reporting
We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our three operating segments: Seniors Housing Operating, Triple-net and Outpatient Medical. Our Seniors Housing Operating properties include seniors apartments, assisted living, independent living/continuing care retirement communities, independent supportive living communities (Canada), care homes with and without nursing (U.K.) and combinations thereof that are generally owned and/or operated through RIDEA structures (see Note 19). Our Triple-net properties include the property types described above as well as long-term/post-acute care facilities. Under the Triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our Outpatient Medical properties are typically leased to multiple tenants and generally require a certain level of property management by us.
We evaluate performance based upon consolidated NOI of each segment. We define NOI as total revenues, including tenant reimbursements, less property operating expenses. We believe NOI provides investors relevant and useful information as it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties.
Non-segment revenue consists mainly of interest income on cash investments recorded in other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023). The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. All inter-segment transactions are eliminated.
26
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Summary information for the reportable segments is as follows (in thousands): 
Three Months Ended September 30, 2024Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Resident fees and services$1,511,524 $— $— $— $1,511,524 
Rental income— 227,531 202,955 — 430,486 
Interest income16,328 51,866 852 — 69,046 
Other income2,498 1,118 2,040 38,951 44,607 
Total revenues1,530,350 280,515 205,847 38,951 2,055,663 
Property operating expenses1,135,887 9,345 62,778 4,691 1,212,701 
Consolidated net operating income (loss)394,463 271,170 143,069 34,260 842,962 
Depreciation and amortization279,693 57,583 66,503 — 403,779 
Interest expense8,742 90 (573)130,791 139,050 
General and administrative expenses— — — 77,901 77,901 
Loss (gain) on derivatives and financial instruments, net— (9,906)— — (9,906)
Loss (gain) on extinguishment of debt, net— — — 419 419 
Provision for loan losses, net5,543 (1,345)(5)— 4,193 
Impairment of assets20,887 2,534 — — 23,421 
Other expenses17,914 2,445 (500)380 20,239 
Income (loss) from continuing operations before income taxes and other items61,684 219,769 77,644 (175,231)183,866 
Income tax (expense) benefit— — — 4,706 4,706 
Income (loss) from unconsolidated entities4,247 (8,680)395 — (4,038)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net63 272,334 (131)— 272,266 
Income (loss) from continuing operations65,994 483,423 77,908 (170,525)456,800 
Net income (loss)$65,994 $483,423 $77,908 $(170,525)$456,800 
Total assets$28,900,249 $9,845,405 $7,553,112 $2,654,932 $48,953,698 
Three Months Ended September 30, 2023Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Resident fees and services$1,199,808 $— $— $— $1,199,808 
Rental income— 194,912 189,595 — 384,507 
Interest income2,194 39,928 98 — 42,220 
Other income1,897 1,482 2,265 29,834 35,478 
Total revenues1,203,899 236,322 191,958 29,834 1,662,013 
Property operating expenses918,990 10,044 62,204 4,035 995,273 
Consolidated net operating income (loss)284,909 226,278 129,754 25,799 666,740 
Depreciation and amortization215,195 58,196 65,923 — 339,314 
Interest expense14,358 374 2,313 139,487 156,532 
General and administrative expenses— — — 46,106 46,106 
Loss (gain) on derivatives and financial instruments, net— 2,885 — — 2,885 
Loss (gain) on extinguishment of debt, net— — 1 — 1 
Provision for loan losses, net384 3,675 — — 4,059 
Impairment of assets2,400 4,988 — — 7,388 
Other expenses34,865 1,627 

1,117 611 38,220 
Income (loss) from continuing operations before income taxes and other items17,707 154,533 60,400 (160,405)72,235 
Income tax (expense) benefit— — — (4,584)(4,584)
Income (loss) from unconsolidated entities(6,021)2,056 (66)— (4,031)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net71,173 (12)(59)— 71,102 
Income (loss) from continuing operations82,859 156,577 60,275 (164,989)134,722 
Net income (loss)$82,859 $156,577 $60,275 $(164,989)$134,722 
27
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Nine Months Ended September 30, 2024Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment / CorporateTotal
Resident fees and services$4,265,271 $— $— $— $4,265,271 
Rental income— 590,426 593,523 — 1,183,949 
Interest income37,428 145,183 2,552 — 185,163 
Other income5,861 3,248 7,019 89,777 105,905 
Total revenues4,308,560 738,857 603,094 89,777 5,740,288 
Property operating expenses3,190,140 30,657 186,426 13,688 3,420,911 
Consolidated net operating income (loss)1,118,420 708,200 416,668 76,089 2,319,377 
Depreciation and amortization770,020 181,884 199,783 — 1,151,687 
Interest expense27,254 800 2,455 389,283 419,792 
General and administrative expenses— — — 186,784 186,784 
Loss (gain) on derivatives and financial instruments, net— (18,785)— — (18,785)
Loss (gain) on extinguishment of debt, net1,711 — — 419 2,130 
Provision for loan losses, net13,253 (2,874)(9)— 10,370 
Impairment of assets65,996 3,150 — — 69,146 
Other expenses64,395 12,070 440 6,149 83,054 
Income (loss) from continuing operations before income taxes and other items175,791 531,955 213,999 (506,546)415,199 
Income tax (expense) benefit— — — (2,586)(2,586)
Income (loss) from unconsolidated entities(2,546)(9,219)4,840 — (6,925)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net141,726 293,628 8,062 — 443,416 
Income (loss) from continuing operations314,971 816,364 226,901 (509,132)849,104 
Net income (loss)$314,971 $816,364 $226,901 $(509,132)$849,104 

Nine Months Ended September 30, 2023Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment / CorporateTotal
Resident fees and services$3,490,942 $— $— $— $3,490,942 
Rental income— 596,247 555,758 — 1,152,005 
Interest income6,840 110,211 284 — 117,335 
Other income7,237 70,057 6,939 43,705 127,938 
Total revenues3,505,019 776,515 562,981 43,705 4,888,220 
Property operating expenses2,687,961 32,365 179,266 12,106 2,911,698 
Consolidated net operating income (loss)817,058 744,150 383,715 31,599 1,976,522 
Depreciation and amortization656,030 167,958 196,383 — 1,020,371 
Interest expense41,981 (436)9,569 402,158 453,272 
General and administrative expenses— — — 134,764 134,764 
Loss (gain) on derivatives and financial
instruments, net		— 5,095 — — 5,095 
Loss (gain) on extinguishment of debt, net— — 7 — 7 
Provision for loan losses, net2,178 5,116 (2)— 7,292 
Impairment of assets15,029 6,074 — — 21,103 
Other expenses60,504 4,912 2,311 4,307 72,034 
Income (loss) from continuing operations before income taxes and other items41,336 555,431 175,447 (509,630)262,584 
Income tax (expense) benefit— — — (11,132)(11,132)
Income (loss) from unconsolidated entities(61,055)9,858 (237)— (51,434)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net69,910 436 (665)— 69,681 
Income (loss) from continuing operations50,191 565,725 174,545 (520,762)269,699 
Net income (loss)$50,191 $565,725 $174,545 $(520,762)$269,699 



28
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for the periods presented (dollars in thousands): 
 Three Months EndedNine Months Ended
 September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Revenues:Amount%Amount%
Amount(1)
%Amount%
United States$1,745,893 84.9 %$1,384,381 83.2 %$4,822,963 84.0 %$4,072,915 83.3 %
United Kingdom174,337 8.5 %153,765 9.3 %499,109 8.7 %455,669 9.3 %
Canada135,433 6.6 %123,867 7.5 %418,216 7.3 %359,636 7.4 %
Total$2,055,663 100.0 %$1,662,013 100.0 %$5,740,288 100.0 %$4,888,220 100.0 %
Three Months EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Resident Fees and Services:Amount%Amount%
Amount(1)
%Amount%
United States$1,255,020 83.0 %$967,360 80.7 %$3,501,168 82.1 %$2,806,301 80.4 %
United Kingdom125,581 8.3 %111,947 9.3 %360,254 8.4 %334,544 9.6 %
Canada130,923 8.7 %120,501 10.0 %403,849 9.5 %350,097 10.0 %
Total$1,511,524 100.0 %$1,199,808 100.0 %$4,265,271 100.0 %$3,490,942 100.0 %
 As of
 September 30, 2024December 31, 2023
Assets:Amount%Amount%
United States$40,861,259 83.4 %$36,929,186 83.9 %
United Kingdom4,930,587 10.1 %3,587,230 8.2 %
Canada3,161,852 6.5 %3,495,750 7.9 %
Total$48,953,698 100.0 %$44,012,166 100.0 %
19. Income Taxes and Distributions 
We elected to be taxed as a REIT commencing with our first taxable year. To qualify as a REIT for federal income tax purposes, at least 90% of taxable income (excluding 100% of net capital gains) must be distributed to stockholders. REITs that do not distribute a certain amount of taxable income in the current year are also subject to a 4% federal excise tax. The main differences between undistributed net income for federal income tax purposes and financial statement purposes are the recognition of straight-line rent for reporting purposes, basis differences in acquisitions, recording of impairments, differing useful lives and depreciation and amortization methods for real property and the provision for loan losses for reporting purposes versus bad debt expense for tax purposes. 
Under the provisions of the REIT Investment Diversification and Empowerment Act of 2007 ("RIDEA"), for taxable years beginning after July 30, 2008, a REIT may lease "qualified health care properties" on an arm's-length basis to a taxable REIT subsidiary ("TRS") if the property is operated on behalf of such TRS by a person who qualifies as an "eligible independent contractor." Generally, the rent received from the TRS will meet the related party rent exception and will be treated as “rents from real property.” A "qualified health care property" includes real property and any personal property that is, or is necessary or incidental to the use of, a hospital, nursing facility, assisted living facility, congregate care facility, qualified continuing care facility, or other licensed facility which extends medical or nursing or ancillary services to patients. We have entered into various joint ventures that were structured under RIDEA. Resident level rents and related operating expenses for these facilities are reported in the unaudited consolidated financial statements and are subject to federal and state income taxes as the operations of such facilities are included in TRS entities. Certain net operating loss carryforwards could be utilized to offset taxable income in future years. 
Income taxes reflected in the financial statements primarily represents U.S. federal, state and local income taxes as well as non-U.S. income based or withholding taxes on certain investments located in jurisdictions outside the U.S. The provision for income taxes for the nine months ended September 30, 2024 and 2023 was primarily due to operating income or losses, offset by certain discrete items at our TRS entities. In 2014, we established certain wholly-owned direct and indirect subsidiaries in Luxembourg and Jersey and transferred interests in certain foreign investments into this holding company structure. The structure includes a property holding company that is tax resident in the United Kingdom. No material adverse current tax consequences in Luxembourg, Jersey or the United Kingdom resulted from the creation of this holding company structure and most of the subsidiary entities in the structure are treated as disregarded entities of the company for U.S. federal income tax purposes. Subsequent to 2014, we transferred certain subsidiaries to the United Kingdom, while some wholly-owned direct and indirect subsidiaries remain in Luxembourg and Jersey. We reflect current and deferred tax liabilities for any such withholding
29
WELLTOWER INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
taxes incurred from this holding company structure in its consolidated financial statements. Generally, given current statutes of limitations, we are subject to audit by the foreign, federal, state and local taxing authorities under applicable local laws.
The Organization for Economic Co-operation and Development has proposed a global minimum tax of 15% of reported profits ("Pillar 2") that has been agreed upon in principle by over 140 countries. During 2023, many countries incorporated Pillar 2 model rules into their laws and will continue to do so in 2024. The model rules provide a framework for applying the minimum tax and some countries have adopted Pillar 2 effective January 1, 2024; however, countries must individually enact Pillar 2 which may result in variation in the application of the model rules and timelines. We continue to evaluate the potential consequences of Pillar 2 on our longer-term financial position.
20. Variable Interest Entities 
We have entered into joint ventures and have certain subsidiaries that are either wholly owned by us or by consolidated joint ventures which own real estate investments and are deemed to be VIEs. Our VIEs primarily hold real estate assets within our Seniors Housing Operating and Triple-net portfolios, the nature and risk of which are consistent with our overall portfolio. We have concluded that we are the primary beneficiary of these VIEs based on a combination of operational control of the entities and the rights to receive residual returns or the obligation to absorb losses arising from the entities. Except for capital contributions associated with the initial entity formations, the entities have been and are expected to be funded from the ongoing operations of the underlying properties. Accordingly, such entities have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs in the aggregate (in thousands):
September 30, 2024December 31, 2023
Assets:
Net real estate investments$3,881,149 $3,277,741 
Cash and cash equivalents15,986 19,529 
Receivables and other assets118,179 43,513 
Total assets (1)
$4,015,314 $3,340,783 
Liabilities and equity:
Secured debt$513,724 $76,507 
Lease liabilities2,537 2,539 
Accrued expenses and other liabilities20,555 13,850 
Total equity3,478,498 3,247,887 
Total liabilities and equity$4,015,314 $3,340,783 
(1) Note that assets of the consolidated VIEs can only be used to settle obligations relating to such VIEs. Liabilities of the consolidated VIEs represent claims against the specific assets of the VIEs and the VIE's creditors do not have recourse to Welltower.
We recognized revenues from consolidated VIEs in the aggregate of $100,951,000 and $297,866,000 for the three and nine months ended September 30, 2024, and $48,885,000 and $139,619,000 for the same periods in 2023, respectively.
In addition, we have certain entities that qualify as unconsolidated VIEs including borrowers of loans receivable and in substance real estate investments. Our maximum exposure on these entities is limited to the net carrying value of the investments. Refer to Note 7 and Note 8 for additional details.
30
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
EXECUTIVE SUMMARY
   
Company Overview
Business Strategy
Key Transactions
 Key Performance Indicators, Trends and Uncertainties
Corporate Governance
 LIQUIDITY AND CAPITAL RESOURCES
   
Sources and Uses of Cash
Off-Balance Sheet Arrangements
Contractual Obligations
Capital Structure
Supplemental Guarantor Information
   
 RESULTS OF OPERATIONS
   
Summary
Seniors Housing Operating
Triple-net
Outpatient Medical
Non-Segment/Corporate
   
 OTHER
   
 Non-GAAP Financial Measures
 Critical Accounting Policies and Estimates
 Cautionary Statement Regarding Forward-Looking Statements
31
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read together with the Consolidated Financial Statements and related Notes thereto included in Item 1 of this Quarterly Report on Form 10-Q. Other important factors are identified in our Annual Report on Form 10-K for the year ended December 31, 2023, including factors identified under the headings "Business," "Risk Factors," and "Management’s Discussion and Analysis of Financial Condition and Results of Operations."
We are structured as an umbrella partnership REIT under which substantially all of our business is conducted through Welltower OP LLC, the day-to-day management of which is exclusively controlled by Welltower Inc. Welltower Inc. has no material assets or liabilities other than its investment in Welltower OP LLC. Welltower OP LLC is the borrower under, and Welltower Inc. is the guarantor of, all of the unsecured notes described in Note 11 to our unaudited consolidated financial statements.
Unless stated otherwise or the context otherwise requires, references to "Welltower" mean Welltower Inc. and references to "Welltower OP" mean Welltower OP LLC. References to "we," "us" and "our" mean collectively Welltower, Welltower OP and those entities/subsidiaries owned or controlled by Welltower and/or Welltower OP.
Executive Summary
Company Overview
Welltower Inc. (NYSE:WELL), a real estate investment trust ("REIT") and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate and infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States ("U.S."), Canada and the United Kingdom ("U.K."), consisting of seniors housing and post-acute communities and outpatient medical properties.
Welltower is the initial member and majority owner of Welltower OP, with an approximate ownership interest of 99.701% as of September 30, 2024. All of our property ownership, development and related business operations are conducted through Welltower OP and Welltower has no material assets or liabilities other than its investment in Welltower OP. Welltower issues equity from time to time, the net proceeds of which it is obligated to contribute as additional capital to Welltower OP. All debt including credit facilities, senior notes and secured debt is incurred by Welltower OP and its subsidiaries, and Welltower has fully and unconditionally guaranteed all existing senior unsecured notes.
The following table summarizes our consolidated portfolio for the three months ended September 30, 2024 (dollars in thousands):
  Percentage ofNumber of
Type of Property
NOI (1)
NOIProperties
Seniors Housing Operating$394,463 48.8 %1,008 
Triple-net271,170 33.5 %606 
Outpatient Medical143,069 17.7 %371 
Totals$808,702 100.0 %1,985 
(1) Represents consolidated NOI and excludes our share of investments in unconsolidated entities. Entities in which we have a joint venture with a minority partner are shown at 100% of the joint venture amount. See "Non-GAAP Financial Measures" below for additional information and reconciliation.
Business Strategy
Our primary objectives are to protect stockholder capital and enhance stockholder value. We seek to pay consistent cash dividends to stockholders and create opportunities to increase dividend payments to stockholders as a result of annual increases in NOI and portfolio growth. To meet these objectives, we invest across the full spectrum of seniors housing and health care real estate and diversify our investment portfolio by property type, relationship and geographic location.
Substantially all of our revenues are derived from operating lease rentals, resident fees and services, interest earned on outstanding loans receivable and interest earned on short-term deposits. These items represent our primary sources of liquidity to fund distributions and depend upon the continued ability of our obligors to make contractual rent and interest payments to us and the profitability of our operating properties. To the extent that our obligors/partners experience operating difficulties and become unable to generate sufficient cash to make payments or operating distributions to us, there could be a material adverse impact on our consolidated results of operations, liquidity and/or financial condition.
To mitigate this risk, we monitor our investments through a variety of methods determined by the type of property. Our asset management process for seniors housing properties generally includes review of monthly financial statements and other operating data for each property, review of obligor/partner creditworthiness, property inspections and review of covenant compliance relating to licensure, real estate taxes, letters of credit and other collateral. Our internal property management division manages and monitors the outpatient medical portfolio with a comprehensive process including review of tenant relations, lease expirations, the mix of health service providers, hospital/health system relationships, property performance,
32
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
capital improvement needs and market conditions among other things. We evaluate the operating environment in each property’s market to determine the likely trend in operating performance of the facility. When we identify unacceptable trends, we seek to mitigate, eliminate or transfer the risk. Through these efforts, we generally aim to intervene at an early stage to address any negative trends, and in so doing, support both the collectability of revenue and the value of our investment.
In addition to our asset management and research efforts, we aim to structure our relevant investments to mitigate payment risk. Operating leases and loans are normally credit enhanced by guarantees and/or letters of credit. Also, operating leases are typically structured as master leases and loans are generally cross-defaulted and cross-collateralized with other real estate loans, operating leases or agreements between us and the obligor and its affiliates.
For the nine months ended September 30, 2024, resident fees and services and rental income represented 74% and 21%, respectively, of total revenues. Substantially all of our operating leases are designed with escalating rent structures. Leases with fixed annual rental escalators are generally recognized on a straight-line basis over the initial lease period, subject to a collectability assessment. Rental income related to leases with contingent rental escalators is generally recorded based on the contractual cash rental payments due for the period. Our yield on loans receivable depends upon a number of factors, including the stated interest rate, the average principal amount outstanding during the term of the loan and any interest rate adjustments.
Our primary sources of cash include resident fees and services, rent and interest receipts, interest earned on short-term deposits, borrowings under our unsecured revolving credit facility and commercial paper program, public issuances of debt and equity securities, proceeds from investment dispositions and principal payments on loans receivable. Our primary uses of cash include dividend distributions, debt service payments (including principal and interest), real property investments (including acquisitions, capital expenditures, construction advances and transaction costs), loan advances, property operating expenses, general and administrative expenses and other expenses. Depending upon the availability and cost of external capital, we believe our liquidity is sufficient to fund these uses of cash.
We also continuously evaluate opportunities to finance future investments. New investments are generally funded from temporary borrowings under our unsecured revolving credit facility and commercial paper program, internally generated cash and the proceeds from investment dispositions. Our investments generate cash from NOI and principal payments on loans receivable. Permanent financing for future investments, which replaces funds drawn under our unsecured revolving credit facility and commercial paper program, has historically been provided through a combination of the issuance of public debt and equity securities and the incurrence or assumption of secured debt. Given the general economic conditions during 2023 and into 2024, investments were generally funded proactively via issuances of common stock.
Depending upon market conditions, we believe that new investments will be available in the future with spreads over our cost of capital that will generate appropriate returns to our stockholders. It is also likely that investment dispositions may occur in the future. To the extent that investment dispositions exceed new investments, our revenues and cash flows from operations could be adversely affected. We expect to reinvest the proceeds from any investment dispositions in new investments. To the extent that new investment requirements exceed our available cash on-hand, we expect to borrow under our unsecured revolving credit facility and commercial paper program. At September 30, 2024, we had $3,564,942,000 of cash and cash equivalents, $219,466,000 of restricted cash and $5,000,000,000 of available borrowing capacity under our unsecured revolving credit facility.
Key Transactions
Capital The following summarizes key capital transactions that occurred during the nine months ended September 30, 2024:
•In April 2024, we entered into the ATM Program (as defined below) pursuant to which we may offer and sell up to $3,500,000,000 of common stock of Welltower from time to time. Our prior equity distribution agreement dated February 15, 2024, allowing us to sell up to $3,500,000,000 aggregate amount of our common stock, was terminated. During the nine months ended September 30, 2024, we sold 53,547,363 shares of common stock under our current and previous ATM Programs generating gross proceeds of approximately $5,288,418,000.
•In January 2024, we repaid our $400,000,000 4.5% senior unsecured notes at maturity. In March 2024, we repaid our $950,000,000 3.625% senior unsecured notes at maturity.
•In July 2024, we closed on an expanded $5,000,000,000 unsecured revolving credit facility, which replaced our $4,000,000,000 existing line of credit. The new facility is comprised of a $3,000,000,000 revolving line of credit maturing in June 2028 that can be extended for an additional year and a $2,000,000,000 revolving line of credit maturing in June 2029. The revolving lines of credit will bear interest at a borrowing rate of 0.725% over the adjusted SOFR rate and includes an annual facility fee of 0.125%.
•In July 2024, Welltower OP issued $1,035,000,000 aggregate principal amount of 3.125% exchangeable senior unsecured notes maturing July 15, 2029 (the "2029 Exchangeable Notes") unless earlier exchanged, purchased or redeemed. The 2029 Exchangeable Notes will pay interest semi-annually in arrears on January 15 and July 15 of each year.
•In August 2024, we increased the size of the commercial paper program to $2,000,000,000.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
•During the nine months ended September 30, 2024, we extinguished $323,805,000 of secured debt at a blended average interest rate of 6.69% and disposed $164,640,000 of secured debt at a blended average interest rate of 4.64%.
•During the three months ended September 30, 2024, we assumed $896,705,000 of secured debt at a blended average interest rate of 4.01%.
Investments The following summarizes our property acquisitions and joint venture investments completed during the nine months ended September 30, 2024 (dollars in thousands): 
 Properties
Book Amount (1)
Capitalization Rates (2)
Seniors Housing Operating53$1,790,137 5.6 %
Triple-net46 1,014,685 11.9 %
Outpatient Medical1 46,834 7.7 %
Totals100 $2,851,656 5.8 %
(1) Represents amounts recorded in net real estate investments including fair value adjustments pursuant to U.S. GAAP. See Note 3 to our unaudited consolidated financial statements for additional information.
(2) Represents annualized contractual or projected NOI to be received in cash divided by investment amounts.
Dispositions The following summarizes property dispositions completed during the nine months ended September 30, 2024 (dollars in thousands): 
 Properties
Proceeds (1)
Book Amount (2)
Capitalization Rates (3)
Seniors Housing Operating(4)
27$508,774 $366,255 4.4 %
Triple-net(5)
121,509 170 — %
Outpatient Medical(4)
349,817 42,761 6.8 %
Totals31 $580,100 $409,186 4.5 %
(1) Represents net proceeds received upon disposition, excluding non-cash consideration.
(2) Represents carrying value of net real estate assets at time of disposition. See Note 5 to our unaudited consolidated financial statements for additional information.
(3) Represents annualized contractual income that was being received in cash at date of disposition divided by stated purchase price.
(4) Includes the disposition of unconsolidated equity method investments that owned six Seniors Housing Operating properties and one Outpatient Medical property.
(5) Excludes $376,695,000 of net real property derecognized related to 15 properties upon the reclassification of two leases from operating to sales-type (see Note 6 for additional details).
Strategic Dissolution of Revera Joint Ventures
During the second quarter of 2023, we entered into definitive agreements to dissolve our existing Revera joint venture relationships across the U.S., U.K. and Canada. The transactions included acquiring the remaining interests in 110 properties from Revera while simultaneously selling interests in 31 properties to Revera. See Note 5 to our unaudited consolidated financial statements for additional information regarding the transactions.
Dividends Our Board of Directors declared a cash dividend for the quarter ended September 30, 2024 of $0.67 per share. On November 21, 2024, we will pay our 214th consecutive quarterly cash dividend to stockholders of record on November 13, 2024.
Key Performance Indicators, Trends and Uncertainties
We utilize several key performance indicators to evaluate the various aspects of our business. These indicators are discussed below and relate to operating performance, credit strength and concentration risk. Management uses these key performance indicators to facilitate internal and external comparisons to our historical operating results, in making operating decisions and for budget planning purposes.
Operating Performance We believe that net income and net income attributable to common stockholders ("NICS") per the Consolidated Statements of Comprehensive Income are the most appropriate earnings measures. Other useful supplemental measures of our operating performance include funds from operations attributable to common stockholders ("FFO") and consolidated net operating income ("NOI"); however, these supplemental measures are not defined by U.S. GAAP. Please refer to the section entitled "Non-GAAP Financial Measures" for further discussion and reconciliations. These earnings measures are widely used by investors and analysts in the valuation, comparison and investment recommendations of companies.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following table reflects the recent historical trends of our operating performance measures for the periods presented (in thousands):
 Three Months Ended
 September 30,June 30,March 31,December 31,September 30,June 30,March 31,
 2024202420242023202320232023
Net income (loss)$456,800 $260,670 $131,634 $88,440 $134,722 $106,342 $28,635 
NICS449,849 254,714 127,146 83,911 127,470 103,040 25,673 
FFO635,817 493,773 556,703 491,859 419,124 466,182 386,062 
NOI842,962 713,587 762,828 713,697 666,740 706,806 602,976 
Credit Strength 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 restricted cash. The coverage ratios indicate our ability to service interest and fixed charges (interest and secured debt principal amortization). We expect to maintain capitalization ratios and coverage ratios sufficient to maintain a capital structure consistent with our current profile. The coverage ratios are based on earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Please refer to the section entitled "Non-GAAP Financial Measures" for further discussion and reconciliation of these measures. Leverage ratios and coverage ratios are widely used by investors, analysts and rating agencies in the valuation, comparison, investment recommendations and rating of companies. The following table reflects the recent historical trends for our credit strength measures for the periods presented: 
 Three Months Ended
 September 30,June 30,March 31,December 31,September 30,June 30,March 31,
 2024202420242023202320232023
Net debt to book capitalization ratio28%27%29%34%36%38%40%
Net debt to undepreciated book capitalization ratio23%22%24%28%29%31%32%
Net debt to enterprise value ratio13%15%17%21%23%25%28%
Interest coverage ratio6.83x5.59x4.29x3.79x3.88x3.81x3.44x
Fixed charge coverage ratio6.37x5.21x3.98x3.52x3.60x3.51x3.13x
Concentration Risk We evaluate our concentration risk in terms of NOI by property mix, relationship mix and geographic mix. Concentration risk is a valuable measure in understanding what portion of our NOI could be at risk if certain sectors were to experience downturns. Property mix measures the portion of our NOI that relates to our various property types. Relationship mix measures the portion of our NOI that relates to our current top five relationships. Geographic mix measures the portion of our NOI that relates to our current top five states (or countries outside the United States).

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following table reflects our recent historical trends of concentration risk by NOI for the periods indicated below: 
 Three Months Ended
September 30,June 30,March 31,December 31,September 30,June 30,March 31,
 2024202420242023202320232023
Property mix:(1)
     
Seniors Housing Operating49%54%47%43%45%40%42%
Triple-net34%26%35%37%35%42%37%
Outpatient Medical17%20%18%20%20%18%21%
Relationship mix: (1)
  
Cogir Management Corporation7%8%8%6%4%3%4%
Integra Healthcare Properties6%8%7%8%8%8%9%
Sunrise Senior Living5%6%5%5%5%7%6%
Avery Healthcare4%5%5%5%4%3%3%
Oakmont Management Group4%5%4%4%4%3%3%
Remaining relationships74%68%71%72%75%76%75%
Geographic mix:(1)
  
California11%13%11%11%11%11%13%
United Kingdom10%10%10%9%9%8%10%
Texas8%9%8%8%8%7%8%
Florida8%9%8%8%5%4%5%
Canada6%7%7%7%6%5%6%
Remaining geographic areas57%52%56%57%61%65%58%
(1) Excludes our share of investments in unconsolidated entities and non-segment/corporate NOI. Entities in which we have a joint venture with a minority partner are shown at 100% of the joint venture amount.
Operating Lease Expirations The following table sets forth information regarding operating lease expirations for certain portions of our portfolio as of September 30, 2024 (dollars in thousands):
 
Expiration Year (1)
 2024202520262027202820292030203120322033Thereafter
Triple-net:          
Properties— 16 10 1 5 4 19 5 155 42 322 
Base rent (2)
$— $8,016 $12,630 $1,259 $6,566 $1,083 $41,397 $11,074 $102,681 $59,482 $431,884 
% of base rent— %1.2 %1.9 %0.2 %1.0 %0.2 %6.1 %1.6 %15.2 %8.8 %63.8 %
Units/beds— 521 1,557 80 616 219 2,043 423 9,226 3,267 37,667 
% of units/beds— %0.9 %2.8 %0.1 %1.1 %0.4 %3.7 %0.8 %16.6 %5.9 %67.7 %
Outpatient Medical:          
Square feet991,1351,132,0451,368,0751,528,2721,535,9251,520,8771,355,7601,600,9651,694,0501,187,1865,767,000
Base rent (2)
$29,047$35,608$38,819$46,527$43,641$45,077$40,585$46,429$51,192$31,598$167,961
% of base rent5.0 %6.2 %6.7 %8.1 %7.6 %7.8 %7.0 %8.1 %8.9 %5.5 %29.1 %
Leases188 256 237 262 266 205 125 104 172 101 280 
% of leases8.6 %11.7 %10.8 %11.9 %12.1 %9.3 %5.7 %4.7 %7.8 %4.6 %12.8 %
(1) Excludes our share of investments in unconsolidated entities, developments, land parcels, loans receivable and sub-leases. Investments classified as held for sale are included in the current year.
(2) The most recent monthly cash base rent annualized. Base rent does not include tenant recoveries or amortization of above and below market lease intangibles or other non-cash income.
We evaluate our key performance indicators in conjunction with current expectations to determine if historical trends are indicative of future results. Our expected results may not be achieved, and actual results may differ materially from our expectations. Factors that may cause actual results to differ from expected results are described in more detail in "Cautionary Statement Regarding Forward-Looking Statements" and other sections of this Quarterly Report on Form 10-Q. Management regularly monitors economic and other factors to develop strategic and tactical plans designed to improve performance and maximize our competitive position. Our ability to achieve our financial objectives is dependent upon our ability to effectively execute these plans and to appropriately respond to emerging economic and company-specific trends. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2023, under the headings "Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations."
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Corporate Governance
Maintaining investor confidence and trust is important in today's business environment. Our Board of Directors and management are strongly committed to policies and procedures that reflect the highest level of ethical business practices. Our corporate governance guidelines provide the framework for our business operations and emphasize our commitment to increase stockholder value while meeting all applicable legal requirements. These guidelines meet the listing standards adopted by the New York Stock Exchange and are available on the Internet at www.welltower.com/investors/governance. The information on our website is not incorporated by reference in this Quarterly Report on Form 10-Q, and our web address is included as an inactive textual reference only.
Liquidity and Capital Resources
Sources and Uses of Cash
Our primary sources of cash include resident fees and services, rent and interest receipts, interest earned on short-term deposits, borrowings under our unsecured revolving credit facility and commercial paper program, public issuances of debt and equity securities, proceeds from investment dispositions and principal payments on loans receivable. Our primary uses of cash include dividend distributions, debt service payments (including principal and interest), real property investments (including acquisitions, capital expenditures, construction advances and transaction costs), loan advances, property operating expenses, general and administrative expenses and other expenses. Depending upon the availability and cost of external capital, we believe our liquidity is sufficient to fund these uses of cash. These sources and uses of cash are reflected in our Consolidated Statements of Cash Flows and are discussed in further detail below. 
The following is a summary of our sources and uses of cash flows for the periods presented (dollars in thousands):
 Nine Months EndedChange
September 30, 2024September 30, 2023$%
Cash, cash equivalents and restricted cash at beginning of period$2,076,083 $722,292 $1,353,791 187 %
Cash provided from (used in) operating activities1,697,209 1,231,359 465,850 38 %
Cash provided from (used in) investing activities(3,309,218)(2,563,554)(745,664)(29)%
Cash provided from (used in) financing activities3,315,287 3,311,103 4,184 — %
Effect of foreign currency translation5,047 (14,489)19,536 135 %
Cash, cash equivalents and restricted cash at end of period$3,784,408 $2,686,711 $1,097,697 41 %
Operating Activities Please see "Results of Operations" for discussion of net income fluctuations. For the nine months ended September 30, 2024 and 2023, cash flows provided from operations exceeded cash distributions to stockholders. 
Investing Activities The changes in net cash provided from/used in investing activities are primarily attributable to net changes in real property investments and dispositions, loans receivable and investments in unconsolidated entities, which are summarized above in "Key Transactions." Please refer to Notes 3 and 5 of our unaudited consolidated financial statements for additional information. The following is a summary of cash used in non-acquisition capital improvement activities for the periods presented (dollars in thousands): 
 Nine Months EndedChange
 September 30, 2024September 30, 2023$%
New development$632,511 $730,712 $(98,201)-13 %
Recurring capital expenditures, tenant improvements and lease commissions199,861 127,633 72,228 57 %
Renovations, redevelopments and other capital improvements338,891 206,457 132,434 64 %
Total$1,171,263 $1,064,802 $106,461 10 %
The change in new development is primarily due to the number and size of construction projects on-going during the relevant periods. Renovations, redevelopments and other capital improvements include expenditures to maximize property value, increase net operating income, maintain a market-competitive position and/or achieve property stabilization. The increase in renovations, redevelopments and other capital improvements is due primarily to portfolio growth. 
Financing Activities The changes in net cash provided from/used in financing activities are primarily attributable to changes related to our long-term debt arrangements, the issuances of common stock and dividend payments which are summarized above in "Key Transactions." Please refer to Notes 10, 11 and 14 to our unaudited consolidated financial statements for additional information.
37
項目2。 管理層對財務狀況及經營成果的討論與分析
在2023年5月，我們發行了總額爲1,035,000,000美元、到期日爲2028年5月15日的2.75%可交換高級無擔保票據。在2024年1月，我們按到期償還了4.5%高級無擔保票據，總額爲400,000,000美元。在2024年3月，我們按到期償還了3.625%高級無擔保票據，總額爲950,000,000美元。
在2024年7月，我們發行了金額爲1,035,000,000美元的3.125%可交換高級無擔保票據，截止日期爲2029年7月15日。
在2024年7月，我們關閉了一個擴展的50億美元無擔保循環信貸額度，取代了我們之前40億美元的信貸額度。新額度由一個 $3,000,000,000 在2028年6月到期的循環信貸額度組成，可以延長一年，以及一個 $2,000,000,000 在2029年6月到期的循環信貸額度。這些循環信貸額度的借款利率爲0.725%，加上調整後的SOFR利率，幷包括年費0.125%。
資產負債表外安排 
截至2024年9月30日，我們在未合併實體中投資，通常其持有比例從 10%到95%。我們使用金融衍生工具來對沖利率和貨幣兌換風險。截止2024年9月30日，我們有d 20項未償信用證義務。請參見未經審計的合併基本報表的附註8、12和13以獲取更多信息。
合同義務
下表總結了截至2024年9月30日我們合同義務下的付款要求（以千計）：
 按期間到期的支付
合同義務總計20242025-20262027-2028之後
高級無擔保票據和定期信貸設施： (1)
美元高級無擔保票據$10,620,000 $— $1,950,000 $2,285,000 $6,385,000 
加幣高級無擔保票據 (2)
221,970 — — 221,970 — 
英鎊高級無擔保票據 (2)
1,406,790 — — 736,890 669,900 
美國美元期限信貸設施1,010,000 — 10,000 1,000,000 — 
加幣期限信貸設施 (2)
184,975 — — 184,975 — 
擔保債務： (1,2)
合併2,581,878 96,016 510,785 606,507 1,368,570 
非合併的870,888 98,880 545,788 100,788 125,432 
合同利息義務： (3)
高級無擔保票據和期限貸款 (2)
3,328,995 174,199 948,908 719,559 1,486,329 
合併擔保債務 (2)
636,414 27,860 186,563 134,767 287,224 
未合併的擔保債務 (2)
51,502 7,748 25,668 10,225 7,861 
融資租賃負債 (4)
427,281 1,087 9,405 9,299 407,490 
經營租賃負債 (4)
945,715 5,131 34,006 32,963 873,615 
採購義務 (5)
868,203 295,683 558,390 401 13,729 
總合同義務$23,154,611 $706,604 $4,779,513 $6,043,344 $11,625,150 
(1) 金額代表到期的本金金額，不反映未攤銷的溢價/折扣或其他在資產負債表上反映的公允價值調整。
(2) 基於資產負債表日期時有效的外幣匯率。
(3) 基於資產負債表日期時有效的利率期貨。
(4) 請參見我們未經審計的合併基本報表第6條以獲取更多信息。
(5) 請參見我們未經審計的合併基本報表第13條以獲取更多信息。排除截至2024年9月30日尚未完成的合同資產收購相關金額，包括第3條中描述的收購。
Capital Structure
Please refer to "Credit Strength" above for a discussion of our leverage and coverage ratio trends. Our debt agreements contain various covenants, restrictions and events of default. Certain agreements require us to maintain financial ratios and minimum net worth and impose certain limits on our ability to incur indebtedness, create liens and make investments or acquisitions. As of September 30, 2024, we were in compliance in all material respects with the covenants under our debt agreements. None of our debt agreements contain provisions for acceleration which could be triggered by our debt ratings.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
However, under our primary unsecured credit facility, the ratings on our senior unsecured notes are used to determine the fees and interest charged. We plan to manage the company to maintain compliance with our debt covenants and with a capital structure consistent with our current profile. Any downgrades in terms of ratings or outlook by any or all of the rating agencies could have a material adverse impact on our cost and availability of capital, which could have a material adverse impact on our consolidated results of operations, liquidity and/or financial condition.
On April 1, 2022, Welltower and Welltower OP jointly filed with the Securities and Exchange Commission (the "SEC") an open-ended automatic or “universal” shelf registration statement on Form S-3 (the "Shelf Form S-3") covering an indeterminate amount of future offerings of Welltower's debt securities, common stock, preferred stock, depositary shares, guarantees of debt securities issued by Welltower OP, warrants and units and Welltower OP’s debt securities and guarantees of debt securities issued by Welltower. On April 1, 2022, Welltower also filed with the SEC a registration statement in connection with its enhanced dividend reinvestment plan ("DRIP") under which it may issue up to 15,000,000 shares of common stock. On May 3, 2023, Welltower and Welltower OP filed post-effective amendment no. 1 to the Shelf Form S-3 pursuant to which Welltower OP expressly adopted the Shelf Form S-3 as its own registration statement following its statutory conversion from a corporation to a limited liability company. As of October 25, 2024, 15,000,000 shares of common stock remained available for issuance under the DRIP registration statement.
On April 30, 2024, Welltower and Welltower OP entered into an equity distribution agreement (the "EDA") with (i) Barclays Capital Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, BofA Securities, Inc., BOK Financial Securities, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, Jefferies LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Loop Capital Markets LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Regions Securities LLC, Robert W. Baird & Co. Incorporated, Scotia Capital (USA) Inc., Synovus Securities, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC as sales agents and forward sellers and (ii) the forward purchasers named therein relating to issuances, offers and sales from time to time of up to $3,500,000,000 aggregate amount of common stock of Welltower (together with the existing master forward sale confirmations relating thereto, the "ATM Program"). The ATM Program also allows Welltower to enter into forward sale agreements. As of October 25, 2024, we had approximately $696,822,000 of remaining capacity under the ATM Program and there were no outstanding forward sales agreements. Depending upon market conditions, we anticipate issuing securities under our registration statements to invest in additional properties and to repay borrowings under our unsecured revolving credit facility and commercial paper program.
In connection with the filing of the Shelf Form S-3, Welltower also filed with the SEC a prospectus supplement that will continue an offering that was previously covered by a prior registration statement relating to the registration of up to 475,327 shares of common stock of Welltower Inc. (the "DownREIT II Shares") that may be issued from time to time if, and to the extent that, certain holders of Class A units (the "DownREIT II Units") of HCN G&L DownREIT II LLC, a Delaware limited liability company (the "DownREIT II"), tender such DownREIT II Units for redemption by the DownREIT II, and HCN DownREIT Member, LLC, a majority-owned indirect subsidiary of Welltower (including its permitted successors and assigns, the "Managing Member"), or a designated affiliate of the Managing Member, elects to assume the redemption obligations of the DownREIT II and to satisfy all or a portion of the redemption consideration by issuing DownREIT II Shares to the holders instead of or in addition to paying a cash amount. On July 22, 2022, Welltower filed with the SEC a prospectus supplement relating to the registration of up to 300,026 shares of common stock of Welltower Inc. that may be issued from time to time if, and to the extent that, certain holders of Class A Common Units (the "OP Units") of Welltower OP tender the OP Units for redemption by Welltower OP, and Welltower Inc. elects to assume the redemption obligations of Welltower OP and to satisfy all or a portion of the redemption consideration by issuing shares of its common stock to the holders instead of or in addition to paying a cash amount. On October 8, 2024, Welltower filed with the SEC a prospectus supplement relating to the registration of up to 23,471,419 shares of common stock of Welltower Inc. (the "Exchanged Shares") that may, under certain circumstances, be issuable upon exchange of 2.750% exchangeable senior notes due 2028 or 3.125% Exchangeable Senior Notes due 2029 of Welltower OP and the resale from time to time by the recipients of the Exchanged Shares.
Supplemental Guarantor Information
Welltower OP has issued the unsecured notes described in Note 11 to our unaudited consolidated financial statements. All unsecured notes are fully and unconditionally guaranteed by Welltower, and Welltower OP is 99.701% owned by Welltower as of September 30, 2024. Effective January 4, 2021, the SEC adopted amendments to the financial disclosure requirements applicable to registered debt offerings that include certain credit enhancements. We have adopted these new rules, which permits subsidiary issuers of obligations guaranteed by the parent to omit separate financial statements if the consolidated financial statements of the parent company have been filed, the subsidiary obligor is a consolidated subsidiary of the parent company, the guaranteed security is debt or debt-like, and the security is guaranteed fully and unconditionally by the parent. Accordingly, separate consolidated financial statements of Welltower OP have not been presented. Furthermore, Welltower and Welltower OP have no material assets, liabilities, or operations other than financing activities and their investments in non-
39
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
guarantor subsidiaries. Therefore, we meet the criteria in Rule 13-01 of Regulation S-X to omit the summarized financial information from our disclosures.
Results of Operations
Summary
Our primary sources of revenue include resident fees and services, rent, interest income and interest earned on short-term deposits. Our primary expenses include property operating expenses, depreciation and amortization, interest expense, general and administrative expenses and other expenses. We evaluate our business and make resource allocations on our three business segments: Seniors Housing Operating, Triple-net and Outpatient Medical. The primary performance measures for our properties are NOI and same store NOI ("SSNOI") and other supplemental measures include FFO and Adjusted EBITDA, which are further discussed below. Please see Non-GAAP Financial Measures for additional information and reconciliations related to these supplemental measures. 
 Three Months EndedChangeNine Months EndedChange
 September 30,  September 30,
 20242023Amount%20242023Amount%
Net income (loss)$456,800 $134,722 $322,078 239 %$849,104 $269,699 $579,405 215 %
NICS449,849 127,470 322,379 253 %831,709 256,183 575,526 225 %
FFO635,817 419,124 216,693 52 %1,686,293 1,271,368 414,925 33 %
EBITDA994,923 635,152 359,771 57 %2,423,169 1,754,474 668,695 38 %
NOI842,962 666,740 176,222 26 %2,319,377 1,976,522 342,855 17 %
SSNOI539,909 482,198 57,711 12 %1,472,719 1,330,919 141,800 11 %
Per share data (fully diluted):    
NICS$0.73 $0.24 $0.49 204 %$1.39 $0.50 $0.89 178 %
FFO$1.03 $0.80 $0.23 29 %$2.81 $2.51 $0.30 12 %
Interest coverage ratio6.83 x3.88 x2.95 x76 %5.55 x3.72 x1.83 x49 %
Fixed charge coverage ratio6.37 x3.60 x2.77 x77 %5.17 x3.42 x1.75 x51 %
40
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Seniors Housing Operating
The following is a summary of our results of operations for the Seniors Housing Operating segment (dollars in thousands):
 Three Months EndedChangeNine Months EndedChange
 September 30,  September 30,
 20242023$%20242023$%
Revenues:    
Resident fees and services$1,511,524 $1,199,808 $311,716 26 %$4,265,271 $3,490,942 $774,329 22 %
Interest income16,328 2,194 14,134 644 %37,428 6,840 30,588 447 %
Other income2,498 1,897 601 32 %5,861 7,237 (1,376)(19)%
Total revenues1,530,350 1,203,899 326,451 27 %4,308,560 3,505,019 803,541 23 %
Property operating expenses1,135,887 918,990 216,897 24 %3,190,140 2,687,961 502,179 19 %
NOI (1)
394,463 284,909 109,554 38 %1,118,420 817,058 301,362 37 %
Other expenses:  
Depreciation and amortization279,693 215,195 64,498 30 %770,020 656,030 113,990 17 %
Interest expense8,742 14,358 (5,616)(39)%27,254 41,981 (14,727)(35)%
Loss (gain) on extinguishment of debt, net— — — n/a1,711 — 1,711 n/a
Provision for loan losses, net5,543 384 5,159 n/a13,253 2,178 11,075 508 %
Impairment of assets20,887 2,400 18,487 770 %65,996 15,029 50,967 339 %
Other expenses17,914 34,865 (16,951)(49)%64,395 60,504 3,891 6 %
332,779 267,202 65,577 25 %942,629 775,722 166,907 22 %
Income (loss) from continuing operations before income taxes and other items61,684 17,707 43,977 248 %175,791 41,336 134,455 325 %
Income (loss) from unconsolidated entities4,247 (6,021)10,268 171 %(2,546)(61,055)58,509 96 %
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net63 71,173 (71,110)(100)%141,726 69,910 71,816 103 %
Income (loss) from continuing operations65,994 82,859 (16,865)(20)%314,971 50,191 264,780 528 %
Net income (loss)65,994 82,859 (16,865)(20)%314,971 50,191 264,780 528 %
Less: Net income (loss) attributable to noncontrolling interests(465)1,208 (1,673)(138)%(1,909)(4,981)3,072 62 %
Net income (loss) attributable to common stockholders$66,459 $81,651 $(15,192)(19)%$316,880 $55,172 $261,708 474 %
(1) See "Non-GAAP Financial Measures" below for additional information and reconciliations.
Resident fees and services and property operating expenses increased for the three and nine month periods ended September 30, 2024 compared to the same periods in the prior year primarily due to acquisitions and construction conversions outpacing dispositions during 2023 and year to date 2024, as well as the conversion of Triple-net properties to Seniors Housing Operating RIDEA structures in the second and third quarters of 2024. Additionally, our Seniors Housing Operating revenues are dependent on occupancy and rate growth, both of which have continued to steadily increase from prior year. Average occupancy is as follows:
Three Months Ended(1)
 March 31,June 30,September 30,December 31,
202379.0 %79.6 %80.7 %82.2 %
202482.5 %82.8 %83.8 %
    
(1) Average occupancy includes our minority ownership share related to unconsolidated properties and excludes the minority partners' noncontrolling ownership share related to consolidated properties. Also excludes land parcels and properties under development.
Interest income increased for the three and nine month periods ended September 30, 2024 compared to the same periods in the prior year primarily due to an increase in third party real estate loans in connection with the various transactions that occurred during 2023 and year to date 2024. The provisions for loan losses will fluctuate based on our third party loan activity.
The following is a summary of our SSNOI at Welltower's share for the Seniors Housing Operating segment (dollars in thousands):
QTD PoolYTD Pool
 Three Months EndedChangeNine Months EndedChange
September 30,September 30,
 20242023$%20242023$%
SSNOI (1)
$277,912 $229,596 $48,316 21.0 %$720,750 $604,928 $115,822 19.1 %
(1) For the QTD Pool and YTD Pool, amounts relate to 620 and 547 same store properties, respectively. Please see "Non-GAAP Financial Measures" below for additional information and reconciliations.
41
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Depreciation and amortization expense fluctuates as a result of acquisitions, dispositions and transitions. To the extent that we acquire, develop or dispose of additional properties in the future, our provision for depreciation and amortization will change accordingly.
During the nine months ended September 30, 2024, we recorded $65,996,000 of impairment charges related to fourteen properties. During the nine months ended September 30, 2023, we recorded impairment charges of $15,029,000 related to six properties.
Transaction costs related to asset acquisitions are capitalized as a component of the purchase price. The fluctuation in other expenses is primarily due to the timing of noncapitalizable transaction costs associated with acquisitions and operator transitions. In April 2024, we reached an agreement to transition 89 Atria Senior Living properties to six of our existing operating partners. In conjunction with the termination of the property management agreements, we recognized $26 million within other expenses on our Consolidated Statements of Comprehensive Income during the second quarter in excess of amounts already accrued. As of September 30, 2024, we have transitioned operations for all 89 properties.
Changes in the gain on sales of properties are related to the volume and timing of property sales and the sales prices which are further discussed in Note 5 to our unaudited consolidated financial statements.
During the nine months ended September 30, 2024, we completed construction conversions representing $462,246,000 or $379,824 per unit. The following is a summary of our consolidated Seniors Housing Operating construction projects in process, excluding expansions (dollars in thousands):
As of September 30, 2024
Expected Conversion Year(1)
PropertiesUnits/BedsAnticipated Remaining FundingConstruction in Progress Balance
202461,171 $44,253 $366,086 
2025122,251 214,528 484,445 
20266 1,102 224,945 71,929 
TBD(2)
567,332 
Total29$989,792 
(1) Properties expected to be converted in phases over multiple years are reflected in the last expected year.
(2) Represents projects for which a final budget or expected conversion date are not yet known.
Interest expense represents secured debt interest expense, which fluctuates based on the net effect and timing of assumptions, segment transitions, fluctuations in foreign currency rates, extinguishments and principal amortizations. The fluctuations in loss (gain) on extinguishment of debt is primarily attributable to the volume of extinguishments and terms of the related secured debt.
The following is a summary of our Seniors Housing Operating segment property secured debt principal activity (dollars in thousands):
 截至三個月截至九個月
 九月三十日九月三十日
2024202320242023
期初餘額$1,550,164 $2,094,793 $1,955,048 $1,701,939 
債務轉移27,084 — 27,084 — 
已發行債務836 7,907 3,708 381,369 
假定債務364,130 270,352 364,130 297,282 
債務已清償— (284,748)(196,939)(288,063)
債務已處理(1)
— — (164,640)— 
本金支付(9,597)(11,288)(29,580)(36,292)
外幣6,070 (20,969)(20,124)(188)
期末餘額$1,938,687 $2,056,047 $1,938,687 $2,056,047 
期末加權平均利率4.44 %4.83 %4.44 %4.83 %
(1) 請參見附註5以獲取更多信息。
我們大多數的老年住宅運營物業是通過合作伙伴關係形成的。從未合併實體產生的收入（損失）代表我們作爲非控制合夥人的凈利潤或損失的份額。 截至2023年9月30日的九個月 包括與一個未合併管理公司相關的2870.8萬美元的減值損失。歸屬於非控制性權益的凈利潤代表我們合作伙伴與合資企業相關的凈利潤（損失）的份額。
42
項目2。 管理層對財務狀況及經營成果的討論與分析
三淨租約
以下是我們三重淨收益部門運營結果的總結（單位：千美元）：
 Three Months EndedChangeNine Months EndedChange
 September 30,  September 30,
 20242023$%20242023$%
Revenues:    
Rental income$227,531 $194,912 $32,619 17 %$590,426 $596,247 $(5,821)(1)%
Interest income51,866 39,928 11,938 30 %145,183 110,211 34,972 32 %
Other income1,118 1,482 (364)(25)%3,248 70,057 (66,809)(95)%
Total revenues280,515 236,322 44,193 19 %738,857 776,515 (37,658)(5)%
Property operating expenses9,345 10,044 (699)(7)%30,657 32,365 (1,708)(5)%
NOI (1)
271,170 226,278 44,892 20 %708,200 744,150 (35,950)(5)%
Other expenses:    
Depreciation and amortization57,583 58,196 (613)(1)%181,884 167,958 13,926 8 %
Interest expense90 374 (284)(76)%800 (436)1,236 283 %
Loss (gain) on derivatives and financial instruments, net(9,906)2,885 (12,791)(443)%(18,785)5,095 (23,880)(469)%
Provision for loan losses, net(1,345)3,675 (5,020)(137)%(2,874)5,116 (7,990)(156)%
Impairment of assets2,534 4,988 (2,454)(49)%3,150 6,074 (2,924)(48)%
Other expenses2,445 1,627 818 50 %12,070 4,912 7,158 146 %
51,401 71,745 (20,344)(28)%176,245 188,719 (12,474)(7)%
Income (loss) from continuing operations before income taxes and other items219,769 154,533 65,236 42 %531,955 555,431 (23,476)(4)%
Income (loss) from unconsolidated entities(8,680)2,056 (10,736)(522)%(9,219)9,858 (19,077)(194)%
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net272,334 (12)272,346 n/a293,628 436 293,192 n/a
Income (loss) from continuing operations483,423 156,577 326,846 209 %816,364 565,725 250,639 44 %
Net income (loss)483,423 156,577 326,846 209 %816,364 565,725 250,639 44 %
Less: Net income (loss) attributable to noncontrolling interests5,523 5,686 (163)(3)%16,494 17,776 (1,282)(7)%
Net income attributable to common stockholders$477,900 $150,891 $327,009 217 %$799,870 $547,949 $251,921 46 %
(1) See "Non-GAAP Financial Measures" below for additional information and reconciliations.
The increase in rental income for the three months ended September 30, 2024 was primarily due to acquisitions, partially offset by the transition of Triple-net properties to Seniors Housing Operating structures during the second and third quarter of 2024, as well as annual rent increases.
The decrease in rental income for the nine months ended September 30, 2024 was primarily due to the write-off of straight-line receivable and unamortized lease incentive balances of $97,674,000, related to leases for which the collection of substantially all contractual lease payments was no longer deemed probable due primarily to agreements reached to convert Triple-net properties to Seniors Housing Operating RIDEA structures, partially offset by increases in rent due to acquisitions and annual rent increases. For the nine months ended September 30, 2024, we had leases with rental rate increases ranging from 0.05% to 20.05% in our Triple-net portfolio. Certain of our leases contain annual rental escalators that are contingent upon changes in the Consumer Price Index and/or changes in the gross operating revenues of the tenant’s properties. These escalators are not fixed, so no straight-line rent is recorded; however, rental income is recorded based on the contractual cash rental payments due for the period. If gross operating revenues at our facilities and/or the Consumer Price Index do not increase, a portion of our revenues may not continue to increase.
The increase in interest income is primarily driven by increased advances on loans receivable during the second half of 2023.
As part of the substantial exit of the Genesis HealthCare operating relationship, which we disclosed on March 2, 2021, we transitioned the sublease of a portfolio of seven facilities from Genesis HealthCare to Complete Care Management in the second quarter of 2021. As part of the March 2021 transaction, we entered into a forward sale agreement for the seven properties valued at $182,618,000, which was expected to close when the Welltower-held purchase option became exercisable. As of March 31, 2023, the right of use assets related to the properties were $115,359,000 and were reflected as held for sale with the corresponding lease liabilities of $66,530,000 on our Consolidated Balance Sheet.
On May 1, 2023, we executed a series of transactions that included the assignment of the leasehold interest to a newly formed tri-party unconsolidated joint venture together with Aurora Health Network, Peace Capital (an affiliate of Complete Care Management) and us, and culminated with the closing of the purchase option by the joint venture. The transactions resulted in
43
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
net cash proceeds to us of $104,240,000 after our retained interest of $11,571,000 in the joint venture and a gain from the loss of control and derecognition of the leasehold interest of $65,485,000, which we recorded in other income within our Consolidated Statements of Comprehensive Income during the nine months ended September 30, 2023.
The following is a summary of our SSNOI at Welltower's share for the Triple-net segment (dollars in thousands):
QTD PoolYTD Pool
 Three Months EndedChangeNine Months EndedChange
September 30,September 30,
 20242023$%20242023$%
SSNOI (1)
$134,513 $128,789 $5,724 4.4 %$390,178 $371,950 $18,228 4.9 %
(1) For the QTD Pool and YTD Pool, amounts relate to 458 and 450 same store properties, respectively. Please see "Non-GAAP Financial Measures" below for additional information and reconciliations.
Depreciation and amortization expense fluctuates as a result of the acquisitions, dispositions and segment transitions of Triple-net properties. To the extent we acquire or dispose of additional properties in the future, our provision for depreciation and amortization will change accordingly. 
During the nine months ended September 30, 2024, we recorded an impairment charge of $3,150,000 related to two properties. During the nine months ended September 30, 2023, we recorded impairment charges of $6,074,000 related to two properties. Transaction costs related to asset acquisitions are capitalized as a component of purchase price. The fluctuation in other expenses is primarily due to noncapitalizable transaction costs from acquisitions and segment transitions.
Changes in the gain (loss) on real estate dispositions and acquisitions of controlling interests, net were related to the volume and timing and price of related transactions. During the quarter ended September 30, 2024, the Company, which held a 25% minority interest in an existing joint venture that owned 39 properties subject to triple-net leases with two tenants, acquired the remaining beneficial interest for $205,029,000 in cash, net of cash and restricted cash acquired. We evaluated the acquisition and determined that the entity meets the criteria of a variable interest entity ("VIE"). We consolidated the joint venture upon acquisition of the beneficial interests and recorded a gain on change of control of interests of $179,770,000 in gain (loss) on real estate dispositions and acquisitions of controlling interests, net on the Consolidated Statements of Comprehensive Income.
Additionally, on September 30, 2024, we reached agreements with our tenant to sell 15 properties, which are included in two master leases previously classified as operating leases. As a result of the agreement to sell the properties, the two leases were classified as sales-type leases and $92,593,000 was recognized in gain (loss) on real estate dispositions and acquisitions of controlling interests, net.
Loss (gain) on derivatives and financial instruments, net is primarily attributable to the mark-to-market of the equity warrants received as part of the HC-One transactions that closed in 2021 and 2023.
Interest expense represents secured debt interest expense and related fees. The change in secured debt interest expense is due to the net effect and timing of assumptions, segment transitions, fluctuations in foreign currency rates, extinguishments and principal amortizations. The following is a summary of our Triple-net secured debt principal activity for the periods presented (dollars in thousands):
 Three Months EndedNine Months Ended
September 30,September 30,
 2024202320242023
Beginning balance$37,787 $38,723 $38,260 $39,179 
Debt transferred(27,084)— (27,084)— 
Debt assumed532,575 — 532,575 — 
Principal payments(76)(228)(549)(684)
Ending balance$543,202 $38,495 $543,202 $38,495 
Ending weighted average interest4.01 %4.39 %4.01 %4.39 %
A portion of our Triple-net properties were formed through partnerships. Income (loss) from unconsolidated entities represents our share of net income or losses from partnerships where we are the noncontrolling partner. The fluctuation in income (loss) from unconsolidated entities from the prior year relates primarily to the timing and amount of hypothetical liquidation at book value adjustments related to in substance real estate investments. Net income attributable to noncontrolling interests represents our partners’ share of net income relating to those partnerships where we are the controlling partner.
44
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Outpatient Medical
The following is a summary of our results of operations for the Outpatient Medical segment for the periods presented (dollars in thousands):
 Three Months EndedChangeNine Months EndedChange
 September 30,  September 30,
 20242023$%20242023$%
Revenues:    
Rental income$202,955 $189,595 $13,360 7 %$593,523 $555,758 $37,765 7 %
Interest income852 98 754 769 %2,552 284 2,268 799 %
Other income2,040 2,265 (225)(10)%7,019 6,939 80 1 %
Total revenues205,847 191,958 13,889 7 %603,094 562,981 40,113 7 %
Property operating expenses62,778 62,204 574 1 %186,426 179,266 7,160 4 %
NOI (1)
143,069 129,754 13,315 10 %416,668 383,715 32,953 9 %
Other expenses:    
Depreciation and amortization66,503 65,923 580 1 %199,783 196,383 3,400 2 %
Interest expense(573)2,313 (2,886)(125)%2,455 9,569 (7,114)(74)%
Loss (gain) on extinguishment of debt, net— 1 (1)(100)%— 7 (7)(100)%
Provision for loan losses, net(5)— (5)n/a(9)(2)(7)(350)%
Other expenses(500)1,117 (1,617)(145)%440 2,311 (1,871)(81)%
65,425 69,354 (3,929)(6)%202,669 208,268 (5,599)(3)%
Income (loss) from continuing operations before income taxes and other items77,644 60,400 17,244 29 %213,999 175,447 38,552 22 %
Income (loss) from unconsolidated entities395 (66)461 698 %4,840 (237)5,077 n/a
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net(131)(59)(72)(122)%8,062 (665)8,727 n/a
Income (loss) from continuing operations77,908 60,275 17,633 29 %226,901 174,545 52,356 30 %
Net income (loss)77,908 60,275 17,633 29 %226,901 174,545 52,356 30 %
Less: Net income (loss) attributable to noncontrolling interests609 636 (27)(4)%475 1,627 (1,152)(71)%
Net income (loss) attributable to common stockholders$77,299 $59,639 $17,660 30 %$226,426 $172,918 $53,508 31 %
(1) See "Non-GAAP Financial Measures" below for additional information and reconciliations.
Rental income has increased due primarily to acquisitions and construction conversions that occurred during 2023 and year to date in 2024. Certain of our leases contain annual rental escalators that are contingent upon changes in the Consumer Price Index. These escalators are not fixed, so no straight-line rent is recorded; however, rental income is recorded based on the contractual cash rental payments due for the period. If the Consumer Price Index does not increase, a portion of our revenues may not continue to increase. Our leases could renew above or below current rental rates, resulting in an increase or decrease in rental income. For the nine months ended September 30, 2024, our consolidated Outpatient Medical portfolio signed 314,579 square feet of new leases and 1,536,738 square feet of renewals. The weighted-average term of these leases was 8 years, with a rate of $42.01 per square foot and tenant improvement and lease commission costs of $31.84 per square foot. Substantially all of these leases contain an annual fixed or contingent escalation rent structure ranging from 2.0% to 5.0%. 
The fluctuation in property operating expenses and depreciation and amortization are primarily attributable to acquisitions and construction conversions that occurred during 2023 and year to date in 2024. To the extent we acquire or dispose of additional properties in the future, these expenses will change accordingly. Changes in the gain on sales of properties are related to the volume and timing of property sales and the sales prices.
The following is a summary of our SSNOI at Welltower's share for the Outpatient Medical segment (dollars in thousands):
QTD PoolYTD Pool
 Three Months EndedChangeNine Months EndedChange
September 30,September 30,
 20242023$%20242023$%
SSNOI (1)
$127,484 $123,813 $3,671 3.0 %$361,791 $354,041 $7,750 2.2 %
(1) For the QTD Pool and YTD, amounts relate to 412 and 381 same store properties, respectively. Please see "Non-GAAP Financial Measures" below for additional information and reconciliations.
45
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
During the nine months ended September 30, 2024, we completed construction conversions representing $162,699,000 or $641 per square foot. The following is a summary of our consolidated Outpatient Medical construction projects in process, excluding expansions (dollars in thousands):
As of September 30, 2024
Expected Conversion YearPropertiesSquare FeetAnticipated Remaining FundingConstruction in Progress Balance
20245345,629 $55,123 $179,195 
20255355,794 107,913 94,415 
TBD(1)
133,912 
Total11$307,522 
(1) Represents projects for which a final budget or expected conversion date are not yet known.
Total interest expense represents secured debt interest expense. The change in secured debt interest expense is primarily due to the net effect and timing of assumptions, extinguishments and principal amortizations. The following is a summary of our Outpatient Medical secured debt principal activity (dollars in thousands):
 Three Months EndedNine Months Ended
 September 30,September 30,
2024202320242023
Beginning balance$212,733 $363,075 $229,137 $388,836 
Debt assumed— — — 46,741 
Debt extinguished(112,000)(40,137)(126,866)(109,318)
Principal payments(744)(1,349)(2,282)(4,670)
Ending balance$99,989 $321,589 $99,989 $321,589 
Ending weighted average interest4.19 %4.87 %4.19 %4.87 %
A portion of our Outpatient Medical properties were formed through partnerships. Income or loss from unconsolidated entities represents our share of net income or losses from partnerships where we are the noncontrolling partner. Net income attributable to noncontrolling interests represents our partners’ share of net income or loss relating to those partnerships where we are the controlling partner.
46
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Non-Segment/Corporate
The following is a summary of our results of operations for the Non-Segment/Corporate activities for the periods presented (dollars in thousands):
 Three Months EndedChangeNine Months EndedChange
 September 30,  September 30,
 20242023$%20242023$%
Revenues:    
Other income$38,951 $29,834 $9,117 31 %$89,777 $43,705 $46,072 105 %
Total revenues38,951 29,834 9,117 31 %89,777 43,705 46,072 105 %
Property operating expenses4,691 4,035 656 16 %13,688 12,106 1,582 13 %
Consolidated net operating income (loss) (1)
34,260 25,799 8,461 33 %76,089 31,599 44,490 141 %
Expenses:   
Interest expense130,791 139,487 (8,696)(6)%389,283 402,158 (12,875)(3)%
General and administrative expenses77,901 46,106 31,795 69 %186,784 134,764 52,020 39 %
Loss (gain) on extinguishment of debt, net419 — 419 n/a419 — 419 n/a
Other expenses380 611 (231)(38)%6,149 4,307 1,842 43 %
209,491 186,204 23,287 13 %582,635 541,229 41,406 8 %
Income (loss) from continuing operations before income taxes and other items(175,231)(160,405)(14,826)(9)%(506,546)(509,630)3,084 1 %
Income tax benefit (expense)4,706 (4,584)9,290 203 %(2,586)(11,132)8,546 77 %
Income (loss) from continuing operations(170,525)(164,989)(5,536)(3)%(509,132)(520,762)11,630 2 %
Net income (loss)(170,525)(164,989)(5,536)(3)%(509,132)(520,762)11,630 2 %
Less: Net income (loss) attributable to noncontrolling interests1,284 (278)1,562 562 %2,335 (906)3,241 358 %
Net income (loss) attributable to common stockholders$(171,809)$(164,711)$(7,098)(4)%$(511,467)$(519,856)$8,389 2 %
(1) See "Non-GAAP Financial Measures" below for additional information and reconciliations.
The increase in other income for nine month periods ended September 30, 2024 is primarily due to interest earned on deposits. Property operating expenses represent insurance costs related to our captive insurance company, which acts as a direct insurer of property level insurance coverage for our portfolio.
The following is a summary of our Non-Segment/Corporate interest expense for the periods presented (dollars in thousands):
 Three Months EndedChangeNine Months EndedChange
 September 30,  September 30,  
 20242023$%20242023$%
Senior unsecured notes$122,059 $133,173 $(11,114)(8)%$368,231 $379,438 $(11,207)(3)%
Unsecured credit facility and commercial paper program1,597 1,552 45 3 %4,665 5,425 (760)(14)%
Loan expense7,135 4,762 2,373 50 %16,387 17,295 (908)(5)%
Totals$130,791 $139,487 $(8,696)(6)%$389,283 $402,158 $(12,875)(3)%
The change in interest expense on senior unsecured notes is due to the net effect of issuances and extinguishments, as well as the movement in foreign exchange rates and related hedge activity. Please refer to Note 11 to our unaudited consolidated financial statements for additional information. The change in interest expense on our unsecured revolving credit facility and commercial paper program is due primarily to the net effect and timing of draws, paydowns and variable interest rate changes. Please refer to Note 10 to our unaudited consolidated financial statements for additional information regarding our unsecured revolving credit facility and commercial paper program. Loan expenses represent the amortization of costs incurred in connection with senior unsecured notes issuances.
General and administrative expenses as a percentage of consolidated revenues for the nine months ended September 30, 2024 and 2023 were 3.25% and 2.76%, respectively. During the three months ended September 30, 2024, we recognized $29,838,000 as a cumulative catch up of stock compensation expense due to the change in the probability of achievement of specific performance goals related to special non-recurring performance-based stock option and restricted stock awards granted in December 2021 and January 2022. Please refer to Note 15 to our unaudited consolidated financial statements for additional information. The additional increase in general and administrative expenses during the nine months ended September 30, 2024 was driven by compensation costs associated with increased employee headcount.
47
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Other
Non-GAAP Financial Measures
We believe that net income and net income attributable to common stockholders, as defined by U.S. GAAP, are the most appropriate earnings measurements. However, we consider FFO, NOI, SSNOI, EBITDA and Adjusted EBITDA to be useful supplemental measures of our operating performance. 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 conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In response, the National Association of Real Estate Investment Trusts ("NAREIT") created funds from operations attributable to common stockholders ("FFO") as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO, as defined by NAREIT, means NICS, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and acquisitions of controlling interests, and impairment of depreciable assets, plus depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests.
NOI is used to evaluate the operating performance of our properties. 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 properties. These expenses include, but are not limited to, property-related payroll and benefits, property management fees paid to managers, marketing, housekeeping, food service, maintenance, utilities, property taxes and insurance. General and administrative expenses represent general overhead costs that are unrelated to property operations and unallocable to the properties. These expenses include, but are not limited to, payroll and benefits related to corporate employees, professional services, office expenses and depreciation of corporate fixed assets. Same store NOI ("SSNOI") is used to evaluate the operating performance of our properties using a consistent population which controls for changes in the composition of our portfolio. We believe the drivers of property level NOI for both consolidated properties and unconsolidated properties are generally the same and therefore, we evaluate SSNOI based on our ownership interest in each property ("Welltower Share"). To arrive at Welltower's Share, NOI is adjusted by adding our minority ownership share related to unconsolidated properties and by subtracting the minority partners' noncontrolling ownership interests for consolidated properties. We do not control investments in unconsolidated properties and while we consider disclosures at Welltower Share to be useful, they may not accurately depict the legal and economic implications of our joint venture arrangements and should be used with caution. As used herein, same store is generally defined as those revenue-generating properties in the portfolio for the relevant year-over-year reporting periods. Acquisitions and development conversions are included in SSNOI five full quarters or seven full quarters after acquisition or being placed into service for the QTD Pool and YTD Pool, respectively. Land parcels, loans and sub-leases, as well as any properties sold or classified as held for sale during the respective periods are excluded from SSNOI. Redeveloped properties (including major refurbishments of a Seniors Housing Operating property where 20% or more of units are simultaneously taken out of commission for 30 days or more or Outpatient Medical properties undergoing a change in intended use) are excluded from SSNOI until five full quarters or seven full quarters post completion of the redevelopment for the QTD Pool and YTD Pool, respectively. Properties undergoing operator transitions and/or segment transitions are also excluded from SSNOI until five full quarters or seven full quarters post completion of the transition for the QTD Pool and YTD Pool, respectively. In addition, properties significantly impacted by force majeure, acts of God, or other extraordinary adverse events are excluded from SSNOI until five full quarters or seven full quarters after the properties are placed back into service for the QTD Pool and YTD Pool, respectively. SSNOI excludes non-cash NOI and includes adjustments to present consistent ownership percentages and to translate Canadian properties and U.K. properties using a consistent exchange rate. We believe NOI and SSNOI provide investors relevant and useful information because they measure the operating performance of our properties at the property level on an unleveraged basis. We use NOI and SSNOI to make decisions about resource allocations and to assess the property level performance of our properties.
EBITDA is defined as earnings (net income) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding unconsolidated entities and including adjustments for stock-based compensation expense, provision for loan losses, gains/losses on extinguishment of debt, gains/losses on disposition of properties and acquisitions of controlling interests, impairment of assets, gains/losses on derivatives and financial instruments, other expenses, other impairment charges and other adjustments as deemed appropriate. We believe that EBITDA and Adjusted EBITDA, along with net income, are important supplemental measures because they provide additional information to assess and evaluate the performance of our operations. We primarily use these measures to determine our interest coverage ratio, which represents EBITDA and Adjusted EBITDA divided by total interest, and our fixed charge coverage ratio, which represents EBITDA and Adjusted EBITDA divided by fixed charges. Fixed charges include total interest and secured debt principal amortization. Covenants in our unsecured senior notes and primary credit facility contain financial ratios based on a definition of EBITDA and Adjusted EBITDA that is specific to those agreements. Our leverage ratios are defined as the proportion of net debt to total capitalization and include book capitalization, undepreciated book capitalization and enterprise value. Book capitalization represents the sum of net debt (defined as total long-term debt, excluding operating lease liabilities, less cash and cash

48
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
equivalents and restricted cash), total equity and redeemable noncontrolling interests. Undepreciated book capitalization represents book capitalization adjusted for accumulated depreciation and amortization. Enterprise value represents book capitalization adjusted for the fair market value of our common stock.
Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and rating agencies in the valuation, comparison, rating and investment recommendations of companies. Management uses these financial measures to facilitate internal and external comparisons to our historical operating results and in making operating decisions. Additionally, these measures are utilized by the Board of Directors to evaluate management. None of our supplemental measures represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental measures, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies.
The tables below reflect the reconciliation of FFO to NICS, the most directly comparable U.S. GAAP measure, for the periods presented. Noncontrolling interest and unconsolidated entity amounts represent adjustments to reflect our share of depreciation and amortization, gains/loss on real estate dispositions and acquisitions of controlling interests, and impairment of assets. Amounts are in thousands except for per share data.
 Three Months Ended
 September 30,June 30,March 31,December 31,September 30,June 30,March 31,
FFO Reconciliation:2024202420242023202320232023
Net income (loss) attributable to common stockholders$449,849 $254,714 $127,146 $83,911 $127,470 $103,040 $25,673 
Depreciation and amortization403,779 382,045 365,863 380,730 339,314 341,945 339,112 
Impairment of assets23,421 2,394 43,331 14,994 7,388 1,086 12,629 
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net(272,266)(166,443)(4,707)1,783 (71,102)2,168 (747)
Noncontrolling interests(5,801)(6,348)(11,996)(11,436)(8,789)(12,841)(13,327)
Unconsolidated entities36,835 27,411 37,066 21,877 24,843 30,784 22,722 
FFO$635,817 $493,773 $556,703 $491,859 $419,124 $466,182 $386,062 
Average diluted shares outstanding618,306 604,563 577,530 552,380 525,138 501,970 494,494 
Per diluted share data:     
Net income attributable to common stockholders(1)
$0.73 $0.42 $0.22 $0.15 $0.24 $0.20 $0.05 
FFO$1.03 $0.82 $0.96 $0.89 $0.80 $0.93 $0.78 
(1) Includes adjustment to the numerator for income (loss) attributable to OP Unitholders.
 Nine Months Ended
 September 30,
FFO Reconciliations:20242023
Net income (loss) attributable to common stockholders$831,709 $256,183 
Depreciation and amortization1,151,687 1,020,371 
Impairment of assets69,146 21,103 
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net(443,416)(69,681)
Noncontrolling interests(24,145)(34,957)
Unconsolidated entities101,312 78,349 
FFO$1,686,293 $1,271,368 
Average diluted common shares outstanding:600,191 507,353
Per diluted share data:  
Net income attributable to common stockholders(1)
$1.39 $0.50 
FFO$2.81 $2.51 
(1) Includes adjustment to the numerator for income (loss) attributable to OP unitholders.
49
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The tables below reflect the reconciliation of consolidated NOI to net income, the most directly comparable U.S. GAAP measure, for the periods presented (dollars in thousands):
 Three Months Ended
 September 30,June 30,March 31,December 31,September 30,June 30,March 31,
NOI Reconciliations:2024202420242023202320232023
Net income (loss)$456,800 $260,670 $131,634 $88,440 $134,722 $106,342 $28,635 
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net(272,266)(166,443)(4,707)1,783 (71,102)2,168 (747)
Loss (income) from unconsolidated entities4,038 (4,896)7,783 2,008 4,031 40,332 7,071 
Income tax expense (benefit)(4,706)1,101 6,191 (4,768)4,584 3,503 3,045 
Other expenses20,239 48,684 14,131 36,307 38,220 11,069 22,745 
Impairment of assets23,421 2,394 43,331 14,994 7,388 1,086 12,629 
Provision for loan losses, net4,193 5,163 1,014 2,517 4,059 2,456 777 
Loss (gain) on extinguishment of debt, net419 1,705 6 — 1 1 5 
Loss (gain) on derivatives and financial instruments, net(9,906)(5,825)(3,054)(7,215)2,885 1,280 930 
General and administrative expenses77,901 55,565 53,318 44,327 46,106 44,287 44,371 
Depreciation and amortization403,779 382,045 365,863 380,730 339,314 341,945 339,112 
Interest expense139,050 133,424 147,318 154,574 156,532 152,337 144,403 
Consolidated net operating income (NOI)$842,962 $713,587 $762,828 $713,697 $666,740 $706,806 $602,976 
NOI by segment:     
Seniors Housing Operating$394,463 $376,544 $347,413 $301,077 $284,909 $279,252 $252,897 
Triple-net271,170 178,115 258,915 256,985 226,278 291,530 226,342 
Outpatient Medical143,069 136,900 136,699 135,484 129,754 127,495 126,466 
Non-segment/corporate34,260 22,028 19,801 20,151 25,799 8,529 (2,729)
Total NOI$842,962 $713,587 $762,828 $713,697 $666,740 $706,806 $602,976 
 Nine Months Ended
September 30,
NOI Reconciliations:20242023
Net income (loss)$849,104 $269,699 
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net(443,416)(69,681)
Loss (income) from unconsolidated entities6,925 51,434 
Income tax expense (benefit)2,586 11,132 
Other expenses83,054 72,034 
Impairment of assets69,146 21,103 
Provision for loan losses, net10,370 7,292 
Loss (gain) on extinguishment of debt, net2,130 7 
Loss (gain) on derivatives and financial instruments, net(18,785)5,095 
General and administrative expenses186,784 134,764 
Depreciation and amortization1,151,687 1,020,371 
Interest expense419,792 453,272 
Consolidated net operating income (NOI)$2,319,377 $1,976,522 
NOI by segment:
Seniors Housing Operating$1,118,420 $817,058 
Triple-net708,200 744,150 
Outpatient Medical416,668 383,715 
Non-segment/corporate76,089 31,599 
Total NOI$2,319,377 $1,976,522 
50
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following is a reconciliation of the properties included in our QTD Pool and YTD Pool for SSNOI:
QTD PoolYTD Pool
SSNOI Property Reconciliations:Seniors Housing OperatingTriple-netOutpatient MedicalTotalSeniors Housing OperatingTriple-netOutpatient MedicalTotal
Consolidated properties
1,008 606 371 1,985 1,008 606 371 1,985 
Unconsolidated properties
76 — 76 152 76 — 76 152 
Total properties
1,084 606 447 2,137 1,084 606 447 2,137 
Recent acquisitions/development conversions(1)
(114)(92)(12)(218)(187)(100)(43)(330)
Under development
(31)— (11)(42)(31)— (11)(42)
Under redevelopment(2)
(2)(4)— (6)(2)(4)— (6)
Current held for sale(23)(10)— (33)(23)(10)— (33)
Land parcels, loans and subleases(3)
(15)(19)(9)(43)(15)(19)(9)(43)
Transitions(4)
(271)(19)— (290)(271)(19)— (290)
Other(5)
(8)(4)(3)(15)(8)(4)(3)(15)
Same store properties
620 458 412 1,490 547 450 381 1,378 
(1) Acquisitions and development conversions will enter the QTD Pool after five full quarters and YTD Pool after seven full quarters of acquisition or certificate of occupancy.
(2) Redevelopment properties will enter the QTD Pool after five full quarters and YTD Pool after seven full quarters of operations post redevelopment completion.
(3) Includes 15 Triple-net properties accounted for as sales-type leases expected to be sold to the tenant.
(4) Transitioned properties will enter the QTD Pool after five full quarters and YTD Pool after seven full quarters of operations with the new operator in place or under the new structure.
(5) Represents properties that are either closed or being closed.
51
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following is a reconciliation of our consolidated NOI to same store NOI for the periods presented for the QTD Pool and YTD Pool (dollars in thousands):
QTD PoolYTD Pool
Three Months EndedNine Months Ended
September 30,September 30,
SSNOI Reconciliations:2024202320242023
Seniors Housing Operating: 
Consolidated NOI$394,463 $284,909 $1,118,420 $817,058 
NOI attributable to unconsolidated investments22,709 19,037 67,530 44,793 
NOI attributable to noncontrolling interests(11,624)(15,656)(41,066)(47,891)
NOI attributable to non-same store properties(125,424)(58,152)(423,300)(209,470)
Non-cash NOI attributable to same store properties(840)(1,073)(438)(2,081)
Currency and ownership adjustments (1)
(1,372)531 (396)2,519 
SSNOI at Welltower Share277,912 229,596 720,750 604,928 
Triple-net:
Consolidated NOI271,170 226,278 708,200 744,150 
NOI attributable to unconsolidated investments5,214 5,705 16,177 21,863 
NOI attributable to noncontrolling interests(8,028)(8,010)(24,076)(23,342)
NOI attributable to non-same store properties(116,046)(74,338)(258,028)(307,696)
Non-cash NOI attributable to same store properties(16,985)(20,509)(50,750)(62,971)
Currency and ownership adjustments (1)
(812)(337)(1,345)(54)
SSNOI at Welltower Share134,513 128,789 390,178 371,950 
Outpatient Medical:
Consolidated NOI143,069 129,754 416,668 383,715 
NOI attributable to unconsolidated investments4,120 4,746 13,144 14,338 
NOI attributable to noncontrolling interests(2,382)(3,195)(7,406)(13,091)
NOI attributable to non-same store properties(10,224)(3,194)(46,498)(22,206)
Non-cash NOI attributable to same store properties(7,010)(5,131)(14,094)(14,868)
Currency and ownership adjustments (1)
(89)833 (23)6,153 
SSNOI at Welltower Share127,484 123,813 361,791 354,041 
SSNOI at Welltower Share:
Seniors Housing Operating277,912 229,596 720,750 604,928 
Triple-net134,513 128,789 390,178 371,950 
Outpatient Medical127,484 123,813 361,791 354,041 
Total$539,909 $482,198 $1,472,719 $1,330,919 
(1) Includes adjustments to reflect consistent property ownership percentages, to translate Canadian properties at a USD/CAD rate of 1.36 and to translate U.K. properties at a GBP/USD rate of 1.25.
52
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The tables below reflect the reconciliation of EBITDA to net income, the most directly comparable U.S. GAAP measure, for the periods presented (dollars in thousands):
 Three Months Ended
 September 30,June 30,March 31,December 31,September 30,June 30,March 31,
EBITDA Reconciliations:2024202420242023202320232023
Net income (loss)$456,800 $260,670 $131,634 $88,440 $134,722 $106,342 $28,635 
Interest expense139,050 133,424 147,318 154,574 156,532 152,337 144,403 
Income tax expense (benefit)(4,706)1,101 6,191 (4,768)4,584 3,503 3,045 
Depreciation and amortization403,779 382,045 365,863 380,730 339,314 341,945 339,112 
EBITDA$994,923 $777,240 $651,006 $618,976 $635,152 $604,127 $515,195 
Interest Coverage Ratio:     
Interest expense$139,050 $133,424 $147,318 $154,574 $156,532 $152,337 $144,403 
Capitalized interest15,668 14,478 13,809 14,547 13,947 11,870 10,335 
Non-cash interest expense(9,008)(8,953)(9,284)(5,871)(6,716)(5,824)(5,083)
Total interest145,710 138,949 151,843 163,250 163,763 158,383 149,655 
EBITDA$994,923 $777,240 $651,006 $618,976 $635,152 $604,127 $515,195 
Interest coverage ratio6.83 x5.59 x4.29 x3.79 x3.88 x3.81 x3.44 x
Fixed Charge Coverage Ratio:     
Total interest$145,710 $138,949 $151,843 $163,250 $163,763 $158,383 $149,655 
Secured debt principal payments10,417 10,107 11,887 12,430 12,865 13,839 14,942 
Total fixed charges156,127 149,056 163,730 175,680 176,628 172,222 164,597 
EBITDA$994,923 $777,240 $651,006 $618,976 $635,152 $604,127 $515,195 
Fixed charge coverage ratio6.37 x5.21 x3.98 x3.52 x3.60 x3.51 x3.13 x


 Nine Months Ended
September 30,
EBITDA Reconciliations:20242023
Net income (loss)$849,104 $269,699 
Interest expense419,792 453,272 
Income tax expense (benefit)2,586 11,132 
Depreciation and amortization1,151,687 1,020,371 
EBITDA$2,423,169 $1,754,474 
Interest Coverage Ratio:  
Interest expense$419,792 $453,272 
Non-cash interest expense(27,245)(17,623)
Capitalized interest43,955 36,152 
Total interest436,502 471,801 
EBITDA$2,423,169 $1,754,474 
Interest coverage ratio5.55 x3.72 x
Fixed Charge Coverage Ratio:  
Total interest$436,502 $471,801 
Secured debt principal payments32,411 41,646 
Total fixed charges468,913 513,447 
EBITDA$2,423,169 $1,754,474 
Fixed charge coverage ratio5.17 x3.42 x





53
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The table below reflects the reconciliation of Adjusted EBITDA to net income, the most directly comparable U.S. GAAP measure, for the periods presented (dollars in thousands):
 Twelve Months Ended
September 30,June 30,March 31,December 31,September 30,June 30,March 31,
Adjusted EBITDA Reconciliations:2024202420242023202320232023
Net income (loss)$937,544 $615,466 $461,138 $358,139 $271,497 $134,122 $123,452 
Interest expense574,366 591,848 610,761 607,846 593,663 576,813 552,226 
Income tax expense (benefit)(2,182)7,108 9,510 6,364 7,044 5,717 5,279 
Depreciation and amortization1,532,417 1,467,952 1,427,852 1,401,101 1,362,657 1,377,042 1,345,392 
EBITDA3,042,145 2,682,374 2,509,261 2,373,450 2,234,861 2,093,694 2,026,349 
Loss (income) from unconsolidated entities8,933 8,926 54,154 53,442 56,084 58,751 25,477 
Stock-based compensation expense69,542 38,364 38,829 36,611 34,762 32,299 27,709 
Loss (gain) on extinguishment of debt, net2,130 1,712 8 7 94 95 697 
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net(441,633)(240,469)(71,858)(67,898)(65,258)4,780 6,144 
Impairment of assets84,140 68,107 66,799 36,097 34,249 31,217 30,131 
Provision for loan losses, net12,887 12,753 10,046 9,809 17,761 14,192 11,098 
Loss (gain) on derivatives and financial instruments, net(26,000)(13,209)(6,104)(2,120)5,353 9,373 5,751 
Other expenses119,361 137,342 99,727 108,341 96,988 74,249 98,346 
Lease termination and leasehold interest adjustment (1)
— — (65,485)(65,485)(65,485)(65,485)(56,397)
Casualty losses, net of recoveries8,373 6,163 7,778 10,107 16,446 15,760 14,865 
Other impairment (2)
102,007 114,316 25,998 16,642 12,309 — (620)
Adjusted EBITDA$2,981,885 $2,816,379 $2,669,153 $2,509,003 $2,378,164 $2,268,925 $2,189,550 
Adjusted Interest Coverage Ratio:     
Interest expense$574,366 $591,848 $610,761 $607,846 $593,663 $576,813 $552,226 
Capitalized interest58,502 56,781 54,173 50,699 45,914 40,830 35,347 
Non-cash interest expense(33,116)(30,824)(27,695)(23,494)(21,903)(21,946)(22,728)
Total interest599,752 617,805 637,239 635,051 617,674 595,697 564,845 
Adjusted EBITDA$2,981,885 $2,816,379 $2,669,153 $2,509,003 $2,378,164 $2,268,925 $2,189,550 
Adjusted interest coverage ratio4.97 x4.56 x4.19 x3.95 x3.85 x3.81 x3.88 x
Adjusted Fixed Charge Coverage Ratio:
Total interest$599,752 $617,805 $637,239 $635,051 $617,674 $595,697 $564,845 
Secured debt principal payments44,841 47,289 51,021 54,076 55,635 56,545 57,088 
Total fixed charges644,593 665,094 688,260 689,127 673,309 652,242 621,933 
Adjusted EBITDA$2,981,885 $2,816,379 $2,669,153 $2,509,003 $2,378,164 $2,268,925 $2,189,550 
Adjusted fixed charge coverage ratio4.63 x4.23 x3.88 x3.64 x3.53 x3.48 x3.52 x
(1) Primarily relates to the derecognition of leasehold interests and the gain recognized in other income.
(2) Represents the write-off or recovery of straight-line rent receivable and unamortized lease incentive balances relating to leases placed on cash recognition.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Our leverage ratios include book capitalization, undepreciated book capitalization and enterprise value. Book capitalization represents the sum of net debt (defined as total long-term debt excluding operating lease liabilities less cash and cash equivalents and restricted cash), total equity and redeemable noncontrolling interests. Undepreciated book capitalization represents book capitalization adjusted for accumulated depreciation and amortization. Enterprise value represents book capitalization adjusted for the fair market value of our common stock. Our leverage ratios are defined as the proportion of net debt to total capitalization.
The table below reflects the reconciliation of our leverage ratios to our balance sheets for the periods presented. Amounts are in thousands, except share price. 
As of
 September 30,June 30,March 31,December 31,September 30,June 30,March 31,
 2024202420242023202320232023
Book capitalization:     
Unsecured credit facility and commercial paper$—$—$—$—$—$—$—
Long-term debt obligations (1)
15,854,93714,027,12814,285,68615,815,22615,899,42016,040,53015,074,320
Cash and cash equivalents and restricted cash
(3,784,408)(2,863,598)(2,478,335)(2,076,083)(2,686,711)(2,299,069)(638,796)
Total net debt12,070,52911,163,53011,807,35113,739,14313,212,70913,741,46114,435,524
Total equity and noncontrolling interests(2)
31,064,00329,688,57928,547,90826,371,72723,818,61922,193,11421,596,155
Book capitalization$43,134,532$40,852,109$40,355,259$40,110,870$37,031,328$35,934,575$36,031,679
Net debt to book capitalization ratio28%27%29%34%36%38%40%
Undepreciated book capitalization:     
Total net debt$12,070,529$11,163,530$11,807,351$13,739,143$13,212,709$13,741,461$14,435,524
Accumulated depreciation and amortization10,276,5099,908,0079,537,5629,274,8148,868,6278,599,6228,417,151
Total equity and noncontrolling interests(2)
31,064,00329,688,57928,547,90826,371,72723,818,61922,193,11421,596,155
Undepreciated book capitalization$53,411,041$50,760,116$49,892,821$49,385,684$45,899,955$44,534,197$44,448,830
Net debt to undepreciated book capitalization ratio23%22%24%28%29%31%32%
Enterprise value:     
Common shares outstanding618,396608,151590,934564,241532,268508,159496,295
Period end share price$128.03$104.25$93.44$90.17$81.92$80.89$71.69
Common equity market capitalization$79,173,240$63,399,742$55,216,873$50,877,611$43,603,395$41,104,982$35,579,389
Total net debt12,070,52911,163,53011,807,35113,739,14313,212,70913,741,46114,435,524
Noncontrolling interests(2)
729,722712,153999,965967,351864,583988,6731,148,000
Consolidated enterprise value$91,973,491$75,275,425$68,024,189$65,584,105$57,680,687$55,835,116$51,162,913
Net debt to consolidated enterprise value ratio13%15%17%21%23%25%28%
(1) Amounts include senior unsecured notes, secured debt and lease liabilities related to financing leases, as reflected on our Consolidated Balance Sheets. Operating lease liabilities related to the ASC 842 adoption are excluded.
(2) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests as reflected on our Consolidated Balance Sheets.
Critical Accounting Policies and Estimates
Our unaudited consolidated financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions. Management considers an accounting estimate or assumption critical if:
•the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and
•the impact of the estimates and assumptions on financial condition or operating performance is material.
Management has discussed the development and selection of its critical accounting policies and estimates with the Audit Committee of the Board of Directors. Management believes the current assumptions and other considerations used to estimate amounts reflected in our unaudited consolidated financial statements are appropriate and are not reasonably likely to change in the future. However, since these estimates require assumptions to be made that were uncertain at the time the estimate was made, they bear the risk of change. If actual experience differs from the assumptions and other considerations used in estimating amounts reflected in our unaudited consolidated financial statements, the resulting changes could have a material adverse effect on our consolidated results of operations, liquidity and/or financial condition. Please refer to Note 2 to our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 for further information on significant accounting policies that impact us. There have been no material changes to these policies in 2024.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Statement Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators'/tenants' difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; Welltower's ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters, health emergencies (such as the COVID-19 pandemic) and other acts of God affecting Welltower's properties; Welltower's ability to re-lease space at similar rates as vacancies occur; Welltower's ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting Welltower's properties; changes in rules or practices governing Welltower's financial reporting; the movement of U.S. and foreign currency exchange rates; Welltower's ability to maintain its qualification as a REIT; key management personnel recruitment and retention; and other risks described in Welltower’s reports filed from time to time with the SEC. Other important factors are identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, including factors identified under the headings "Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Finally, Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to various market risks, including the potential loss arising from adverse changes in interest rates and foreign currency exchange rates. We seek to mitigate the underlying foreign currency exposures with gains and losses on derivative contracts hedging these exposures. We seek to mitigate the effects of fluctuations in interest rates by matching the terms of new investments with new long-term fixed rate borrowings to the extent possible. We may or may not elect to use financial derivative instruments to hedge interest rate exposure. These decisions are principally based on our policy to match our variable rate investments with comparable borrowings, but are also based on the general trend in interest rates at the applicable dates and our perception of the future volatility of interest rates. This section is presented to provide a discussion of the risks associated with potential fluctuations in interest rates and foreign currency exchange rates. For more information, see Notes 12 and 17 to our consolidated financial statements.
We historically borrow on our unsecured revolving credit facility and commercial paper program to acquire, construct or make loans relating to health care and seniors housing properties. Then, as market conditions dictate, we will issue equity or long-term fixed rate debt to repay the borrowings under our unsecured revolving credit facility and commercial paper program. We are subject to risks associated with debt financing, including the risk that existing indebtedness may not be refinanced or that the terms of refinancing may not be as favorable as the terms of current indebtedness. The majority of our borrowings were completed under indentures or contractual agreements that limit the amount of indebtedness we may incur. Accordingly, in the event that we are unable to raise additional equity or borrow money because of these limitations, our ability to acquire additional properties may be limited.
A change in interest rates will not affect the interest expense associated with our fixed rate debt. Interest rate changes, however, will affect the fair value of our fixed rate debt. Changes in the interest rate environment upon maturity of this fixed rate debt could have an effect on our future cash flows and earnings, depending on whether the debt is replaced with other fixed rate debt, variable rate debt or equity or repaid by the sale of assets. To illustrate the impact of changes in the interest rate markets, we performed a sensitivity analysis on our fixed rate debt instruments after considering the effects of interest rate swaps, whereby we modeled the change in net present values arising from a hypothetical 1% increase in interest rates to determine the instruments' change in fair value. The following table summarizes the analysis performed as of the dates indicated (in thousands):
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
 September 30, 2024December 31, 2023
 PrincipalChange inPrincipalChange in
 balancefair valuebalancefair value
Senior unsecured notes$12,748,760 $(519,319)$12,800,253 $(515,723)
Secured debt2,329,154 (91,362)1,625,364 (58,066)
Totals$15,077,914 $(610,681)$14,425,617 $(573,789)
Our variable rate debt, including our unsecured revolving credit facility and commercial paper program, is reflected at fair value. At September 30, 2024, we had $947,699,000 outstanding related to our variable rate debt after considering the effects of interest rate swaps. Assuming no changes in outstanding balances, a 1% increase in interest rates would result in increased annual interest expense of $9,477,000. At December 31, 2023, we had $1,496,447,000 outstanding under our variable rate debt. Assuming no changes in outstanding balances, a 1% increase in interest rates would have resulted in increased annual interest expense of $14,964,000. 
We are subject to currency fluctuations that may, from time to time, affect our financial condition and results of operations. Increases or decreases in the value of the Canadian Dollar or British Pounds Sterling relative to the U.S. Dollar impact the amount of net income we earn from our investments in Canada and the United Kingdom. Based solely on our results for the three months ended September 30, 2024, including the impact of existing hedging arrangements, if these exchange rates were to increase or decrease by 10%, our annualized net income from these investments would increase or decrease, as applicable, by less than $20,000,000. We will continue to mitigate these underlying foreign currency exposures with non-U.S. denominated borrowings and gains and losses on derivative contracts. If we increase our international presence through investments in, or acquisitions or development of, seniors housing and health care properties outside the U.S., we may also decide to transact additional business or borrow funds in currencies other than U.S. Dollars, Canadian Dollars or British Pounds Sterling. To illustrate the impact of changes in foreign currency markets, we performed a sensitivity analysis on our derivative portfolio whereby we modeled the change in net present values arising from a hypothetical 1% increase in foreign currency exchange rates to determine the instruments' change in fair value. The following table summarizes the results of the analysis performed (dollars in thousands):
 September 30, 2024December 31, 2023
 CarryingChange inCarryingChange in
 Valuefair valueValuefair value
Foreign currency exchange contracts$81,172 $(44)$10,811 $5,087 
Debt designated as hedges1,591,765 15,918 1,527,380 15,274 
Totals$1,672,937 $15,874 $1,538,191 $20,361 
For additional information regarding fair values of financial instruments, see "Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies" and Notes 12 and 17 to our unaudited consolidated financial statements.
Item 4. Controls and Procedures
Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by us in the reports we file with or submit to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. No changes in our internal control over financial reporting occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, there are various legal proceedings pending against us that arise in the ordinary course of our business. Management does not believe that the resolution of any of these legal proceedings either individually or in the aggregate will have a material adverse effect on our business, results of operations or financial condition. Further, from time to time, we are party to certain legal proceedings for which third parties, such as tenants, operators and/or managers are contractually obligated to indemnify, defend and hold us harmless. In some of these matters, the indemnitors have insurance for the potential damages. In other matters, we are being defended by tenants and other obligated third parties and these indemnitors may not have sufficient insurance, assets, income or resources to satisfy their defense and indemnification obligations to us. The unfavorable resolution of such legal proceedings could, individually or in the aggregate, materially adversely affect the indemnitors’ ability to satisfy their respective obligations to us, which, in turn, could have a material adverse effect on our business, results of operations or financial condition. It is management’s opinion that there are currently no such legal proceedings pending that will, individually or in the aggregate, have such a material adverse effect. Despite management’s view of the ultimate resolution of these legal proceedings, we may have significant legal expenses and costs associated with the defense of such matters. Further, management cannot predict the outcome of these legal proceedings and if management’s expectation regarding such matters is not correct, such proceedings could have a material adverse effect on our business, results of operations or financial condition.
Item 1A. Risk Factors
There have been no material changes from the risk factors identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended September 30, 2024, we acquired shares of our common stock held by employees who tendered shares to satisfy tax withholding obligations upon the vesting of previously issued restricted stock awards. Specifically, the number of shares of common stock acquired from employees and the average prices paid per share for each month in the three months ended September 30, 2024 are as shown in the table below.
Issuer Purchases of Equity Securities
PeriodTotal Number of Shares PurchasedAverage Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced Repurchase ProgramMaximum Dollar Value of Shares that May Yet Be Purchased Under the Repurchase Program
July 1, 2024 through July 31, 2024696 $105.65 — $3,000,000,000 
August 1, 2024 through August 31, 2024442 105.34 — 3,000,000,000 
September 1, 2024 through September 30, 2024668 120.68 — 3,000,000,000 
Totals1,806 $111.13 — $3,000,000,000 
Under the terms of various partnership agreements of certain of our affiliated limited partnerships, the interest of limited partners may be redeemed, subject to certain conditions, for cash or common shares, at our option. During the three months ended September 30, 2024, no OP Units were redeemed for common shares.
On November 7, 2022, our Board of Directors approved a share repurchase program for up to $3,000,000,000 of common stock (the "Stock Repurchase Program"). Under the Stock Repurchase Program, we are not required to purchase shares but may choose to do so in the open market or through privately-negotiated transactions, through block trades, by effecting a tender offer, by way of an accelerated share repurchase program, through the purchase of call options or the sale of put options, or otherwise, or by any combination of the foregoing. We expect to finance any share repurchases using available cash and may use proceeds from borrowings or debt offerings. The Stock Repurchase Program has no expiration date and does not obligate us to repurchase any specific number of shares. We did not repurchase any shares of our common stock through the Stock Repurchase Program during the three months ended September 30, 2024.
Item 5. Other Information 
(c) Trading Plans
During the three months ended September 30, 2024, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).

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Item 6. Exhibits
10.1
10.2
Amendment No. 4 to Credit Agreement, dated as of July 24, 2024, by and among the Company; the lenders therein; KeyBank National Association, as administrative agent and L/C issuer; BofA Securities, Inc., JPMorgan Chase Bank, N.A. and Wells Fargo Securities LLC, as joint book runners; BofA Securities, as book runner; BofA Securities, Inc., JPMorgan Chase Bank, N.A., Wells Fargo Securities LLC, as U.S. joint lead arrangers; BofA Securities, Inc., JPMorgan Chase Bank, N.A., KeyBanc Capital Markets Inc. and RBC Capital Markets, as Canadian joint lead arrangers; Bank of America, N.A., JPMorgan Chase Bank, N.A. and Wells Fargo Securities LLC as co-syndication agents; Bank of America, N.A. , as syndication agent; MUFG Bank, Ltd., Barclays Bank PLC, Citibank, N.A., Credit Agricole Corporate and Investment Bank, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., PNC Bank, National Association and Royal Bank of Canada, as co-documentation agents; BNP Paribas, Citizens Bank, N.A., Fifth Third Bank, National Association, The Huntington National Bank, Regions Bank, The Bank of Nova Scotia, The Toronto-Dominion Bank, New York Branch, TD Bank, NA, Truist Bank, The Bank of New York Mellon, Banco Bilbao Vizcaya Argentaria, S.A., New York Branch and Bank of Montreal, as co-senior managing agents, Capital One, National Association, as managing agent and Credit Agricole Corporate and Investment Bank, as sustainability structuring agent (filed with the Commission as Exhibit 10.1 to the Company's Form 8-K filed July 29, 2024 (File No. 001-08923), and incorporated herein by reference there to).
31.1
31.2
32.1
32.2
101.INSXBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
104
The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline XBRL
Certain instruments with respect to long-term debt of the Registrant and its consolidated subsidiaries are not filed herewith pursuant to Item 601(b)(4)(iii) of Regulation S-K under which the total amount of securities authorized under each such instrument does not exceed 10% of the total assets of the Registrant and its subsidiaries on a consolidated basis. The Registrant agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon request.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the under signed thereunto duly authorized.

 
WELLTOWER INC.
  
 
Date:October 29, 2024By:  /s/ SHANKH MITRA 
 Shankh Mitra,  
 Chief Executive Officer
 (Principal Executive Officer) 		 
 
Date:October 29, 2024By:  /s/ TIMOTHY G. MCHUGH 
 Timothy G. McHugh,  
 Executive Vice President - Chief Financial Officer
 (Principal Financial Officer) 		 
 
Date:October 29, 2024By:  /s/ JOSHUA T. FIEWEGER 
 Joshua T. Fieweger,  
 Chief Accounting Officer
 (Principal Accounting Officer) 		 
60