Welltower Inc. (WELL): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of Welltower Inc.'s aggressive pivot in late 2025, right? After executing over $23.2 billion in transactions year-to-date through Q3, this company isn't just owning buildings; they're running a data-driven operator platform focused squarely on seniors housing. Honestly, seeing their SHO segment deliver over 20% SSNOI growth for twelve straight quarters while simultaneously de-risking the balance sheet to just 2.36x Net Debt to Adjusted EBITDA tells a clear story of strategic execution. We've mapped out the nine blocks of their Business Model Canvas so you can see exactly how they are capturing value from the aging demographic trend-dive in below to see the mechanics.

Welltower Inc. (WELL) - Canvas Business Model: Key Partnerships

Welltower Inc. views its relationships with operators and capital providers as central to its strategy, describing itself as an operating company in a real estate wrapper driven by highly-aligned partnerships. This focus is crucial for delivering long-term compounding of per share growth.

Long-term Operating Agreements and Major Acquisitions

The relationship with seniors housing operators is foundational, with Welltower leveraging its network to source opportunities and enhance cash flow profiles. A significant 2025 transaction involved the $4.6 billion acquisition of Amica Senior Living, adding to its portfolio of astute operating partners. The company's Seniors Housing Operating (SHO) portfolio has shown remarkable consistency, achieving same-store Net Operating Income (NOI) growth exceeding 20% for the twelfth consecutive quarter as of the third quarter of 2025.

The company's strategy involves coordinating with deeply aligned operating partners to drive operational and technological transformation across its portfolio in the Welltower 3.0 phase.

Institutional Capital Partners

Welltower Inc. launched a private funds management business in January 2025, designed to manage third-party capital. This venture immediately secured a major institutional partner. The Abu Dhabi Investment Authority (ADIA) committed up to $400 million as an anchor Limited Partner (LP) to the first fund. Welltower and its management team matched this commitment with an equal contribution of $400 million, suggesting a target size of $2 billion for that initial fund.

This partnership leverages Welltower's data science platform to target stable or near-term stabilization seniors housing portfolios in the United States.

Health Systems and Post-Acute Care Providers

Welltower Inc. invests with leading post-acute providers and health systems to finance the real estate infrastructure necessary to scale innovative care delivery models. The company's post-acute segment is viewed as playing an extraordinarily important role in portfolio construction for sustainable earnings growth. As of the end of the fourth quarter of 2024, Welltower owned 286 long-term care and post-acute facilities, totaling 36,358 beds. Furthermore, the company is actively optimizing its Outpatient Medical (OM) portfolio by growing relationships with health system partners.

Regional Operators and Complex Portfolio Transitions

A key recent example of managing complex portfolios involved the transition of the 89-property Holiday by Atria portfolio, which Welltower had acquired in 2021 for $1.58 billion. This portfolio was transitioned to six regional operators, including Arrow Senior Living, Cogir, Discovery Senior Living, QSL, Sagora, and StoryPoint, to create strong geographic density with best-in-class regional partners. Welltower's improvements to this portfolio helped its operating partners grow occupancy by 560 basis points since the start of 2025.

Here's a look at the scale of some key relationships and recent portfolio activities:

Partner Type/Entity	Metric	Value/Count	Context/Date Reference
Institutional Capital (ADIA)	Anchor LP Commitment (First Fund)	$400 million	January 2025 Launch
Institutional Capital (WELL Mgmt)	Matching LP Contribution (First Fund)	$400 million	January 2025 Launch
Institutional Capital (First Fund Target)	Suggested Total LP Capital Target	$2 billion	Implied from 20% contribution
Regional Operator Transition	Number of Holiday by Atria Properties	89 properties	Transition completed in 2024
Regional Operator Transition	Number of Operators for Holiday Portfolio	Six operators	Arrow, Cogir, Discovery, QSL, Sagora, StoryPoint
Health Systems/Post-Acute	Long-Term/Post-Acute Facilities Owned	286 facilities	As of Q4 2024
Health Systems/Post-Acute	Beds in Long-Term/Post-Acute Facilities	36,358 beds	As of Q4 2024
Seniors Housing Operator	Amica Senior Living Acquisition Value	$4.6 billion	Q1 2025 Acquisition

The success of these operator partnerships is reflected in the SHO portfolio's performance, with same-store NOI growth projected between 16.5% to 21.5% for the full year 2025.

You should track the performance of the new private fund, especially how the initial $240 million portfolio of six seniors housing communities performs under the new operators, as this will be a key indicator of the data science platform's effectiveness in partnership.

Welltower Inc. (WELL) - Canvas Business Model: Key Activities

You're looking at the core engine driving Welltower Inc.'s strategy right now, which is all about disciplined capital deployment and operational superiority in seniors housing. The key activities aren't just about owning buildings; they're about actively managing the portfolio's composition and leveraging technology to extract maximum performance from the assets they keep.

Strategic Capital Allocation

Welltower Inc. is executing a major portfolio pivot, which requires intense focus on capital allocation. Through the third quarter of 2025, the company announced $\text{23.2}$ billion in year-to-date transactions. This activity is structured to solidify Welltower Inc. as a pure-play rental housing platform focused on seniors. The total activity figure includes $\text{14}$ billion in acquisitions and $\text{9}$ billion in dispositions and loan payoffs as of late October 2025.

This activity is mapped out in the following table, showing the scale of the asset rotation:

Activity Type	Pro Rata Gross Value (YTD Q3 2025)	Key Component Example
Acquisitions	$\text{14}$ billion	Barchester Healthcare Acquisition: $\text{7}$ billion
Dispositions & Loan Payoffs	$\text{9}$ billion	Outpatient Medical Portfolio Sale: $\text{7.2}$ billion
Total Transaction Activity	$\text{23.2}$ billion	Total announced activity is over $\text{33}$ billion (Source 7)

The goal is to compound cash flow generated by superior operations, not just financial engineering.

Real Estate Acquisition, Development, and Disposition

A central key activity is the active reshaping of the real estate footprint. Welltower Inc. is divesting non-core assets to fund a concentrated push into seniors housing. The most significant disposition activity involves the sale of its outpatient medical (OM) portfolio. This transaction, valued at approximately $\text{7.2}$ billion, is being completed in tranches, with the first tranche of $\text{2}$ billion closing in October 2025. This sale signals an exit from the OM property management business, with operational responsibilities transitioning to Remedy Medical Properties.

Conversely, acquisitions are heavily weighted toward seniors housing. The $\text{14}$ billion in acquisitions YTD is primarily comprised of high-quality seniors housing communities in the US and UK. A landmark deal was the acquisition of the Barchester Senior Living portfolio for approximately $\text{7}$ billion.

• Portfolio disposition: $\text{7.2}$ billion OM portfolio sale.
• First disposition tranche closed: $\text{2}$ billion in October 2025.
• Acquisition of Barchester portfolio: $\text{7}$ billion.
• Disposition Gain on OM portfolio: $\text{1.9}$ billion recognized through Q3 2025.

Developing and Deploying the Welltower Business System (WBS) Data Platform

Welltower Inc. views itself as an operating company in a real estate wrapper, and the WBS is the mechanism for that operational edge. This end-to-end operating platform uses data science and machine learning to provide real-time actionable business insights to site-level employees. The deployment of WBS is expected to drive multiple years of continued margin expansion and double-digit NOI growth in the Seniors Housing Operating (SHO) portfolio.

This technological focus is supported by key personnel changes, including the appointment of Jeff Stott, formerly of Extra Space Storage, as Chief Technology Officer, and the addition of Logan Grizzel and Tucker Joseph as Chief Innovation Officer and Chief Information Officer, respectively.

Securing Low-Cost, Flexible Financing in the Capital Markets

Maintaining an all-weather balance sheet is a constant key activity, especially when executing large transactions. As of September 30, 2025, Welltower Inc. reported a record low leverage level with Net Debt to Adjusted EBITDA at $\text{2.36x}$. The company maintained significant dry powder, reporting approximately $\text{11.9}$ billion in available liquidity at the end of Q3 2025.

Capital markets activity in Q3 2025 included:

• Equity raised: $\text{2.9}$ billion.
• Senior unsecured notes issued: $\text{1}$ billion (in August 2025).
• Total available liquidity (Sept 30, 2025): $\text{11.9}$ billion.

The company's credit ratings were also upgraded by S&P Global Ratings to $\text{A-}$ and Moody's Investor Service to $\text{A3}$ with stable outlooks, reflecting strong performance and allowing access to debt markets at favorable terms.

Asset Management and Portfolio Optimization for the SHO Segment

The core asset management activity centers on optimizing the performance of the Seniors Housing Operating (SHO) segment, which is now the primary focus. The results show this activity is highly effective. The SHO portfolio achieved same-store NOI growth exceeding $\text{20\%}$ year-over-year for the 12th consecutive quarter as of Q3 2025. Furthermore, the SHO portfolio same-store margin expanded by $\text{260}$ basis points in Q3 2025, driven by strong revenue growth outpacing expense growth.

Key SHO performance metrics for Q3 2025 include:

• SHO SSNOI Growth: $\text{20.3\%}$ year-over-year.
• SHO SSNOI Margin Expansion: $\text{260}$ basis points.
• SHO SS Revenue Growth: $\text{9.7\%}$ year-over-year.

This performance is fueled by a $\text{400}$ basis point year-over-year average occupancy growth in the SHO portfolio.

Welltower Inc. (WELL) - Canvas Business Model: Key Resources

You're looking at the core assets that make Welltower Inc. a leader in the healthcare real estate space as of late 2025. These aren't just properties; they are the foundation supporting their operational model, which they view as an operating company inside a real estate wrapper. Honestly, the numbers here tell a compelling story about stability and strategic positioning.

Diversified Portfolio of Seniors Housing and Healthcare Real Estate Assets

Welltower Inc. maintains a vast, geographically diverse portfolio, which is a critical resource for stable, long-duration Net Operating Income (NOI). The portfolio is intentionally re-mixed, focusing on seniors housing while strategically exiting parts of the Outpatient Medical (OM) management business, though they retain upside via preferred equity.

As of the third quarter of 2025, the scale of the physical assets is substantial:

• Total properties owned: 2,391.
• Seniors and Wellness Housing communities: Over 2,000+.
• Geographic footprint: United States, United Kingdom, and Canada.

The operational performance of this portfolio is a key resource itself, with Seniors Housing Operating (SHO) portfolio year-over-year same store NOI growth hitting 20.3% in Q3 2025.

Strong Balance Sheet with Record Low Leverage

Financial strength is a non-negotiable resource, especially in real estate. Welltower Inc. has actively managed its leverage down, giving it significant optionality for future capital deployment without needing immediate equity raises. This discipline is evident in their debt metrics as of September 30, 2025.

Financial Metric	Value (As of Q3 2025)
Net Debt to Adjusted EBITDA	2.36x
Net Debt to Consolidated Enterprise Value	7.6%
Share of Variable Rate Debt	Approximately 11.3%

This low leverage ratio is considered a record low, providing a strong foundation. Also, their adjusted fixed charge coverage stood at approximately 6.2x for Q3.

Proprietary Data Science Platform (WBS) for Operational Insights

Welltower Inc. views itself as a technology-driven operating company, and its Welltower Business System (WBS), powered by its proprietary data science platform, is central to this identity. This platform is described as an end-to-end operating platform and a true moat.

The data advantage is built on:

• Accumulated operating and financial data from over 100 seniors housing operators.
• Data accumulation period: Over the past 15 years.
• Technology foundation: Evolved from machine learning to deep learning, and now to AI.

WBS provides site-level employees with real-time actionable business insights. This system is designed to create value by centralizing tasks better done at scale, like technology deployment and monthly accounting, while pushing decision-making down to the competent local level.

Access to Deep Liquidity

Having readily available capital means Welltower Inc. can act decisively on accretive investment opportunities, such as the announced $23 billion transaction pipeline. As of September 30, 2025, their liquidity position was robust.

The total available liquidity was approximately $11.9 billion. Here's the quick math on where that stood:

• Available Cash and Restricted Cash: $6.9 billion.
• Full capacity under Line of Credit: $5.0 billion.

This deep liquidity, combined with low leverage, positions the company to fund its pipeline without needing to issue new equity right away, preserving optionality.

Experienced Management Team with a 10-Year Continuity Program

Leadership stability and alignment are key resources, especially for a company undergoing a decade-long transformation. Welltower Inc. formalized this commitment with a new long-term plan.

The Ten-Year Executive Continuity and Alignment Program, approved in October 2025, secures key leaders, including CEO Shankh Mitra, through December 31, 2035. This program ties executive compensation to long-term shareholder interests, with a base salary of $110,000 annually for the five Named Executive Officers during the period of 2026 through 2035, supplemented by long-term equity awards.

The experience driving this is significant; under CEO Mitra's tenure, Welltower Inc.'s market capitalization grew from roughly $22 billion to $117 billion. The team also recently added Jeff Stott, formerly of Extra Space Storage, as Chief Technology Officer to accelerate the WBS focus.

Finance: draft 13-week cash view by Friday.

Welltower Inc. (WELL) - Canvas Business Model: Value Propositions

You're looking at the core promises Welltower Inc. makes to its stakeholders, built on hard numbers from their latest performance cycle.

Exposure to the high-growth demographic trend of the aging population

• Investment focus on seniors housing and outpatient medical properties across the United States, Canada, and the United Kingdom.
• The company views itself as an operating company in a real estate wrapper, positioned at the center of the silver economy.

Superior operational performance: SHO SSNOI growth exceeding 20%

Welltower Inc.'s Seniors Housing Operating (SHO) portfolio has shown remarkable consistency. For the quarter ended June 30, 2025, the SHO portfolio delivered 23.4% Same Store Net Operating Income (SSNOI) growth, marking the 11th consecutive quarter in which growth has exceeded 20%.

This operational strength is supported by:

• SHO portfolio year-over-year same store revenue increase of 10.1% in Q2 2025.
• Year-over-year average occupancy growth of 420 basis points in Q2 2025.

Data-driven asset management that drives margin expansion

The application of the Welltower Business System (WBS), their end-to-end operating platform, directly translates to profitability. In the second quarter of 2025, the SHO portfolio's SSNOI margin expanded by 330 basis points year-over-year.

Here's the quick math on the drivers for that margin expansion:

Metric	Q2 2025 Performance	Source of Data
SSNOI Margin Expansion (SHO)	330 bps
Revenue Per Occupied Room (RevPOR) Growth	4.9%
Total Portfolio SSNOI Growth	13.8%
Normalized FFO Per Share (Q2 2025)	$1.28

The company raised its full-year 2025 Normalized FFO guidance to a midpoint of $5.10 per share following this performance.

Stable, dividend-paying REIT structure for public investors

Welltower Inc. offers a structure designed for income. The Board announced a quarterly cash dividend for Q2 2025 of $0.74 per share, representing a 10.4% increase compared to the prior payout. This marked the company's 217th consecutive quarterly cash dividend payout.

As of late November 2025, the Trailing Annual Dividend Yield was reported at 1.37%. The payout ratio based on adjusted earnings was 65.7% for the three months ended September 2025.

Capital solutions for operators via RIDEA and triple-net lease structures

Welltower Inc. actively converts assets to the Seniors Housing Operating (RIDEA) structure to participate more directly in cash flow growth. During 2024, agreements were reached to convert 68 triple-net leased properties to RIDEA structures. For the nine months ended September 30, 2025, rental income recognized from operating leases totaled $1,444,082,000.

The company also launched its private funds management business in January 2025, with its first fund having the capacity to source up to $2 billion to invest in stable or near-stable seniors housing properties in the U.S.

• Net Debt to Adjusted EBITDA as of June 30, 2025, was 2.93x.
• Available liquidity was approximately $9.5 billion as of June 30, 2025.
• Year-to-date pro rata investment activity announced as of July 28, 2025, totaled $9.2 billion.

Welltower Inc. (WELL) - Canvas Business Model: Customer Relationships

You're looking at how Welltower Inc. manages its most critical external relationships-the operators who run the properties and the investors who fund the growth. It's less about simple transactions and more about deep, structural alignment, which is key for a real estate company that views itself as an operating company in a real estate wrapper. Welltower Inc. is focused on creating sustained alpha through these proprietary, long-term connections.

Collaborative, long-term relationships with operators via RIDEA structure

Welltower Inc. builds collaborative, long-term relationships with its operating partners through its evolving RIDEA (Real Estate Investment Diversification and Empowerment Act) structure. The latest iteration, RIDEA 6.0, was announced in October 2025, designed to create even greater alignment between Welltower Inc.'s shareholders and key growth operators. The evolution moved from RIDEA 1.0 to RIDEA 5.0 before this latest version, establishing both top- and bottom-line alignment, at-will termination rights, and data sharing. Welltower Inc. forged 25+ proprietary, long-term relationships during the COVID period, which are driving significant long-term capital deployment opportunities. The potential capital deployment pipeline from these exclusive partnerships is in excess of $30B. The RIDEA evolution provides greater long-term alignment through NOI-based management fees and enhanced promote structures. For instance, three of the largest operating partners-Cogir, Oakmont, and StoryPoint-will represent the founding class of the RIDEA 6.0 contracts. Furthermore, the Welltower Fellowship Grant, established to honor Charles T. Munger, provides direct financial recognition to front-line staff at Welltower Inc.'s ten best performing seniors housing communities.

Here is a look at some of the top operating partners by Welltower Inc. pro rata NOI contribution as of September 30, 2025:

Partner Name	Total Properties	Seniors Housing Operating NOI (in thousands)	% of Total In-Place NOI
Cogir Management Corporation	181	$344,980	10.5%
Sunrise Senior Living	85	$228,436	6.9%
Avery Healthcare	94	$100,804	5.4%
Oakmont Management Group	69	$170,512	5.2%
StoryPoint Senior Living	101	$158,068	4.8%

Institutional investor relations for the new private funds business

The new private funds business is a key focus for institutional investor relations, designed to generate significant revenue and increase regional density across Welltower Inc.'s portfolio. The inaugural Seniors Housing Fund was launched with the Abu Dhabi Investment Authority (ADIA) serving as the anchor Limited Partner (LP), committing 20% or up to $400 million of capital for the first fund. This fund is already under contract or closed to acquire two stabilized portfolios for a total consideration in excess of $1.0 billion. For the broader equity base, as of June 30, 2025, Welltower Inc. had 1,232 institutional holders. The largest holders included VANGUARD GROUP INC with 85,786,487 shares and BlackRock, Inc. with 66,550,890 shares as of that date. The company's market capitalization stood at approximately $140.2B as of late October 2025.

Performance-based alignment through the Welltower Business System (WBS)

Performance-based alignment is institutionalized through the Welltower Business System (WBS), Welltower Inc.'s end-to-end operating platform. The momentum from WBS is expected to drive multiple years of continued margin expansion. For the third quarter of 2025, Welltower Inc. reported year-over-year same store NOI (SSNOI) growth of 14.5%, driven by 20.3% growth in the Seniors Housing Operating (SHO) portfolio. This resulted in a 260 bps year-over-year margin increase to 29.9%. The company's operational achievements in 2024 resulted in 19% Normalized FFO per diluted share growth. The 2025 guidance outlook reflected expected Seniors Housing Operating SSNOI growth in the range of 20.5% to 22.0%. The balance sheet deleveraging, culminating in an S&P rating of A- and Moody's rating of A3, also reflects the operational risk reduction driven by WBS.

Standardized landlord-tenant relationship for triple-net (NNN) properties

For the triple-net (NNN) properties, the landlord-tenant relationship is standardized, meaning the operator is responsible for all property operating expenses and maintenance costs. These leases are structured with 3.5% annual escalators and a coverage-based rent reset every five years at Welltower Inc.'s election. As of the third quarter of 2025, the Seniors Housing Triple-net segment was expected to see average blended SSNOI growth of 3.5% to 4.5% for the full year 2025. The coverage metrics for the Seniors Housing Triple-net portfolio as of September 30, 2025, were 1.21x for EBITDAR Coverage and 1.41x for EBITDARM Coverage. Welltower Inc. is actively managing its portfolio composition, having entered a definitive agreement to divest an Outpatient Medical portfolio valued at approximately $7.2 billion.

• The triple-net lease structure includes a coverage-based rent reset elected every five years.
• Expected 2025 SSNOI growth for Seniors Housing Triple-net is between 3.5% and 4.5%.
• The Seniors Housing Triple-net portfolio occupancy was reported at 84.7% as of September 30, 2025.

Welltower Inc. (WELL) - Canvas Business Model: Channels

You're looking at how Welltower Inc. gets its value proposition-high-quality senior housing and wellness infrastructure-into the hands of its customers, the healthcare operators, and how it funds all of that. It's a multi-pronged approach, mixing direct control with capital market access.

Direct ownership and leasing of properties to healthcare operators.

This is the core of Welltower Inc.'s business, where they own the real estate and lease it to operators who run the day-to-day care. As of late 2025, Welltower Inc. owns a portfolio of over 2,000+ seniors and wellness housing communities across the United States, United Kingdom, and Canada. The structure is a mix, giving them different levels of operational involvement. For instance, as of March 31, 2025, the portfolio included 1,256 communities in its Seniors Housing Operating (SHOP) portfolio and 301 in its triple-net portfolio. The triple-net leases often come with stable income escalators, like the structure mentioned for the Barchester deal, which featured 3.5% annual escalators.

The recent major UK expansion highlights this channel clearly. The $\text{£}5.2$ billion acquisition of the Barchester Healthcare real estate portfolio alone included 111 communities managed via an aligned RIDEA contract and 152 triple-net leased communities. This direct leasing and ownership model is what drives their Same Store Net Operating Income (SSNOI) growth, which hit 13.8% year-over-year as of June 30, 2025.

Here's a quick look at the scale of the recent direct property transactions:

Transaction Component	Value/Metric	Structure Type
Barchester Portfolio Acquisition	£5.2 billion (or approx. $6.92 billion)	Mix of RIDEA and Triple-Net Leases
HC-One Portfolio Acquisition	£1.2 billion	Implied Operating/Lease Structure
Total UK Healthcare Assets Post-Deals	£6.4 billion	Total UK Investment Footprint
Total Seniors Housing Acquisitions (YTD Q3 2025)	$14 billion	Pro Rata Gross Investments

Public equity markets (NYSE: WELL) for capital and investor access.

Welltower Inc. uses its listing on the New York Stock Exchange (NYSE: WELL) as a primary channel for raising large amounts of equity capital to fund its acquisitions. As of late 2025, the company held a market capitalization around $141.6 billion to $142.9 billion. To ensure it has the dry powder for deals like the UK acquisitions, Welltower Inc. announced a new equity distribution agreement allowing it to offer and sell up to $7.5 billion of its common stock through at-the-market (ATM) offerings. This access to public capital markets is crucial, especially as the company reported a year-to-date stock return of 40.81% as of late October 2025.

Private funds management platform for third-party capital deployment.

To supplement its balance sheet capital, Welltower Inc. launched its private funds management business in January 2025 to manage capital from third parties. This channel is designed to deploy capital across the capital structure in healthcare and wellness real estate. The anchor Limited Partner (LP), a subsidiary of the Abu Dhabi Investment Authority (ADIA), committed up to $400 million to the first fund. Welltower Inc. and its management also contributed up to $400 million of LP capital. The fund is already active; it has closed or is under contract to acquire two stabilized portfolios for total consideration in excess of $1.0 billion. The initial investments included a portfolio of six communities for a total purchase price of $240 million.

• The platform leverages Welltower Inc.'s Data Science platform for deal sourcing.
• The first fund focuses on US seniors housing, targeting stable or near-term stabilization assets.
• The business aims to increase regional density across Welltower Inc.'s overall portfolio.

Direct transactions for large portfolio acquisitions like the £5.2 billion Barchester deal.

Welltower Inc. executes large, direct transactions to rapidly scale its portfolio in high-growth markets. The acquisition of the Barchester portfolio for £5.2 billion (or about $6.88 billion to $6.92 billion) is a prime example. This deal, which took nearly 6 years of negotiation, was part of a larger Q3 2025 activity that included $1.9 billion in pro rata gross investments in that quarter alone. The company confirmed it completed acquisitions and sales totaling $23 billion in the seniors rental housing space in that period. These direct deals are often funded through a combination of asset sales, loan repayments, and cash on hand, with the Barchester purchase partially funded by repaying a £660 million loan.

The sheer volume of capital deployment is notable; Welltower Inc. announced $9.2 billion of pro rata investment activity year-to-date as of July 28, 2025, exceeding all of 2024's activity by 50%. Finance: draft 13-week cash view by Friday.

Welltower Inc. (WELL) - Canvas Business Model: Customer Segments

You're looking at the core groups Welltower Inc. serves, which directly dictates how they structure their real estate partnerships and capital deployment. It's not just about owning buildings; it's about aligning with the operators and capital sources that drive the silver economy forward. Welltower Inc. clearly segments its focus across operational partners, capital partners, direct lease relationships, and the public market that funds it all.

Seniors Housing Operating (SHO) partners represent the most dynamic part of the business. These are the operators of assisted living and memory care facilities where Welltower Inc. uses RIDEA structures (REIT Investment Diversification and Empowerment Act) to share in the upside. As of June 1, 2025, Welltower Inc. owned 1,067 properties encompassing 112,641 units in this segment, having grown the portfolio by nearly 10 percent between 2024 and 2025. The performance here is strong; the SHO portfolio same-store NOI growth was projected for the range of 20.5% to 22.0% for the full year 2025. This segment is the focus of Welltower Inc.'s Welltower 3.0 transformation, aiming for the percentage of in-place Net Operating Income (NOI) derived from seniors housing to reach the mid-80%-range following major transaction activity announced in late 2025.

Institutional investors and sovereign wealth funds are key customers for Welltower Inc.'s capital formation efforts. In January 2025, Welltower Inc. formally launched its private funds management business to manage third-party capital for real estate investments. As of June 30, 2025, the unconsolidated investment balance in their first seniors housing fund stood at $279,338,000. These funds allow Welltower Inc. to deploy capital alongside partners like ADIA (Abu Dhabi Investment Authority), though specific ADIA figures aren't in the latest reports, the structure is designed to attract this caliber of capital.

Triple-Net (NNN) lease tenants, which often include skilled nursing and post-acute care operators, represent a more traditional landlord relationship where the tenant handles most operating expenses. Welltower Inc. is actively managing this exposure, having completed the transition of 68 properties from triple-net to the SHO (RIDEA) structure in 2024, with 16 additional conversions planned. For the NNN portion, the outlook for Seniors Housing Triple-net same-store NOI growth was projected between 3.5% to 4.5% for the blended 2025 outlook. For the nine months ended September 30, 2025, Welltower Inc. recognized $1,444,082,000 in rental income related to operating leases in its Triple-net and Outpatient Medical portfolios.

Public equity investors seek income and growth from Welltower Inc. as a large-cap REIT. As of July 25, 2025, there were 668,825,942 shares of common stock outstanding. The stock was recently yielding about 1.4% based on a $0.74 quarterly dividend. The confidence from the market is reflected in the upward revision of the full-year 2025 normalized Funds From Operations (FFO) guidance to a range of $5.24 to $5.30 per diluted share as of the Q3 2025 update. Institutional investors held a significant stake, with one report noting 94.80% ownership as of early December 2025.

Here's a quick look at the portfolio composition by asset type, based on the March 31, 2025, data, which helps define the scale of the relationships with these customer segments:

Asset Type / Segment	Total Properties (Count)	Pro Rata NOI Contribution (%)	Projected SSNOI Growth Range (2025)
Seniors Housing Operating (SHO)	1,067 (Total Units: 112,641)	84.9% (Based on In-Place NOI Diversification)	20.5% to 22.0%
Seniors Housing Triple-net (SH-NNN)	341,048 (Square Feet)	1.56x (Coverage Metric)	3.5% to 4.5%
Outpatient Medical (OM)	561,072 (Square Feet)	1.92x (Coverage Metric)	2.0% to 3.0%
Long-Term/Post-Acute Care	526,188 (Square Feet)	23.4% (Based on In-Place NOI Diversification)	2.0% to 3.0%

The strategic shift is clear, emphasizing the deep partnership model with SHO operators:

• Focus on creating win-win partnerships with SHO operators, sharing in the upside.
• Transitioning hundreds of properties to best-in-class regional operating partners.
• The company is exiting the Outpatient Medical (OM) property management business, transitioning responsibilities to Remedy Medical Properties.
• The first tranche of the OM portfolio sale completed in October 2025 for a gross sale price of $2 billion.
• The goal is to deepen economic alignment between shareholders and key operating partners, with approximately ~90% At Risk compensation for Named Executive Officers (NEOs) tied to performance.

Finance: draft 13-week cash view by Friday.

Welltower Inc. (WELL) - Canvas Business Model: Cost Structure

You're looking at the core outflows for Welltower Inc. (WELL) as of late 2025. These are the real dollars moving out the door to keep the portfolio running and growing.

Interest Expense on Debt and Leverage Position

Debt service, specifically interest expense, remains a significant cost, even as Welltower Inc. reports achieving historically low leverage ratios. The company repaid a large bond maturity of $1.25 billion in June 2025. Despite this debt management, the interest expense for the nine months ending September 30, 2025, totaled $448,171 thousand.

Here's the quick math on leverage as of mid-2025:

Metric	Value as of June 30, 2025
Net Debt to Adjusted EBITDA	2.93x
Net Debt to Consolidated Enterprise Value	10.1%
Adjusted Fixed Charge Coverage Ratio	6.33x

What this estimate hides is the cost of servicing the debt used to fund the aggressive capital deployment, which is substantial.

Property Operating Expenses for the SHO Portfolio

Property operating expenses, which cover things like labor and utilities for the Senior Housing Operating (SHO) portfolio, are a major component of the cost base. For the three months ending September 30, 2025, these expenses hit $1,577,048 thousand. Over the first nine months of 2025, the cumulative property operating expenses reached $4,554,149 thousand.

General and Administrative (G&A) Costs

General and administrative costs include the overhead for running the corporate structure, which now explicitly incorporates investments in data science and technology to drive operational improvements. The guidance for full-year 2025 G&A expenses was set in the range of $243 million to $249 million. For the nine months ended September 30, 2025, Welltower Inc. reported G&A expenses of $191,057 thousand.

You see the quarterly breakdown of these overheads:

• Three Months Ended September 30, 2025 G&A: $63,124 thousand
• Three Months Ended September 30, 2024 G&A: $77,901 thousand

Capital Expenditures for Growth Projects

Welltower Inc. is actively funding future cash flow through development and redevelopment. The company anticipated funding an additional $212 million of development in 2025 for projects underway as of June 30, 2025. Separately, year-to-date development funding through October 27, 2025, totaled $351.1 million on a pro-rata gross basis.

Acquisition and Transaction Costs

The volume of deals is definitely high, leading to significant transaction-related costs. Welltower Inc. announced $6.2 billion worth of investments in 2025 as of late April, and by the end of Q2, the total investment activity closed or under contract was $9.2 billion. This high activity includes major deals, such as the roughly $4.6 billion CAD acquisition announced in March.

The scale of capital deployment for the year through October 27, 2025, is clear:

• Pro Rata Gross Investments Closed/Under Contract: $9.2 billion (as of Q2 2025 updates)
• Pro Rata Gross Acquisitions and Loan Funding (YTD through Oct 27, 2025): $5.47 billion

Finance: draft 13-week cash view by Friday.

Welltower Inc. (WELL) - Canvas Business Model: Revenue Streams

You're looking at the core ways Welltower Inc. brings in cash, focusing on the most recent, hard numbers we have as of late 2025. This isn't about projections from last year; this is grounded in the Q3 2025 results and the major strategic moves announced in October 2025.

The primary engine remains property operations and leasing. The Seniors Housing Operating (SHO) segment is showing significant operational leverage. For the quarter ended September 30, 2025, the SSNOI growth (Same Store Net Operating Income) in the SHO portfolio hit 20.3% year-over-year. This follows a 23.4% growth rate reported in Q2 2025. To put that in perspective, the annualized Net Operating Income (NOI) for the SHO portfolio surpassed $2 billion during the second quarter of 2025. That's pure operational cash flow growth you can count on.

Rental income from the triple-net (NNN) leased properties provides the stable base. For the second quarter of 2025, the Triple-net senior housing portfolio saw SSNOI growth of 5.1% year-over-year. Looking ahead, Welltower Inc. expected the blended SSNOI growth for the Seniors Housing Triple-net segment to be in the range of 3.5% to 4.5% for the full year 2025.

The company's forward-looking profitability metric, the full-year normalized FFO (Funds From Operations), was significantly raised following strong mid-year performance. The latest guidance, as of late October 2025, is set between $5.24 to $5.30 per diluted share.

Asset dispositions are a major source of capital realization, funding the pivot to pure-play senior housing. Welltower Inc. announced a definitive agreement to divest its 18 million square foot outpatient medical (OM) portfolio, valued at approximately $7.2 billion. The first tranche of this sale closed in October 2025 for a gross sale price of $2 billion. Net aggregate proceeds after reinvestment into a preferred equity position are anticipated to total approximately $6.0 billion. The prompt mentioned a specific gain of $1.9 billion on the medical portfolio sale, but the available data confirms the total transaction value and the first tranche sale price, not the specific realized gain amount. The expected pro rata disposition proceeds for the twelve months following Q2 2025 were projected at $340 million.

The new private funds business, launched in January 2025, is structured to generate fees. Revenue streams from this segment are intended to include asset management fees and potential carried interest upon achieving performance hurdles. The initial fund secured an anchor commitment of up to $400 million from a subsidiary of the Abu Dhabi Investment Authority (ADIA).

Here's a quick look at the key operational and guidance numbers driving revenue quality:

• Q3 2025 Normalized FFO per share: $1.34.
• Q2 2025 SHO Portfolio SSNOI Growth: 23.4%.
• Q3 2025 SHO Portfolio SSNOI Growth: 20.3%.
• Total Portfolio SSNOI Growth (Q2 2025): 13.8%.
• Total Portfolio SSNOI Growth (Q3 2025): 14.5%.
• Total Q3 2025 Revenue: $2.69 billion.

You can see how the core operations are performing versus the expected annual metrics in this table:

Revenue Stream Component	Latest Reported Metric (Q2/Q3 2025)	2025 Full-Year Guidance/Target
Seniors Housing Operating (SHO) SSNOI Growth	20.3% (Q3 Y/Y)	18.5% to 21.5%
Seniors Housing Triple-net SSNOI Growth	5.1% (Q2 Y/Y)	3.5% to 4.5%
Outpatient Medical SSNOI Growth	Not explicitly detailed for Q3 2025	2.0% to 3.0%
Normalized FFO per Share	$1.34 (Q3 Actual)	$5.24 to $5.30 (Guidance)
Major Asset Disposition Proceeds (OM Portfolio)	First Tranche Sale: $2.0 billion (October 2025)	Total Expected Net Proceeds: Approx. $6.0 billion

The private funds business is set up to generate fees, with the anchor LP committing $400 million to the first fund. Also, Welltower Inc. completed $1.9 billion of pro rata gross investments in Q3 2025 alone. That's capital being deployed, which feeds future rental and operating income streams.