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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
   
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
   
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                      
Commission file number: 1-8923 (Welltower Inc.) 333-264093-01 (Welltower OP Inc.)
WELLTOWER INC.
WELLTOWER OP INC.
 
(Exact name of registrant as specified in its charter
Delaware (Welltower Inc.)
34-1096634
Delaware (Welltower OP Inc.)
88-1538732
(State or other jurisdiction
of Incorporation)
(IRS Employer
Identification No.)
4500 Dorr StreetToledo,Ohio43615
(Address of principal executive offices)(Zip Code)
(419) -247-2800
(Registrants' telephone number, including area code)  
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of each exchange on which registered
Welltower Inc.Common stock, $1.00 par value per shareWELLNew York Stock Exchange
Welltower OP Inc.4.800% Notes due 2028WELL/28New York Stock Exchange
Welltower OP Inc.4.500% Notes due 2034WELL/34New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Welltower Inc. Yes  þ  No  ¨
Welltower OP Inc. Yes  þ  No  ¨
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Welltower Inc. Yes þ  No  ¨
Welltower OP Inc. Yes þ  No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Welltower Inc.
Large accelerated filer
 þ
 Accelerated filer
¨
 Non-accelerated filer
¨
 Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
Welltower OP Inc.
Large accelerated filerþ
 Accelerated filer
 Non-accelerated filer
 Smaller reporting company
Emerging growth company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Welltower Inc. Yes No  þ
Welltower OP Inc. Yes No  þ
As of April 29, 2022, Welltower Inc. had 453,967,774 shares of common stock outstanding. 









































EXPLANATORY NOTE
On March 7, 2022, Welltower Inc. issued a press release announcing that it intends to implement a corporate reorganization into an Umbrella Partnership Real Estate Investment Trust ("UPREIT"). Through March 31, 2022, the business of the registrant was conducted by an entity known as Welltower Inc., a Delaware corporation and real estate investment trust ("Old Welltower"). In February 2022, Old Welltower formed WELL Merger Holdco Inc., a Delaware corporation ("New Welltower"), as a wholly owned subsidiary and New Welltower formed WELL Merger Holdco Sub Inc., a Delaware corporation ("Merger Sub"), as a wholly owned subsidiary. On April 1, 2022, Merger Sub merged with and into Old Welltower, with Old Welltower continuing as the surviving corporation (the "Merger"). As a result, New Welltower became the publicly traded parent company of Old Welltower and Old Welltower's subsidiaries and inherited the name "Welltower Inc." In conjunction with the Merger, Old Welltower changed its name to "Welltower OP Inc." and, subject to approval of New Welltower's shareholders at the 2022 annual meeting, Old Welltower will convert to a Delaware limited liability company ("Welltower OP LLC"). At the effective time of the Merger, each outstanding capital share of Old Welltower was converted into one equivalent capital share of New Welltower. Following the UPREIT reorganization, Welltower Inc. expects its business to be conducted through Welltower OP LLC and does not expect to have substantial assets or liabilities, other than through its investment in Welltower OP LLC.
As a result of the Merger, New Welltower became the successor issuer to Old Welltower pursuant to Rule 12g-3(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as a result, New Welltower's common shares were deemed registered under Section 12(b) of the Exchange Act. This Quarterly Report on Form 10-Q pertains to the business and results of operations of Welltower OP Inc. (Old Welltower) for its quarter ended March 31, 2022, and all data, discussions or references to other periods prior to the effectiveness of the Merger pertain to Old Welltower. At the effective time of the Merger, both Old Welltower and New Welltower were, and remain, public registrants and New Welltower began to conducts its operations through Old Welltower. As such, we have elected to co-file this Quarterly Report on Form 10-Q to ensure continuity of information to investors. For additional information on our UPREIT reorganization, please see our Current Reports on Form 8-K filed on March 7, 2022 and April 1, 2022.
Throughout this Quarterly Report on Form 10-Q, unless the context requires otherwise, "the Company", "we", "us" and "our" refer to Welltower OP Inc. (Old Welltower) through March 31, 2022. Forward-looking references to dates and periods occurring after April 1, 2022 are references to Welltower Inc. (New Welltower).







TABLE OF CONTENTS
 
 
PART I. FINANCIAL INFORMATIONPage
  
Item 1. Financial Statements (Unaudited)
  
Consolidated Balance Sheets
  
Consolidated Statements of Comprehensive Income
  
Consolidated Statements of Equity
  
Consolidated Statements of Cash Flows
  
Notes to Unaudited Consolidated Financial Statements
  
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  
Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
Item 4. Controls and Procedures
  
PART II. OTHER INFORMATION 
  
Item 1. Legal Proceedings
  
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
Item 5. Other Information
  
Item 6. Exhibits
  
Signatures



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements 

CONSOLIDATED BALANCE SHEETS
WELLTOWER INC. AND SUBSIDIARIES
(In thousands) 
March 31, 2022 (Unaudited)December 31, 2021 (Note)
Assets:  
  
Real estate investments:  
  
Real property owned:  
Land and land improvements  $4,030,150 $3,968,430 
Buildings and improvements  31,724,328 31,062,203 
Acquired lease intangibles  1,844,780 1,789,628 
Real property held for sale, net of accumulated depreciation  199,490 134,097 
Construction in progress  717,657 651,389 
Less accumulated depreciation and amortization  (7,215,622)(6,910,114)
Net real property owned  31,300,783 30,695,633 
Right of use assets, net404,689 522,796 
Real estate loans receivable, net of credit allowance  1,003,136 1,068,681 
Net real estate investments  32,708,608 32,287,110 
Other assets:  
Investments in unconsolidated entities  1,138,526 1,039,043 
Goodwill  68,321 68,321 
Cash and cash equivalents  301,089 269,265 
Restricted cash  65,954 77,490 
Straight-line rent receivable385,639 365,643 
Receivables and other assets  804,316 803,453 
Total other assets  2,763,845 2,623,215 
Total assets  
$35,472,453 $34,910,325 
Liabilities and equity  
Liabilities:  
Unsecured credit facility and commercial paper$299,968 $324,935 
Senior unsecured notes  12,136,760 11,613,758 
Secured debt  2,104,945 2,192,261 
Lease liabilities548,999 545,944 
Accrued expenses and other liabilities  1,203,755 1,235,554 
Total liabilities  
16,294,427 15,912,452 
Redeemable noncontrolling interests  
445,960 401,294 
Equity:  
Common stock  455,376 448,605 
Capital in excess of par value  23,620,112 23,133,641 
Treasury stock  (112,518)(107,750)
Cumulative net income  8,725,661 8,663,736 
Cumulative dividends  (14,654,583)(14,380,915)
Accumulated other comprehensive income (loss)  (138,472)(121,316)
Total Welltower Inc. stockholders’ equity  17,895,576 17,636,001 
Noncontrolling interests  836,490 960,578 
Total equity  
18,732,066 18,596,579 
Total liabilities and equity  
$35,472,453 $34,910,325 
Note: The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

5


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands, except per share data) 
Three Months Ended
March 31,
 20222021
Revenues:
Resident fees and services$994,335  $723,464 
Rental income  356,390 302,843 
Interest income38,994 19,579 
Other income5,985 6,176 
Total revenues1,395,704 1,052,062 
Expenses:
Property operating expenses853,669 617,326 
Depreciation and amortization304,088 244,426 
Interest expense121,696 123,142 
General and administrative expenses37,706 29,926 
Loss (gain) on derivatives and financial instruments, net2,578 1,934 
Loss (gain) on extinguishment of debt, net(12)(4,643)
Provision for loan losses, net(804)1,383 
Impairment of assets 23,568 
Other expenses26,069 10,994 
Total expenses1,344,990 1,048,056 
Income (loss) from continuing operations before income taxes and other items50,714 4,006 
Income tax (expense) benefit(5,013)(3,943)
Income (loss) from unconsolidated entities(2,884)13,049 
Gain (loss) on real estate dispositions, net22,934 59,080 
Income (loss) from continuing operations65,751 72,192 
Net income65,751 72,192 
Less: Net income (loss) attributable to noncontrolling interests(1)
3,826 646 
Net income (loss) attributable to common stockholders$61,925 $71,546 
Weighted average number of common shares outstanding:
Basic447,379 417,241 
Diluted449,802 419,079 
Earnings per share:
Basic:
Income (loss) from continuing operations$0.15 $0.17 
Net income (loss) attributable to common stockholders$0.14 $0.17 
Diluted:
Income (loss) from continuing operations$0.15 $0.17 
Net income (loss) attributable to common stockholders(2)
$0.14 $0.17 
Dividends declared and paid per common share$0.61 $0.61 
(1) Includes amounts attributable to redeemable noncontrolling interests.
(2) Includes adjustment to the numerator for income (loss) attributable to OP unitholders.


6


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands) 
 Three Months Ended
March 31,
 20222021
Net income$65,751 $72,192 
Other comprehensive income (loss):
Foreign currency translation gain (loss)(66,948)44,210 
Derivative and financial instruments designated as hedges gain (loss)51,940 (20,037)
Total other comprehensive income (loss)(15,008)24,173 
Total comprehensive income (loss)50,743 96,365 
Less: Total comprehensive income (loss) attributable
to noncontrolling interests(1)
5,974 4,451 
Total comprehensive income (loss) attributable to common stockholders$44,769 $91,914 
(1) Includes amounts attributable to redeemable noncontrolling interests.

7


CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended March 31, 2022
Common
Stock
Capital in
Excess of
Par Value
Treasury
Stock
Cumulative
Net Income
Cumulative
Dividends
Accumulated Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Balances at January 1, 2022$448,605 $23,133,641 $(107,750)$8,663,736 $(14,380,915)$(121,316)$960,578 $18,596,579 
Comprehensive income:
Net income (loss)61,925 2,752 64,677 
Other comprehensive income (loss)(17,156)1,465 (15,691)
Total comprehensive income48,986 
Net change in noncontrolling interests(63,026)(128,305)(191,331)
Amounts related to stock incentive plans, net of forfeitures166 7,279 (4,768)2,677 
Net proceeds from issuance of common stock6,605 542,218 548,823 
Dividends paid:
Common stock dividends(273,668)(273,668)
Balances at March 31, 2022$455,376 $23,620,112 $(112,518)$8,725,661 $(14,654,583)$(138,472)$836,490 $18,732,066 

 Three Months Ended March 31, 2021
 Common
Stock
Capital in
Excess of
Par Value
Treasury
Stock
Cumulative
Net Income
Cumulative
Dividends
Accumulated Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Balances at January 1, 2021$418,691 $20,823,145 $(104,490)$8,327,598 $(13,343,721)$(148,504)$908,853 $16,881,572 
Comprehensive income:
Net income (loss)71,546 (177)71,369 
Other comprehensive income (loss)20,368 3,729 24,097 
Total comprehensive income95,466 
Net change in noncontrolling interests(14,250)(20,266)(34,516)
Amounts related to stock incentive plans, net of forfeitures175 5,393 (2,029)3,539 
Net proceeds from issuance of common stock(92)(92)
Dividends paid:
Common stock dividends(254,952)(254,952)
Balances at March 31, 2021$418,866 $20,814,196 $(106,519)$8,399,144 $(13,598,673)$(128,136)$892,139 $16,691,017 

8


CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended
March 31,
 20222021
Operating activities:    
Net income  $65,751 $72,192 
Adjustments to reconcile net income to net cash provided from (used in) operating activities:  
Depreciation and amortization  
304,088 244,426 
Other amortization expenses  
5,592 4,197 
Provision for loan losses
(804)1,383 
Impairment of assets  
 23,568 
Stock-based compensation expense  
7,445 5,576 
Loss (gain) on derivatives and financial instruments, net  
2,578 1,934 
Loss (gain) on extinguishment of debt, net  
(12)(4,643)
Loss (income) from unconsolidated entities
2,884 (13,049)
Rental income less than (in excess of) cash received  
(22,215)30,563 
Amortization related to above (below) market leases, net  
(419)(460)
Loss (gain) on real estate dispositions, net  
(22,934)(59,080)
Distributions by unconsolidated entities
6,982 3,036 
Increase (decrease) in accrued expenses and other liabilities  
(23,416)(4,406)
Decrease (increase) in receivables and other assets  
(1,000)(1,579)
Net cash provided from (used in) operating activities  324,520 303,658 
 
Investing activities:  
Cash disbursed for acquisitions, net of cash acquired
(601,410)(203,107)
Cash disbursed for capital improvements to existing properties
(90,229)(28,780)
Cash disbursed for construction in progress
(138,141)(73,605)
Capitalized interest  
(5,479)(4,496)
Investment in loans receivable
(39,201)(43,148)
Principal collected on loans receivable  
89,207 2,852 
Other investments, net of payments  
2,401 664 
Contributions to unconsolidated entities  
(115,249)(94,095)
Distributions by unconsolidated entities  
5,882 36,934 
Proceeds from (payments on) derivatives  
10,104 (6,567)
Proceeds from sales of real property  
73,568 274,208 
Net cash provided from (used in) investing activities  (808,547)(139,140)
Financing activities:  
Net increase (decrease) under unsecured credit facility and commercial paper
(24,967) 
Net proceeds from issuance of senior unsecured notes545,082 713,907 
Net proceeds from the issuance of secured debt  
5,385  
Payments on secured debt  
(116,789)(57,888)
Net proceeds from the issuance of common stock  
549,346  
Payments for deferred financing costs and prepayment penalties  
(69)(1,221)
Contributions by noncontrolling interests(1)
4,101 5,073 
Distributions to noncontrolling interests(1)
(177,979)(30,117)
Cash distributions to stockholders  
(273,045)(254,915)
Other financing activities
(5,960)(2,936)
Net cash provided from (used in) financing activities  505,105 371,903 
Effect of foreign currency translation on cash and cash equivalents and restricted cash(790)1,358 
Increase (decrease) in cash, cash equivalents and restricted cash  20,288 537,779 
Cash, cash equivalents and restricted cash at beginning of period  346,755 2,021,043 
Cash, cash equivalents and restricted cash at end of period  $367,043 $2,558,822 
Supplemental cash flow information:
Interest paid$123,012 $135,947 
Income taxes paid (received), net631 (852)
(1) Includes amounts attributable to redeemable noncontrolling interests.

9

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Business
Welltower Inc., an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. We invest 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™, a real estate investment trust (“REIT”), 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. 
On March 7, 2022, we announced our intent to complete an UPREIT reorganization. In February 2022, the company formerly known as Welltower Inc. ("Old Welltower") formed WELL Merger Holdco Inc. ("New Welltower") as a wholly owned subsidiary, and New Welltower formed WELL Merger Holdco Sub Inc. ("Merger Sub") as a wholly owned subsidiary. On April 1, 2022, Merger Sub merged with and into Old Welltower, with Old Welltower continuing as the surviving corporation and a wholly owned subsidiary of New Welltower (the "Merger"). In connection with the Merger, Old Welltower's name was changed to "Welltower OP Inc.", and New Welltower inherited the name "Welltower Inc." This Quarterly Report on Form 10-Q pertains to the business and results of Old Welltower for its quarter ended March 31, 2022. Forward-looking references to dates and periods occurring after April 1, 2022 are references to Welltower Inc. (New Welltower). We have elected to co-file this report to ensure continuity of information to investors. For additional information on the UPREIT reorganization, please see our Current Reports on Form 8-K filed with the SEC on March 7, 2022 and April 1, 2022.
2. Accounting Policies and Related Matters
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (such as normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily an indication of the results that may be expected for the year ending December 31, 2022. For further information, refer to the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.
Impact of COVID-19 Pandemic
The extent to which the COVID-19 pandemic impacts our operations and those of our operators and tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, the direct and indirect economic effects of the pandemic and containment measures, the impact of new variants, the effectiveness of vaccines, the overall pace of recovery, among others. The COVID-19 pandemic could have material and adverse effects on our financial condition, results of operations and cash flows in the future.
Our Seniors Housing Operating revenues are dependent on occupancy, which has steadily increased in recent months. As of March 31, 2022, nearly all communities are open for new admissions and allowing visitors, in-person tours and communal dining and activities. Average occupancy increased from 73.0% to 77.5% for the three months ended March 31, 2022 and 2021, respectively. Occupancy metrics represent occupancy at our share for 543 properties in operation as of December 31, 2020, including unconsolidated properties but excluding acquisitions, executed dispositions, development conversions and four closed properties.
Property-level operating expenses associated with the COVID-19 pandemic related to our Seniors Housing Operating portfolio totaled $11,003,000 and $27,976,000 for the three months ended March 31, 2022 and 2021, respectively. These expenses were incurred as a result of public health measures and other regulations affecting our properties, as well as additional health and safety measures adopted by us and our operators related to the COVID-19 pandemic, including increases in labor and property cleaning expenses and expenditures related to our efforts to procure personal protective equipment and supplies, net of reimbursements. We expect total Seniors Housing Operating expenses to remain elevated during the pandemic and potentially beyond as these additional health and safety measures become standard practice.
In 2021 and 2022, we received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the COVID-19 pandemic, as well as under similar programs in the U.K. and Canada. For the three months ended March 31, 2022 and 2021, we recognized $5,760,000 and $49,180,000, respectively, of government grant income as a reduction to property operating expenses in our Consolidated Statements of Comprehensive Income.
10

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Our Triple-net operators have experienced similar occupancy declines and operating costs as our Seniors Housing Operating properties. Additionally, long-term/post-acute care facilities are generally experiencing a higher degree of occupancy declines. These factors may continue to impact the ability of our Triple-net operators to make contractual rent payments to us in the future. Many of our Triple-net operators received funds under the CARES Act Paycheck Protection Program and Provider Relief Fund.
New Accounting Standards   
In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” This ASU simplifies accounting for convertible instruments and removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. This ASU also simplifies the diluted earnings per share calculation in certain areas and provides updated disclosure requirements. The ASU is effective for public business entities beginning after December 15, 2021 including interim periods within those fiscal years. The adoption of this standard did not have a significant impact on our consolidated financial statements.
In March 2020, the FASB issued an amendment to the reference rate reform standard, which provides the option for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on contract modifications and hedge accounting. An example of such reform is the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. Entities that make this optional expedient election would not have to remeasure the contracts at the modification date or reassess the accounting treatment if certain criteria are met and would continue applying hedge accounting for relationships affected by reference rate reform. The new standard was effective for us upon issuance and elections can be made through December 31, 2022. We are currently evaluating our options with regards to existing contracts and hedging relationships and the impact of adopting this update on our consolidated financial statements.
3. Real Property Acquisitions and Development 
The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets and liabilities at cost on a relative fair value basis. Liabilities assumed and any associated noncontrolling interests are reflected at fair value. The results of operations for these acquisitions have been included in our consolidated results of operations since the date of acquisition and are a component of the appropriate segments. Transaction costs primarily represent costs incurred with acquisitions, including due diligence costs, fees for legal and valuation services, termination of pre-existing relationships computed based on the fair value of the assets acquired, lease termination fees and other acquisition-related costs. Transaction costs related to asset acquisitions are capitalized as a component of purchase price and all other non-capitalizable costs are reflected in other expenses on our Consolidated Statements of Comprehensive Income.














11

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following is a summary of our real property investment activity by segment for the periods presented (in thousands):
 Three Months Ended
 March 31, 2022March 31, 2021
Seniors Housing OperatingTriple-netOutpatient
Medical
TotalsSeniors Housing OperatingTriple-netOutpatient
Medical
Totals
Land and land improvements$43,897 $ $240 $44,137 $1,240 $24,154 $2,273 $27,667 
Buildings and improvements402,342 171 131,412 533,925 3,491 170,362 10,570 184,423 
Acquired lease intangibles31,366  16,978 48,344 339  1,439 1,778 
Right of use assets, net  3,852 3,852     
Total net real estate assets477,605 171 152,482 630,258 5,070 194,516 14,282 213,868 
Receivables and other assets1,630   1,630 34   34 
Total assets acquired479,235 171 152,482 631,888 5,104 194,516 14,282 213,902 
Lease liabilities  (3,852)(3,852)    
Accrued expenses and other liabilities(4,154)  (4,154) (8,703)(36)(8,739)
Total liabilities acquired(4,154) (3,852)(8,006) (8,703)(36)(8,739)
Noncontrolling interests (1)
(20,348)(4) (20,352) (2,056) (2,056)
Non-cash acquisition related activity(2)
(2,120)  (2,120)    
Cash disbursed for acquisitions452,613 167 148,630 601,410 5,104 183,757 14,246 203,107 
Construction in progress additions113,407 20,756 9,642 143,805 38,373 31,809 7,601 77,783 
Less: Capitalized interest(4,179)(1,089)(211)(5,479)(2,980)(524)(992)(4,496)
Accruals (3)
(1,963) 1,778 (185)7  311 318 
Cash disbursed for construction in progress107,265 19,667 11,209 138,141 35,400 31,285 6,920 73,605 
Capital improvements to existing properties68,612 8,294 13,323 90,229 (3,159)25,295 6,644 28,780 
Total cash invested in real property, net of cash acquired$628,490 $28,128 $173,162 $829,780 $37,345 $240,337 $27,810 $305,492 
(1) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests.
(2) Relates to the acquisition of assets previously recognized as investments in unconsolidated entities.
(3) Represents non-cash accruals for amounts to be paid in future periods for properties that converted, off-set by amounts paid in the current period.
Effective on April 1, 2022, our leasehold interest relating to the master lease with National Health Investors, Inc. (“NHI”) for 17 properties assumed in conjunction with the Holiday Retirement acquisition was terminated as a result of the transition or sale of the properties by NHI. The lease termination was part of an agreement to resolve outstanding litigation with NHI. In conjunction with the agreement, a wholly owned subsidiary and the lessee on the master lease agreed to release $6,883,000 of cash to the landlord, which represents the net cash flow generated from the properties since we assumed the leasehold interest. As of March 31, 2022, a right of use asset of $77,080,000 and a related lease liability of $135,701,000 were recorded on the Consolidated Balance Sheet.
Construction Activity 
The following is a summary of the construction projects that were placed into service and began generating revenues during the periods presented (in thousands):
 Three Months Ended
 March 31, 2022March 31, 2021
Development projects:
Seniors Housing Operating
$73,458 $ 
Triple-net
 22,990 
Total construction in progress conversions$73,458 $22,990 




12

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
4. Real Estate Intangibles 
The following is a summary of our real estate intangibles, excluding those related to ground leases or classified as held for sale, as of the dates indicated (dollars in thousands):
 March 31, 2022December 31, 2021
Assets:
In place lease intangibles$1,732,980 $1,681,533 
Above market tenant leases53,988 53,964 
Lease commissions57,812 54,131 
Gross historical cost1,844,780 1,789,628 
Accumulated amortization(1,338,046)(1,286,259)
Net book value$506,734 $503,369 
Weighted-average amortization period in years7.25.5
Liabilities:
Below market tenant leases$74,910 $74,909 
Accumulated amortization(47,174)(45,291)
Net book value$27,736 $29,618 
Weighted-average amortization period in years8.38.2
The following is a summary of real estate intangible amortization income (expense) for the periods presented (in thousands):
Three Months Ended March 31,
20222021
Rental income related to (above)/below market tenant leases, net$385 $425 
Amortization related to in place lease intangibles and lease commissions(47,994)(22,779)
The future estimated aggregate amortization of intangible assets and liabilities is as follows for the periods presented (in thousands):
 AssetsLiabilities
2022$138,363 $5,482 
2023132,163 5,262 
202463,179 3,117 
202526,311 2,588 
202622,718 2,077 
Thereafter124,000 9,210 
Total$506,734 $27,736 
5. Dispositions, Real Property Held for Sale and Impairment
We periodically sell properties for various reasons, including favorable market conditions, the exercise of tenant purchase options or reduction of concentrations (i.e., property type, relationship or geography). At March 31, 2022, three Seniors Housing Operating, 11 Triple-net, and one Outpatient Medical properties with an aggregate real estate balance of $199,490,000 were classified as held for sale. In addition to the real property balances held for sale, lease liabilities of $66,893,000 and net other assets and (liabilities) of $2,462,000 are included in the Consolidated Balance Sheets related to the held for sale properties. Expected gross sales proceeds related to the held for sale properties is approximately $273,165,000.
During the three months ended March 31, 2021, we recorded $12,098,000 of impairment charges related to one Triple-net property classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the three months ended March 31, 2021, we recorded $11,470,000 of impairment charges related to one Seniors Housing Operating property and two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value.



13

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following is a summary of our real property disposition activity for the periods presented (in thousands):
 Three Months Ended March 31,
 20222021
Real estate dispositions:
Seniors Housing Operating
$ $74,326 
Triple-net
52,661  
Outpatient Medical
 137,890 
Total dispositions
52,661 212,216 
Gain (loss) on real estate dispositions, net22,934 59,080 
Net other assets/(liabilities) disposed(2,027)2,912 
Proceeds from real estate dispositions$73,568 $274,208 
Operating results attributable to properties sold or classified as held for sale, which do not meet the definition of discontinued operations are not reclassified on our Consolidated Statements of Comprehensive Income. The following represents the activity related to these properties for the periods presented (in thousands):
Three Months Ended March 31,
 20222021
Revenues:
Total revenues
$4,958 $30,414 
Expenses:
Interest expense
871 1,115 
Property operating expenses
1,971 3,576 
Provision for depreciation
13 6,368 
Total expenses
2,855 11,059 
Income (loss) from real estate dispositions, net$2,103 $19,355 
6. Leases
We lease land, buildings, office space and certain equipment. Many of our leases include a renewal option to extend the term from one to 25 years or more. Renewal options that we are reasonably certain to exercise are recognized in our right-of-use assets and lease liabilities.
The components of lease expense were as follows for the periods presented (in thousands):
Three Months Ended
 ClassificationMarch 31, 2022March 31, 2021
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$5,816 $5,358 
Non-real estate investment lease expenseGeneral and administrative expenses978 1,185 
Finance lease cost:
Amortization of leased assetsProperty operating expenses1,156 2,035 
Interest on lease liabilitiesInterest expense1,618 1,663 
Sublease incomeRental income(2,715)(1,043)
Total $6,853 $9,198