WELLTOWER INC. Management's Discussion and Analysis of Financial Condition and Results of Operations EXECUTIVE SUMMARY (form 10-Q) - Marketscreener.com

The following table summarizes our consolidated portfolio for the three months ended June 30, 2022 (dollars in thousands):
(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 for additional information and reconciliation.
Business Strategy
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Capital The following summarizes key capital transactions that occurred during the six months ended June 30, 2022:
•In March 2022, we completed the issuance of $550,000,000 senior unsecured notes bearing interest at 3.85% with a maturity date of June 2032.
•During the six months ended June 30, 2022, we extinguished $196,504,000 of secured debt at a blended average interest rate of 4.15%.
(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 net operating income to be received in cash divided by investment amounts.
Dispositions The following summarizes property dispositions completed during the six months ended June 30, 2022 (dollars in thousands):
Dividends Our Board of Directors declared a cash dividend for the quarter ended June 30, 2022 of $0.61 per share. On August 31, 2022, we will pay our 205th consecutive quarterly cash dividend to stockholders of record on August 23, 2022.
Key Performance Indicators, Trends and Uncertainties
(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.
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Liquidity and Capital Resources
Sources and Uses of Cash
Recurring capital expenditures, tenant improvements and lease commissions
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Off-Balance Sheet Arrangements
Contractual Obligations
The following table summarizes our payment requirements under contractual obligations as of June 30, 2022 (in thousands):
1,637,459 $ 4,854,264 $ 4,201,843 $ 13,451,423
Supplemental Guarantor Information
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Seniors Housing Operating
The following is a summary of our SSNOI at Welltower’s share for the Seniors Housing Operating segment (dollars in thousands):
(1) For the QTD and YTD Pools, amounts relate to 532 and 531 same store properties, respectively. Please see Non-GAAP Financial Measures for additional information and reconciliations.
(1) See Non-GAAP Financial Measures below.
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
and property cleaning expenses and expenditures related to our efforts to procure personal protective equipment and supplies. Certain new expenses incurred since the start of the pandemic may continue on an ongoing basis as part of new health and safety protocols.
The fluctuations in depreciation and amortization are due to acquisitions, dispositions and transitions. To the extent that we acquire or dispose of additional properties in the future, these amounts will change accordingly.
During the six months ended June 30, 2022, we completed two conversions representing $134,562,000 or $666,149 per unit. The following is a summary of our Seniors Housing Operating construction projects, excluding expansions, pending as of June 30, 2022 (dollars in thousands):
——————————————————————————–
(1) Final units/beds, commitment amount and expected conversion date not yet known.
——————————————————————————–
Triple-net
The following is a summary of our SSNOI at Welltower’s share for the Triple-net segment (dollars in thousands):
(1) For the QTD and YTD Pools, amounts relate to 558 and 532 same store properties, respectively. Please see Non-GAAP Financial Measures for additional information and reconciliations.
The following is a summary of our results of operations for the Triple-net segment (dollars in thousands):
(1) See Non-GAAP Financial Measures below.
Outpatient Medical
The following is a summary of our SSNOI at Welltower’s share for the Outpatient Medical segment (dollars in thousands):
(1) For the QTD and YTD Pools, amounts relate to 351 and 350 same store properties, respectively. Please see Non-GAAP Financial Measures for additional information and reconciliations.
The following is a summary of our results of operations for the Outpatient Medical segment for the periods presented (dollars in thousands):
(1) See Non-GAAP Financial Measures.
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(1) See Non-GAAP Financial Measures.
The following is a summary of our Non-Segment/Corporate interest expense for the periods presented (dollars in thousands):
Non-GAAP Financial Measures
61,925 $ 58,672 $ 179,663 $ 26,257
(59,080)
(12,516)
419,079
757,224 $ 536,007
1.67 $ 1.28
(1) Includes adjustment to the numerator for income (loss) attributable to OP unitholders.
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The table below reflects the reconciliation of consolidated NOI to net income, the most directly comparable U.S. GAAP measure, for the periods presented. Dollar amounts are in thousands.
$ 65,751 $ 66,194 $ 190,336 $ 45,757 $ 72,192 Loss (gain) on real estate dispositions, net
$ 542,035 $ 524,085 $ 510,397 $ 498,335 $ 434,736
160,188 $ 488,595 $ 330,622 NOI attributable to unconsolidated investments
(1) Includes adjustments to reflect consistent property ownership percentages, to translate Canadian properties at a USD/CAD rate of 1.2738 and to translate U.K. properties at a GBP/USD rate of 1.3501.
——————————————————————————–
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
3,943
121,696 $ 121,848 $ 122,522 $ 122,341
123,066 $ 122,091 $ 121,730 $ 123,231
$ 1,957,441 $ 1,913,546 $ 1,888,920 $ 1,896,059
$ 1,927,414
$ 1,957,441 $ 1,913,546 $ 1,888,920 $ 1,896,059
$ 490,118 $ 491,699 $ 493,280 $ 496,375
$ 1,957,441 $ 1,913,546 $ 1,888,920 $ 1,896,059
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 impact of the estimates and assumptions on financial condition or operating performance is material.
——————————————————————————–
© Edgar Online, source Glimpses