Welltower Inc.

Seniors housing residents sign agreements that create high-retention recurring revenue given the care-dependency involved, and the triple-net segment adds fixed-rent contractual leases. Total portfolio same-store NOI grew in each of the fiscal years from FY2021 through FY2025, including through the 2022 rising-rate period, and Welltower has provided annual FFO guidance that management has consistently met.

Seniors Housing Operating represented approximately 78% of FY2024 revenues, with Triple-net at 10% and Outpatient Medical at 10%, and management is intentionally increasing SHOP concentration to mid-80% of NOI following the 2025 strategic pivot. The operator base spans Sunrise, COGIR, Brandywine, HC-One, and Barchester, but all are in the same senior housing end market with correlated occupancy risk.

The United States accounts for the majority of portfolio NOI, with Canada and the United Kingdom (added in scale via the £5.2 billion Barchester acquisition closed in Q4 2025) providing meaningful but secondary international exposure. No precise country-level revenue split is publicly disclosed, but US operations drive an estimated two-thirds or more of total NOI based on segment reporting.

As SHOP occupancy fills, incremental revenue flows through at high incremental margins because building-level fixed costs are largely unchanged, creating real operating leverage on a per-unit basis. The model is constrained by the labor-intensive nature of senior care delivery, though the Welltower Business System data platform helps manage costs at scale across more than 46,000 SHOP units.

The SHOP model generates recurring operating revenue from residents who are deeply embedded in the facilities, and the triple-net segment provides long-duration contractual leases with institutional healthcare operators. Revenue is mission-critical given residents' care dependency, reducing demand elasticity relative to most real estate categories.