Welltower (WELL) Q3 2026 Earnings Call: Q&A Summary

Q: Farrell Granath of Bank of America asked why Welltower is winning deals and whether it is due to pricing, operations, or co-investment opportunities.

A: John Burkart explained that it comes down to reputation, speed, and the ability to close without retrading, which creates a pleasant experience for sellers. He noted that many sellers choose to take OP units, and the company uses data science to execute granular, off-market deals.

Q: Vikram Malhotra of Mizuho asked what will differentiate Welltower in two years and if the company's size creates a law of large numbers issue.

A: Shankh Mitra stated that differentiation will come from premium service and product that discerning customers are willing to pay for as occupancy fills up. He argued that size is not a constraint because the goal is per-share cash flow growth driven by operational execution rather than just balance sheet size.

Q: Ronald Kamdem of Morgan Stanley asked for an update on the 95% plus occupied cohort and the structural vacancy of the portfolio.

A: Shankh Mitra clarified that while they focus on pricing, they still see room for occupancy growth, noting that the 90% plus occupied cohort achieved 6% RevPOR growth and 21% NOI growth.

Q: Michael Goldsmith of UBS asked what will be the binding constraint to compounding cash flow over the next five years.

A: Shankh Mitra explained that capital is not the constraint, but rather opportunity, as they are highly selective. The primary driver for future growth will be the execution of the existing portfolio through the Welltower Business System and providing exceptional service.

Q: Juan Sanabria of BMO Capital Markets asked about the skilled nursing investments, including pricing, yields, and competitive dynamics.

A: Nikhil Chaudhri said they invested $850 million across eight off-market transactions with rent yields around 9%. He noted a new trend where HUD is imposing single-borrower limits, which is causing some owners to sell high-quality portfolios because they cannot refinance.

Q: Nick Yulico of Scotiabank asked about the performance of the same-store pool and how the U.K. and Canada acquisitions are performing.

A: Tim McHugh noted that when excluding new developments and low-occupancy acquisitions, the pool shows 90 basis points of sequential occupancy growth. John Burkart added that they are comfortable with the disruption caused by operator changes in these assets and expect significant upside.

Q: Nick Joseph of Citi asked about the magnitude of the pricing power opportunity and the metrics used to understand it.

A: Shankh Mitra explained that street rates are the primary driver of pricing power, noting that they have never seen a better pricing environment in his 11 years at the company.

Q: Mike Mueller of JPMorgan asked about the runway for keeping expense growth sub-1% or sub-2%.

A: Shankh Mitra stated they will not anchor to a specific number but emphasized that the Welltower Business System allows for granular, line-item optimization of costs. He distinguished this from the care side of the business, where they are willing to pay above-market wages for top talent.

Q: James Feldman of Wells Fargo asked about the long-term view on business expansion and geographic growth.

A: Shankh Mitra stated they have no interest in entering new countries and are instead narrowing their focus to specific, high-conviction businesses. Future value will be driven by doubling down on technology and people within their existing footprint.

Q: Omotayo Okusanya of Deutsche Bank asked about growth opportunities for the funds business and data science platform.

A: Shankh Mitra noted that revenues from capital-light businesses are expected to grow, with progress made in their equity and credit funds and ongoing conversations regarding data science partnerships.

Q: Jim Kammert of Evercore asked for the NOI contribution and margin for wellness housing.

A: Shankh Mitra said it represents about 10% of the SHOP portfolio, with margins in the mid-50s.

Q: Rich Hightower of Barclays asked if dispositions reflect assets that do not fit the portfolio and for context on the Brookdale transaction.

A: Tim McHugh explained that dispositions are assets that are optimized or do not keep up with the company's growth, such as the medical office portfolio. Regarding Brookdale, he described it as a win-win transaction where Brookdale wanted to own more assets and Welltower was satisfied with the price.

Q: Austin Wurschmidt of KeyBanc asked if there is concern that new supply will be at the high end and limit pricing power.

A: Shankh Mitra noted that development does not currently pencil out on a spreadsheet, and even where it might, it takes a decade to get projects approved in premium locations. He does not consider oversupply to be a probable outcome.

Q: Michael Carroll of RBC asked if the spread between RevPOR and expor holds steady as they push RevPOR.

A: Tim McHugh noted that assets 95% plus occupied show RevPOR-expor spreads comparable to or greater than the rest of the portfolio. Shankh Mitra added that pricing has a bigger impact on flow-through margins than occupancy gains.

Q: Richard Anderson of Cantor Fitzgerald asked about the lessons from the Genesis situation and how they inform future transactions.

A: Nikhil Chaudhri explained that the key lesson was to avoid lending to broken balance sheets and to focus on underwriting operators rather than just buildings. He noted that they learned to structure for the downside and that execution at the micro level is what makes a business successful.

Q: Michael Stroyeck of Green Street asked where the company has seen the most repricing in recent months.

A: John Burkart said it is too soon to see significant repricing, but sellers are increasingly valuing certainty and the ability to close. He noted that some developers are choosing to sell rather than wait to fill buildings because of the changing interest rate environment.