Welltower Reports First Quarter 2021 Results
Welltower Inc. (NYSE: WELL) reported a net income of $0.17 per diluted share and normalized FFO of $0.80 per diluted share for Q1 2021. Occupancy in its Seniors Housing Operating portfolio rose 60 bps from pandemic lows, reaching approximately 73.8%. The company completed $1.3 billion in pro rata gross investments and executed an $880 million exit from Genesis Healthcare. Welltower declared a cash dividend of $0.61 per share, marking its 200th consecutive dividend. The company anticipates upcoming earnings of $0.31 to $0.36 per share for Q2 2021 amid improving occupancy rates and significant liquidity of $4.0 billion.
- Q1 2021 net income of $0.17 per diluted share.
- Normalized FFO of $0.80 per diluted share.
- Occupancy in Seniors Housing Operating portfolio increased 60 bps to 73.8%.
- $1.3 billion in pro rata gross investments completed YTD.
- Executed an $880 million exit from Genesis Healthcare operations.
- Declared a cash dividend of $0.61 per share, marking 200 consecutive dividends.
- Strong liquidity position with $4.0 billion available.
- Occupancy decline of 20 bps in Canada amid COVID-19 case rise.
TOLEDO, Ohio, April 28, 2021 /PRNewswire/ -- Welltower Inc. (NYSE:WELL) today announced results for the quarter ended March 31, 2021.
Recent Highlights
- Reported net income attributable to common stockholders of
$0.17 per diluted share - Reported normalized FFO attributable to common stockholders of
$0.80 per diluted share - As of April 23, 2021, occupancy for our Seniors Housing Operating ("SHO") portfolio increased approximately 60 basis points ("bps") from the pandemic-low on March 12, 2021, led by our U.K. and U.S. portfolios with occupancy gains of 120 bps and 90 bps, respectively
- Year-to-date, completed
$1.3 billion of pro rata gross investments exclusive of development funding through April 27, 2021 - On April 27, 2021, we completed a
£540 million ($750 million ) participating senior loan advancement to affiliates of Safanad Inc. as part of its recapitalization of HC-One Group. The loan, which may be expanded by an additional£30 million , matures in 2026, and is secured by a first mortgage interest in the HC-One portfolio - Reported near-term liquidity of
$4.0 billion as of April 27, 2020 - Announced substantial exit of operating relationship with Genesis Healthcare through real estate transactions totaling
$880 million in value, or$144,000 per bed, generating an8.5% unlevered IRR over full term of Genesis relationship - Named to the Bloomberg Gender-Equality Index for the third consecutive year
- On April 28, 2021, the Board of Directors declared a cash dividend for the quarter ended March 31, 2021 of
$0.61 per share, marking Welltower's 200th consecutive quarterly cash dividend to shareholders
COVID-19 Update
SHO Portfolio Following the rapid distribution and high acceptance rate of COVID-19 vaccinations by residents within assisted living and memory care facilities in the U.S. and U.K., total resident case counts on a trailing two week basis have declined by
February 2020 | December 2020 | January 2021 | February 2021 | March 2021 | |||||||||||
Spot occupancy (1) | 85.4 | % | 75.9 | % | 74.4 | % | 73.6 | % | 73.6 | % | |||||
Sequential occupancy change | (1.5) | % | (0.8) | % | — | % | |||||||||
(1) Spot occupancy represents approximate month end occupancy at our share for properties in operation as of February 29, 2020, including unconsolidated properties but excluding acquisitions, executed dispositions and development conversions since this date.
On a month-to-date basis, as of April 23, 2021, SHO portfolio occupancy has increased approximately 20 bps. Occupancy continued to strengthen in the U.S. and U.K. with gains of approximately 40 bps and 90 bps, respectively. However, occupancy declined approximately 20 bps in Canada over the same period following a sharp rise in COVID-19 cases and implementation of shelter in place orders across parts of the country.
As of April 23, 2021, approximately
In 2020, applications were made for amounts under Phase 2 and Phase 3 of the Provider Relief Fund related to our SHO portfolio. During the first quarter, we received net pro rata Provider Relief Funds of approximately
Our share of property-level expenses associated with the COVID-19 pandemic relating to our total SHO portfolio, net of reimbursements including Provider Relief Funds and similar programs in the U.K. and Canada, totaled a benefit of approximately
Rent Collections During the first quarter, we collected approximately
Capital Activity and Liquidity Inclusive of available borrowings under our line of credit, cash and cash equivalents, and IRC Section 1031 deposits, at April 27, 2021, we have
On March 25, 2021 we completed the issuance of
Dividend On April 28, 2021, the Board of Directors declared a cash dividend for the quarter ended March 31, 2021 of
Quarterly Investment and Disposition Activity In the first quarter, we completed
Notable Investments and Dispositions
Harbor Retirement Associates During the first quarter, we acquired a portfolio of eight seniors housing properties located throughout the southeast for a pro rata investment of
Pappas Properties and Atrium Health During the first quarter, we delivered two state-of-the-art "Class A+" medical office buildings previously under development in Charlotte, North Carolina as part of the joint venture between Pappas Properties and Welltower. Both buildings are
Wafra Joint Venture During the first quarter, we completed the previously announced joint venture partnership with certain investment vehicles managed by Wafra by contributing five properties, to the joint venture for a pro rata sales price of
Invesco Real Estate Outpatient Medical Joint Ventures We announced our initial joint venture agreement with Invesco Real Estate ("IRE"), a global real estate investment manager, in November 2019 in conjunction with the plan to sell an
During the third quarter of 2020, we expanded our partnership with IRE through a new joint venture which comprises a portfolio of 20 outpatient medical properties previously majority owned by Welltower, spanning 1.0 million square feet across five states for a total transaction price of
Other Notable Transactions During the first quarter, we acquired two seniors housing properties for
Notable Post Quarter Transactions
Genesis Healthcare As previously announced, we entered into definitive agreements to execute a series of mutually beneficial transactions intended to substantially exit Welltower's operating relationship with Genesis Healthcare. In April, we contributed nine mostly purpose built PowerBack facilities, which provide higher acuity, short-stay rehabilitation and care, into an 80/20 joint venture with ProMedica at a total value of
To effectuate the transition of all 51 assets, we agreed to provide Genesis a lease termination fee of
ProMedica Joint Venture Disposition As previously announced, the Welltower and ProMedica joint venture intends to divest a 25 property portfolio of non-strategic skilled nursing facilities for
Safanad/HC-One Loan Funding and Equity Investment On April 28, 2021, we announced that we provided
Additionally, we will have the ability to participate in the anticipated recovery in the U.K. seniors housing sector through both warrants and a
Other Notable Transactions Subsequent to quarter-end, we acquired two seniors housing properties located in Philadelphia and Quebec for a pro rata investment of
Outlook for Second Quarter 2021 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 and the direct and indirect economic effects of the pandemic and related containment and vaccination measures, among others. Accordingly, we are only introducing earnings guidance for the quarter ended June 30, 2021 and expect to report net income attributable to common stockholders in a range of
- Provider Relief Funds: Our second quarter guidance does not include the recognition of any Provider Relief Funds which may be received during the quarter.
- SHO Portfolio Occupancy: Midpoint of FFO guidance assumes a continuation of recent trends resulting in an approximate increase of 130 bps through the second quarter.
- General and Administrative Expenses: We anticipate full year general and administrative expenses to be approximately
$135 million to$140 million and stock-based compensation expense to be approximately$21 million . - Investments: Our second quarter 2021 earnings guidance includes only those acquisitions closed or announced to date. Furthermore, no transitions or restructures beyond those announced to date are included.
- Development: We anticipate funding approximately
$320 million of development in 2021 relating to projects underway on March 31, 2021. - Dispositions: We expect pro rata disposition proceeds of
$1.1 billion at a blended yield of7.9% in 2021. This includes approximately$433 million in proceeds from dispositions and loan payoffs completed to date and$681 million of incremental expected proceeds related to properties classified as held-for-sale as of March 31, 2021.
Our guidance does not include any additional investments, dispositions or capital transactions beyond those we have announced, nor any other expenses, impairments, unanticipated additions to the loan loss reserve or other additional normalizing items. Please see the Supplemental Reporting Measures section for further discussion and our definition of normalized FFO and Exhibit 3 for a reconciliation of the outlook for net income available to common stockholders to normalized FFO attributable to common stockholders. We will provide additional detail regarding our second quarter outlook and assumptions on the first quarter 2021 conference call.
Conference Call Information We have scheduled a conference call on Thursday, April 29, 2021 at 9:00 a.m. Eastern Time to discuss our first quarter 2021 results, industry trends and portfolio performance. Telephone access will be available by dialing (844) 467-7115 or (409) 983-9837 (international). For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through May 13, 2021. To access the rebroadcast, dial (855) 859-2056 or (404) 537-3406 (international). The conference ID number is 4881434. To participate in the webcast, log on to www.welltower.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days.
Supplemental Reporting Measures We believe that net income and net income attributable to common stockholders ("NICS"), as defined by U.S. generally accepted accounting principles ("U.S. GAAP"), are the most appropriate earnings measurements. However, we consider funds from operations ("FFO") and normalized FFO to be useful supplemental measures of our operating performance. These supplemental measures are disclosed on our pro rata ownership basis. Pro rata amounts are derived by reducing consolidated amounts for minority partners' noncontrolling ownership interests and adding our minority ownership share of unconsolidated amounts. We do not control unconsolidated investments. While we consider pro rata disclosures useful, they may not accurately depict the legal and economic implications of our joint venture arrangements and should be used with caution.
Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In response, the National Association of Real Estate Investment Trusts ("NAREIT") created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO attributable to common stockholders, as defined by NAREIT, means net income attributable to common stockholders, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and impairments of depreciable assets, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests. Normalized FFO attributable to common stockholders represents FFO attributable to common stockholders adjusted for certain items detailed in Exhibit 2. We believe that normalized FFO attributable to common stockholders is a useful supplemental measure of operating performance because investors and equity analysts may use this measure to compare the operating performance of the Company between periods or as compared to other REITs or other companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items.
Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see the exhibits for reconciliations of supplemental reporting measures and the supplemental information package for the quarter ended March 31, 2021, which is available on the Company's website (www.welltower.com), for information and reconciliations of additional supplemental reporting measures.
About Welltower Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate 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, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at www.welltower.com. We routinely post important information on our website at www.welltower.com in the "Investors" section, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website under the heading "Investors". Accordingly, investors should monitor such portion of our website in addition to following our press releases, public conference calls and filings with the Securities and Exchange Commission. The information on our website is not incorporated by reference in this press release, and our web address is included as an inactive textual reference only.
Forward-Looking Statements and Risk Factors This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the duration and scope of the COVID-19 pandemic; the impact of the COVID-19 pandemic on occupancy rates and on the operations of Welltower and its operators/tenants; actions governments take in response to the COVID-19 pandemic, including the introduction of public health measures and other regulations affecting Welltower's properties and the operations of Welltower and its operators/tenants; uncertainty regarding the implementation and impact of the CARES Act and future stimulus or other COVID-19 relief legislation; the effects of health and safety measures adopted by Welltower and its operators/tenants related to the COVID-19 pandemic; increased operational costs as a result of health and safety measures related to COVID-19; the impact of the COVID-19 pandemic on the business and financial condition of operators/tenants and their ability to make payments to Welltower; disruptions to Welltower's property acquisition and disposition activity due to economic uncertainty caused by COVID-19; general economic uncertainty in key markets as a result of the COVID-19 pandemic and a worsening of global economic conditions or low levels of economic growth; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators'/tenants' difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; Welltower's ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters and other acts of God affecting Welltower's properties; Welltower's ability to re-lease space at similar rates as vacancies occur; Welltower's ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting Welltower's properties; changes in rules or practices governing Welltower's financial reporting; the movement of U.S. and foreign currency exchange rates; Welltower's ability to maintain Welltower's qualification as a REIT; key management personnel recruitment and retention; and other risks described in Welltower's reports filed from time to time with the SEC. Finally, Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
Welltower Inc.
Financial Exhibits
Consolidated Balance Sheets (unaudited) | ||||||||
(in thousands) | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Real estate investments: | ||||||||
Land and land improvements | $ | 3,397,055 | $ | 3,514,456 | ||||
Buildings and improvements | 27,667,188 | 29,236,477 | ||||||
Acquired lease intangibles | 1,506,823 | 1,629,662 | ||||||
Real property held for sale, net of accumulated depreciation | 564,062 | 729,560 | ||||||
Construction in progress | 542,302 | 431,497 | ||||||
Less accumulated depreciation and intangible amortization | (6,212,432) | (5,910,979) | ||||||
Net real property owned | 27,464,998 | 29,630,673 | ||||||
Right of use assets, net | 454,787 | 523,217 | ||||||
Real estate loans receivable, net of credit allowance | 487,674 | 221,228 | ||||||
Net real estate investments | 28,407,459 | 30,375,118 | ||||||
Other assets: | ||||||||
Investments in unconsolidated entities | 1,020,010 | 702,497 | ||||||
Goodwill | 68,321 | 68,321 | ||||||
Cash and cash equivalents | 2,131,846 | 303,423 | ||||||
Restricted cash | 426,976 | 89,643 | ||||||
Straight-line rent receivable | 312,721 | 449,075 | ||||||
Receivables and other assets | 624,918 | 934,951 | ||||||
Total other assets | 4,584,792 | 2,547,910 | ||||||
Total assets | $ | 32,992,251 | $ | 32,923,028 | ||||
Liabilities and equity | ||||||||
Liabilities: | ||||||||
Unsecured credit facility and commercial paper | $ | — | $ | 844,985 | ||||
Senior unsecured notes | 12,183,710 | 10,218,853 | ||||||
Secured debt | 2,329,474 | 2,901,232 | ||||||
Lease liabilities | 408,916 | 464,659 | ||||||
Accrued expenses and other liabilities | 1,023,219 | 997,603 | ||||||
Total liabilities | 15,945,319 | 15,427,332 | ||||||
Redeemable noncontrolling interests | 355,915 | 429,359 | ||||||
Equity: | ||||||||
Common stock | 418,866 | 418,226 | ||||||
Capital in excess of par value | 20,814,196 | 20,818,242 | ||||||
Treasury stock | (106,519) | (86,975) | ||||||
Cumulative net income | 8,399,144 | 7,659,038 | ||||||
Cumulative dividends | (13,598,673) | (12,579,535) | ||||||
Accumulated other comprehensive income | (128,136) | (96,213) | ||||||
Total Welltower Inc. stockholders' equity | 15,798,878 | 16,132,783 | ||||||
Noncontrolling interests | 892,139 | 933,554 | ||||||
Total equity | 16,691,017 | 17,066,337 | ||||||
Total liabilities and equity | $ | 32,992,251 | $ | 32,923,028 | ||||
Consolidated Statements of Income (unaudited) | ||||||||||
(in thousands, except per share data) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2021 | 2020 | |||||||||
Revenues: | ||||||||||
Resident fees and services | $ | 723,464 | $ | 849,972 | ||||||
Rental income | 302,843 | 389,960 | ||||||||
Interest income | 19,579 | 15,241 | ||||||||
Other income | 6,176 | 3,429 | ||||||||
Total revenues | 1,052,062 | 1,258,602 | ||||||||
Expenses: | ||||||||||
Property operating expenses | 617,326 | 681,781 | ||||||||
Depreciation and amortization | 244,426 | 274,801 | ||||||||
Interest expense | 123,142 | 142,007 | ||||||||
General and administrative expenses | 29,926 | 35,481 | ||||||||
Loss (gain) on derivatives and financial instruments, net | 1,934 | 7,651 | ||||||||
Loss (gain) on extinguishment of debt, net | (4,643) | — | ||||||||
Provision for loan losses | 1,383 | 7,072 | ||||||||
Impairment of assets | 23,568 | 27,827 | ||||||||
Other expenses | 10,994 | 6,292 | ||||||||
Total expenses | 1,048,056 | 1,182,912 | ||||||||
Income (loss) from continuing operations before income taxes | ||||||||||
and other items | 4,006 | 75,690 | ||||||||
Income tax (expense) benefit | (3,943) | (5,442) | ||||||||
Income (loss) from unconsolidated entities | 13,049 | (3,692) | ||||||||
Gain (loss) on real estate dispositions, net | 59,080 | 262,824 | ||||||||
Income (loss) from continuing operations | 72,192 | 329,380 | ||||||||
Net income (loss) | 72,192 | 329,380 | ||||||||
Less: | Net income (loss) attributable to noncontrolling interests (1) | 646 | 19,096 | |||||||
Net income (loss) attributable to common stockholders | $ | 71,546 | $ | 310,284 | ||||||
Average number of common shares outstanding: | ||||||||||
Basic | 417,241 | 410,306 | ||||||||
Diluted | 419,079 | 412,420 | ||||||||
Net income (loss) attributable to common stockholders per share: | ||||||||||
Basic | $ | 0.17 | $ | 0.76 | ||||||
Diluted(2) | $ | 0.17 | $ | 0.75 | ||||||
Common dividends per share | $ | 0.61 | $ | 0.87 | ||||||
(1) Includes amounts attributable to redeemable noncontrolling interests. | ||||||||||
(2) Includes adjustment to the numerator for income (loss) attributable to OP unitholders. | ||||||||||
FFO Reconciliations | Exhibit 1 | |||||||||||
(in thousands, except per share data) | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2021 | 2020 | |||||||||||
Net income (loss) attributable to common stockholders | $ | 71,546 | $ | 310,284 | ||||||||
Depreciation and amortization | 244,426 | 274,801 | ||||||||||
Impairments and losses (gains) on real estate dispositions, net | (35,512) | (234,997) | ||||||||||
Noncontrolling interests(1) | (12,516) | (9,409) | ||||||||||
Unconsolidated entities(2) | 19,223 | 15,445 | ||||||||||
NAREIT FFO attributable to common stockholders | 287,167 | 356,124 | ||||||||||
Normalizing items, net(3) | 46,745 | 63,195 | ||||||||||
Normalized FFO attributable to common stockholders | $ | 333,912 | $ | 419,319 | ||||||||
Average diluted common shares outstanding | 419,079 | 412,420 | ||||||||||
Per diluted share data attributable to common stockholders: | ||||||||||||
Net income (loss)(4) | $ | 0.17 | $ | 0.75 | ||||||||
NAREIT FFO | $ | 0.69 | $ | 0.86 | ||||||||
Normalized FFO | $ | 0.80 | $ | 1.02 | ||||||||
Normalized FFO Payout Ratio: | ||||||||||||
Dividends per common share | $ | 0.61 | $ | 0.87 | ||||||||
Normalized FFO attributable to common stockholders per share | $ | 0.80 | $ | 1.02 | ||||||||
Normalized FFO payout ratio | 76 | % | 85 | % | ||||||||
Other items:(5) | ||||||||||||
Net straight-line rent and above/below market rent amortization(6) | $ | (18,134) | $ | (24,930) | ||||||||
Non-cash interest expenses(7) | 3,635 | 2,823 | ||||||||||
Recurring cap-ex, tenant improvements, and lease commissions | (11,433) | (22,616) | ||||||||||
Stock-based compensation(8) | 5,381 | 6,822 | ||||||||||
(1) Represents noncontrolling interests' share of net FFO adjustments. | ||||||||||||
(2) Represents Welltower's share of net FFO adjustments from unconsolidated entities. | ||||||||||||
(3) See Exhibit 2. | ||||||||||||
(4) Includes adjustment to the numerator for income (loss) attributable to OP unitholders. | ||||||||||||
(5) Amounts presented net of noncontrolling interests' share and including Welltower's share of unconsolidated entities. | ||||||||||||
(6) Excludes normalized other impairment (see Exhibit 2). | ||||||||||||
(7) Excludes normalized incremental interest expense (see Exhibit 2). | ||||||||||||
(8) Excludes certain severance related stock-based compensation recorded in other expense (see Exhibit 2). | ||||||||||||
Normalizing Items | Exhibit 2 | |||||||||
(in thousands, except per share data) | Three Months Ended | |||||||||
March 31, | ||||||||||
2021 | 2020 | |||||||||
Loss (gain) on derivatives and financial instruments, net | $ | 1,934 | (1) | $ | 7,651 | |||||
Loss (gain) on extinguishment of debt, net | (4,643) | (2) | — | |||||||
Provision for loan losses | 1,383 | (3) | 7,072 | |||||||
Incremental interest expense | — | 5,871 | ||||||||
Other impairment | 49,241 | (4) | 32,268 | |||||||
Other expenses | 10,994 | (5) | 6,292 | |||||||
Normalizing items attributable to noncontrolling interests and unconsolidated entities, net | (12,164) | (6) | 4,041 | |||||||
Net normalizing items | $ | 46,745 | $ | 63,195 | ||||||
Average diluted common shares outstanding | 419,079 | 412,420 | ||||||||
Net normalizing items per diluted share | $ | 0.11 | $ | 0.15 | ||||||
(1) Primarily related to mark-to-market of Genesis Healthcare stock holdings. | ||||||||||
(2) Primarily related to the extinguishment of secured debt. | ||||||||||
(3) Primarily related to reserves for loan losses under the current expected credit losses accounting standard. | ||||||||||
(4) Primarily related to reserve for straight-line rent receivable balances related to leases placed on cash recognition. | ||||||||||
(5) Primarily related to non-capitalizable transaction costs. | ||||||||||
(6) Primarily related to our share of the gain related to the sale of a home health business owned by one of our unconsolidated entities, as well as the noncontrolling interests' share of the reserve for straight-line rent receivable balances related to leases placed on cash recognition. | ||||||||||
Outlook Reconciliations: Quarter Ending June 30, 2021 | Exhibit 3 | ||||||||||
(in millions, except per share data) | Current Outlook | ||||||||||
Low | High | ||||||||||
FFO Reconciliation: | |||||||||||
Net income attributable to common stockholders | $ | 128 | $ | 149 | |||||||
Impairments and losses (gains) on real estate dispositions, net(1,2) | (75) | (75) | |||||||||
Depreciation and amortization(1) | 249 | 249 | |||||||||
NAREIT FFO and Normalized FFO attributable to common stockholders | 302 | 323 | |||||||||
Diluted per share data attributable to common stockholders: | |||||||||||
Net income | $ | 0.31 | $ | 0.36 | |||||||
NAREIT FFO and Normalized FFO | $ | 0.72 | $ | 0.77 | |||||||
Other items:(1) | |||||||||||
Net straight-line rent and above/below market rent amortization | $ | (20) | $ | (20) | |||||||
Non-cash interest expenses | 4 | 4 | |||||||||
Recurring cap-ex, tenant improvements, and lease commissions | (24) | (24) | |||||||||
Stock-based compensation | 5 | 5 | |||||||||
(1) Amounts presented net of noncontrolling interests' share and Welltower's share of unconsolidated entities. | |||||||||||
(2) Includes estimated gains on projected dispositions. | |||||||||||
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SOURCE Welltower Inc.
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