|
|
|
þ
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
☐
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
34-1096634
|
(State or other jurisdiction
of Incorporation)
|
|
(IRS Employer
Identification No.)
|
|
|
|
4500 Dorr Street, Toledo, Ohio
|
|
43615
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
(419) 247-2800
|
||
(Registrant’s telephone number, including area code)
|
||
|
|
|
Not Applicable
|
||
(Former name, former address and former fiscal year, if changed since last report)
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
|
|
Item 1. Financial Statements (Unaudited)
|
|
|
|
Consolidated Balance Sheets — March 31, 2019 and December 31, 2018
|
|
|
|
Consolidated Statements of Comprehensive Income — Three months ended March 31, 2019 and 2018
|
|
|
|
Consolidated Statements of Equity — Three months ended March 31, 2019 and 2018
|
|
|
|
Consolidated Statements of Cash Flows — Three months ended March 31, 2019 and 2018
|
|
|
|
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
|
|
|
March 31, 2019 (Unaudited)
|
|
December 31, 2018 (Note)
|
||||
Assets:
|
|
|
|
|
||||
Real estate investments:
|
|
|
|
|
||||
Real property owned:
|
|
|
|
|
||||
Land and land improvements
|
|
$
|
3,238,679
|
|
|
$
|
3,205,091
|
|
Buildings and improvements
|
|
28,047,658
|
|
|
28,019,502
|
|
||
Acquired lease intangibles
|
|
1,539,363
|
|
|
1,581,159
|
|
||
Real property held for sale, net of accumulated depreciation
|
|
330,327
|
|
|
590,271
|
|
||
Construction in progress
|
|
253,478
|
|
|
194,365
|
|
||
Less accumulated depreciation and amortization
|
|
(5,670,111
|
)
|
|
(5,499,958
|
)
|
||
Net real property owned
|
|
27,739,394
|
|
|
28,090,430
|
|
||
Right of use assets, net
|
|
502,429
|
|
|
—
|
|
||
Real estate loans receivable, net of allowance
|
|
351,085
|
|
|
330,339
|
|
||
Net real estate investments
|
|
28,592,908
|
|
|
28,420,769
|
|
||
Other assets:
|
|
|
|
|
||||
Investments in unconsolidated entities
|
|
484,265
|
|
|
482,914
|
|
||
Goodwill
|
|
68,321
|
|
|
68,321
|
|
||
Cash and cash equivalents
|
|
249,127
|
|
|
215,376
|
|
||
Restricted cash
|
|
158,312
|
|
|
100,753
|
|
||
Straight-line rent receivable
|
|
395,621
|
|
|
367,093
|
|
||
Receivables and other assets
|
|
688,782
|
|
|
686,846
|
|
||
Total other assets
|
|
2,044,428
|
|
|
1,921,303
|
|
||
Total assets
|
|
$
|
30,637,336
|
|
|
$
|
30,342,072
|
|
|
|
|
|
|
||||
Liabilities and equity
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Unsecured credit facility and commercial paper
|
|
$
|
419,293
|
|
|
$
|
1,147,000
|
|
Senior unsecured notes
|
|
9,632,013
|
|
|
9,603,299
|
|
||
Secured debt
|
|
2,660,190
|
|
|
2,476,177
|
|
||
Lease liabilities
|
|
426,639
|
|
|
70,668
|
|
||
Accrued expenses and other liabilities
|
|
1,000,825
|
|
|
1,034,283
|
|
||
Total liabilities
|
|
14,138,960
|
|
|
14,331,427
|
|
||
Redeemable noncontrolling interests
|
|
450,545
|
|
|
424,046
|
|
||
Equity:
|
|
|
|
|
||||
Preferred stock
|
|
—
|
|
|
718,498
|
|
||
Common stock
|
|
404,509
|
|
|
384,465
|
|
||
Capital in excess of par value
|
|
19,654,137
|
|
|
18,424,368
|
|
||
Treasury stock
|
|
(74,492
|
)
|
|
(68,499
|
)
|
||
Cumulative net income
|
|
6,402,004
|
|
|
6,121,534
|
|
||
Cumulative dividends
|
|
(11,163,317
|
)
|
|
(10,818,557
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
(144,618
|
)
|
|
(129,769
|
)
|
||
Other equity
|
|
268
|
|
|
294
|
|
||
Total Welltower Inc. stockholders’ equity
|
|
15,078,491
|
|
|
14,632,334
|
|
||
Noncontrolling interests
|
|
969,340
|
|
|
954,265
|
|
||
Total equity
|
|
16,047,831
|
|
|
15,586,599
|
|
||
Total liabilities and equity
|
|
$
|
30,637,336
|
|
|
$
|
30,342,072
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
|
||||
Resident fees and services
|
|
$
|
868,285
|
|
|
$
|
735,934
|
|
Rental income
|
|
381,084
|
|
|
343,369
|
|
||
Interest income
|
|
15,119
|
|
|
14,648
|
|
||
Other income
|
|
7,757
|
|
|
3,014
|
|
||
Total revenues
|
|
1,272,245
|
|
|
1,096,965
|
|
||
|
|
|
|
|
||||
Expenses:
|
|
|
|
|
||||
Property operating expenses
|
|
670,807
|
|
|
556,465
|
|
||
Depreciation and amortization
|
|
243,932
|
|
|
228,201
|
|
||
Interest expense
|
|
145,232
|
|
|
122,775
|
|
||
General and administrative expenses
|
|
35,282
|
|
|
33,705
|
|
||
Loss (gain) on derivatives and financial instruments, net
|
|
(2,487
|
)
|
|
(7,173
|
)
|
||
Loss (gain) on extinguishment of debt, net
|
|
15,719
|
|
|
11,707
|
|
||
Provision for loan losses
|
|
18,690
|
|
|
—
|
|
||
Impairment of assets
|
|
—
|
|
|
28,185
|
|
||
Other expenses
|
|
8,756
|
|
|
3,712
|
|
||
Total expenses
|
|
1,135,931
|
|
|
977,577
|
|
||
|
|
|
|
|
||||
Income (loss) from continuing operations before income taxes and other items
|
|
136,314
|
|
|
119,388
|
|
||
Income tax (expense) benefit
|
|
(2,222
|
)
|
|
(1,588
|
)
|
||
Income (loss) from unconsolidated entities
|
|
(9,199
|
)
|
|
(2,429
|
)
|
||
Gain (loss) on real estate dispositions, net
|
|
167,409
|
|
|
338,184
|
|
||
Income (loss) from continuing operations
|
|
292,302
|
|
|
453,555
|
|
||
|
|
|
|
|
||||
Net income
|
|
292,302
|
|
|
453,555
|
|
||
Less: Preferred stock dividends
|
|
—
|
|
|
11,676
|
|
||
Less: Net income (loss) attributable to noncontrolling interests(1)
|
|
11,832
|
|
|
4,208
|
|
||
Net income (loss) attributable to common stockholders
|
|
$
|
280,470
|
|
|
$
|
437,671
|
|
|
|
|
|
|
||||
Average number of common shares outstanding:
|
|
|
|
|
||||
Basic
|
|
391,474
|
|
|
371,426
|
|
||
Diluted
|
|
393,452
|
|
|
373,257
|
|
||
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
|
||||
Basic:
|
|
|
|
|
||||
Income (loss) from continuing operations
|
|
$
|
0.75
|
|
|
$
|
1.22
|
|
Net income (loss) attributable to common stockholders
|
|
$
|
0.72
|
|
|
$
|
1.18
|
|
|
|
|
|
|
||||
Diluted:
|
|
|
|
|
||||
Income (loss) from continuing operations
|
|
$
|
0.74
|
|
|
$
|
1.22
|
|
Net income (loss) attributable to common stockholders
|
|
$
|
0.71
|
|
|
$
|
1.17
|
|
|
|
|
|
|
||||
Dividends declared and paid per common share
|
|
$
|
0.87
|
|
|
$
|
0.87
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Net income
|
|
$
|
292,302
|
|
|
$
|
453,555
|
|
|
|
|
|
|
||||
Other comprehensive income (loss):
|
|
|
|
|
||||
Foreign currency translation gain (loss)
|
|
78,620
|
|
|
79,024
|
|
||
Derivative instruments gain (loss)
|
|
(87,682
|
)
|
|
(62,698
|
)
|
||
Total other comprehensive income (loss)
|
|
(9,062
|
)
|
|
16,326
|
|
||
|
|
|
|
|
||||
Total comprehensive income (loss)
|
|
283,240
|
|
|
469,881
|
|
||
Less: Total comprehensive income (loss) attributable
to noncontrolling interests(1)
|
|
17,619
|
|
|
322
|
|
||
Total comprehensive income (loss) attributable to common stockholders
|
|
$
|
265,621
|
|
|
$
|
469,559
|
|
|
|
|
|
|
||||
(1) Includes amounts attributable to redeemable noncontrolling interests.
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Capital in
Excess of
Par Value
|
|
Treasury
Stock
|
|
Cumulative
Net Income
|
|
Cumulative
Dividends
|
|
Other
Comprehensive
Income (Loss)
|
|
Other
Equity
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||||||||
Balances at beginning of period
|
|
$
|
718,498
|
|
|
$
|
384,465
|
|
|
$
|
18,424,368
|
|
|
$
|
(68,499
|
)
|
|
$
|
6,121,534
|
|
|
$
|
(10,818,557
|
)
|
|
$
|
(129,769
|
)
|
|
$
|
294
|
|
|
$
|
954,265
|
|
|
$
|
15,586,599
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
280,470
|
|
|
|
|
|
|
|
|
10,785
|
|
|
291,255
|
|
|||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,849
|
)
|
|
|
|
5,787
|
|
|
(9,062
|
)
|
|||||||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
282,193
|
|
|||||||||||||||||||
Net change in noncontrolling interests
|
|
|
|
|
|
(8,845
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1,497
|
)
|
|
(10,342
|
)
|
|||||||||||||||||
Amounts related to stock incentive plans, net of forfeitures
|
|
|
|
120
|
|
|
7,420
|
|
|
(5,993
|
)
|
|
|
|
|
|
|
|
(26
|
)
|
|
|
|
1,521
|
|
|||||||||||||||
Proceeds from issuance of common stock
|
|
|
|
7,212
|
|
|
525,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
532,620
|
|
|||||||||||||||||
Conversion of preferred stock
|
|
(718,498
|
)
|
|
12,712
|
|
|
705,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
(344,760
|
)
|
|
|
|
|
|
|
|
(344,760
|
)
|
||||||||||||||||||
Balances at end of period
|
|
$
|
—
|
|
|
$
|
404,509
|
|
|
$
|
19,654,137
|
|
|
$
|
(74,492
|
)
|
|
$
|
6,402,004
|
|
|
$
|
(11,163,317
|
)
|
|
$
|
(144,618
|
)
|
|
$
|
268
|
|
|
$
|
969,340
|
|
|
$
|
16,047,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
Capital in
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Preferred
|
|
Common
|
|
Excess of
|
|
Treasury
|
|
Cumulative
|
|
Cumulative
|
|
Comprehensive
|
|
Other
|
|
Noncontrolling
|
|
|
||||||||||||||||||||
|
|
Stock
|
|
Stock
|
|
Par Value
|
|
Stock
|
|
Net Income
|
|
Dividends
|
|
Income (Loss)
|
|
Equity
|
|
Interests
|
|
Total
|
||||||||||||||||||||
Balances at beginning of period
|
|
$
|
718,503
|
|
|
$
|
372,449
|
|
|
$
|
17,662,681
|
|
|
$
|
(64,559
|
)
|
|
$
|
5,316,580
|
|
|
$
|
(9,471,712
|
)
|
|
$
|
(111,465
|
)
|
|
$
|
670
|
|
|
$
|
502,305
|
|
|
$
|
14,925,452
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
449,347
|
|
|
|
|
|
|
|
|
5,191
|
|
|
454,538
|
|
|||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,212
|
|
|
|
|
(3,886
|
)
|
|
16,326
|
|
|||||||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
470,864
|
|
|||||||||||||||||||
Net change in noncontrolling interests
|
|
|
|
|
|
(13,157
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(2,719
|
)
|
|
(15,876
|
)
|
|||||||||||||||||
Amounts related to stock incentive plans, net of forfeitures
|
|
|
|
150
|
|
|
11,085
|
|
|
(4,137
|
)
|
|
|
|
|
|
|
|
|
|
|
|
7,098
|
|
||||||||||||||||
Proceeds from issuance of common stock
|
|
|
|
130
|
|
|
7,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,190
|
|
|||||||||||||||||
Conversion of preferred stock
|
|
(5
|
)
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||||||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
(323,726
|
)
|
|
|
|
|
|
|
|
(323,726
|
)
|
||||||||||||||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
(11,676
|
)
|
|
|
|
|
|
|
|
(11,676
|
)
|
||||||||||||||||||
Balances at end of period
|
|
$
|
718,498
|
|
|
$
|
372,729
|
|
|
$
|
17,667,674
|
|
|
$
|
(68,696
|
)
|
|
$
|
5,765,927
|
|
|
$
|
(9,807,114
|
)
|
|
$
|
(91,253
|
)
|
|
$
|
670
|
|
|
$
|
500,891
|
|
|
$
|
15,059,326
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Operating activities:
|
|
|
|
|
|
|
||
Net income
|
|
$
|
292,302
|
|
|
$
|
453,555
|
|
Adjustments to reconcile net income to net cash provided from (used in) operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
243,932
|
|
|
228,201
|
|
||
Other amortization expenses
|
|
5,878
|
|
|
4,171
|
|
||
Provision for loan losses
|
|
18,690
|
|
|
—
|
|
||
Impairment of assets
|
|
—
|
|
|
28,185
|
|
||
Stock-based compensation expense
|
|
7,529
|
|
|
11,557
|
|
||
Loss (gain) on derivatives and financial instruments, net
|
|
(2,487
|
)
|
|
(7,173
|
)
|
||
Loss (gain) on extinguishment of debt, net
|
|
15,719
|
|
|
11,707
|
|
||
Loss (income) from unconsolidated entities
|
|
9,199
|
|
|
2,429
|
|
||
Rental income less than (in excess of) cash received
|
|
(26,956
|
)
|
|
(21,406
|
)
|
||
Amortization related to above (below) market leases, net
|
|
114
|
|
|
718
|
|
||
Loss (gain) on real estate dispositions, net
|
|
(167,409
|
)
|
|
(338,184
|
)
|
||
Increase (decrease) in accrued expenses and other liabilities
|
|
(27,368
|
)
|
|
(10,707
|
)
|
||
Decrease (increase) in receivables and other assets
|
|
(25,248
|
)
|
|
5,591
|
|
||
Net cash provided from (used in) operating activities
|
|
343,895
|
|
|
368,644
|
|
||
|
|
|
|
|
|
|||
Investing activities:
|
|
|
|
|
||||
Cash disbursed for acquisitions
|
|
(237,610
|
)
|
|
(405,609
|
)
|
||
Cash disbursed for capital improvements to existing properties
|
|
(56,935
|
)
|
|
(46,547
|
)
|
||
Cash disbursed for construction in progress
|
|
(55,391
|
)
|
|
(22,735
|
)
|
||
Capitalized interest
|
|
(2,327
|
)
|
|
(2,336
|
)
|
||
Investment in real estate loans receivable
|
|
(42,964
|
)
|
|
(27,547
|
)
|
||
Principal collected on real estate loans receivable
|
|
6,349
|
|
|
90,731
|
|
||
Other investments, net of payments
|
|
(9,456
|
)
|
|
(49,279
|
)
|
||
Contributions to unconsolidated entities
|
|
(26,854
|
)
|
|
(14,366
|
)
|
||
Distributions by unconsolidated entities
|
|
19,724
|
|
|
14,880
|
|
||
Proceeds from (payments on) derivatives
|
|
—
|
|
|
(8,324
|
)
|
||
Proceeds from sales of real property
|
|
602,732
|
|
|
892,209
|
|
||
Net cash provided from (used in) investing activities
|
|
197,268
|
|
|
421,077
|
|
||
|
|
|
|
|
||||
Financing activities:
|
|
|
|
|
||||
Net increase (decrease) in unsecured credit facility and commercial paper
|
|
(727,707
|
)
|
|
146,000
|
|
||
Proceeds from issuance of senior unsecured notes
|
|
1,036,964
|
|
|
—
|
|
||
Payments to extinguish senior unsecured notes
|
|
(1,050,000
|
)
|
|
(450,000
|
)
|
||
Net proceeds from the issuance of secured debt
|
|
247,163
|
|
|
20,326
|
|
||
Payments on secured debt
|
|
(128,113
|
)
|
|
(197,655
|
)
|
||
Net proceeds from the issuance of common stock
|
|
533,543
|
|
|
7,214
|
|
||
Payments for deferred financing costs and prepayment penalties
|
|
(19,566
|
)
|
|
(14,341
|
)
|
||
Contributions by noncontrolling interests(1)
|
|
27,860
|
|
|
5,734
|
|
||
Distributions to noncontrolling interests(1)
|
|
(21,830
|
)
|
|
(12,564
|
)
|
||
Cash distributions to stockholders
|
|
(342,803
|
)
|
|
(335,508
|
)
|
||
Other financing activities
|
|
(7,716
|
)
|
|
(4,555
|
)
|
||
Net cash provided from (used in) financing activities
|
|
(452,205
|
)
|
|
(835,349
|
)
|
||
Effect of foreign currency translation on cash, cash equivalents and restricted cash
|
|
2,352
|
|
|
444
|
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
|
91,310
|
|
|
(45,184
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
|
316,129
|
|
|
309,303
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
407,439
|
|
|
$
|
264,119
|
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
|
||||
Interest paid
|
|
$
|
148,487
|
|
|
$
|
104,246
|
|
Income taxes paid (received), net
|
|
(250
|
)
|
|
(721
|
)
|
||
|
|
|
|
|
||||
(1) Includes amounts attributable to redeemable noncontrolling interests.
|
|
|
|
|
•
|
We adopted Accounting Standards Update 2016-02, Leases (Topic 842) ("ASC 842") which requires lessees to recognize assets and liabilities on their consolidated balance sheet related to the rights and obligations created by most leases, while continuing to recognize expenses on their consolidated statement of comprehensive income over the lease term. We adopted ASC 842 as of January 1, 2019, using the modified retrospective approach and have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits us to carry forward our prior conclusions for lease classification and initial direct costs on existing leases. We also made an accounting policy election to keep short-term leases less than twelve months off the balance sheet for all classes of underlying assets.
|
•
|
In 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This standard requires a new forward-looking “expected loss” model to be used for receivables, held-to-maturity debt, loans, and other instruments. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements.
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||||||||||||||||||||
|
Seniors Housing Operating
|
|
Triple-net
|
|
Outpatient
Medical |
|
Totals
|
|
Seniors Housing Operating
|
|
Triple-net
|
|
Outpatient
Medical |
|
Totals
|
||||||||||||||||
Land and land improvements
|
$
|
6,831
|
|
|
$
|
7,427
|
|
|
$
|
29,304
|
|
|
$
|
43,562
|
|
|
$
|
35,193
|
|
|
$
|
1,691
|
|
|
$
|
7,369
|
|
|
$
|
44,253
|
|
Buildings and improvements
|
97,759
|
|
|
74,116
|
|
|
60,671
|
|
|
232,546
|
|
|
372,562
|
|
|
235
|
|
|
42,673
|
|
|
415,470
|
|
||||||||
Acquired lease intangibles
|
4,945
|
|
|
—
|
|
|
10,202
|
|
|
15,147
|
|
|
48,805
|
|
|
—
|
|
|
5,852
|
|
|
54,657
|
|
||||||||
Right of use assets, net
|
—
|
|
|
—
|
|
|
2,012
|
|
|
2,012
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Receivables and other assets
|
264
|
|
|
—
|
|
|
—
|
|
|
264
|
|
|
265
|
|
|
—
|
|
|
1
|
|
|
266
|
|
||||||||
Total assets acquired(1)
|
109,799
|
|
|
81,543
|
|
|
102,189
|
|
|
293,531
|
|
|
456,825
|
|
|
1,926
|
|
|
55,895
|
|
|
514,646
|
|
||||||||
Secured debt
|
(43,209
|
)
|
|
—
|
|
|
—
|
|
|
(43,209
|
)
|
|
(89,973
|
)
|
|
—
|
|
|
—
|
|
|
(89,973
|
)
|
||||||||
Lease liabilities
|
—
|
|
|
—
|
|
|
(961
|
)
|
|
(961
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Accrued expenses and other liabilities
|
(848
|
)
|
|
—
|
|
|
(1,952
|
)
|
|
(2,800
|
)
|
|
(12,808
|
)
|
|
(6
|
)
|
|
(632
|
)
|
|
(13,446
|
)
|
||||||||
Total liabilities acquired
|
(44,057
|
)
|
|
—
|
|
|
(2,913
|
)
|
|
(46,970
|
)
|
|
(102,781
|
)
|
|
(6
|
)
|
|
(632
|
)
|
|
(103,419
|
)
|
||||||||
Noncontrolling interests
|
(7,895
|
)
|
|
(1,056
|
)
|
|
—
|
|
|
(8,951
|
)
|
|
(5,618
|
)
|
|
—
|
|
|
—
|
|
|
(5,618
|
)
|
||||||||
Cash disbursed for acquisitions
|
57,847
|
|
|
80,487
|
|
|
99,276
|
|
|
237,610
|
|
|
348,426
|
|
|
1,920
|
|
|
55,263
|
|
|
405,609
|
|
||||||||
Construction in progress additions
|
37,088
|
|
|
7,543
|
|
|
14,475
|
|
|
59,106
|
|
|
10,562
|
|
|
15,850
|
|
|
2,803
|
|
|
29,215
|
|
||||||||
Less: Capitalized interest
|
(1,136
|
)
|
|
(390
|
)
|
|
(801
|
)
|
|
(2,327
|
)
|
|
(891
|
)
|
|
(847
|
)
|
|
(598
|
)
|
|
(2,336
|
)
|
||||||||
Foreign currency translation
|
(1,332
|
)
|
|
(101
|
)
|
|
—
|
|
|
(1,433
|
)
|
|
(5,032
|
)
|
|
—
|
|
|
—
|
|
|
(5,032
|
)
|
||||||||
Accruals(2)
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
888
|
|
|
888
|
|
||||||||
Cash disbursed for construction in progress
|
34,620
|
|
|
7,052
|
|
|
13,719
|
|
|
55,391
|
|
|
4,639
|
|
|
15,003
|
|
|
3,093
|
|
|
22,735
|
|
||||||||
Capital improvements to existing properties
|
43,300
|
|
|
3,768
|
|
|
9,867
|
|
|
56,935
|
|
|
31,325
|
|
|
2,351
|
|
|
12,871
|
|
|
46,547
|
|
||||||||
Total cash invested in real property, net of cash acquired
|
$
|
135,767
|
|
|
$
|
91,307
|
|
|
$
|
122,862
|
|
|
$
|
349,936
|
|
|
$
|
384,390
|
|
|
$
|
19,274
|
|
|
$
|
71,227
|
|
|
$
|
474,891
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||
Development projects:
|
|
|
|
|
||||
Seniors Housing Operating
|
|
$
|
—
|
|
|
$
|
36,218
|
|
Triple-net
|
|
—
|
|
|
49,759
|
|
||
Total construction in progress conversions
|
|
$
|
—
|
|
|
$
|
85,977
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets:
|
|
|
|
|
||||
In place lease intangibles
|
|
$
|
1,430,342
|
|
|
$
|
1,410,725
|
|
Above market tenant leases
|
|
64,684
|
|
|
63,935
|
|
||
Below market ground leases (1)
|
|
—
|
|
|
64,513
|
|
||
Lease commissions
|
|
44,337
|
|
|
41,986
|
|
||
Gross historical cost
|
|
1,539,363
|
|
|
1,581,159
|
|
||
Accumulated amortization
|
|
(1,214,735
|
)
|
|
(1,197,336
|
)
|
||
Net book value
|
|
$
|
324,628
|
|
|
$
|
383,823
|
|
|
|
|
|
|
||||
Weighted-average amortization period in years
|
|
10.1
|
|
|
16.0
|
|
||
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Below market tenant leases
|
|
$
|
82,981
|
|
|
$
|
81,676
|
|
Above market ground leases (1)
|
|
—
|
|
|
8,540
|
|
||
Gross historical cost
|
|
82,981
|
|
|
90,216
|
|
||
Accumulated amortization
|
|
(44,580
|
)
|
|
(44,266
|
)
|
||
Net book value
|
|
$
|
38,401
|
|
|
$
|
45,950
|
|
|
|
|
|
|
||||
Weighted-average amortization period in years
|
|
8.7
|
|
|
14.7
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Rental income related to (above)/below market tenant leases, net
|
|
$
|
(155
|
)
|
|
$
|
(351
|
)
|
Amortization related to in place lease intangibles and lease commissions
|
|
(24,905
|
)
|
|
(32,261
|
)
|
|
|
Assets
|
|
Liabilities
|
||||
2019
|
|
$
|
80,093
|
|
|
$
|
5,233
|
|
2020
|
|
60,916
|
|
|
6,506
|
|
||
2021
|
|
30,530
|
|
|
5,870
|
|
||
2022
|
|
24,734
|
|
|
5,273
|
|
||
2023
|
|
20,582
|
|
|
3,395
|
|
||
Thereafter
|
|
107,773
|
|
|
12,124
|
|
||
Total
|
|
$
|
324,628
|
|
|
$
|
38,401
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Real estate dispositions:
|
|
|
|
|
||||
Seniors Housing Operating
|
|
$
|
—
|
|
|
$
|
2,200
|
|
Triple-net
|
|
436,071
|
|
|
323,667
|
|
||
Outpatient Medical
|
|
—
|
|
|
223,069
|
|
||
Total dispositions
|
|
436,071
|
|
|
548,936
|
|
||
Gain (loss) on real estate dispositions, net
|
|
167,409
|
|
|
338,184
|
|
||
Net other assets/liabilities disposed
|
|
(748
|
)
|
|
5,089
|
|
||
Proceeds from real estate dispositions
|
|
$
|
602,732
|
|
|
$
|
892,209
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
|
||||
Total revenues
|
|
$
|
27,628
|
|
|
$
|
43,894
|
|
Expenses:
|
|
|
|
|
||||
Interest expense
|
|
18
|
|
|
148
|
|
||
Property operating expenses
|
|
19,206
|
|
|
20,295
|
|
||
Provision for depreciation
|
|
—
|
|
|
6,061
|
|
||
Total expenses
|
|
19,224
|
|
|
26,504
|
|
||
Income (loss) from real estate dispositions, net
|
|
$
|
8,404
|
|
|
$
|
17,390
|
|
|
|
Classification
|
|
Three Months Ended March 31, 2019
|
||
Operating lease cost: (1)
|
|
|
|
|
||
Real estate lease expense
|
|
Property operating expenses
|
|
$
|
7,412
|
|
Non-real estate lease expense
|
|
General and administrative expenses
|
|
362
|
|
|
Finance lease cost:
|
|
|
|
|
||
Amortization of leased assets
|
|
Property operating expenses
|
|
2,092
|
|
|
Interest on lease liabilities
|
|
Interest expense
|
|
1,002
|
|
|
Sublease income
|
|
Rental income
|
|
(1,886
|
)
|
|
Total
|
|
|
|
$
|
8,982
|
|
|
|
Operating Leases
|
|
Finance Leases
|
||||
2019
|
|
$
|
12,139
|
|
|
$
|
5,726
|
|
2020
|
|
16,186
|
|
|
7,444
|
|
||
2021
|
|
16,058
|
|
|
7,093
|
|
||
2022
|
|
15,111
|
|
|
6,454
|
|
||
2023
|
|
15,158
|
|
|
67,593
|
|
||
Thereafter
|
|
1,418,839
|
|
|
—
|
|
||
Total lease payments
|
|
1,493,491
|
|
|
94,310
|
|
||
Less: Imputed interest
|
|
(1,146,378
|
)
|
|
(14,784
|
)
|
||
Total present value of lease liabilities
|
|
$
|
347,113
|
|
|
$
|
79,526
|
|
|
Classification
|
|
March 31, 2019
|
||
Right of use assets:
|
|
|
|
||
Operating leases - real estate
|
Right of use assets, net
|
|
$
|
358,325
|
|
Finance leases
|
Right of use assets, net
|
|
144,104
|
|
|
Real estate right of use assets, net
|
|
|
502,429
|
|
|
Operating leases - corporate
|
Receivables and other assets
|
|
3,642
|
|
|
Total right of use assets, net
|
|
|
$
|
506,071
|
|
|
|
|
|
||
Lease liabilities:
|
|
|
|
||
Operating leases
|
|
|
$
|
347,113
|
|
Financing leases
|
|
|
79,526
|
|
|
Total
|
|
|
$
|
426,639
|
|
|
|
|
|
||
Weighted average remaining lease term (years):
|
|
|
|
||
Operating leases
|
|
|
52.5
|
|
|
Finance leases
|
|
|
3.9
|
|
|
|
|
|
|
||
Weighted average discount rate:
|
|
|
|
||
Operating leases
|
|
|
5.24
|
%
|
|
Finance leases
|
|
|
5.21
|
%
|
2019
|
|
$
|
950,205
|
|
2020
|
|
1,240,401
|
|
|
2021
|
|
1,210,470
|
|
|
2022
|
|
1,187,277
|
|
|
2023
|
|
1,134,217
|
|
|
Thereafter
|
|
9,199,476
|
|
|
Totals
|
|
$
|
14,922,046
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Mortgage loans
|
|
$
|
326,687
|
|
|
$
|
317,443
|
|
Other real estate loans
|
|
111,459
|
|
|
81,268
|
|
||
Less allowance for losses on loans receivable
|
|
(87,062
|
)
|
|
(68,372
|
)
|
||
Totals
|
|
$
|
351,085
|
|
|
$
|
330,339
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||||||||||||||||||||
|
|
Seniors Housing Operating
|
|
Triple-net
|
|
Outpatient
Medical |
|
Totals
|
|
Seniors Housing Operating
|
|
Triple-net
|
|
Outpatient
Medical |
|
Totals
|
||||||||||||||||
Advances on real estate loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investments in new loans
|
|
$
|
25,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,000
|
|
|
$
|
11,806
|
|
|
$
|
1,172
|
|
|
$
|
2,458
|
|
|
$
|
15,436
|
|
Draws on existing loans
|
|
—
|
|
|
12,956
|
|
|
5,008
|
|
|
17,964
|
|
|
—
|
|
|
12,111
|
|
|
—
|
|
|
12,111
|
|
||||||||
Net cash advances on real estate loans
|
|
25,000
|
|
|
12,956
|
|
|
5,008
|
|
|
42,964
|
|
|
11,806
|
|
|
13,283
|
|
|
2,458
|
|
|
27,547
|
|
||||||||
Receipts on real estate loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loan payoffs
|
|
—
|
|
|
4,384
|
|
|
—
|
|
|
4,384
|
|
|
—
|
|
|
58,557
|
|
|
—
|
|
|
58,557
|
|
||||||||
Principal payments on loans
|
|
—
|
|
|
1,965
|
|
|
—
|
|
|
1,965
|
|
|
—
|
|
|
32,174
|
|
|
—
|
|
|
32,174
|
|
||||||||
Net cash receipts on real estate loans
|
|
—
|
|
|
6,349
|
|
|
—
|
|
|
6,349
|
|
|
—
|
|
|
90,731
|
|
|
—
|
|
|
90,731
|
|
||||||||
Net cash advances (receipts) on real estate loans
|
|
$
|
25,000
|
|
|
$
|
6,607
|
|
|
$
|
5,008
|
|
|
$
|
36,615
|
|
|
$
|
11,806
|
|
|
$
|
(77,448
|
)
|
|
$
|
2,458
|
|
|
$
|
(63,184
|
)
|
|
|
Three Months Ended
|
||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||
Balance of impaired loans at end of period
|
|
$
|
206,783
|
|
|
$
|
214,896
|
|
Allowance for loan losses
|
|
87,062
|
|
|
68,372
|
|
||
Balance of impaired loans not reserved
|
|
$
|
119,721
|
|
|
$
|
146,524
|
|
Average impaired loans for the period
|
|
$
|
198,028
|
|
|
$
|
265,973
|
|
Interest recognized on impaired loans(1)
|
|
3,971
|
|
|
5,327
|
|
|
|
Percentage Ownership(1)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Seniors Housing Operating
|
|
10% to 50%
|
|
$
|
360,896
|
|
|
$
|
344,982
|
|
Triple-net
|
|
10% to 49%
|
|
9,772
|
|
|
34,284
|
|
||
Outpatient Medical
|
|
43% to 50%
|
|
113,597
|
|
|
103,648
|
|
||
Total
|
|
|
|
$
|
484,265
|
|
|
$
|
482,914
|
|
|
|
Number of
|
|
Total
|
|
Percent of
|
|||
Concentration by relationship:(1)
|
|
Properties
|
|
NOI
|
|
NOI(2)
|
|||
Sunrise Senior Living(3)
|
|
161
|
|
|
$
|
90,592
|
|
|
15%
|
ProMedica
|
|
218
|
|
|
53,771
|
|
|
9%
|
|
Revera(3)
|
|
98
|
|
|
36,682
|
|
|
6%
|
|
Genesis HealthCare
|
|
63
|
|
|
32,298
|
|
|
5%
|
|
Benchmark Senior Living
|
|
48
|
|
|
25,027
|
|
|
4%
|
|
Remaining portfolio
|
|
906
|
|
|
363,068
|
|
|
61%
|
|
Totals
|
|
1,494
|
|
|
$
|
601,438
|
|
|
100%
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Balance outstanding at quarter end
|
|
$
|
419,293
|
|
|
$
|
865,000
|
|
Maximum amount outstanding at any month end
|
|
$
|
1,150,000
|
|
|
$
|
865,000
|
|
Average amount outstanding (total of daily
|
|
|
|
|
||||
principal balances divided by days in period)
|
|
$
|
790,516
|
|
|
$
|
364,111
|
|
Weighted average interest rate (actual interest
|
|
|
|
|
||||
expense divided by average borrowings outstanding)
|
|
3.22
|
%
|
|
2.72
|
%
|
|
|
Senior
Unsecured Notes(1,2)
|
|
Secured
Debt (1,3)
|
|
Totals
|
||||||
2019
|
|
$
|
—
|
|
|
$
|
384,466
|
|
|
$
|
384,466
|
|
2020(4)
|
|
232,051
|
|
|
140,969
|
|
|
373,020
|
|
|||
2021
|
|
450,000
|
|
|
376,808
|
|
|
826,808
|
|
|||
2022
|
|
600,000
|
|
|
283,452
|
|
|
883,452
|
|
|||
2023(5,6)
|
|
1,787,126
|
|
|
328,511
|
|
|
2,115,637
|
|
|||
Thereafter(7,8)
|
|
6,668,360
|
|
|
1,158,752
|
|
|
7,827,112
|
|
|||
Totals
|
|
$
|
9,737,537
|
|
|
$
|
2,672,958
|
|
|
$
|
12,410,495
|
|
|
|
Three Months Ended
|
||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||
|
|
|
|
Weighted Avg.
|
|
|
|
Weighted Avg.
|
||||
|
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||
Beginning balance
|
|
$
|
9,699,984
|
|
|
4.48%
|
|
$
|
8,417,447
|
|
|
4.31%
|
Debt issued
|
|
1,050,000
|
|
|
3.89%
|
|
—
|
|
|
0.00%
|
||
Debt extinguished
|
|
(1,050,000
|
)
|
|
4.98%
|
|
(450,000
|
)
|
|
2.25%
|
||
Foreign currency
|
|
37,553
|
|
|
4.33%
|
|
39,542
|
|
|
5.22%
|
||
Ending balance
|
|
$
|
9,737,537
|
|
|
4.35%
|
|
$
|
8,006,989
|
|
|
4.45%
|
|
|
Three Months Ended
|
||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||
|
|
|
|
Weighted Avg.
|
|
|
|
Weighted Avg.
|
||||
|
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||
Beginning balance
|
|
$
|
2,485,711
|
|
|
3.90%
|
|
$
|
2,618,408
|
|
|
3.76%
|
Debt issued
|
|
247,163
|
|
|
3.68%
|
|
20,326
|
|
|
3.77%
|
||
Debt assumed
|
|
42,000
|
|
|
4.62%
|
|
85,192
|
|
|
4.40%
|
||
Debt extinguished
|
|
(114,570
|
)
|
|
4.96%
|
|
(183,408
|
)
|
|
5.81%
|
||
Principal payments
|
|
(13,543
|
)
|
|
3.85%
|
|
(14,247
|
)
|
|
3.87%
|
||
Foreign currency
|
|
26,197
|
|
|
3.33%
|
|
(27,876
|
)
|
|
3.33%
|
||
Ending balance
|
|
$
|
2,672,958
|
|
|
3.84%
|
|
$
|
2,498,395
|
|
|
3.70%
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Derivatives designated as net investment hedges:
|
|
|
|
|
||||
Denominated in Canadian Dollars
|
|
$
|
575,000
|
|
|
$
|
575,000
|
|
Denominated in Pounds Sterling
|
|
£
|
1,340,708
|
|
|
£
|
890,708
|
|
|
|
|
|
|
||||
Financial instruments designated as net investment hedges:
|
|
|
|
|
||||
Denominated in Canadian Dollars
|
|
$
|
250,000
|
|
|
$
|
250,000
|
|
Denominated in Pounds Sterling
|
|
£
|
1,050,000
|
|
|
£
|
1,050,000
|
|
|
|
|
|
|
||||
Derivative instruments not designated:
|
|
|
|
|
||||
Interest rate caps denominated in U.S. Dollars
|
|
$
|
405,819
|
|
|
$
|
405,819
|
|
Forward purchase contracts denominated in Canadian Dollars
|
|
$
|
(325,000
|
)
|
|
$
|
(325,000
|
)
|
Forward sales contracts denominated in Canadian Dollars
|
|
$
|
405,000
|
|
|
$
|
405,000
|
|
Forward purchase contracts denominated in Pounds Sterling
|
|
£
|
(350,000
|
)
|
|
£
|
(350,000
|
)
|
Forward sales contracts denominated in Pounds Sterling
|
|
£
|
350,000
|
|
|
£
|
350,000
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
Location
|
|
2019
|
|
2018
|
||||
Gain (loss) on derivative instruments designated as hedges recognized in income
|
|
Interest expense
|
|
$
|
5,333
|
|
|
$
|
(269
|
)
|
|
|
|
|
|
|
|
||||
Gain (loss) on derivative instruments not designated as hedges recognized in income
|
|
Interest expense
|
|
$
|
(1,538
|
)
|
|
$
|
1,720
|
|
|
|
|
|
|
|
|
||||
Gain (loss) on foreign exchange contracts and term loans designated as net investment hedge recognized in OCI
|
|
OCI
|
|
$
|
(87,682
|
)
|
|
$
|
(62,698
|
)
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||
Preferred Stock:
|
|
|
|
|
||
Authorized shares
|
|
50,000,000
|
|
|
50,000,000
|
|
Issued shares
|
|
—
|
|
|
14,375,000
|
|
Outstanding shares
|
|
—
|
|
|
14,369,965
|
|
|
|
|
|
|
||
Common Stock, $1.00 par value:
|
|
|
|
|
||
Authorized shares
|
|
700,000,000
|
|
|
700,000,000
|
|
Issued shares
|
|
404,995,443
|
|
|
384,849,236
|
|
Outstanding shares
|
|
403,740,032
|
|
|
383,674,603
|
|
|
|
Three Months Ended
|
||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||
|
|
|
|
Weighted Avg.
|
|
|
|
Weighted Avg.
|
||
|
|
Shares
|
|
Dividend Rate
|
|
Shares
|
|
Dividend Rate
|
||
Beginning balance
|
|
14,369,965
|
|
|
6.50%
|
|
14,370,060
|
|
|
6.50%
|
Shares converted
|
|
(14,369,965
|
)
|
|
6.50%
|
|
(95
|
)
|
|
6.50%
|
Ending balance
|
|
—
|
|
|
—%
|
|
14,369,965
|
|
|
6.50%
|
|
|
Shares Issued
|
|
Average Price
|
|
Gross Proceeds
|
|
Net Proceeds
|
|||||
2018 Dividend reinvestment plan issuances
|
|
129,975
|
|
|
$55.51
|
|
$
|
7,214
|
|
|
$
|
7,214
|
|
2018 Preferred stock conversions
|
|
83
|
|
|
|
|
—
|
|
|
—
|
|
||
2018 Stock incentive plans, net of forfeitures
|
|
109,046
|
|
|
|
|
—
|
|
|
—
|
|
||
2018 Totals
|
|
239,104
|
|
|
|
|
$
|
7,214
|
|
|
$
|
7,214
|
|
|
|
|
|
|
|
|
|
|
|||||
2019 Dividend reinvestment plan issuances
|
|
4,148,667
|
|
|
$75.04
|
|
$
|
311,301
|
|
|
$
|
307,821
|
|
2019 Option exercises
|
|
2,505
|
|
|
53.89
|
|
135
|
|
|
135
|
|
||
2019 Equity shelf program issuances
|
|
3,060,865
|
|
|
74.22
|
|
227,180
|
|
|
225,587
|
|
||
2019 Preferred stock conversions
|
|
12,712,452
|
|
|
|
|
—
|
|
|
—
|
|
||
2019 Stock incentive plans, net of forfeitures
|
|
140,940
|
|
|
|
|
—
|
|
|
—
|
|
||
2019 Totals
|
|
20,065,429
|
|
|
|
|
$
|
538,616
|
|
|
$
|
533,543
|
|
|
|
Three Months Ended
|
||||||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||||
|
|
Per Share
|
|
Amount
|
|
Per Share
|
|
Amount
|
||||||||
Common Stock
|
|
$
|
0.8700
|
|
|
$
|
344,760
|
|
|
$
|
0.8700
|
|
|
$
|
323,726
|
|
Series I Preferred Stock
|
|
|
|
—
|
|
|
0.8125
|
|
|
11,676
|
|
|||||
Totals
|
|
|
|
$
|
344,760
|
|
|
|
|
$
|
335,402
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||
Foreign currency translation
|
$
|
(795,173
|
)
|
|
$
|
(868,006
|
)
|
|
Derivative instruments
|
651,095
|
|
|
738,777
|
|
|||
Actuarial losses
|
(540
|
)
|
|
(540
|
)
|
|||
Total accumulated other comprehensive loss
|
$
|
(144,618
|
)
|
|
$
|
(129,769
|
)
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Numerator for basic and diluted earnings
|
|
|
|
|
||||
per share - net income (loss) attributable
|
|
|
|
|
||||
to common stockholders
|
|
$
|
280,470
|
|
|
$
|
437,671
|
|
|
|
|
|
|
||||
Denominator for basic earnings per
|
|
|
|
|
||||
share - weighted average shares
|
|
391,474
|
|
|
371,426
|
|
||
Effect of dilutive securities:
|
|
|
|
|
||||
Employee stock options
|
|
1
|
|
|
15
|
|
||
Non-vested restricted shares
|
|
868
|
|
|
720
|
|
||
Redeemable shares
|
|
1,096
|
|
|
1,096
|
|
||
Employee stock purchase program
|
|
13
|
|
—
|
|
|||
Dilutive potential common shares
|
|
1,978
|
|
|
1,831
|
|
||
Denominator for diluted earnings per
|
|
|
|
|
||||
share - adjusted weighted average shares
|
|
393,452
|
|
|
373,257
|
|
||
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
0.72
|
|
|
$
|
1.18
|
|
Diluted earnings per share
|
|
$
|
0.71
|
|
|
$
|
1.17
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage loans receivable
|
|
$
|
258,315
|
|
|
$
|
267,143
|
|
|
$
|
249,071
|
|
|
$
|
257,337
|
|
Other real estate loans receivable
|
|
92,770
|
|
|
93,767
|
|
|
81,268
|
|
|
82,742
|
|
||||
Equity securities
|
|
13,773
|
|
|
13,773
|
|
|
11,286
|
|
|
11,286
|
|
||||
Cash and cash equivalents
|
|
249,127
|
|
|
249,127
|
|
|
215,376
|
|
|
215,376
|
|
||||
Restricted cash
|
|
158,312
|
|
|
158,312
|
|
|
100,753
|
|
|
100,753
|
|
||||
Foreign currency forward contracts and cross currency swaps
|
|
53,078
|
|
|
53,078
|
|
|
94,729
|
|
|
94,729
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Unsecured revolving credit facility and unsecured commercial paper note program
|
|
$
|
419,293
|
|
|
$
|
419,293
|
|
|
$
|
1,147,000
|
|
|
$
|
1,147,000
|
|
Senior unsecured notes
|
|
9,632,013
|
|
|
10,409,527
|
|
|
9,603,299
|
|
|
10,043,797
|
|
||||
Secured debt
|
|
2,660,190
|
|
|
2,709,741
|
|
|
2,476,177
|
|
|
2,499,130
|
|
||||
Foreign currency forward contracts and cross currency swaps
|
|
85,687
|
|
|
85,687
|
|
|
71,109
|
|
|
71,109
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Redeemable OP unitholder interests
|
|
$
|
115,218
|
|
|
$
|
115,218
|
|
|
$
|
103,071
|
|
|
$
|
103,071
|
|
|
|
Fair Value Measurements as of March 31, 2019
|
||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Equity securities
|
|
$
|
13,773
|
|
|
$
|
13,773
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency forward contracts and cross currency swaps, net asset (liability)(1)
|
|
(32,609
|
)
|
|
—
|
|
|
(32,609
|
)
|
|
—
|
|
||||
Redeemable OP unitholder interests
|
|
115,218
|
|
|
—
|
|
|
115,218
|
|
|
—
|
|
||||
Totals
|
|
$
|
96,382
|
|
|
$
|
13,773
|
|
|
$
|
82,609
|
|
|
$
|
—
|
|
Three Months Ended March 31, 2019:
|
|
Seniors Housing Operating
|
|
Triple-net
|
|
Outpatient Medical
|
|
Non-segment / Corporate
|
|
Total
|
||||||||||
Resident fees and services
|
|
$
|
868,285
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
868,285
|
|
Rental income
|
|
—
|
|
|
232,032
|
|
|
149,052
|
|
|
—
|
|
|
381,084
|
|
|||||
Interest income
|
|
—
|
|
|
14,946
|
|
|
173
|
|
|
—
|
|
|
15,119
|
|
|||||
Other income
|
|
4,101
|
|
|
1,263
|
|
|
236
|
|
|
2,157
|
|
|
7,757
|
|
|||||
Total revenues
|
|
872,386
|
|
|
248,241
|
|
|
149,461
|
|
|
2,157
|
|
|
1,272,245
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property operating expenses
|
|
607,686
|
|
|
14,955
|
|
|
48,166
|
|
|
—
|
|
|
670,807
|
|
|||||
Consolidated net operating income
|
|
264,700
|
|
|
233,286
|
|
|
101,295
|
|
|
2,157
|
|
|
601,438
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization
|
|
131,575
|
|
|
61,348
|
|
|
51,009
|
|
|
—
|
|
|
243,932
|
|
|||||
Interest expense
|
|
18,251
|
|
|
3,440
|
|
|
3,348
|
|
|
120,193
|
|
|
145,232
|
|
|||||
General and administrative expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,282
|
|
|
35,282
|
|
|||||
Loss (gain) on derivatives and financial instruments, net
|
|
—
|
|
|
(2,487
|
)
|
|
—
|
|
|
—
|
|
|
(2,487
|
)
|
|||||
Loss (gain) on extinguishment of debt, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,719
|
|
|
15,719
|
|
|||||
Provision for loan losses
|
|
—
|
|
|
18,690
|
|
|
—
|
|
|
—
|
|
|
18,690
|
|
|||||
Other expenses
|
|
2,946
|
|
|
3,029
|
|
|
754
|
|
|
2,027
|
|
|
8,756
|
|
|||||
Income (loss) from continuing operations before income taxes and other items
|
|
111,928
|
|
|
149,266
|
|
|
46,184
|
|
|
(171,064
|
)
|
|
136,314
|
|
|||||
Income tax (expense) benefit
|
|
(619
|
)
|
|
(951
|
)
|
|
(365
|
)
|
|
(287
|
)
|
|
(2,222
|
)
|
|||||
(Loss) income from unconsolidated entities
|
|
(16,580
|
)
|
|
5,658
|
|
|
1,723
|
|
|
—
|
|
|
(9,199
|
)
|
|||||
Gain (loss) on real estate dispositions, net
|
|
(160
|
)
|
|
167,574
|
|
|
(5
|
)
|
|
—
|
|
|
167,409
|
|
|||||
Income (loss) from continuing operations
|
|
94,569
|
|
|
321,547
|
|
|
47,537
|
|
|
(171,351
|
)
|
|
292,302
|
|
|||||
Net income (loss)
|
|
$
|
94,569
|
|
|
$
|
321,547
|
|
|
$
|
47,537
|
|
|
$
|
(171,351
|
)
|
|
$
|
292,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total assets
|
|
$
|
15,237,260
|
|
|
$
|
9,494,799
|
|
|
$
|
5,729,959
|
|
|
$
|
175,318
|
|
|
$
|
30,637,336
|
|
Three Months Ended March 31, 2018:
|
|
Seniors Housing Operating
|
|
Triple-net
|
|
Outpatient Medical
|
|
Non-segment/Corporate
|
|
Total
|
||||||||||
Resident fees and services
|
|
$
|
735,934
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
735,934
|
|
Rental income
|
|
—
|
|
|
206,831
|
|
|
136,538
|
|
|
—
|
|
|
343,369
|
|
|||||
Interest income
|
|
85
|
|
|
14,551
|
|
|
12
|
|
|
—
|
|
|
14,648
|
|
|||||
Other income
|
|
1,148
|
|
|
1,377
|
|
|
121
|
|
|
368
|
|
|
3,014
|
|
|||||
Total revenues
|
|
737,167
|
|
|
222,759
|
|
|
136,671
|
|
|
368
|
|
|
1,096,965
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property operating expenses
|
|
511,941
|
|
|
21
|
|
|
44,503
|
|
|
—
|
|
|
556,465
|
|
|||||
Consolidated net operating income
|
|
225,226
|
|
|
222,738
|
|
|
92,168
|
|
|
368
|
|
|
540,500
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization
|
|
125,769
|
|
|
56,032
|
|
|
46,400
|
|
|
—
|
|
|
228,201
|
|
|||||
Interest expense
|
|
16,935
|
|
|
3,442
|
|
|
1,676
|
|
|
100,722
|
|
|
122,775
|
|
|||||
General and administrative expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,705
|
|
|
33,705
|
|
|||||
Loss (gain) on derivatives and financial instruments, net
|
|
—
|
|
|
(7,173
|
)
|
|
—
|
|
|
—
|
|
|
(7,173
|
)
|
|||||
Loss (gain) on extinguishment of debt, net
|
|
(189
|
)
|
|
(32
|
)
|
|
11,928
|
|
|
—
|
|
|
11,707
|
|
|||||
Impairment of assets
|
|
2,301
|
|
|
25,884
|
|
|
—
|
|
|
—
|
|
|
28,185
|
|
|||||
Other expenses
|
|
(188
|
)
|
|
1,120
|
|
|
598
|
|
|
2,182
|
|
|
3,712
|
|
|||||
Income (loss) from continuing operations before income taxes and other items
|
|
80,598
|
|
|
143,465
|
|
|
31,566
|
|
|
(136,241
|
)
|
|
119,388
|
|
|||||
Income tax (expense) benefit
|
|
162
|
|
|
(1,136
|
)
|
|
(428
|
)
|
|
(186
|
)
|
|
(1,588
|
)
|
|||||
(Loss) income from unconsolidated entities
|
|
(9,480
|
)
|
|
5,821
|
|
|
1,230
|
|
|
—
|
|
|
(2,429
|
)
|
|||||
Gain (loss) on real estate dispositions, net
|
|
5
|
|
|
123,397
|
|
|
214,782
|
|
|
—
|
|
|
338,184
|
|
|||||
Income (loss) from continuing operations
|
|
71,285
|
|
|
271,547
|
|
|
247,150
|
|
|
(136,427
|
)
|
|
453,555
|
|
|||||
Net income (loss)
|
|
$
|
71,285
|
|
|
$
|
271,547
|
|
|
$
|
247,150
|
|
|
$
|
(136,427
|
)
|
|
$
|
453,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
||||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
|
||||||||||
Revenues:
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
||||||
United States
|
|
$
|
1,043,667
|
|
|
82.1
|
%
|
|
$
|
863,789
|
|
|
78.8
|
%
|
|
United Kingdom
|
|
112,418
|
|
|
8.8
|
%
|
|
116,525
|
|
|
10.6
|
%
|
|
||
Canada
|
|
116,160
|
|
|
9.1
|
%
|
|
116,651
|
|
|
10.6
|
%
|
|
||
Total
|
|
$
|
1,272,245
|
|
|
100.0
|
%
|
|
$
|
1,096,965
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
As of
|
|
||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
||||||||||
Assets:
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
||||||
United States
|
|
$
|
24,984,680
|
|
|
81.6
|
%
|
|
$
|
24,884,292
|
|
|
82.0
|
%
|
|
United Kingdom
|
|
3,230,152
|
|
|
10.5
|
%
|
|
3,078,994
|
|
|
10.2
|
%
|
|
||
Canada
|
|
2,422,504
|
|
|
7.9
|
%
|
|
2,378,786
|
|
|
7.8
|
%
|
|
||
Total
|
|
$
|
30,637,336
|
|
|
100.0
|
%
|
|
$
|
30,342,072
|
|
|
100.0
|
%
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets:
|
|
|
|
|
||||
Net real estate investments
|
|
$
|
971,038
|
|
|
$
|
973,813
|
|
Cash and cash equivalents
|
|
18,712
|
|
|
18,678
|
|
||
Receivables and other assets
|
|
16,798
|
|
|
14,600
|
|
||
Total assets(1)
|
|
$
|
1,006,548
|
|
|
$
|
1,007,091
|
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
||||
Secured debt
|
|
$
|
464,186
|
|
|
$
|
465,433
|
|
Lease liabilities
|
|
1,327
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
22,101
|
|
|
18,229
|
|
||
Total equity
|
|
518,934
|
|
|
523,429
|
|
||
Total liabilities and equity
|
|
$
|
1,006,548
|
|
|
$
|
1,007,091
|
|
•
|
In January 2019, we established an unsecured Commercial Paper Program. Under the terms of the program, we may issue, from time to time, unsecured commercial paper with maturities that vary, but do not exceed 397 days from the date of issue, up to a maximum aggregate principal amount outstanding at any time of $1,000,000,000.
|
•
|
In February 2019, we completed the issuance of $500,000,000 of 3.625% senior unsecured notes due 2024 and $550,000,000 of 4.125% senior unsecured notes due 2029 for net proceeds of approximately $1,036,964,000.
|
•
|
In February 2019, we elected to effect the mandatory conversion of all of the outstanding 6.50% Series I Cumulative Convertible Perpetual Preferred Stock. Each share of convertible stock was converted into 0.8857 shares of common stock.
|
•
|
During the quarter, we extinguished $114,570,000 of secured debt at a blended average interest rate of 4.96% and in March 2019 we repaid our $600,000,000 of 4.125% senior unsecured notes due 2019 and $450,000,000 of 6.125% senior unsecured notes due 2020.
|
•
|
During the quarter, we entered into amended and restated Equity Shelf Program (as defined below) pursuant to which we may offer and sell up to $1,500,000,000 billion of common stock from time to time. We raised $538,481,000 through our DRIP (as defined below) and our Equity Shelf Program.
|
|
|
Properties
|
|
Investment Amount(1)
|
|
Capitalization Rates(2)
|
|
Book Amount(3)
|
||||||
Seniors Housing Operating
|
|
5
|
|
|
$
|
95,927
|
|
|
6.3
|
%
|
|
$
|
109,535
|
|
Triple-net
|
|
3
|
|
|
79,544
|
|
|
6.4
|
%
|
|
81,543
|
|
||
Outpatient Medical
|
|
9
|
|
|
83,300
|
|
|
6.3
|
%
|
|
102,189
|
|
||
Totals
|
|
17
|
|
|
$
|
258,771
|
|
|
6.3
|
%
|
|
$
|
293,267
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) Represents stated pro rata purchase price including cash and any assumed debt but excludes fair value adjustments pursuant to U.S. GAAP.
|
||||||||||||||
(2) Represents annualized contractual or projected net operating income to be received in cash divided by investment amounts.
|
||||||||||||||
(3) 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.
|
|
|
Three Months Ended
|
|||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
||||||||||
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|
||||||||||
Net income (loss)
|
|
$
|
453,555
|
|
|
$
|
167,273
|
|
|
$
|
84,226
|
|
|
$
|
124,696
|
|
|
$
|
292,302
|
|
|
NICS
|
|
437,671
|
|
|
154,432
|
|
|
64,384
|
|
|
101,763
|
|
|
280,470
|
|
|
|||||
FFO
|
|
353,220
|
|
|
378,725
|
|
|
285,272
|
|
|
374,966
|
|
|
358,383
|
|
|
|||||
NOI
|
|
540,500
|
|
|
557,161
|
|
|
579,222
|
|
|
590,599
|
|
|
601,438
|
|
|
|||||
SSNOI
|
|
436,609
|
|
|
448,544
|
|
|
442,878
|
|
|
439,472
|
|
|
446,984
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per share data (fully diluted):
|
|
|
|
|
|
|
|
||||||||||||||
NICS
|
|
$
|
1.17
|
|
|
$
|
0.41
|
|
|
$
|
0.17
|
|
|
$
|
0.27
|
|
|
$
|
0.71
|
|
|
FFO
|
|
$
|
0.95
|
|
|
$
|
1.02
|
|
|
$
|
0.76
|
|
|
$
|
0.99
|
|
|
$
|
0.91
|
|
|
|
|
Three Months Ended
|
||||||||
|
|
March, 31
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to book capitalization ratio
|
|
42%
|
|
42%
|
|
46%
|
|
45%
|
|
43%
|
Net debt to undepreciated book capitalization ratio
|
|
35%
|
|
36%
|
|
39%
|
|
38%
|
|
36%
|
Net debt to market capitalization ratio
|
|
34%
|
|
31%
|
|
34%
|
|
31%
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio
|
|
6.67x
|
|
4.34x
|
|
3.38x
|
|
3.60x
|
|
4.80x
|
Fixed charge coverage ratio
|
|
5.49x
|
|
3.58x
|
|
2.85x
|
|
3.05x
|
|
4.38x
|
|
|
Three Months Ended
|
||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
Property mix:(1)
|
|
|
|
|
|
|
|
|
|
|
Seniors Housing Operating
|
|
42%
|
|
43%
|
|
46%
|
|
43%
|
|
44%
|
Triple-net
|
|
41%
|
|
40%
|
|
38%
|
|
40%
|
|
39%
|
Outpatient Medical
|
|
17%
|
|
17%
|
|
16%
|
|
17%
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
Relationship mix:(1)
|
|
|
|
|
|
|
|
|
|
|
Sunrise Senior Living(2)
|
|
15%
|
|
15%
|
|
15%
|
|
14%
|
|
15%
|
ProMedica
|
|
—%
|
|
—%
|
|
7%
|
|
9%
|
|
9%
|
Revera(2)
|
|
7%
|
|
7%
|
|
7%
|
|
6%
|
|
6%
|
Genesis HealthCare
|
|
6%
|
|
6%
|
|
6%
|
|
6%
|
|
5%
|
Benchmark Senior Living
|
|
4%
|
|
5%
|
|
4%
|
|
4%
|
|
4%
|
Remaining relationships
|
|
68%
|
|
67%
|
|
61%
|
|
61%
|
|
61%
|
|
|
|
|
|
|
|
|
|
|
|
Geographic mix:(1)
|
|
|
|
|
|
|
|
|
|
|
California
|
|
14%
|
|
14%
|
|
13%
|
|
13%
|
|
13%
|
United Kingdom
|
|
10%
|
|
9%
|
|
9%
|
|
9%
|
|
9%
|
Texas
|
|
8%
|
|
8%
|
|
7%
|
|
8%
|
|
8%
|
Canada
|
|
9%
|
|
8%
|
|
8%
|
|
8%
|
|
7%
|
New Jersey
|
|
8%
|
|
7%
|
|
7%
|
|
7%
|
|
7%
|
Remaining geographic areas
|
|
51%
|
|
54%
|
|
56%
|
|
55%
|
|
56%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes our share of investments in unconsolidated entities and non-segment/corporate NOI. Entities in which we have a joint venture with a minority partner are shown at 100% of the joint venture amount.
|
||||||||||
(2) Revera owns a controlling interest in Sunrise Senior Living.
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
|
$
|
|
%
|
|||||||
Cash, cash equivalents and restricted cash at beginning of period
|
|
$
|
316,129
|
|
|
$
|
309,303
|
|
|
$
|
6,826
|
|
|
2
|
%
|
Cash provided from (used in) operating activities
|
|
343,895
|
|
|
368,644
|
|
|
(24,749
|
)
|
|
-7
|
%
|
|||
Cash provided from (used in) investing activities
|
|
197,268
|
|
|
421,077
|
|
|
(223,809
|
)
|
|
-53
|
%
|
|||
Cash provided from (used in) financing activities
|
|
(452,205
|
)
|
|
(835,349
|
)
|
|
383,144
|
|
|
-46
|
%
|
|||
Effect of foreign currency translation
|
|
2,352
|
|
|
444
|
|
|
1,908
|
|
|
430
|
%
|
|||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
407,439
|
|
|
$
|
264,119
|
|
|
$
|
143,320
|
|
|
54
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
|
$
|
|
%
|
|||||||
New development
|
|
$
|
55,391
|
|
|
$
|
22,735
|
|
|
$
|
32,656
|
|
|
144
|
%
|
Recurring capital expenditures, tenant improvements and lease commissions
|
|
21,898
|
|
|
18,564
|
|
|
3,334
|
|
|
18
|
%
|
|||
Renovations, redevelopments and other capital improvements
|
|
35,037
|
|
|
27,983
|
|
|
7,054
|
|
|
25
|
%
|
|||
Total
|
|
$
|
112,326
|
|
|
$
|
69,282
|
|
|
$
|
43,044
|
|
|
62
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
Amount
|
|
%
|
|||||||
Net income
|
|
$
|
292,302
|
|
|
$
|
453,555
|
|
|
$
|
(161,253
|
)
|
|
-36
|
%
|
NICS
|
|
280,470
|
|
|
437,671
|
|
|
(157,201
|
)
|
|
-36
|
%
|
|||
FFO
|
|
358,383
|
|
|
353,220
|
|
|
5,163
|
|
|
1
|
%
|
|||
EBITDA
|
|
683,688
|
|
|
806,119
|
|
|
(122,431
|
)
|
|
-15
|
%
|
|||
NOI
|
|
601,438
|
|
|
540,500
|
|
|
60,938
|
|
|
11
|
%
|
|||
SSNOI
|
|
446,984
|
|
|
436,609
|
|
|
10,375
|
|
|
2
|
%
|
|||
Per share data (fully diluted):
|
|
|
|
|
|
|
|
|
|||||||
NICS
|
|
$
|
0.71
|
|
|
$
|
1.17
|
|
|
$
|
(0.46
|
)
|
|
-39
|
%
|
FFO
|
|
$
|
0.91
|
|
|
$
|
0.95
|
|
|
$
|
(0.04
|
)
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Interest coverage ratio
|
|
4.80
|
x
|
|
6.67
|
x
|
|
(1.87
|
)x
|
|
-28
|
%
|
|||
Fixed charge coverage ratio
|
|
4.38
|
x
|
|
5.49
|
x
|
|
(1.11
|
)x
|
|
-20
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
NOI
|
|
$
|
264,700
|
|
|
$
|
225,226
|
|
|
$
|
39,474
|
|
|
18
|
%
|
Non SSNOI attributable to same store properties
|
|
1,971
|
|
|
324
|
|
|
1,647
|
|
|
508
|
%
|
|||
NOI attributable to non same store properties(1)
|
|
(46,779
|
)
|
|
(12,968
|
)
|
|
(33,811
|
)
|
|
261
|
%
|
|||
SSNOI(2)
|
|
$
|
219,892
|
|
|
$
|
212,582
|
|
|
$
|
7,310
|
|
|
3
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Resident fees and services
|
|
$
|
868,285
|
|
|
$
|
735,934
|
|
|
$
|
132,351
|
|
|
18
|
%
|
Interest income
|
|
—
|
|
|
85
|
|
|
(85
|
)
|
|
-100
|
%
|
|||
Other income
|
|
4,101
|
|
|
1,148
|
|
|
2,953
|
|
|
257
|
%
|
|||
Total revenues
|
|
872,386
|
|
|
737,167
|
|
|
135,219
|
|
|
18
|
%
|
|||
Property operating expenses
|
|
607,686
|
|
|
511,941
|
|
|
95,745
|
|
|
19
|
%
|
|||
NOI(1)
|
|
264,700
|
|
|
225,226
|
|
|
39,474
|
|
|
18
|
%
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
131,575
|
|
|
125,769
|
|
|
5,806
|
|
|
5
|
%
|
|||
Interest expense
|
|
18,251
|
|
|
16,935
|
|
|
1,316
|
|
|
8
|
%
|
|||
Loss (gain) on extinguishment of debt, net
|
|
—
|
|
|
(189
|
)
|
|
189
|
|
|
-100
|
%
|
|||
Impairment of assets
|
|
—
|
|
|
2,301
|
|
|
(2,301
|
)
|
|
-100
|
%
|
|||
Other expenses
|
|
2,946
|
|
|
(188
|
)
|
|
3,134
|
|
|
n/a
|
|
|||
|
|
152,772
|
|
|
144,628
|
|
|
8,144
|
|
|
6
|
%
|
|||
Income (loss) from continuing operations
before income taxes and other items
|
|
111,928
|
|
|
80,598
|
|
|
31,330
|
|
|
39
|
%
|
|||
Income tax benefit (expense)
|
|
(619
|
)
|
|
162
|
|
|
(781
|
)
|
|
n/a
|
|
|||
Income (loss) from unconsolidated entities
|
|
(16,580
|
)
|
|
(9,480
|
)
|
|
(7,100
|
)
|
|
75
|
%
|
|||
Gain (loss) on real estate dispositions, net
|
|
(160
|
)
|
|
5
|
|
|
(165
|
)
|
|
n/a
|
|
|||
Income from continuing operations
|
|
94,569
|
|
|
71,285
|
|
|
23,284
|
|
|
33
|
%
|
|||
Net income (loss)
|
|
94,569
|
|
|
71,285
|
|
|
23,284
|
|
|
33
|
%
|
|||
Less: Net income (loss) attributable to
noncontrolling interests
|
|
1,741
|
|
|
(898
|
)
|
|
2,639
|
|
|
n/a
|
|
|||
Net income (loss) attributable to
common stockholders
|
|
$
|
92,828
|
|
|
$
|
72,183
|
|
|
$
|
20,645
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
(1) See Non-GAAP Financial Measures.
|
Location
|
|
Units
|
|
Commitment
|
|
Balance
|
|
Est. Completion
|
|||||
Wandsworth, UK
|
|
98
|
|
|
$
|
76,824
|
|
|
$
|
46,095
|
|
|
1Q20
|
Potomac, MD
|
|
120
|
|
|
56,720
|
|
|
7,710
|
|
|
4Q20
|
||
|
|
218
|
|
|
$
|
133,544
|
|
|
53,805
|
|
|
|
|
Toronto, ON
|
|
Project in planning stage
|
|
41,168
|
|
|
|
||||||
Hendon, UK
|
|
Project in planning stage
|
|
26,958
|
|
|
|
||||||
|
|
|
|
|
|
$
|
121,932
|
|
|
|
|
|
Three Months Ended
|
||||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||
|
|
|
|
Wtd. Avg.
|
|
|
|
Wtd. Avg.
|
||||||
|
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||||
Beginning balance
|
|
$
|
1,810,587
|
|
|
3.87
|
%
|
|
$
|
1,988,700
|
|
|
3.66
|
%
|
Debt issued
|
|
247,163
|
|
|
3.68
|
%
|
|
20,326
|
|
|
3.77
|
%
|
||
Debt assumed
|
|
42,000
|
|
|
4.62
|
%
|
|
85,192
|
|
|
4.40
|
%
|
||
Debt extinguished
|
|
(114,570
|
)
|
|
4.96
|
%
|
|
(118,010
|
)
|
|
5.00
|
%
|
||
Principal payments
|
|
(11,205
|
)
|
|
3.58
|
%
|
|
(11,940
|
)
|
|
3.48
|
%
|
||
Foreign currency
|
|
21,368
|
|
|
3.34
|
%
|
|
(32,867
|
)
|
|
3.29
|
%
|
||
Ending balance
|
|
$
|
1,995,343
|
|
|
3.79
|
%
|
|
$
|
1,931,401
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Monthly averages
|
|
$
|
1,915,650
|
|
|
3.84
|
%
|
|
$
|
1,942,292
|
|
|
3.64
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
NOI
|
|
$
|
233,286
|
|
|
$
|
222,738
|
|
|
$
|
10,548
|
|
|
5
|
%
|
Non SSNOI attributable to same store properties
|
|
(8,022
|
)
|
|
(11,258
|
)
|
|
3,236
|
|
|
-29
|
%
|
|||
NOI attributable to non same store properties(1)
|
|
(85,869
|
)
|
|
(74,250
|
)
|
|
(11,619
|
)
|
|
16
|
%
|
|||
SSNOI(2)
|
|
$
|
139,395
|
|
|
$
|
137,230
|
|
|
$
|
2,165
|
|
|
2
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Rental income
|
|
$
|
232,032
|
|
|
$
|
206,831
|
|
|
$
|
25,201
|
|
|
12
|
%
|
Interest income
|
|
14,946
|
|
|
14,551
|
|
|
395
|
|
|
3
|
%
|
|||
Other income
|
|
1,263
|
|
|
1,377
|
|
|
(114
|
)
|
|
-8
|
%
|
|||
Total revenues
|
|
248,241
|
|
|
222,759
|
|
|
25,482
|
|
|
11
|
%
|
|||
Property operating expenses
|
|
14,955
|
|
|
21
|
|
|
14,934
|
|
|
71,114
|
%
|
|||
NOI(1)
|
|
233,286
|
|
|
222,738
|
|
|
10,548
|
|
|
5
|
%
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
61,348
|
|
|
56,032
|
|
|
5,316
|
|
|
9
|
%
|
|||
Interest expense
|
|
3,440
|
|
|
3,442
|
|
|
(2
|
)
|
|
—
|
%
|
|||
Loss (gain) on derivatives and financial instruments, net
|
|
(2,487
|
)
|
|
(7,173
|
)
|
|
4,686
|
|
|
-65
|
%
|
|||
Loss (gain) on extinguishment of debt, net
|
|
—
|
|
|
(32
|
)
|
|
32
|
|
|
-100
|
%
|
|||
Provision for loan losses
|
|
18,690
|
|
|
—
|
|
|
18,690
|
|
|
n/a
|
|
|||
Impairment of assets
|
|
—
|
|
|
25,884
|
|
|
(25,884
|
)
|
|
-100
|
%
|
|||
Other expenses
|
|
3,029
|
|
|
1,120
|
|
|
1,909
|
|
|
170
|
%
|
|||
|
|
84,020
|
|
|
79,273
|
|
|
4,747
|
|
|
6
|
%
|
|||
Income from continuing operations before income taxes and other items
|
|
149,266
|
|
|
143,465
|
|
|
5,801
|
|
|
4
|
%
|
|||
Income tax (expense) benefit
|
|
(951
|
)
|
|
(1,136
|
)
|
|
185
|
|
|
-16
|
%
|
|||
Income (loss) from unconsolidated entities
|
|
5,658
|
|
|
5,821
|
|
|
(163
|
)
|
|
-3
|
%
|
|||
Gain (loss) on real estate dispositions, net
|
|
167,574
|
|
|
123,397
|
|
|
44,177
|
|
|
36
|
%
|
|||
Income from continuing operations
|
|
321,547
|
|
|
271,547
|
|
|
50,000
|
|
|
18
|
%
|
|||
Net income
|
|
321,547
|
|
|
271,547
|
|
|
50,000
|
|
|
18
|
%
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
|
9,096
|
|
|
1,963
|
|
|
7,133
|
|
|
363
|
%
|
|||
Net income attributable to
common stockholders
|
|
$
|
312,451
|
|
|
$
|
269,584
|
|
|
$
|
42,867
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
(1) See Non-GAAP Financial Measures.
|
Location
|
|
Units/Beds
|
|
Commitment
|
|
Balance
|
|
Est. Completion
|
|||||
Westerville, OH
|
|
90
|
|
|
$
|
22,800
|
|
|
$
|
9,974
|
|
|
3Q19
|
Union, KY
|
|
162
|
|
|
34,600
|
|
|
13,148
|
|
|
1Q20
|
||
Droitwich, UK
|
|
70
|
|
|
16,505
|
|
|
6,313
|
|
|
2Q20
|
||
|
|
322
|
|
|
$
|
73,905
|
|
|
$
|
29,435
|
|
|
|
|
|
Three Months Ended
|
||||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||
|
|
|
|
Wtd. Avg.
|
|
|
|
Wtd. Avg.
|
||||||
|
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||||
Beginning balance
|
|
$
|
288,386
|
|
|
3.63
|
%
|
|
$
|
347,474
|
|
|
3.55
|
%
|
Debt extinguished
|
|
—
|
|
|
0.00
|
%
|
|
(4,107
|
)
|
|
4.94
|
%
|
||
Principal payments
|
|
(957
|
)
|
|
5.24
|
%
|
|
(1,016
|
)
|
|
5.40
|
%
|
||
Foreign currency
|
|
4,829
|
|
|
3.30
|
%
|
|
4,991
|
|
|
3.05
|
%
|
||
Ending balance
|
|
$
|
292,258
|
|
|
3.62
|
%
|
|
$
|
347,342
|
|
|
3.50
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Monthly averages
|
|
$
|
293,113
|
|
|
3.62
|
%
|
|
$
|
348,190
|
|
|
3.52
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
NOI
|
|
$
|
101,295
|
|
|
$
|
92,168
|
|
|
$
|
9,127
|
|
|
10
|
%
|
Non SSNOI on same store properties
|
|
(1,561
|
)
|
|
(1,274
|
)
|
|
(287
|
)
|
|
23
|
%
|
|||
NOI attributable to non same store properties(1)
|
|
(12,037
|
)
|
|
(4,097
|
)
|
|
(7,940
|
)
|
|
194
|
%
|
|||
SSNOI(2)
|
|
$
|
87,697
|
|
|
$
|
86,797
|
|
|
$
|
900
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Rental income
|
|
$
|
149,052
|
|
|
$
|
136,538
|
|
|
$
|
12,514
|
|
|
9
|
%
|
Interest income
|
|
173
|
|
|
12
|
|
|
161
|
|
|
1,342
|
%
|
|||
Other income
|
|
236
|
|
|
121
|
|
|
115
|
|
|
95
|
%
|
|||
Total revenues
|
|
149,461
|
|
|
136,671
|
|
|
12,790
|
|
|
9
|
%
|
|||
Property operating expenses
|
|
48,166
|
|
|
44,503
|
|
|
3,663
|
|
|
8
|
%
|
|||
NOI(1)
|
|
101,295
|
|
|
92,168
|
|
|
9,127
|
|
|
10
|
%
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization
|
|
51,009
|
|
|
46,400
|
|
|
4,609
|
|
|
10
|
%
|
|||
Interest expense
|
|
3,348
|
|
|
1,676
|
|
|
1,672
|
|
|
100
|
%
|
|||
Loss (gain) on extinguishment of debt, net
|
|
—
|
|
|
11,928
|
|
|
(11,928
|
)
|
|
-100
|
%
|
|||
Other expenses
|
|
754
|
|
|
598
|
|
|
156
|
|
|
26
|
%
|
|||
|
|
55,111
|
|
|
60,602
|
|
|
(5,491
|
)
|
|
-9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Income (loss) from continuing operations
before income taxes and other items
|
|
46,184
|
|
|
31,566
|
|
|
14,618
|
|
|
46
|
%
|
|||
Income tax (expense) benefit
|
|
(365
|
)
|
|
(428
|
)
|
|
63
|
|
|
-15
|
%
|
|||
Income from unconsolidated entities
|
|
1,723
|
|
|
1,230
|
|
|
493
|
|
|
40
|
%
|
|||
Gain (loss) on real estate dispositions, net
|
|
(5
|
)
|
|
214,782
|
|
|
(214,787
|
)
|
|
n/a
|
|
|||
Income from continuing operations
|
|
47,537
|
|
|
247,150
|
|
|
(199,613
|
)
|
|
-81
|
%
|
|||
Net income (loss)
|
|
47,537
|
|
|
247,150
|
|
|
(199,613
|
)
|
|
-81
|
%
|
|||
Less: Net income (loss) attributable to
noncontrolling interests
|
|
995
|
|
|
3,143
|
|
|
(2,148
|
)
|
|
-68
|
%
|
|||
Net income (loss) attributable to
common stockholders
|
|
$
|
46,542
|
|
|
$
|
244,007
|
|
|
$
|
(197,465
|
)
|
|
-81
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
(1) See Non-GAAP Financial Measures.
|
Location
|
|
Square Feet
|
|
Commitment
|
|
Balance
|
|
Est. Completion
|
|||||
Brooklyn, NY
|
|
140,955
|
|
|
$
|
105,306
|
|
|
$
|
68,251
|
|
|
4Q19
|
Houston, TX
|
|
73,500
|
|
|
23,455
|
|
|
8,046
|
|
|
4Q19
|
||
Porter, TX
|
|
55,000
|
|
|
20,800
|
|
|
5,863
|
|
|
1Q20
|
||
Total
|
|
269,455
|
|
|
$
|
149,561
|
|
|
$
|
82,160
|
|
|
|
|
|
Three Months Ended
|
||||||||||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||
|
|
|
|
Wtd. Ave
|
|
|
|
Wtd. Ave
|
||||||
|
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||||
Beginning balance
|
|
$
|
386,738
|
|
|
4.20
|
%
|
|
$
|
279,951
|
|
|
4.72
|
%
|
Debt extinguished
|
|
—
|
|
|
0.00
|
%
|
|
(61,291
|
)
|
|
7.43
|
%
|
||
Principal payments
|
|
(1,381
|
)
|
|
5.11
|
%
|
|
(963
|
)
|
|
6.20
|
%
|
||
Ending balance
|
|
$
|
385,357
|
|
|
4.25
|
%
|
|
$
|
217,697
|
|
|
4.14
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Monthly averages
|
|
$
|
386,088
|
|
|
4.24
|
%
|
|
$
|
233,394
|
|
|
4.29
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Other income
|
|
$
|
2,157
|
|
|
$
|
368
|
|
|
$
|
1,789
|
|
|
486
|
%
|
Total revenue
|
|
2,157
|
|
|
368
|
|
|
1,789
|
|
|
486
|
%
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
120,193
|
|
|
100,722
|
|
|
19,471
|
|
|
19
|
%
|
|||
General and administrative expenses
|
|
35,282
|
|
|
33,705
|
|
|
1,577
|
|
|
5
|
%
|
|||
Loss (gain) on extinguishment of debt, net
|
|
15,719
|
|
|
—
|
|
|
15,719
|
|
|
n/a
|
|
|||
Other expenses
|
|
2,027
|
|
|
2,182
|
|
|
(155
|
)
|
|
-7
|
%
|
|||
|
|
173,221
|
|
|
136,609
|
|
|
36,612
|
|
|
27
|
%
|
|||
Loss from continuing operations before
income taxes and other items
|
|
(171,064
|
)
|
|
(136,241
|
)
|
|
(34,823
|
)
|
|
26
|
%
|
|||
Income tax (expense) benefit
|
|
(287
|
)
|
|
(186
|
)
|
|
(101
|
)
|
|
54
|
%
|
|||
Loss from continuing operations
|
|
(171,351
|
)
|
|
(136,427
|
)
|
|
(34,924
|
)
|
|
26
|
%
|
|||
Less: Preferred stock dividends
|
|
—
|
|
|
11,676
|
|
|
(11,676
|
)
|
|
-100
|
%
|
|||
Net loss attributable to common stockholders
|
|
$
|
(171,351
|
)
|
|
$
|
(148,103
|
)
|
|
$
|
(23,248
|
)
|
|
16
|
%
|
|
|
Three Months Ended
|
|
Change
|
|||||||||||
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Senior unsecured notes
|
|
$
|
108,755
|
|
|
$
|
93,414
|
|
|
$
|
15,341
|
|
|
16
|
%
|
Secured debt
|
|
—
|
|
|
38
|
|
|
(38
|
)
|
|
-100
|
%
|
|||
Unsecured revolving credit facility and unsecured commercial paper note program
|
|
7,520
|
|
|
4,013
|
|
|
3,507
|
|
|
87
|
%
|
|||
Loan expense
|
|
3,918
|
|
|
3,257
|
|
|
661
|
|
|
20
|
%
|
|||
Totals
|
|
$
|
120,193
|
|
|
$
|
100,722
|
|
|
$
|
19,471
|
|
|
19
|
%
|
|
|
Three Months Ended
|
||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
||||||||||
NOI Reconciliations:
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
||||||||||
Net income (loss)
|
|
$
|
453,555
|
|
|
$
|
167,273
|
|
|
$
|
84,226
|
|
|
$
|
124,696
|
|
|
$
|
292,302
|
|
Loss (gain) on real estate dispositions, net
|
|
(338,184
|
)
|
|
(10,755
|
)
|
|
(24,723
|
)
|
|
(41,913
|
)
|
|
(167,409
|
)
|
|||||
Loss (income) from unconsolidated entities
|
|
2,429
|
|
|
(1,249
|
)
|
|
(344
|
)
|
|
(195
|
)
|
|
9,199
|
|
|||||
Income tax expense (benefit)
|
|
1,588
|
|
|
3,841
|
|
|
1,741
|
|
|
1,504
|
|
|
2,222
|
|
|||||
Other expenses
|
|
3,712
|
|
|
10,058
|
|
|
88,626
|
|
|
10,502
|
|
|
8,756
|
|
|||||
Impairment of assets
|
|
28,185
|
|
|
4,632
|
|
|
6,740
|
|
|
76,022
|
|
|
—
|
|
|||||
Provision for loan losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,690
|
|
|||||
Loss (gain) on extinguishment of debt, net
|
|
11,707
|
|
|
299
|
|
|
4,038
|
|
|
53
|
|
|
15,719
|
|
|||||
Loss (gain) on derivatives and financial instruments, net
|
|
(7,173
|
)
|
|
(7,460
|
)
|
|
8,991
|
|
|
1,626
|
|
|
(2,487
|
)
|
|||||
General and administrative expenses
|
|
33,705
|
|
|
32,831
|
|
|
28,746
|
|
|
31,101
|
|
|
35,282
|
|
|||||
Depreciation and amortization
|
|
228,201
|
|
|
236,275
|
|
|
243,149
|
|
|
242,834
|
|
|
243,932
|
|
|||||
Interest expense
|
|
122,775
|
|
|
121,416
|
|
|
138,032
|
|
|
144,369
|
|
|
145,232
|
|
|||||
Consolidated net operating income (NOI)
|
|
$
|
540,500
|
|
|
$
|
557,161
|
|
|
$
|
579,222
|
|
|
$
|
590,599
|
|
|
$
|
601,438
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOI by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Seniors Housing Operating
|
|
$
|
225,226
|
|
|
$
|
239,505
|
|
|
$
|
265,846
|
|
|
$
|
254,445
|
|
|
$
|
264,700
|
|
Triple-net
|
|
222,738
|
|
|
224,284
|
|
|
218,684
|
|
|
234,343
|
|
|
233,286
|
|
|||||
Outpatient Medical
|
|
92,168
|
|
|
92,874
|
|
|
93,997
|
|
|
101,097
|
|
|
101,295
|
|
|||||
Non-segment/corporate
|
|
368
|
|
|
498
|
|
|
695
|
|
|
714
|
|
|
2,157
|
|
|||||
Total NOI
|
|
$
|
540,500
|
|
|
$
|
557,161
|
|
|
$
|
579,222
|
|
|
$
|
590,599
|
|
|
$
|
601,438
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||||||||
|
|
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|||||||||||
SSNOI Reconciliations:
|
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|||||||||||
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Seniors Housing Operating
|
|
|
|
$
|
225,226
|
|
|
$
|
239,505
|
|
|
$
|
265,846
|
|
|
$
|
254,445
|
|
|
$
|
264,700
|
|
|
Triple-net
|
|
|
|
222,738
|
|
|
224,284
|
|
|
218,684
|
|
|
234,343
|
|
|
233,286
|
|
||||||
Outpatient Medical
|
|
|
|
92,168
|
|
|
92,874
|
|
|
93,997
|
|
|
101,097
|
|
|
101,295
|
|
||||||
Total
|
|
|
|
540,132
|
|
|
556,663
|
|
|
578,527
|
|
|
589,885
|
|
|
599,281
|
|
||||||
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Seniors Housing Operating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non SSNOI on same store properties
|
|
324
|
|
|
413
|
|
|
267
|
|
|
393
|
|
|
1,971
|
|
||||||||
NOI attributable to non same store properties
|
|
(12,968
|
)
|
|
(22,210
|
)
|
|
(50,509
|
)
|
|
(40,991
|
)
|
|
(46,779
|
)
|
||||||||
Subtotal
|
|
|
|
(12,644
|
)
|
|
(21,797
|
)
|
|
(50,242
|
)
|
|
(40,598
|
)
|
|
(44,808
|
)
|
||||||
Triple-net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non SSNOI on same store properties
|
|
(11,258
|
)
|
|
(4,578
|
)
|
|
(5,912
|
)
|
|
(6,813
|
)
|
|
(8,022
|
)
|
||||||||
NOI attributable to non same store properties
|
|
(74,250
|
)
|
|
(75,951
|
)
|
|
(72,679
|
)
|
|
(89,625
|
)
|
|
(85,869
|
)
|
||||||||
Subtotal
|
|
|
|
(85,508
|
)
|
|
(80,529
|
)
|
|
(78,591
|
)
|
|
(96,438
|
)
|
|
(93,891
|
)
|
||||||
Outpatient Medical:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non SSNOI on same store properties
|
|
(1,274
|
)
|
|
(1,422
|
)
|
|
(1,644
|
)
|
|
(5,660
|
)
|
|
(1,561
|
)
|
||||||||
NOI attributable to non same store properties
|
|
(4,097
|
)
|
|
(4,371
|
)
|
|
(5,172
|
)
|
|
(7,717
|
)
|
|
(12,037
|
)
|
||||||||
Subtotal
|
|
|
|
(5,371
|
)
|
|
(5,793
|
)
|
|
(6,816
|
)
|
|
(13,377
|
)
|
|
(13,598
|
)
|
||||||
SSNOI:
|
|
Properties
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Seniors Housing Operating
|
|
409
|
|
|
212,582
|
|
|
217,708
|
|
|
215,604
|
|
|
213,847
|
|
|
219,892
|
|
|||||
Triple-net
|
|
404
|
|
|
137,230
|
|
|
143,755
|
|
|
140,093
|
|
|
137,905
|
|
|
139,395
|
|
|||||
Outpatient Medical
|
|
229
|
|
|
86,797
|
|
|
87,081
|
|
|
87,181
|
|
|
87,720
|
|
|
87,697
|
|
|||||
Total
|
|
1,042
|
|
|
$
|
436,609
|
|
|
$
|
448,544
|
|
|
$
|
442,878
|
|
|
$
|
439,472
|
|
|
$
|
446,984
|
|
SSNOI Property Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total properties
|
|
1,494
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisitions
|
|
(304
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Developments
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held for sale
|
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transitions/restructurings
|
|
(87
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other(1)
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Same store properties
|
|
1,042
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1) Includes eight land parcels and one loan.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
||||||||||
FFO Reconciliations:
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
||||||||||
Net income attributable to common stockholders
|
|
$
|
437,671
|
|
|
$
|
154,432
|
|
|
$
|
64,384
|
|
|
$
|
101,763
|
|
|
$
|
280,470
|
|
Depreciation and amortization
|
|
228,201
|
|
|
236,275
|
|
|
243,149
|
|
|
242,834
|
|
|
243,932
|
|
|||||
Impairment of assets
|
|
28,185
|
|
|
4,632
|
|
|
6,740
|
|
|
76,022
|
|
|
—
|
|
|||||
Loss (gain) on real estate dispositions, net
|
|
(338,184
|
)
|
|
(10,755
|
)
|
|
(24,723
|
)
|
|
(41,913
|
)
|
|
(167,409
|
)
|
|||||
Noncontrolling interests
|
|
(16,353
|
)
|
|
(17,692
|
)
|
|
(17,498
|
)
|
|
(17,650
|
)
|
|
(17,760
|
)
|
|||||
Unconsolidated entities
|
|
13,700
|
|
|
11,833
|
|
|
13,220
|
|
|
13,910
|
|
|
19,150
|
|
|||||
FFO
|
|
$
|
353,220
|
|
|
$
|
378,725
|
|
|
$
|
285,272
|
|
|
$
|
374,966
|
|
|
$
|
358,383
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
371,426
|
|
|
371,640
|
|
|
373,023
|
|
|
378,240
|
|
|
391,474
|
|
|||||
Diluted
|
|
373,257
|
|
|
373,075
|
|
|
374,487
|
|
|
380,002
|
|
|
393,452
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per share data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
1.18
|
|
|
$
|
0.42
|
|
|
$
|
0.17
|
|
|
$
|
0.27
|
|
|
$
|
0.72
|
|
Diluted
|
|
1.17
|
|
|
0.41
|
|
|
0.17
|
|
|
0.27
|
|
|
0.71
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FFO
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.95
|
|
|
$
|
1.02
|
|
|
$
|
0.76
|
|
|
$
|
0.99
|
|
|
$
|
0.92
|
|
Diluted
|
|
0.95
|
|
|
1.02
|
|
|
0.76
|
|
|
0.99
|
|
|
0.91
|
|
|
|
Three Months Ended
|
||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
||||||||||
EBITDA Reconciliations:
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
||||||||||
Net income (loss)
|
|
$
|
453,555
|
|
|
$
|
167,273
|
|
|
$
|
84,226
|
|
|
$
|
124,696
|
|
|
$
|
292,302
|
|
Interest expense
|
|
122,775
|
|
|
121,416
|
|
|
138,032
|
|
|
144,369
|
|
|
145,232
|
|
|||||
Income tax expense (benefit)
|
|
1,588
|
|
|
3,841
|
|
|
1,741
|
|
|
1,504
|
|
|
2,222
|
|
|||||
Depreciation and amortization
|
|
228,201
|
|
|
236,275
|
|
|
243,149
|
|
|
242,834
|
|
|
243,932
|
|
|||||
EBITDA
|
|
$
|
806,119
|
|
|
$
|
528,805
|
|
|
$
|
467,148
|
|
|
$
|
513,403
|
|
|
$
|
683,688
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Coverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
$
|
122,775
|
|
|
$
|
121,416
|
|
|
$
|
138,032
|
|
|
$
|
144,369
|
|
|
$
|
145,232
|
|
Non-cash interest expense
|
|
(4,179
|
)
|
|
(1,716
|
)
|
|
(1,658
|
)
|
|
(3,307
|
)
|
|
(5,171
|
)
|
|||||
Capitalized interest
|
|
2,336
|
|
|
2,100
|
|
|
1,921
|
|
|
1,548
|
|
|
2,327
|
|
|||||
Total interest
|
|
120,932
|
|
|
121,800
|
|
|
138,295
|
|
|
142,610
|
|
|
142,388
|
|
|||||
EBITDA
|
|
$
|
806,119
|
|
|
$
|
528,805
|
|
|
$
|
467,148
|
|
|
$
|
513,403
|
|
|
$
|
683,688
|
|
Interest coverage ratio
|
|
6.67
|
x
|
|
4.34
|
x
|
|
3.38
|
x
|
|
3.60
|
x
|
|
4.80
|
x
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed Charge Coverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest
|
|
$
|
120,932
|
|
|
$
|
121,800
|
|
|
$
|
138,295
|
|
|
$
|
142,610
|
|
|
$
|
142,388
|
|
Secured debt principal payments
|
|
14,247
|
|
|
14,139
|
|
|
13,908
|
|
|
13,994
|
|
|
13,543
|
|
|||||
Preferred dividends
|
|
11,676
|
|
|
11,676
|
|
|
11,676
|
|
|
11,676
|
|
|
—
|
|
|||||
Total fixed charges
|
|
146,855
|
|
|
147,615
|
|
|
163,879
|
|
|
168,280
|
|
|
155,931
|
|
|||||
EBITDA
|
|
$
|
806,119
|
|
|
$
|
528,805
|
|
|
$
|
467,148
|
|
|
$
|
513,403
|
|
|
$
|
683,688
|
|
Fixed charge coverage ratio
|
|
5.49
|
x
|
|
3.58
|
x
|
|
2.85
|
x
|
|
3.05
|
x
|
|
4.38
|
x
|
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
||||||||||
Adjusted EBITDA Reconciliations:
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
||||||||||
Net income
|
|
$
|
656,551
|
|
|
$
|
620,384
|
|
|
$
|
615,311
|
|
|
$
|
829,750
|
|
|
$
|
668,497
|
|
Interest expense
|
|
488,800
|
|
|
493,986
|
|
|
509,440
|
|
|
526,592
|
|
|
549,049
|
|
|||||
Income tax expense (benefit)
|
|
19,471
|
|
|
31,761
|
|
|
32,833
|
|
|
8,674
|
|
|
9,308
|
|
|||||
Depreciation and amortization
|
|
921,645
|
|
|
933,072
|
|
|
946,083
|
|
|
950,459
|
|
|
966,190
|
|
|||||
EBITDA
|
|
2,086,467
|
|
|
2,079,203
|
|
|
2,103,667
|
|
|
2,315,475
|
|
|
2,193,044
|
|
|||||
Loss (income) from unconsolidated entities
|
|
62,448
|
|
|
57,221
|
|
|
60,285
|
|
|
641
|
|
|
7,411
|
|
|||||
Stock-based compensation expense(1)
|
|
25,753
|
|
|
26,158
|
|
|
25,443
|
|
|
27,646
|
|
|
23,618
|
|
|||||
Loss (gain) on extinguishment of debt, net
|
|
17,593
|
|
|
12,377
|
|
|
16,415
|
|
|
16,097
|
|
|
20,109
|
|
|||||
Loss (gain) on real estate dispositions, net
|
|
(438,342
|
)
|
|
(406,942
|
)
|
|
(430,043
|
)
|
|
(415,575
|
)
|
|
(244,800
|
)
|
|||||
Impairment of assets
|
|
141,637
|
|
|
132,638
|
|
|
139,378
|
|
|
115,579
|
|
|
87,394
|
|
|||||
Provision for loan losses
|
|
62,966
|
|
|
62,966
|
|
|
62,966
|
|
|
—
|
|
|
18,690
|
|
|||||
Loss (gain) on derivatives and financial instruments, net
|
|
(6,113
|
)
|
|
(14,309
|
)
|
|
(5,642
|
)
|
|
(4,016
|
)
|
|
670
|
|
|||||
Other expenses(1)
|
|
167,524
|
|
|
171,243
|
|
|
161,655
|
|
|
111,990
|
|
|
117,942
|
|
|||||
Additional other income
|
|
—
|
|
|
(10,805
|
)
|
|
(10,805
|
)
|
|
(14,832
|
)
|
|
(14,832
|
)
|
|||||
Adjusted EBITDA
|
|
$
|
2,119,933
|
|
|
$
|
2,109,750
|
|
|
$
|
2,123,319
|
|
|
$
|
2,153,005
|
|
|
$
|
2,209,246
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Fixed Charge Coverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
$
|
488,800
|
|
|
$
|
493,986
|
|
|
$
|
509,440
|
|
|
$
|
526,592
|
|
|
$
|
549,049
|
|
Capitalized interest
|
|
11,696
|
|
|
10,437
|
|
|
9,813
|
|
|
7,905
|
|
|
7,896
|
|
|||||
Non-cash interest expense
|
|
(12,858
|
)
|
|
(11,628
|
)
|
|
(10,087
|
)
|
|
(10,860
|
)
|
|
(11,852
|
)
|
|||||
Total interest
|
|
487,638
|
|
|
492,795
|
|
|
509,166
|
|
|
523,637
|
|
|
545,093
|
|
|||||
Adjusted EBITDA
|
|
$
|
2,119,933
|
|
|
$
|
2,109,750
|
|
|
$
|
2,123,319
|
|
|
$
|
2,153,005
|
|
|
$
|
2,209,246
|
|
Adjusted interest coverage ratio
|
|
4.35
|
x
|
|
4.28
|
x
|
|
4.17
|
x
|
|
4.11
|
x
|
|
4.05
|
x
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest
|
|
$
|
487,638
|
|
|
$
|
492,795
|
|
|
$
|
509,166
|
|
|
$
|
523,637
|
|
|
$
|
545,093
|
|
Secured debt principal payments
|
|
62,077
|
|
|
60,258
|
|
|
58,866
|
|
|
56,288
|
|
|
55,584
|
|
|||||
Preferred dividends
|
|
46,707
|
|
|
46,704
|
|
|
46,704
|
|
|
46,704
|
|
|
35,028
|
|
|||||
Total fixed charges
|
|
596,422
|
|
|
599,757
|
|
|
614,736
|
|
|
626,629
|
|
|
635,705
|
|
|||||
Adjusted EBITDA
|
|
$
|
2,119,933
|
|
|
$
|
2,109,750
|
|
|
$
|
2,123,319
|
|
|
$
|
2,153,005
|
|
|
$
|
2,209,246
|
|
Adjusted fixed charge coverage ratio
|
|
3.55
|
x
|
|
3.52
|
x
|
|
3.45
|
x
|
|
3.44
|
x
|
|
3.48
|
x
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Certain severance-related costs are included in stock-based compensation and excluded from other expenses.
|
|
|
As of
|
||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
||||||||||
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
||||||||||
Book capitalization:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unsecured credit facility and commercial paper
|
|
$
|
865,000
|
|
|
$
|
540,000
|
|
|
$
|
1,312,000
|
|
|
$
|
1,147,000
|
|
|
$
|
419,293
|
|
Long-term debt obligations(1)
|
|
10,484,840
|
|
|
10,895,559
|
|
|
12,192,060
|
|
|
12,150,144
|
|
|
12,371,729
|
|
|||||
Cash & cash equivalents(2)
|
|
(202,824
|
)
|
|
(215,120
|
)
|
|
(191,199
|
)
|
|
(215,376
|
)
|
|
(249,127
|
)
|
|||||
Total net debt
|
|
11,147,016
|
|
|
11,220,439
|
|
|
13,312,861
|
|
|
13,081,768
|
|
|
12,541,895
|
|
|||||
Total equity and noncontrolling interests(3)
|
|
15,448,201
|
|
|
15,198,644
|
|
|
15,670,065
|
|
|
16,010,645
|
|
|
16,498,376
|
|
|||||
Book capitalization
|
|
$
|
26,595,217
|
|
|
$
|
26,419,083
|
|
|
$
|
28,982,926
|
|
|
$
|
29,092,413
|
|
|
$
|
29,040,271
|
|
Net debt to book capitalization ratio
|
|
42
|
%
|
|
42
|
%
|
|
46
|
%
|
|
45
|
%
|
|
43
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Undepreciated book capitalization:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net debt
|
|
$
|
11,147,016
|
|
|
$
|
11,220,439
|
|
|
$
|
13,312,861
|
|
|
$
|
13,081,768
|
|
|
$
|
12,541,895
|
|
Accumulated depreciation and amortization
|
|
4,990,780
|
|
|
5,113,928
|
|
|
5,394,274
|
|
|
5,499,958
|
|
|
5,670,111
|
|
|||||
Total equity and noncontrolling interests(3)
|
|
15,448,201
|
|
|
15,198,644
|
|
|
15,670,065
|
|
|
16,010,645
|
|
|
16,498,376
|
|
|||||
Undepreciated book capitalization
|
|
$
|
31,585,997
|
|
|
$
|
31,533,011
|
|
|
$
|
34,377,200
|
|
|
$
|
34,592,371
|
|
|
$
|
34,710,382
|
|
Net debt to undepreciated book
capitalization ratio
|
|
35
|
%
|
|
36
|
%
|
|
39
|
%
|
|
38
|
%
|
|
36
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Market capitalization:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding
|
|
371,971
|
|
|
372,030
|
|
|
375,577
|
|
|
383,675
|
|
|
403,740
|
|
|||||
Period end share price
|
|
$
|
54.43
|
|
|
$
|
62.69
|
|
|
$
|
64.32
|
|
|
$
|
69.41
|
|
|
$
|
77.60
|
|
Common equity market capitalization
|
|
$
|
20,246,382
|
|
|
$
|
23,322,561
|
|
|
$
|
24,157,113
|
|
|
$
|
26,630,882
|
|
|
$
|
31,330,224
|
|
Total net debt
|
|
11,147,016
|
|
|
11,220,439
|
|
|
13,312,861
|
|
|
13,081,768
|
|
|
12,541,895
|
|
|||||
Noncontrolling interests(3)
|
|
889,766
|
|
|
856,721
|
|
|
1,362,380
|
|
|
1,378,311
|
|
|
1,419,885
|
|
|||||
Preferred stock
|
|
718,498
|
|
|
718,498
|
|
|
718,498
|
|
|
718,498
|
|
|
—
|
|
|||||
Enterprise value
|
|
$
|
33,001,662
|
|
|
$
|
36,118,219
|
|
|
$
|
39,550,852
|
|
|
$
|
41,809,459
|
|
|
$
|
45,292,004
|
|
Net debt to market capitalization ratio
|
|
34
|
%
|
|
31
|
%
|
|
34
|
%
|
|
31
|
%
|
|
28
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Amounts include senior unsecured notes, secured debt and lease liabilities related to financing leases, as reflected on our Consolidated Balance Sheet. Operating lease liabilities related to the ASC 842 adoption are excluded.
|
||||||||||||||||||||
(2) Inclusive of IRC Section 1031 deposits, if any.
|
||||||||||||||||||||
(3) Includes all noncontrolling interests (redeemable and permanent) as reflected on our Consolidated Balance Sheet.
|
•
|
the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and
|
•
|
the impact of the estimates and assumptions on financial condition or operating performance is material.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Principal
|
|
Change in
|
|
Principal
|
|
Change in
|
||||||||
|
|
balance
|
|
fair value
|
|
balance
|
|
fair value
|
||||||||
Senior unsecured notes
|
|
$
|
9,042,911
|
|
|
$
|
(630,144
|
)
|
|
$
|
9,009,159
|
|
|
$
|
(548,558
|
)
|
Secured debt
|
|
1,585,589
|
|
|
(62,037
|
)
|
|
1,639,983
|
|
|
(59,522
|
)
|
||||
Totals
|
|
$
|
10,628,500
|
|
|
$
|
(692,181
|
)
|
|
$
|
10,649,142
|
|
|
$
|
(608,080
|
)
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Carrying
|
|
Change in
|
|
Carrying
|
|
Change in
|
||||||||
|
|
Value
|
|
fair value
|
|
Value
|
|
fair value
|
||||||||
Foreign currency forward contracts
|
|
$
|
32,609
|
|
|
$
|
22,383
|
|
|
$
|
23,620
|
|
|
$
|
16,163
|
|
Debt designated as hedges
|
|
1,592,911
|
|
|
15,929
|
|
|
1,559,159
|
|
|
15,592
|
|
||||
Totals
|
|
$
|
1,625,520
|
|
|
$
|
38,312
|
|
|
$
|
1,582,779
|
|
|
$
|
31,755
|
|
|
|
WELLTOWER INC.
|
|
||
Date:
|
April 30, 2019
|
By:
|
/s/ THOMAS J. DEROSA
|
|
|
|
|
Thomas J. DeRosa,
|
|
||
|
|
Chief Executive Officer
(Principal Executive Officer)
|
|
||
|
|||||
|
|
|
|
||
Date:
|
April 30, 2019
|
By:
|
/s/ JOHN A. GOODEY
|
|
|
|
|
John A. Goodey,
|
|
||
|
|
Executive Vice President & Chief Financial Officer
(Principal Financial Officer)
|
|
||
|
|||||
|
|
|
|
||
Date:
|
April 30, 2019
|
By:
|
/s/ JOSHUA T. FIEWEGER
|
|
|
|
|
Joshua T. Fieweger,
|
|
||
|
|
Senior Vice President & Controller
(Principal Accounting Officer)
|
|
(i)
|
Intentionally Omitted.
|
WELLTOWER INC.
|
|
|
|
By:
|
/s/ Matthew G. McQueen
|
Name:
|
Matthew G. McQueen
|
Title:
|
Senior Vice President - General Counsel and Corporate Secretary
|
KEYBANK NATIONAL ASSOCIATION, as Administrative Agent, as Swingline Lender, as the LC Issuer and as a Lender
|
|
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By:
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/s/ Laura Conway
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Name:
|
Laura Conway
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Title:
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Senior Vice President
|
BANK OF AMERICA, N.A.
|
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By:
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/s/ Yinghua Zhang
|
Name:
|
Yinghua Zhang
|
Title:
|
Director
|
JPMORGAN CHASE BANK, N.A.
|
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By:
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/s/ Jaime Gitler
|
Name:
|
Jaime Gitler
|
Title:
|
Vice President
|
DEUTSCHE BANK AG NEW YORK BRANCH, as Lender
|
|
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By:
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/s/ Annie Chung
|
Name:
|
Annie Chung
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Title:
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Director
|
|
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By:
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/s/ Virginia Cosenza
|
Name:
|
Virginia Cosenza
|
Title:
|
Vice President
|
ROYAL BANK OF CANADA
|
|
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By:
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/s/ William Behuniak
|
Name:
|
William Behuniak
|
Title:
|
Authorized Signatory
|
MUFG BANK, LTD.
|
|
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By:
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/s/ David Meisner
|
Name:
|
David Meisner
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Title:
|
Vice President
|
Barclays Bank PLC
|
|
|
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By:
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/s/ Jake Lam
|
Name:
|
Jake Lam
|
Title:
|
Assistant Vice President
|
Citibank, N.A.
|
|
|
|
By:
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/s/ David Bouton
|
Name:
|
David Bouton
|
Title:
|
Managing Director
|
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
|
|
|
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By:
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/s/ Karen L. Ramos
|
Name:
|
Karen L. Ramos
|
Title:
|
Managing Director
|
|
|
By:
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/s/ Mark Koneval
|
Name:
|
Mark Koneval
|
Title:
|
Managing Director
|
GOLDMAN SACHS BANK USA
|
|
|
|
By:
|
/s/ Jamie Minieri
|
Name:
|
Jamie Minieri
|
Title:
|
Authorized Signatory
|
MORGAN STANLEY BANK, N.A.
|
|
|
|
By:
|
/s/ Andrew Mascarenhas
|
Name:
|
Andrew Mascarenhas
|
Title:
|
Authorized Signatory
|
UBS AG, Stamford Branch
|
|
|
|
By:
|
/s/ Darlene Arias
|
Name:
|
Darlene Arias
|
Title:
|
Director
|
|
|
By:
|
/s/ Houssem Daly
|
Name:
|
Houssem Daly
|
Title:
|
Associate Director
|
WELLS FARGO BANK, NATIONAL ASSOCIATION
|
|
|
|
By:
|
/s/ Andrea S. Chen
|
Name:
|
Andrea S. Chen
|
Title:
|
Managing Director
|
THE BANK OF NOVA SCOTIA
|
|
|
|
By:
|
/s/ Michelle C. Phillips
|
Name:
|
Michelle C. Phillips
|
Title:
|
Managing Director
|
BMO Harris Bank N.A.
|
|
|
|
By:
|
/s/ Lloyd Baron
|
Name:
|
Lloyd Baron
|
Title:
|
Director
|
Citizens Bank, N.A.
|
|
|
|
By:
|
/s/ Michelle Dawson
|
Name:
|
Michelle Dawson
|
Title:
|
Vice President
|
COMPASS BANK
|
|
|
|
By:
|
/s/ Brian Tuerff
|
Name:
|
Brian Tuerff
|
Title:
|
Senior Vice President
|
FIFTH THIRD BANK
|
|
|
|
By:
|
/s/ Nathaniel E. Sher
|
Name:
|
Nathaniel E. (Ned) Sher
|
Title:
|
Senior Vice President
|
Mizuho Bank, Ltd.
|
|
|
|
By:
|
/s/ Donna DeMagistris
|
Name:
|
Donna DeMagistris
|
Title:
|
Authorized Signatory
|
Mizuho Bank (USA)
|
|
|
|
By:
|
/s/ Donna DeMagistris
|
Name:
|
Donna DeMagistris
|
Title:
|
Executive Director
|
PNC BANK, NATIONAL ASSOCIATION
|
|
|
|
By:
|
/s/ Shari L. Reams-Henofer
|
Name:
|
Shari L. Reams-Henofer
|
Title:
|
Senior Vice President
|
Sumitomo Mitsui Banking Corporation
|
|
|
|
By:
|
/s/ Keith Connolly
|
Name:
|
Keith Connolly
|
Title:
|
General Manager
|
TD Bank, N.A.
|
|
|
|
By:
|
/s/ Sean C. Dunne
|
Name:
|
Sean C. Dunne
|
Title:
|
Vice President
|
THE TORONTO-DOMINION BANK, New York Branch
|
|
|
|
By:
|
/s/ Maria Macchiaroli
|
Name:
|
Maria Macchiaroli
|
Title:
|
Authorized Signatory
|
Branch Banking and Trust Company
|
|
|
|
By:
|
/s/ Kenneth M. Blackwell
|
Name:
|
Kenneth M. Blackwell
|
Title:
|
Senior Vice President
|
THE HUNTINGTON NATIONAL BANK
|
|
|
|
By:
|
/s/ Eva S. McQuillen
|
Name:
|
Eva S. McQuillen
|
Title:
|
Vice President
|
THE BANK OF NEW YORK MELLON
|
|
|
|
By:
|
/s/ Carol Murray
|
Name:
|
Carol Murray
|
Title:
|
Director
|
COMERICA BANK
|
|
|
|
By:
|
/s/ Mark J. Leveille
|
Name:
|
Mark J. Leveille
|
Title:
|
Vice President
|
Bank of China, New York Branch
|
|
|
|
By:
|
/s/ Raymond Qiao
|
Name:
|
Raymond Qiao
|
Title:
|
Executive Vice President
|
Raymond James Bank, N.A.
|
|
|
|
By:
|
/s/ Matt Stein
|
Name:
|
Matt Stein
|
Title:
|
Senior Vice President
|
BOKF, NA dba BANK OF OKLAHOMA
|
|
|
|
By:
|
/s/ Christopher Rollmann
|
Name:
|
Christopher Rollmann
|
Title:
|
Vice President
|
1.
|
|
I have reviewed this quarterly report on Form 10-Q of Welltower Inc.;
|
|
|
|
2.
|
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
3.
|
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
4.
|
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ THOMAS J. DEROSA
|
|
|
Thomas J. DeRosa,
|
|
|
Chief Executive Officer
|
|
1.
|
|
I have reviewed this quarterly report on Form 10-Q of Welltower Inc.;
|
|
|
|
2.
|
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
3.
|
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
4.
|
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ JOHN A. GOODEY
|
|
|
John A. Goodey,
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
||
|
/s/ THOMAS J. DEROSA
|
|
||
|
Thomas J. DeRosa,
|
|
||
|
Chief Executive Officer
Date: April 30, 2019
|
|
||
|
|
|
|
|
|
|
|
|
||
|
/s/ JOHN A. GOODEY
|
|
||
|
John A. Goodey,
|
|
||
|
Chief Financial Officer
Date: April 30, 2019
|
|
||
|