WELLTOWER INC.WELL

WELLTOWER INC. Segments Disclosure

10-KFiled Feb 12, 20268 min read
Segment Reporting
We invest in seniors housing and healthcare real estate. We evaluate our business and make resource allocations for our three operating segments: Seniors Housing Operating, Triple-net and Outpatient Medical. Our Seniors Housing Operating properties include wellness housing, assisted living communities, independent living/continuing care retirement communities, independent supportive living communities (Canada), care homes with and without nursing (U.K.) and combinations thereof. Seniors Housing Operating properties that are deemed qualified healthcare properties are owned and operated through RIDEA structures (see Note 2). Our Triple-net properties include the property types described above, as well as long-term/post-acute care facilities. Under the Triple-net segment, we invest in seniors housing and healthcare real estate through acquisition of single tenant properties. Properties acquired are generally leased under triple-net leases and we are not involved in the management of the property. Prior to the Outpatient Medical Portfolio Disposition discussed in Note 5, our Outpatient Medical properties were typically leased to multiple tenants and generally required a certain level of property management. Our remaining Outpatient Medical portfolio, exclusive of held for sale properties, primarily consists of properties triple-net leased to healthcare providers.
We evaluate performance based on consolidated NOI of each segment. We define NOI as total revenues, including tenant reimbursements, less property operating expenses. We believe NOI provides investors relevant and useful information as it
measures the operating performance of our properties at the property level on an unleveraged basis. The Chief Operating Decision Maker (“CODM”), who is our Vice Chairman & Chief Operating Officer, uses NOI to make decisions about resource allocations and to assess the property-level performance of our properties.
During the year ended December 31, 2024, we reclassified loans receivable balances and equity warrants received through lending activities (see Note 12 for further details), the related interest income, provision for loan losses and change in the fair value of the equity warrants from our three operating segments to Non-segment/Corporate to better align with the manner in which the CODM reviews results. Accordingly, the segment information provided in this Note has been updated to conform to the current presentation for all periods presented.
Non-segment revenue consists mainly of interest income on loans receivable balances. Additionally, it includes interest income earned on cash investments recorded in other income. Non-segment assets consist of corporate assets including loans receivable, cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. All inter-segment transactions are eliminated.
The following table summarizes information for the reportable segments during the years ended December 31, 2025 (in thousands):
Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Resident fees and services$8,452,996 $— $— $— $8,452,996 
Rental income— 1,193,514 774,421 — 1,967,935 
Interest income— 2,111 — 244,094 246,205 
Other income36,099 1,417 7,511 125,871 170,898 
Total revenues8,489,095 1,197,042 781,932 369,965 10,838,034 
Total property operating expenses6,199,620 33,229 233,233 21,999 6,488,081 
Consolidated net operating income (loss)$2,289,475 $1,163,813 $548,699 $347,966 4,349,953 
Depreciation and amortization2,084,868 
Interest expense651,955 
General and administrative expenses1,748,435 
Loss (gain) on derivatives and financial instruments, net22,407 
Loss (gain) on extinguishment of debt, net9,245 
Provision for loan losses, net(9,416)
Impairment of assets121,283 
Other expenses201,201 
Income (loss) from continuing operations before income taxes and other items(480,025)
Income tax (expense) benefit7,116 
Income (loss) from unconsolidated entities(14,297)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net1,449,043 
Income (loss) from continuing operations961,837 
Net income (loss)$961,837 
The following table summarizes significant expense categories by segment for the year ended December 31, 2025 (in thousands):
Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Compensation$3,730,884 $75 $51,943 $— $3,782,902 
Utilities362,361 390 50,241 — 412,992 
Food330,805 — — — 330,805 
Repairs and maintenance242,330 184 40,140 — 282,654 
Property taxes257,895 23,658 63,290 — 344,843 
Other segment expenses(1)
1,275,345 8,922 27,619 21,999 1,333,885 
Total property operating expenses$6,199,620 $33,229 $233,233 $21,999 $6,488,081 
(1) Other segment expenses for Seniors Housing Operating include management fees, insurance expense, marketing, supplies, other miscellaneous expenses and right of use asset amortization for properties subject to lease. Triple-net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. Outpatient Medical other segment expenses include insurance expense, right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. Non-segment/Corporate other segment expenses primarily represent insurance costs related to our captive insurance program.
The following table summarizes information for the reportable segments for the year ended December 31, 2024 (in thousands):
Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Resident fees and services$6,027,149 $— $— $— $6,027,149 
Rental income— 777,297 792,981 — 1,570,278 
Interest income— 8,167 — 248,024 256,191 
Other income8,312 3,307 9,132 116,749 137,500 
Total revenues6,035,461 788,771 802,113 364,773 7,991,118 
Total property operating expenses4,523,780 40,722 245,636 20,073 4,830,211 
Consolidated net operating income (loss)$1,511,681 $748,049 $556,477 $344,700 3,160,907 
Depreciation and amortization1,632,093 
Interest expense574,261 
General and administrative expenses235,491 
Loss (gain) on derivatives and financial instruments, net(27,887)
Loss (gain) on extinguishment of debt, net2,130 
Provision for loan losses, net10,125 
Impairment of assets92,793 
Other expenses117,459 
Income (loss) from continuing operations before income taxes and other items524,442 
Income tax (expense) benefit(2,700)
Income (loss) from unconsolidated entities(496)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net451,611 
Income (loss) from continuing operations972,857 
Net income (loss)$972,857 
The following table summarizes significant expense categories by segment for the year ended December 31, 2024 (in thousands):
Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Compensation$2,659,251 $77 $55,817 $— $2,715,145 
Utilities275,885 266 52,141 — 328,292 
Food246,893 — — — 246,893 
Repairs and maintenance171,155 73 40,977 — 212,205 
Property taxes210,028 29,918 70,626 — 310,572 
Other segment expenses(1)
960,568 10,388 26,075 20,073 1,017,104 
Total property operating expenses$4,523,780 $40,722 $245,636 $20,073 $4,830,211 
(1) Other segment expenses for Seniors Housing Operating include management fees, insurance expense, marketing, supplies, other miscellaneous expenses and right of use asset amortization for properties subject to lease. Triple-net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. Outpatient Medical other segment expenses include insurance expense, right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. Non-segment/Corporate other segment expenses primarily represent insurance costs related to our captive insurance program.
The following table summarizes information for the reportable segments for the year ended December 31, 2023 (in thousands):
Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Resident fees and services$4,753,804 $— $— $— $4,753,804 
Rental income— 814,751 741,322 — 1,556,073 
Interest income— 1,369 — 166,985 168,354 
Other income9,743 70,986 9,167 69,868 159,764 
Total revenues4,763,547 887,106 750,489 236,853 6,637,995 
Total property operating expenses3,655,508 42,194 231,956 18,118 3,947,776 
Consolidated net operating income (loss)$1,108,039 $844,912 $518,533 $218,735 2,690,219 
Depreciation and amortization1,401,101 
Interest expense607,846 
General and administrative expenses179,091 
Loss (gain) on derivatives and financial instruments, net(2,120)
Loss (gain) on extinguishment of debt, net7 
Provision for loan losses, net9,809 
Impairment of assets36,097 
Other expenses108,341 
Income (loss) from continuing operations before income taxes and other items350,047 
Income tax (expense) benefit(6,364)
Income (loss) from unconsolidated entities(53,442)
Gain (loss) on real estate dispositions and acquisitions of controlling interests, net67,898 
Income (loss) from continuing operations358,139 
Net income (loss)$358,139 
The following table summarizes significant expense categories by segment for the year ended December 31, 2023 (in thousands):
Seniors Housing OperatingTriple-netOutpatient MedicalNon-segment/CorporateTotal
Compensation$2,179,578 $61 $50,900 $— $2,230,539 
Utilities237,438 380 48,248 — 286,066 
Food195,410 — — — 195,410 
Repairs and maintenance141,566 138 36,991 — 178,695 
Property taxes172,567 32,957 71,448 — 276,972 
Other segment expenses(1)
728,949 8,658 24,369 18,118 780,094 
Total property operating expenses$3,655,508 $42,194 $231,956 $18,118 $3,947,776 
(1) Other segment expenses for Seniors Housing Operating include management fees, insurance expense, marketing, supplies, other miscellaneous expenses and right of use asset amortization for properties subject to lease. Triple-net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. Outpatient Medical other segment expenses include insurance expense, right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. Non-segment/Corporate other segment expenses primarily represent insurance costs related to our captive insurance program.
The following table summarizes our total assets by segment for the periods presented (in thousands):
As of
December 31, 2025December 31, 2024
Assets:Amount%Amount%
Seniors Housing Operating$42,014,932 62.4 %$30,094,016 59.0 %
Triple-Net13,448,058 20.0 %7,934,415 15.5 %
Outpatient Medical3,322,225 4.9 %7,530,815 14.8 %
Non-segment/Corporate8,517,832 12.7 %5,485,062 10.7 %
Total$67,303,047 100.0 %$51,044,308 100.0 %
Our portfolio of properties and other investments is located in the U.S., the U.K. and Canada. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for the periods presented (dollars in thousands):
 Year Ended
 December 31, 2025December 31, 2024December 31, 2023
Revenues:Amount%Amount%Amount%
United States$7,936,873 73.2 %$6,564,077 82.1 %$5,521,933 83.2 %
United Kingdom2,166,820 20.0 %872,479 10.9 %606,750 9.1 %
Canada734,341 6.8 %554,562 7.0 %509,312 7.7 %
Total$10,838,034 100.0 %$7,991,118 100.0 %$6,637,995 100.0 %
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Resident fees and services:Amount%Amount%Amount%
United States$5,897,698 69.8 %$4,808,221 79.8 %$3,811,915 80.2 %
United Kingdom1,886,954 22.3 %683,803 11.3 %447,219 9.4 %
Canada668,344 7.9 %535,125 8.9 %494,670 10.4 %
Total$8,452,996 100.0 %$6,027,149 100.0 %$4,753,804 100.0 %
 As of  
 December 31, 2025December 31, 2024  
Assets:Amount%Amount%  
United States$43,536,068 64.7 %$41,966,871 82.2 % 
United Kingdom18,056,095 26.8 %5,892,598 11.5 % 
Canada5,710,884 8.5 %3,184,839 6.3 %  
Total$67,303,047 100.0 %$51,044,308 100.0 %  
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Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 12, 2025
2023Feb 15, 2024
2022Feb 21, 2023
2021Feb 16, 2022
2020Feb 10, 2021
2019Feb 14, 2020
2018Feb 25, 2019
2017Feb 28, 2018
2016Feb 22, 2017
2015Feb 18, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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