Welltower Announces $23B In Transactions To Expand Its Focus On Rental Housing For Seniors, Including $14B In Acquisitions Of High-Quality U.S. And U.K. Communities

Author: Benzinga Newsdesk | October 27, 2025 03:12pm

• Closed or under contract to close $14 billion of pro rata gross investments as of October 27, 2025, spanning over 700 high-quality seniors housing communities and encompassing over 46,000 units across the UK, US, and Canada
• Announced acquisition activity fueling growth of Welltower's pure-play rental housing platform focused on the rapidly expanding seniors population
• Investment activity expected to be fully funded through cash on hand and $9 billion of incremental asset sales, loan payoffs, and other capital recycling activity
• Through an enhanced focus and increased seniors housing concentration, Welltower expects to extend the duration of its cash flow growth and increase its terminal growth rate

Welltower Inc. (NYSE:WELL) ("Welltower" or the "Company") today announced a series of transactions totaling $23 billion, through which the Company will amplify its focus on rental housing for the rapidly expanding seniors population. Driving the transaction activity are $14 billion of acquisitions, primarily comprised of high-quality seniors housing communities in the US and UK. The acquisitions are expected to be fully funded through proceeds received from $9 billion of asset sales and loan repayments, as well as cash on hand. Despite the near-term impact of dispositions, loan repayments and the acquisition of newly developed or lease-up seniors housing communities, the announced transactions are projected to be accretive to the Company's normalized funds from operations (FFO) per share in 2026, with significant embedded future earnings growth potential anticipated in subsequent years.

Following the completion of these transactions, the Company's percentage of in-place net operating income (NOI) derived from the seniors housing business is expected to increase to the mid-80%-range as it enters the next era of its journey: Welltower 3.01. This phase involves an "all-in" commitment by the Company to drive operational and technological transformation across its seniors housing portfolio in coordination with the Company's deeply aligned operating partners to meaningfully improve the experience of residents and their families, as well as that of site-level employees.

"Today's announcements mark a watershed moment in Welltower's history as we continue to evolve: intensifying the Company's focus on seniors housing and accelerating the operational and technological modernization of the business through the Welltower Business System," said Shankh Mitra, Welltower's CEO. He continued, "All capital allocation decisions made at Welltower are viewed through an opportunity cost prism: evaluating the value forgone by pursuing a specific course of action while also forcing us to consider all implications of those decisions, well into the future. We believe that re-doubling our efforts in the seniors housing business represents the surest and fastest path to achieving our mission of elevating both the resident and site-level employee experience, while also enhancing our opportunity to deliver long-term compounding of per share growth for our existing investors."

Going All-In Through Intensified Focus

The largest component of the incremental seniors housing transactions is the acquisition of a real estate portfolio of Barchester-operated communities in the UK for £5.2 billion. As part of the transaction, Welltower has formed an exclusive long-term partnership with Barchester, which is considered to be among the best performing operators in the UK. Additionally, with the current management team remaining in place, we believe Barchester is well-positioned to continue providing the highest quality care to aging seniors.

The portfolio is comprised of 111 communities managed by Barchester via an aligned RIDEA contract, 152 triple-net leased communities, and 21 ongoing developments, which will also be managed in a RIDEA structure following development conversion. We believe each component of the transaction, including the RIDEA and triple-net portfolios, has significant long-term growth potential that is expected to accrue to Welltower shareholders. The operating portfolio, comprised of both stabilized and lease up properties, is positioned for significant future growth with current blended portfolio occupancy in the high 70%'s. Moreover, the triple-net lease is structured with 3.5% annual escalators and a coverage-based rent reset every five years at Welltower's election. Overall, the acquisition is underwritten to achieve an unlevered IRR in the low-double-digit range.

"Through our strategic partnership with Welltower and their significant and ongoing investment into their operating platform, we expect to continue to meaningfully enhance the lives of thousands of older adults by delivering not only exceptional care but also fostering environments rich in social and cognitive engagement. By prioritizing safety, connection, and activity, we're supporting better long-term health outcomes and consistently high resident satisfaction - hallmarks of a superior living experience," said Dr. Pete Calveley, Barchester's CEO. "This partnership underscores our unwavering commitment to elevating the quality of care for aging seniors." 

Additionally, Welltower purchased 100% of the HC-One-operated portfolio for £1.2 billion. Welltower funded a portion of the purchase price through the repayment of a £660 million loan it originated at the height of the COVID-19 pandemic and Brexit uncertainties, significantly increasing the investment's duration through ownership of the underlying communities.

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