WELL: NDR highlights SHOP platform advantage

Research evidence excerpt

WELL: NDR highlights SHOP platform advantage

ble to outperform the industry P/AFFO 46.8x 38.3x 32.3x 28.0x

attributed to its better portfolio quality/locations (sourced via its data

FFO/Sh, Rpt Q1 Q2 Q3 Q4 analytic capabilities) and strong operator relationships. This should persist Diluted

especially as the team layers on the Welltower Business System (WBS). The 2025 1.20A 1.28A 1.34A 1.45A

same store SHOP has delivered a 20.0% CAGR (2022-2026E), and while the 2026 1.47A 1.55E 1.63E 1.68E

trend could moderate as vacancy hits frictional levels (still multiple years 2027 1.76E 1.84E 1.90E 1.95E

AFFO/Sh, Diluted away), it should remain strong. WELL noted its buildings with occupancy 2025 1.06A 1.13A 1.16A 1.22A

above 95%+ still delivered ~20% YOY NOI growth this past quarter. 2026 1.33A 1.37E 1.44E 1.45E

2027 1.58E 1.64E 1.70E 1.72E

Platform should drive persistent outperformance: WELL has already

developed and is now actively rolling out WBS across the portfolio. The AllPricedvaluesas ofin priorUSD unlesstradingotherwiseday's marketnoted.close, EST (unless otherwise noted).

system has been equipped in ~250 communities (~13% of the 1Q26

portfolio) as of YE25 and should be added to another 600-700 communities

in 2026 (~45% of the 1Q26 portfolio in total). We believe this annual pace

is likely sustainable at least in the medium-term. The implementation is

initially dilutive as the community-level team needs to learn and adapt to

new procedures. That said, the company is continuously learning the major

pain-points for each roll-out and should be able to continuously limit the

said disruption over time. Management noted that the early roll-outs are

yielding encouraging results and have equally reflected attractive revenue

and expense improvements.