0000766704false2021Q1December 31P1Ywell:LeaseRightOfUseAssetwell:LeaseRightOfUseAssetwell:LeaseRightOfUseAssetwell:LeaseRightOfUseAssetwell:LeaseLiabilitywell:LeaseLiabilitywell:LeaseLiabilitywell:LeaseLiabilitywell:ReceivablesAndOtherAssetswell:ReceivablesAndOtherAssetsus-gaap:AccountingStandardsUpdate201613MemberP3Y00007667042021-01-012021-03-310000766704us-gaap:CommonStockMember2021-01-012021-03-310000766704well:NotesDue20284.800Member2021-01-012021-03-310000766704well:NotesDue20344.500Member2021-01-012021-03-31xbrli:shares00007667042021-04-23iso4217:USD00007667042021-03-3100007667042020-12-310000766704us-gaap:ManagementServiceMember2021-01-012021-03-310000766704us-gaap:ManagementServiceMember2020-01-012020-03-3100007667042020-01-012020-03-310000766704well:InterestRevenueMember2021-01-012021-03-310000766704well:InterestRevenueMember2020-01-012020-03-310000766704us-gaap:ProductAndServiceOtherMember2021-01-012021-03-310000766704us-gaap:ProductAndServiceOtherMember2020-01-012020-03-31iso4217:USDxbrli:shares0000766704us-gaap:CommonStockMember2020-12-310000766704us-gaap:AdditionalPaidInCapitalMember2020-12-310000766704us-gaap:TreasuryStockMember2020-12-310000766704us-gaap:RetainedEarningsUnappropriatedMember2020-12-310000766704well:AccumulatedDistributionsMember2020-12-310000766704us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000766704us-gaap:NoncontrollingInterestMember2020-12-310000766704us-gaap:RetainedEarningsUnappropriatedMember2021-01-012021-03-310000766704us-gaap:NoncontrollingInterestMember2021-01-012021-03-310000766704us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000766704us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000766704us-gaap:CommonStockMember2021-01-012021-03-310000766704us-gaap:TreasuryStockMember2021-01-012021-03-310000766704well:AccumulatedDistributionsMember2021-01-012021-03-310000766704us-gaap:CommonStockMember2021-03-310000766704us-gaap:AdditionalPaidInCapitalMember2021-03-310000766704us-gaap:TreasuryStockMember2021-03-310000766704us-gaap:RetainedEarningsUnappropriatedMember2021-03-310000766704well:AccumulatedDistributionsMember2021-03-310000766704us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000766704us-gaap:NoncontrollingInterestMember2021-03-310000766704us-gaap:CommonStockMember2019-12-310000766704us-gaap:AdditionalPaidInCapitalMember2019-12-310000766704us-gaap:TreasuryStockMember2019-12-310000766704us-gaap:RetainedEarningsUnappropriatedMember2019-12-310000766704well:AccumulatedDistributionsMember2019-12-310000766704us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000766704us-gaap:NoncontrollingInterestMember2019-12-3100007667042019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsUnappropriatedMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:CommonStockMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AdditionalPaidInCapitalMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:TreasuryStockMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:RetainedEarningsUnappropriatedMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberwell:AccumulatedDistributionsMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:NoncontrollingInterestMember2019-12-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310000766704us-gaap:RetainedEarningsUnappropriatedMember2020-01-012020-03-310000766704us-gaap:NoncontrollingInterestMember2020-01-012020-03-310000766704us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000766704us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000766704us-gaap:CommonStockMember2020-01-012020-03-310000766704us-gaap:TreasuryStockMember2020-01-012020-03-310000766704well:AccumulatedDistributionsMember2020-01-012020-03-310000766704us-gaap:CommonStockMember2020-03-310000766704us-gaap:AdditionalPaidInCapitalMember2020-03-310000766704us-gaap:TreasuryStockMember2020-03-310000766704us-gaap:RetainedEarningsUnappropriatedMember2020-03-310000766704well:AccumulatedDistributionsMember2020-03-310000766704us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000766704us-gaap:NoncontrollingInterestMember2020-03-3100007667042020-03-31xbrli:pure0000766704well:SeniorHousingOperatingMemberwell:COVID19Member2021-03-310000766704well:SeniorHousingOperatingMemberwell:COVID19Member2020-12-310000766704well:SeniorHousingOperatingMemberwell:COVID19Member2020-02-290000766704well:SeniorHousingOperatingMemberwell:COVID19Member2021-01-300000766704well:SeniorHousingOperatingMemberwell:COVID19Member2021-02-280000766704well:COVID19Member2021-01-012021-03-310000766704well:COVID19Memberwell:OutpatientMedicalSegmentMember2021-01-012021-03-310000766704well:SeniorHousingOperatingMember2021-03-310000766704well:TripleNetMember2021-03-310000766704well:OutpatientMedicalMember2021-03-310000766704well:SeniorHousingOperatingMember2020-03-310000766704well:TripleNetMember2020-03-310000766704well:OutpatientMedicalMember2020-03-310000766704well:SeniorHousingOperatingMember2021-01-012021-03-310000766704well:TripleNetMember2021-01-012021-03-310000766704well:OutpatientMedicalMember2021-01-012021-03-310000766704well:SeniorHousingOperatingMember2020-01-012020-03-310000766704well:TripleNetMember2020-01-012020-03-310000766704well:OutpatientMedicalMember2020-01-012020-03-310000766704us-gaap:LeasesAcquiredInPlaceMember2021-03-310000766704us-gaap:LeasesAcquiredInPlaceMember2020-12-310000766704us-gaap:AboveMarketLeasesMember2021-03-310000766704us-gaap:AboveMarketLeasesMember2020-12-310000766704well:LeaseCommissionsMember2021-03-310000766704well:LeaseCommissionsMember2020-12-3100007667042020-01-012020-12-31well:property0000766704us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-03-310000766704us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-01-012021-03-310000766704us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2020-01-012020-03-310000766704srt:MinimumMember2021-01-012021-03-310000766704srt:MaximumMember2021-01-012021-03-310000766704us-gaap:CostOfSalesMember2021-01-012021-03-310000766704us-gaap:CostOfSalesMember2020-01-012020-03-310000766704us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310000766704us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-03-310000766704us-gaap:OperatingSegmentsMember2021-03-310000766704us-gaap:OperatingSegmentsMember2020-12-310000766704us-gaap:CorporateNonSegmentMember2021-03-310000766704us-gaap:CorporateNonSegmentMember2020-12-310000766704well:OperatingSegmentsAndCorporateNonSegmentMember2021-03-310000766704well:OperatingSegmentsAndCorporateNonSegmentMember2020-12-310000766704us-gaap:MortgageReceivablesMember2021-03-310000766704us-gaap:MortgageReceivablesMember2020-12-310000766704well:OtherRealEstateLoansReceivablesMember2021-03-310000766704well:OtherRealEstateLoansReceivablesMember2020-12-310000766704us-gaap:RealEstateLoanMember2021-03-310000766704us-gaap:RealEstateLoanMember2020-12-31iso4217:GBP0000766704us-gaap:SubsequentEventMemberwell:SafanadMember2021-04-290000766704us-gaap:SubsequentEventMemberwell:SafanadMember2021-04-012021-04-290000766704us-gaap:SubsequentEventMemberwell:HCOneLimitedMember2021-04-290000766704well:DeterioratedLoansMember2021-03-31well:loan0000766704well:CollectiveLoanPool1Member2021-03-310000766704well:CollectiveLoanPool2Member2021-03-310000766704well:CollectiveLoanPool3Member2021-03-310000766704well:CollectiveLoanPool4Member2021-03-310000766704well:CollectiveLoanPool5Member2021-03-310000766704well:CollectiveLoanPool6Member2021-03-3100007667042020-03-012020-03-310000766704srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Member2019-12-310000766704srt:MinimumMemberwell:SeniorsHousingOperatingMember2021-03-310000766704srt:MaximumMemberwell:SeniorsHousingOperatingMember2021-03-310000766704well:SeniorsHousingOperatingMember2021-03-310000766704well:SeniorsHousingOperatingMember2020-12-310000766704well:TripleNetMembersrt:MinimumMember2021-03-310000766704well:TripleNetMembersrt:MaximumMember2021-03-310000766704well:TripleNetMember2021-03-310000766704well:TripleNetMember2020-12-310000766704srt:MinimumMemberwell:OutpatientMedicalMember2021-03-310000766704srt:MaximumMemberwell:OutpatientMedicalMember2021-03-310000766704well:OutpatientMedicalMember2021-03-310000766704well:OutpatientMedicalMember2020-12-310000766704us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-03-310000766704well:NetOperatingingIncomeMemberwell:SunriseMember2021-03-310000766704well:NetOperatingingIncomeMemberwell:SunriseMember2021-01-012021-03-310000766704well:NetOperatingingIncomeMemberwell:ProMedicaMember2021-03-310000766704well:NetOperatingingIncomeMemberwell:ProMedicaMember2021-01-012021-03-310000766704well:NetOperatingingIncomeMemberwell:GenesisHealthCareCorporationMember2021-03-310000766704well:NetOperatingingIncomeMemberwell:GenesisHealthCareCorporationMember2021-01-012021-03-310000766704well:NetOperatingingIncomeMemberwell:ReveraMember2021-03-310000766704well:NetOperatingingIncomeMemberwell:ReveraMember2021-01-012021-03-310000766704well:AveryHealthcareMemberwell:NetOperatingingIncomeMember2021-03-310000766704well:AveryHealthcareMemberwell:NetOperatingingIncomeMember2021-01-012021-03-310000766704well:NetOperatingingIncomeMemberwell:RemainingPortfolioMember2021-03-310000766704well:NetOperatingingIncomeMemberwell:RemainingPortfolioMember2021-01-012021-03-310000766704well:NetOperatingingIncomeMember2021-03-310000766704well:NetOperatingingIncomeMember2021-01-012021-03-310000766704us-gaap:SubsequentEventMemberwell:GenesisHealthCareCorporationMemberwell:TripleNetMember2021-04-012021-04-290000766704well:GenesisHealthCareCorporationMemberus-gaap:SubsequentEventMemberwell:ProMedicaMember2021-04-290000766704well:GenesisHealthCareCorporationMemberus-gaap:SubsequentEventMember2021-04-290000766704us-gaap:SubsequentEventMemberwell:GenesisPropertiesMember2021-04-012021-04-290000766704us-gaap:SubsequentEventMemberwell:GenesisHealthCareCorporationMember2021-04-012021-04-29well:term0000766704us-gaap:SubsequentEventMemberwell:TripleNetMember2021-04-290000766704us-gaap:SubsequentEventMemberwell:GenesisHealthCareCorporationMember2021-04-290000766704well:GenesisHealthCareCorporationMember2021-03-31well:bank0000766704us-gaap:RevolvingCreditFacilityMember2021-03-310000766704well:TermCreditFacilityMember2021-03-310000766704well:TermCreditFacilityCADDenominatedMember2021-03-310000766704us-gaap:RevolvingCreditFacilityMemberwell:AccordionfeaturememberMember2021-03-310000766704well:TermCreditFacilityCADDenominatedMemberwell:AccordionfeaturememberMember2021-03-310000766704us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310000766704us-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310000766704us-gaap:CommercialPaperMembersrt:MaximumMember2019-01-012019-01-310000766704us-gaap:CommercialPaperMember2019-01-310000766704us-gaap:CommercialPaperMember2021-03-310000766704us-gaap:UnsecuredDebtMember2021-03-310000766704us-gaap:SecuredDebtMember2021-03-310000766704us-gaap:UnsecuredDebtMembersrt:MinimumMember2021-03-310000766704us-gaap:UnsecuredDebtMembersrt:MaximumMember2021-03-310000766704us-gaap:SecuredDebtMembersrt:MinimumMember2021-03-310000766704us-gaap:SecuredDebtMembersrt:MaximumMember2021-03-310000766704us-gaap:UnsecuredDebtMemberwell:UnsecuredTermCreditFacilityDueApril2022Member2021-03-310000766704us-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMemberwell:UnsecuredTermCreditFacilityDueApril2022Member2021-01-012021-03-310000766704us-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMemberwell:UnsecuredTermCreditFacilityDueApril2022Member2021-03-31iso4217:CAD0000766704us-gaap:UnsecuredDebtMemberwell:TermLoanMember2021-03-310000766704us-gaap:UnsecuredDebtMemberwell:CanadianDealerOfferedRateMemberwell:TermLoanMember2021-01-012021-03-310000766704us-gaap:UnsecuredDebtMemberwell:CanadianDealerOfferedRateMemberwell:TermLoanMember2021-03-310000766704us-gaap:UnsecuredDebtMemberwell:UnsecuredTermCreditFacilityMaturesJuly192023Member2021-03-310000766704us-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMemberwell:UnsecuredTermCreditFacilityMaturesJuly192023Member2021-01-012021-03-310000766704us-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMemberwell:UnsecuredTermCreditFacilityMaturesJuly192023Member2021-03-310000766704us-gaap:UnsecuredDebtMemberwell:A295SeniorUnsecuredNotesDue2023Member2021-03-310000766704us-gaap:UnsecuredDebtMemberwell:UkDebtDue2028Member2021-03-310000766704us-gaap:UnsecuredDebtMemberwell:A450SeniorUnsecuredNotesDue2034Member2021-03-310000766704us-gaap:UnsecuredDebtMember2020-12-310000766704us-gaap:UnsecuredDebtMember2019-12-310000766704us-gaap:UnsecuredDebtMember2021-01-012021-03-310000766704us-gaap:UnsecuredDebtMember2020-01-012020-03-310000766704us-gaap:UnsecuredDebtMember2020-03-310000766704us-gaap:SecuredDebtMember2020-12-310000766704us-gaap:SecuredDebtMember2019-12-310000766704us-gaap:SecuredDebtMember2021-01-012021-03-310000766704us-gaap:SecuredDebtMember2020-01-012020-03-310000766704us-gaap:SecuredDebtMember2020-03-310000766704us-gaap:UnsecuredDebtMemberwell:A280SeniorUnsecuredNotesDueJune2031Member2021-03-250000766704us-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMemberwell:A375SeniorUnsecuredNotesDueMarch2023Member2021-04-152021-04-150000766704us-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMemberwell:A375SeniorUnsecuredNotesDueMarch2023Member2021-04-150000766704us-gaap:UnsecuredDebtMemberwell:A395SeniorUnsecuredNotesDueSeptember2023Memberus-gaap:SubsequentEventMember2021-04-152021-04-150000766704us-gaap:UnsecuredDebtMemberwell:A395SeniorUnsecuredNotesDueSeptember2023Memberus-gaap:SubsequentEventMember2021-04-150000766704us-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2021-04-152021-04-150000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:CAD2021-03-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:CAD2020-12-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:GBP2021-03-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:GBP2020-12-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:CAD2021-01-012021-03-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:CAD2020-01-012020-12-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:GBP2021-01-012021-03-310000766704us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:GBP2020-01-012020-12-310000766704us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMembercurrency:USD2021-03-310000766704us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMembercurrency:USD2020-12-310000766704us-gaap:NondesignatedMembercurrency:USD2021-03-310000766704us-gaap:NondesignatedMembercurrency:USD2020-12-310000766704us-gaap:ShortMembercurrency:CADus-gaap:NondesignatedMember2021-03-310000766704us-gaap:ShortMembercurrency:CADus-gaap:NondesignatedMember2020-12-310000766704us-gaap:LongMembercurrency:GBPus-gaap:NondesignatedMember2021-03-310000766704us-gaap:LongMembercurrency:GBPus-gaap:NondesignatedMember2020-12-310000766704us-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-03-310000766704us-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-03-310000766704us-gaap:NondesignatedMember2021-01-012021-03-310000766704us-gaap:NondesignatedMember2020-01-012020-03-310000766704us-gaap:ForeignExchangeContractMember2020-01-012020-03-31well:obligation0000766704well:EquityShelfProgramMember2019-02-280000766704well:EquityShelfProgramMember2021-03-310000766704us-gaap:EmployeeStockOptionMember2021-01-012021-03-310000766704well:RepurchaseProgramMember2020-05-010000766704us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000766704us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000766704us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310000766704us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000766704us-gaap:MortgagesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310000766704us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgagesMember2021-03-310000766704us-gaap:MortgagesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000766704us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgagesMember2020-12-310000766704well:OtherRealEstateLoansReceivableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310000766704us-gaap:EstimateOfFairValueFairValueDisclosureMemberwell:OtherRealEstateLoansReceivableMember2021-03-310000766704well:OtherRealEstateLoansReceivableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000766704us-gaap:EstimateOfFairValueFairValueDisclosureMemberwell:OtherRealEstateLoansReceivableMember2020-12-310000766704us-gaap:FairValueInputsLevel1Member2021-03-310000766704us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310000766704us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000766704us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000766704us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310000766704well:NonRealEstateLoansReceivablesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310000766704well:NonRealEstateLoansReceivablesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310000766704well:NonRealEstateLoansReceivablesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000766704well:NonRealEstateLoansReceivablesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000766704us-gaap:FairValueInputsLevel2Member2021-03-310000766704us-gaap:FairValueInputsLevel3Member2021-03-31well:segment0000766704well:SeniorHousingOperatingMemberus-gaap:ManagementServiceMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704us-gaap:ManagementServiceMemberwell:TripleNetMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704well:OutpatientMedicalMemberus-gaap:ManagementServiceMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704us-gaap:CorporateNonSegmentMemberus-gaap:ManagementServiceMember2021-01-012021-03-310000766704well:SeniorHousingOperatingMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704well:TripleNetMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704well:OutpatientMedicalMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704us-gaap:CorporateNonSegmentMember2021-01-012021-03-310000766704well:SeniorHousingOperatingMemberwell:InterestRevenueMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704well:InterestRevenueMemberwell:TripleNetMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704well:InterestRevenueMemberwell:OutpatientMedicalMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000766704well:InterestRevenueMemberus-gaap:CorporateNonSegmentMember2021-01-012021-03-310000766704well:SeniorHousingOperatingMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-03-310000766704well:TripleNetMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-03-310000766704well:OutpatientMedicalMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-03-310000766704us-gaap:CorporateNonSegmentMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-03-310000766704well:SeniorHousingOperatingMemberus-gaap:OperatingSegmentsMember2021-03-310000766704well:TripleNetMemberus-gaap:OperatingSegmentsMember2021-03-310000766704well:OutpatientMedicalMemberus-gaap:OperatingSegmentsMember2021-03-310000766704well:SeniorHousingOperatingMemberus-gaap:ManagementServiceMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704us-gaap:ManagementServiceMemberwell:TripleNetMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704well:OutpatientMedicalMemberus-gaap:ManagementServiceMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704us-gaap:CorporateNonSegmentMemberus-gaap:ManagementServiceMember2020-01-012020-03-310000766704well:SeniorHousingOperatingMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704well:TripleNetMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704well:OutpatientMedicalMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704us-gaap:CorporateNonSegmentMember2020-01-012020-03-310000766704well:SeniorHousingOperatingMemberwell:InterestRevenueMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704well:InterestRevenueMemberwell:TripleNetMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704well:InterestRevenueMemberwell:OutpatientMedicalMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000766704well:InterestRevenueMemberus-gaap:CorporateNonSegmentMember2020-01-012020-03-310000766704well:SeniorHousingOperatingMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-03-310000766704well:TripleNetMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-03-310000766704well:OutpatientMedicalMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-03-310000766704us-gaap:CorporateNonSegmentMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-03-310000766704country:US2021-01-012021-03-310000766704country:USus-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704country:US2020-01-012020-03-310000766704country:USus-gaap:SalesRevenueNetMember2020-01-012020-03-310000766704country:GB2021-01-012021-03-310000766704country:GBus-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704country:GB2020-01-012020-03-310000766704country:GBus-gaap:SalesRevenueNetMember2020-01-012020-03-310000766704country:CA2021-01-012021-03-310000766704country:CAus-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704country:CA2020-01-012020-03-310000766704country:CAus-gaap:SalesRevenueNetMember2020-01-012020-03-310000766704us-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704us-gaap:SalesRevenueNetMember2020-01-012020-03-310000766704country:US2021-03-310000766704us-gaap:AssetsTotalMembercountry:US2021-01-012021-03-310000766704country:US2020-12-310000766704us-gaap:AssetsTotalMembercountry:US2020-01-012020-12-310000766704country:GB2021-03-310000766704us-gaap:AssetsTotalMembercountry:GB2021-01-012021-03-310000766704country:GB2020-12-310000766704us-gaap:AssetsTotalMembercountry:GB2020-01-012020-12-310000766704country:CA2021-03-310000766704country:CAus-gaap:AssetsTotalMember2021-01-012021-03-310000766704country:CA2020-12-310000766704country:CAus-gaap:AssetsTotalMember2020-01-012020-12-310000766704us-gaap:AssetsTotalMember2021-01-012021-03-310000766704us-gaap:AssetsTotalMember2020-01-012020-12-310000766704country:USus-gaap:ManagementServiceMemberus-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704us-gaap:ManagementServiceMembercountry:GBus-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704country:CAus-gaap:ManagementServiceMemberus-gaap:SalesRevenueNetMember2021-01-012021-03-310000766704us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-03-310000766704us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
   
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
or
   
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                      
Commission file number: 1-8923
WELLTOWER INC.
 
(Exact name of registrant as specified in its charter
Delaware34-1096634
(State or other jurisdiction
of Incorporation)
(IRS Employer
Identification No.)
4500 Dorr StreetToledo,Ohio43615
(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)

Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $1.00 par value per shareWELLNew York Stock Exchange
4.800% Notes due 2028WELL28New York Stock Exchange
4.500% Notes due 2034WELL34New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  þ  No  ¨
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ  No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 þ
 Accelerated filer
¨
 Non-accelerated filer
¨
 Smaller reporting company
Emerging growth company
(Do not check if a smaller reporting company)
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No  þ
As of April 23, 2021, the registrant had 417,520,500 shares of common stock outstanding. 



TABLE OF CONTENTS
 
 Page
PART I. FINANCIAL INFORMATION 
  
Item 1. Financial Statements (Unaudited)
  
Consolidated Balance Sheets
  
Consolidated Statements of Comprehensive Income
  
Consolidated Statements of Equity
  
Consolidated Statements of Cash Flows
  
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



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements 

CONSOLIDATED BALANCE SHEETS
WELLTOWER INC. AND SUBSIDIARIES
(In thousands) 
March 31, 2021 (Unaudited)December 31, 2020 (Note)
Assets:  
  
Real estate investments:  
  
Real property owned:  
Land and land improvements  
$3,397,055 $3,440,650 
Buildings and improvements  
27,667,188 28,024,971 
Acquired lease intangibles  
1,506,823 1,500,030 
Real property held for sale, net of accumulated depreciation  
564,062 216,613 
Construction in progress  
542,302 487,742 
Less accumulated depreciation and amortization  
(6,212,432)(6,104,297)
Net real property owned  
27,464,998 27,565,709 
Right of use assets, net454,787 465,866 
Real estate loans receivable, net of credit allowance  487,674 443,372 
Net real estate investments  28,407,459 28,474,947 
Other assets:  
Investments in unconsolidated entities  
1,020,010 946,234 
Goodwill  
68,321 68,321 
Cash and cash equivalents  
2,131,846 1,545,046 
Restricted cash  
426,976 475,997 
Straight-line rent receivable
312,721 344,066 
Receivables and other assets  
624,918 629,031 
Total other assets  
4,584,792 4,008,695 
Total assets  
$32,992,251 $32,483,642 
Liabilities and equity  
Liabilities:  
Senior unsecured notes  
$12,183,710 $11,420,790 
Secured debt  
2,329,474 2,377,930 
Lease liabilities
408,916 418,266 
Accrued expenses and other liabilities  
1,023,219 1,041,594 
Total liabilities  
15,945,319 15,258,580 
Redeemable noncontrolling interests  
355,915 343,490 
Equity:  
Common stock  
418,866 418,691 
Capital in excess of par value  
20,814,196 20,823,145 
Treasury stock  
(106,519)(104,490)
Cumulative net income  
8,399,144 8,327,598 
Cumulative dividends  
(13,598,673)(13,343,721)
Accumulated other comprehensive income (loss)  
(128,136)(148,504)
Total Welltower Inc. stockholders’ equity  
15,798,878 15,972,719 
Noncontrolling interests  
892,139 908,853 
Total equity  
16,691,017 16,881,572 
Total liabilities and equity  
$32,992,251 $32,483,642 
Note: The consolidated balance sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

3


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands, except per share data) 
Three Months Ended
March 31,
 20212020
Revenues:
Resident fees and services
$723,464  $849,972 
Rental income  
302,843 389,960 
Interest income
19,579 15,241 
Other income
6,176 3,429 
Total revenues
1,052,062 1,258,602 
Expenses:
Property operating expenses
617,326 681,781 
Depreciation and amortization
244,426 274,801 
Interest expense
123,142 142,007 
General and administrative expenses
29,926 35,481 
Loss (gain) on derivatives and financial instruments, net
1,934 7,651 
Loss (gain) on extinguishment of debt, net
(4,643) 
Provision for loan losses
1,383 7,072 
Impairment of assets
23,568 27,827 
Other expenses
10,994 6,292 
Total expenses
1,048,056 1,182,912 
Income (loss) from continuing operations before income taxes and other items4,006 75,690 
Income tax (expense) benefit(3,943)(5,442)
Income (loss) from unconsolidated entities13,049 (3,692)
Gain (loss) on real estate dispositions, net59,080 262,824 
Income (loss) from continuing operations72,192 329,380 
Net income72,192 329,380 
Less: Net income (loss) attributable to noncontrolling interests(1)
646 19,096 
Net income (loss) attributable to common stockholders$71,546 $310,284 
Average number of common shares outstanding:
Basic
417,241 410,306 
Diluted
419,079 412,420 
Earnings per share:
Basic:
Income (loss) from continuing operations
$0.17 $0.80 
Net income (loss) attributable to common stockholders
$0.17 $0.76 
Diluted:
Income (loss) from continuing operations
$0.17 $0.80 
Net income (loss) attributable to common stockholders(2)
$0.17 $0.75 
Dividends declared and paid per common share$0.61 $0.87 
(1) Includes amounts attributable to redeemable noncontrolling interests.
(2) Includes adjustment to the numerator for income (loss) attributable to OP unitholders.


4


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands) 
 Three Months Ended
March 31,
 20212020
Net income$72,192 $329,380 
Other comprehensive income (loss):
Foreign currency translation gain (loss)44,210 (265,577)
Derivative and financial instruments designated as hedges gain (loss)(20,037)259,112 
Total other comprehensive income (loss)24,173 (6,465)
Total comprehensive income (loss)96,365 322,915 
Less: Total comprehensive income (loss) attributable
to noncontrolling interests(1)
4,451 (3,313)
Total comprehensive income (loss) attributable to common stockholders$91,914 $326,228 
(1) Includes amounts attributable to redeemable noncontrolling interests.

5


CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended March 31, 2021
Common
Stock
Capital in
Excess of
Par Value
Treasury
Stock
Cumulative
Net Income
Cumulative
Dividends
Accumulated Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Balances at January 1, 2021$418,691 $20,823,145 $(104,490)$8,327,598 $(13,343,721)$(148,504)$908,853 $16,881,572 
Comprehensive income:
Net income (loss)
71,546 (177)71,369 
Other comprehensive income (loss)
20,368 3,729 24,097 
Total comprehensive income95,466 
Net change in noncontrolling interests(14,250)(20,266)(34,516)
Amounts related to stock incentive plans, net of forfeitures175 5,393 (2,029)3,539 
Net proceeds from issuance of common stock(92)(92)
Dividends paid:
Common stock dividends
(254,952)(254,952)
Balances at March 31, 2021$418,866 $20,814,196 $(106,519)$8,399,144 $(13,598,673)$(128,136)$892,139 $16,691,017 
 Three Months Ended March 31, 2020
 Common
Stock
Capital in
Excess of
Par Value
Treasury
Stock
Cumulative
Net Income
Cumulative
Dividends
Accumulated Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Balances at January 1, 2020$411,005 $20,190,119 $(78,955)$7,353,966 $(12,223,534)$(112,157)$966,183 $16,506,627 
Cumulative change in accounting principle (Note 2)(5,212)(5,212)
Balances at January 1, 2020 (as adjusted for change in accounting principle)411,005 20,190,119 (78,955)7,348,754 (12,223,534)(112,157)966,183 16,501,415 
Comprehensive income:
Net income (loss)
310,284 18,988 329,272 
Other comprehensive income (loss)
15,944 (21,955)(6,011)
Total comprehensive income323,261 
Net change in noncontrolling interests37,625 (29,662)7,963 
Amounts related to stock incentive plans, net of forfeitures246 6,608 (8,020)(1,166)
Net proceeds from issuance of common stock6,975 583,890 590,865 
Dividends paid:
Common stock dividends
(356,001)(356,001)
Balances at March 31, 2020$418,226 $20,818,242 $(86,975)$7,659,038 $(12,579,535)$(96,213)$933,554 $17,066,337 

6


CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
WELLTOWER INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended
March 31,
 20212020
Operating activities:    
Net income  $72,192 $329,380 
Adjustments to reconcile net income to net cash provided from (used in) operating activities:  
Depreciation and amortization  
244,426 274,801 
Other amortization expenses  
4,197 3,220 
Provision for loan losses
1,383 7,072 
Impairment of assets  
23,568 27,827 
Stock-based compensation expense  
5,576 7,083 
Loss (gain) on derivatives and financial instruments, net  
1,934 7,651 
Loss (gain) on extinguishment of debt, net  
(4,643) 
Loss (income) from unconsolidated entities
(13,049)3,692 
Rental income less than (in excess of) cash received  
30,563 (2,119)
Amortization related to above (below) market leases, net  
(460)(565)
Loss (gain) on real estate dispositions, net  
(59,080)(262,824)
Distributions by unconsolidated entities
3,036 3,385 
Increase (decrease) in accrued expenses and other liabilities  
(4,406)(30,030)
Decrease (increase) in receivables and other assets  
(1,579)43,284 
Net cash provided from (used in) operating activities  303,658 411,857 
 
Investing activities:  
Cash disbursed for acquisitions, net of cash acquired
(203,107)(390,802)
Cash disbursed for capital improvements to existing properties
(28,780)(69,382)
Cash disbursed for construction in progress
(73,605)(48,775)
Capitalized interest  
(4,496)(4,746)
Investment in loans receivable
(43,148)(10,441)
Principal collected on loans receivable  
2,852 10,045 
Other investments, net of payments  
664 (3,612)
Contributions to unconsolidated entities  
(94,095)(137,129)
Distributions by unconsolidated entities  
36,934 3,555 
Proceeds from (payments on) derivatives  
(6,567)(357)
Proceeds from sales of real property  
274,208 801,392 
Net cash provided from (used in) investing activities  (139,140)149,748 
Financing activities:  
Net increase (decrease) under unsecured credit facility and commercial paper
 (742,612)
Net proceeds from issuance of senior unsecured notes713,907  
Net proceeds from the issuance of secured debt  
 44,921 
Payments on secured debt  
(57,888)(31,566)
Net proceeds from the issuance of common stock  
 591,001 
Payments for deferred financing costs and prepayment penalties  
(1,221)(722)
Contributions by noncontrolling interests(1)
5,073 9,084 
Distributions to noncontrolling interests(1)
(30,117)(50,124)
Cash distributions to stockholders  
(254,915)(354,678)
Other financing activities
(2,936)(9,599)
Net cash provided from (used in) financing activities  371,903 (544,295)
Effect of foreign currency translation on cash and cash equivalents and restricted cash1,358 (10,010)
Increase (decrease) in cash, cash equivalents and restricted cash  537,779 7,300 
Cash, cash equivalents and restricted cash at beginning of period  2,021,043 385,766 
Cash, cash equivalents and restricted cash at end of period  $2,558,822 $393,066 
Supplemental cash flow information:
Interest paid$135,947 $140,216 
Income taxes paid (received), net(852)471 
(1) Includes amounts attributable to redeemable noncontrolling interests.

7

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Business
Welltower Inc. (the "Company"), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate and infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower™, a real estate investment trust (“REIT”), owns interests in properties concentrated in major, high-growth markets in the United States (“U.S.”), Canada and the United Kingdom (“U.K.”), consisting of seniors housing and post-acute communities and outpatient medical properties. 
2. Accounting Policies and Related Matters
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (such as normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily an indication of the results that may be expected for the year ending December 31, 2021. For further information, refer to the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020.
Impact of COVID-19 Pandemic
The extent to which the COVID-19 pandemic impacts our operations and those of our operators and tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures, among others. The COVID-19 pandemic could have material and adverse effects on our financial condition, results of operations and cash flows in the future, including but not limited to, the following:
Our Seniors Housing Operating revenues are dependent on occupancy. Spot occupancy has continued to decline since the beginning of the pandemic, dropping to 73.6% as of March 31, 2021 compared to 75.9% as of December 31, 2020. Approximately 99% of communities are currently accepting new residents, resulting in an acceleration in move-in activity and an increase in occupancy of approximately 60 basis points from a pandemic-low on March 12, 2021 to 73.8% on April 23, 2021. Additionally, rapid distribution and a high acceptance rate of COVID-19 vaccinations by residents within assisted living and memory care facilities in the U.S. and U.K. has resulted in a significant decrease in total resident case counts since mid-January 2021 across the portfolio. Spot occupancy rates from the start of the pandemic through March 31, 2021 are as follows:
February 2020December 2020January 2021February 2021March 2021
Spot occupancy (1)
85.4 %75.9 %74.4 %73.6 %73.6 %
Sequential occupancy change(1.5)%(0.8)% %
(1) Spot occupancy represents approximate month end occupancy at our share for properties in operation as of February 29, 2020, including unconsolidated properties but excluding acquisitions, dispositions and development conversions since this date.

Increased Seniors Housing Operating expenses are expected to continue until the pandemic subsides. Property-level operating expenses associated with the COVID-19 pandemic relating to our Seniors Housing Operating portfolio, net of reimbursements including Provider Relief Funds and similar programs in the U.K. and Canada, resulted in a benefit of approximately $21,204,000 for the three months ended March 31, 2021 as compared to an expense of $7,294,000 during the three months ended March 31, 2020. These expenses were incurred as a result of the introduction of public health measures and other regulations affecting our properties, as well as additional health and safety measures adopted by us and our operators related to the COVID-19 pandemic, including increases in labor and property cleaning expenses and expenditures related to our efforts to procure personal protective equipment ("PPE") and supplies, net of reimbursements. Certain new expenses incurred since the start of the pandemic may continue on an ongoing basis as part of new health and safety protocols.
In 2020 applications were made for amounts under Phase 2 and Phase 3 of the Provider Relief Fund related to our Seniors Housing Operating portfolio. During the first quarter, we received total Provider Relief Funds of approximately $35,682,000, which was recognized as a reduction to COVID-19 costs within property operating expenses.
8

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Our Triple-net operators are experiencing similar occupancy declines and operating costs as described above with respect to our Seniors Housing Operating properties. Additionally, long-term/post-acute care facilities are generally experiencing a higher degree of occupancy declines. These factors may continue to impact the ability of our Triple-net operators to make contractual rent payments to us in the future. Many of our Triple-net operators received funds under the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) Paycheck Protection Program. In addition, operators of long-term/post-acute care facilities have generally received funds from Phase 1 of the Provider Relief Fund and operators of assisted living facilities have generally received funds from Phases 2 and 3 of the Provider Relief Fund.
During the first quarter, we collected approximately 96% of rent due from operators under Triple-net lease agreements (primarily seniors housing and post-acute care facilities). No significant rent deferrals or rent concessions have been made. In the Outpatient Medical segment we collected 99% of rent due in the first quarter, with uncollected amounts primarily attributable to local jurisdictions with COVID-19 related ordinances providing temporary rent relief to tenants. Virtually all rent subject to approved deferral agreements has been repaid in full. For both our Triple-net operators and Outpatient Medical tenants, we evaluate leases individually and recognize rent on a cash basis if collectibility of substantially all contractual rent payments is not probable. To the extent the prolonged impact of the COVID-19 pandemic causes operators or tenants to seek further modifications of their lease agreements, we may recognize reductions in revenue and increases in uncollectible receivables.
New Accounting Standards   
In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. This ASU simplifies accounting for convertible instruments and removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. This ASU also simplifies the diluted earnings per share calculation in certain areas and provides updated disclosure requirements. The ASU is effective for public business entities beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the guidance and the impact it may have on our consolidated financial statements.
In March 2020, the FASB issued an amendment to the reference rate reform standard which provides the option for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on contract modifications and hedge accounting. An example of such reform is the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. Entities that make this optional expedient election would not have to remeasure the contracts at the modification date or reassess the accounting treatment if certain criteria are met and would continue applying hedge accounting for relationships affected by reference rate reform. The new standard was effective for us upon issuance and elections can be made through December 31, 2022. We are currently evaluating our options with regards to existing contracts and hedging relationships and the impact of adopting this update on our consolidated financial statements.
3. Real Property Acquisitions and Development 
The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets and liabilities at cost on a relative fair value basis. Liabilities assumed and any associated noncontrolling interests are reflected at fair value. The results of operations for these acquisitions have been included in our consolidated results of operations since the date of acquisition and are a component of the appropriate segments. Transaction costs primarily represent costs incurred with acquisitions, including due diligence costs, fees for legal and valuation services, termination of pre-existing relationships computed based on the fair value of the assets acquired, lease termination fees and other acquisition-related costs. Transaction costs related to asset acquisitions are capitalized as a component of purchase price and all other non-capitalizable costs are reflected in other expenses on our Consolidated Statements of Comprehensive Income.
The following is a summary of our real property investment activity by segment for the periods presented (in thousands):
9

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 Three Months Ended
 March 31, 2021March 31, 2020
Seniors Housing OperatingTriple-netOutpatient
Medical
TotalsSeniors Housing OperatingTriple-netOutpatient
Medical
Totals
Land and land improvements$1,240 $24,154 $2,273 $27,667 $15,758 $ $40,847 $56,605 
Buildings and improvements3,491 170,362 10,570 184,423 132,480 765 171,457 304,702 
Acquired lease intangibles339  1,439 1,778 10,810  23,823 34,633 
Receivables and other assets34   34 257  139 396 
Total assets acquired (1)
5,104 194,516 14,282 213,902 159,305 765 236,266 396,336 
Accrued expenses and other liabilities (8,703)(36)(8,739)(671) (2,036)(2,707)
Total liabilities acquired (8,703)(36)(8,739)(671) (2,036)(2,707)
Noncontrolling interests (2)
 (2,056) (2,056)(2,827)  (2,827)
Cash disbursed for acquisitions5,104 183,757 14,246 203,107 155,807 765 234,230 390,802 
Construction in progress additions38,373 31,809 7,601 77,783 29,841 13,929 13,645 57,415 
Less: Capitalized interest(2,980)(524)(992)(4,496)(2,812)(941)(993)(4,746)
Accruals (3)
7  311 318 (2,600) (1,294)(3,894)
Cash disbursed for construction in progress35,400 31,285 6,920 73,605 24,429 12,988 11,358 48,775 
Capital improvements to existing properties(3,159)25,295 6,644 28,780 52,503 3,248 13,631 69,382 
Total cash invested in real property, net of cash acquired$37,345 $240,337 $27,810 $305,492 $232,739 $17,001 $259,219 $508,959 
(1) Excludes $580,000 of unrestricted and restricted cash acquired during the three months ended March 31, 2020.
(2) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests.
(3) Represents non-cash accruals for amounts to be paid in future periods for properties that converted, off-set by amounts paid in the current period.
Construction Activity 
The following is a summary of the construction projects that were placed into service and began generating revenues during the periods presented (in thousands):
 Three Months Ended
 March 31, 2021March 31, 2020
Development projects:
Seniors Housing Operating
$ $93,188 
Triple-net
22,990  
Outpatient Medical
 19,369 
Total construction in progress conversions$22,990 $112,557 
4. Real Estate Intangibles 
The following is a summary of our real estate intangibles, excluding those classified as held for sale, as of the dates indicated (dollars in thousands):
 March 31, 2021December 31, 2020
Assets:
In place lease intangibles$1,411,060 $1,406,705 
Above market tenant leases53,066 52,621 
Lease commissions42,697 40,704 
Gross historical cost1,506,823 1,500,030 
Accumulated amortization(1,204,529)(1,177,513)
Net book value$302,294 $322,517 
Weighted-average amortization period in years10.710.5
Liabilities:
Below market tenant leases$75,451 $77,851 
Accumulated amortization(40,542)(40,871)
Net book value$34,909 $36,980 
Weighted-average amortization period in years8.28.3
10

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following is a summary of real estate intangible amortization income (expense) for the periods presented (in thousands):
Three Months Ended March 31,
20212020
Rental income related to (above)/below market tenant leases, net$425 $524 
Amortization related to in place lease intangibles and lease commissions(22,779)(35,976)
The future estimated aggregate amortization of intangible assets and liabilities is as follows for the periods presented (in thousands):
 AssetsLiabilities
2021$55,162 $5,945 
202244,266 7,304 
202334,588 5,153 
202426,981 3,047 
202521,712 2,482 
Thereafter119,585 10,978 
Total$302,294 $34,909 
5. Dispositions, Real Property Held for Sale and Impairment
We periodically sell properties for various reasons, including favorable market conditions, the exercise of tenant purchase options or reduction of concentrations (i.e., property type, relationship or geography). At March 31, 2021, three Seniors Housing Operating, 61 Triple-net, and one Outpatient Medical properties with an aggregate real estate balance of $564,062,000 were classified as held for sale. In addition to the real property balances held for sale, net other assets and (liabilities) of $37,389,000 are included in the Consolidated Balance Sheet related to the held for sale properties. Expected gross sales proceeds related to the held for sale properties is approximately $716,835,000.
During the three months ended March 31, 2021, we recorded $12,098,000 of impairment charges related to one Triple-net property which was classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the three months ended March 31, 2021, we recorded $11,470,000 of impairment charges related to one Seniors Housing Operating property and two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value. During the three months ended March 31, 2020, we recorded $3,495,000 of impairment charges related to one Seniors Housing Operating property which was classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the three months ended March 31, 2020, we recorded $24,332,000 of impairment charges related to two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value.
The following is a summary of our real property disposition activity for the periods presented (in thousands):
 Three Months Ended March 31,
 20212020
Real estate dispositions:
Seniors Housing Operating
$74,326 $ 
Triple-net
 33,445 
Outpatient Medical
137,890 495,003 
Total dispositions
212,216 528,448 
Gain (loss) on real estate dispositions, net59,080 262,824 
Net other assets/liabilities disposed
2,912 10,120 
Proceeds from real estate dispositions$274,208 $801,392 
Operating results attributable to properties sold or classified as held for sale which do not meet the definition of discontinued operations are not reclassified on our Consolidated Statements of Comprehensive Income. The following represents the activity related to these properties for the periods presented (in thousands):
11

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Three Months Ended March 31,
 20212020
Revenues:
Total revenues
$21,024 $136,452 
Expenses:
Interest expense
17 3,806 
Property operating expenses
(1,102)61,315 
Provision for depreciation
4,567 23,708 
Total expenses
3,482 88,829 
Income (loss) from real estate dispositions, net$17,542 $47,623 
6. Leases
We lease land, buildings, office space and certain equipment. Many of our leases include a renewal option to extend the term from one to 25 years or more. Renewal options that we are reasonably certain to exercise are recognized in our right-of-use assets and lease liabilities.
The components of lease expense were as follows for the period presented (in thousands):
Three Months Ended
 ClassificationMarch 31, 2021March 31, 2020
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$5,358 $6,492 
Non-real estate investment lease expenseGeneral and administrative expenses1,185 1,267 
Finance lease cost:
Amortization of leased assetsProperty operating expenses2,035 2,243 
Interest on lease liabilitiesInterest expense1,663 1,379 
Sublease incomeRental income(1,043)(1,043)
Total $9,198 $10,338 
(1) Includes short-term leases which are immaterial.
Supplemental balance sheet information related to leases is as follows (in thousands):
 ClassificationMarch 31, 2021December 31, 2020
Right of use assets:
Operating leases - real estateRight of use assets, net$301,505 $310,017 
Finance leases - real estateRight of use assets, net153,282 155,849 
Real estate right of use assets, net454,787 465,866 
Operating leases - non-real estate investmentsReceivables and other assets7,886 9,624 
Total right of use assets, net$462,673 $475,490 
Lease liabilities:
Operating leases$303,387 $311,164 
Financing leases105,529 107,102 
Total$408,916 $418,266 
Substantially all of our operating leases in which we are the lessor contain escalating rent structures. Leases with fixed annual rental escalators are generally recognized on a straight-line basis over the initial lease period, subject to a collectability assessment. Rental income related to leases with contingent rental escalators is generally recorded based on the contractual cash rental payments due for the period. During the three months ended March 31, 2021 and 2020, we reserved for straight-line rent receivable balances of $49,241,000 and $32,268,000 through rental income, relating to leases for which collection of substantially all contractual lease payments was no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. For the three months ended March 31, 2021, we recognized $302,843,000 of rental income related to operating leases, of which $46,026,000 was for variable lease payments which primarily represents the reimbursement of operating costs such as common area maintenance expenses, utilities, insurance and real estate taxes. For the three months ended March 31, 2020, we recognized $389,960,000 of rental income related to operating leases, of which $55,754,000 was for variable lease payments.
12

WELLTOWER INC.
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
7. Loans Receivable
Loans receivable are recorded on our Consolidated Balance Sheets in real estate loans receivable, net of allowance for credit losses, or for non-real estate loans receivable, in receivables and other assets, net of allowance for credit losses. Real estate loans receivable consists of mortgage loans and other real estate loans which are primarily collateralized by a first, second or third mortgage lien, a leasehold mortgage on, or an assignment of the partnership interest in, the related properties, corporate guarantees and/or personal guarantees. Non-real estate loans are generally corporate loans with no real estate backing. Interest income on loans is recognized as earned based upon the principal amount outstanding subject to an evaluation of the risk of credit loss. Accrued interest receivable was $15,981,000 and $15,615,000 as of March 31, 2021 and December 31, 2020, respectively, and is included in receivables and other assets on the Consolidated Balance Sheets. The following is a summary of our loans receivable (in thousands):
 March 31, 2021December 31, 2020
Mortgage loans$338,291 $299,430 
Other real estate loans