Welltower Announces Expansion of Strategic Partnership with Oakmont Management Group

TOLEDO, Ohio, May 10, 2022 /PRNewswire/ — Welltower® Inc. (NYSE: WELL) or the “Company” today announced the deepening of its strategic partnership with Oakmont Management Group (“Oakmont”), a leading West Coast operator of Class A communities focused on specialized resident health and wellness programming. The Company has agreed to purchase seven senior living communities, subject to customary closing conditions, which Oakmont will operate under an aligned RIDEA 3.0 contract.

Welltower® Inc. (NYSE: WELL) or the “Company” today announced the deepening of its strategic partnership with Oakmont Management Group (“Oakmont”), a leading West Coast operator of Class A communities focused on specialized resident health and wellness programming. The Company has agreed to purchase seven senior living communities, subject to customary closing conditions, which Oakmont will operate under an aligned RIDEA 3.0 contract.

The seven properties are located in affluent markets in California and include four rental properties and three continuing care retirement communities (entry fee as well as rental), including Fountaingrove Lodge, the nation’s first LGBTQ and Friends-focused CCRC. The portfolio has geographic overlap with the Company’s current footprint, which is expected to result in cost saving and revenue enhancement opportunities by leveraging Oakmont’s operating acumen and marketing efforts. Additionally, three of the traditional rental communities opened in 2021 and are anticipated to generate significant occupancy, margin, and cash flow growth in 2023 and beyond. The total investment will be approximately $344 million and is expected to generate a high-single-digit unlevered IRR. The transaction is anticipated to be funded through cash on hand and the issuance of operating partnership units.

Following this transaction, the Welltower-Oakmont partnership will comprise 22 assets across highly-desirable micro markets in California with an additional three properties in development. “We are excited about the meaningful expansion of our Oakmont-operated portfolio since the relationship was first seeded through the purchase of two properties in 2015,” said Shankh Mitra, Welltower’s CEO and CIO. “This rapid portfolio growth exemplifies our belief that best-in-class operators will gain significant scale in the post-pandemic environment, and we look forward to announcing further additions to our partnership in the future. Courtney and her team continue to meaningfully outperform both their underlying markets and the industry, and Oakmont was among the first senior housing operators in our portfolio to return to the 90% occupancy mark post-COVID.”

“We are excited to meaningfully expand our strategic relationship with Welltower through the acquisition of these seven communities in our target markets,” said Courtney Siegel, Oakmont President and CEO. “Welltower’s well-capitalized balance sheet and unparalleled data analytics platform have allowed us to quickly realize efficiencies of scale, and we expect a further significant expansion in the relationship over the next decade through acquisition and development under our two companies’ exclusive development agreement.”

Following the completion of the transaction, the Company’s year-to-date closed or announced pro rata gross investment activity will total approximately $2.0 billion. Mitra added, “2022 has marked one of the most active starts to a year for transaction activity in Welltower’s history. We continue to have a robust pipeline of attractively priced investment opportunities across all of our major property types with the challenging labor environment, in combination with rising interest rates, increasing the motivation of various owners to sell.”

Forward Looking Statement

This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower’s actual results to differ materially from Welltower’s expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower’s reports filed from time to time with the SEC. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

SOURCE Welltower Inc.

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