Welltower (WELL)

Risks

• Risks Arising from Our Business
• There remains uncertainty regarding the implementation and impact of the CARES Act and any future stimulus or other COVID-19 relief legislation. There can be no assurance as to the amount of financial assistance we and our operators will receive or that we will be able to comply with the terms and conditions to keep such assistance.
• Our investments in and acquisitions of health care and seniors housing properties may be unsuccessful or fail to meet our expectations
• Acquired properties may expose us to unknown liability
• Competition for acquisitions may result in increased prices for properties
• We assume operational and legal risks with respect to our properties managed in RIDEA structures that could have a material adverse effect on our business, results of operations and financial condition
• We are exposed to operational risks with respect to our Seniors Housing Operating properties that could adversely affect our revenue and operations
• We have rights to terminate our management agreements with operators, in whole or with respect to specific properties under certain circumstances, and we may be unable to replace if our management agreements are terminated or not renewed
• Decreases in our operators’ or tenants' revenues or increases in our operators’ or tenants' expenses, including as a result of increased labor costs, could affect their ability to make payments to us
• A severe cold and flu season, epidemics or any other widespread illnesses could adversely affect the occupancy of our Seniors Housing Operating and Triple-net properties
• The properties managed by Sunrise Senior Living, LLC (“Sunrise”) account for a significant portion of our revenues and net operating income and any adverse developments in its business or financial condition could adversely affect us
• If controls imposed on certain of our tenants who provide health care services that are reimbursed by Medicare, Medicaid and other third-party payors to reduce admissions and length of stay affect inpatient volumes at our health care facilities, the financial condition or results of operations of those tenants could be adversely affected
• Unfavorable resolution of pending and future litigation matters and disputes could have a material adverse effect on our financial condition
• Development, redevelopment and construction risks could affect our profitability
• We may incur costs to remediate environmental contamination at our properties, which could have an adverse effect on our or our obligors’ business or financial condition
• Cybersecurity incidents could disrupt our business and result in the loss of confidential information and legal liability
• Our success and the success of our operators and managers depends on key personnel whose continued service is not guaranteed
• We are subject to covenants in our debt agreements that could have a material adverse effect on our business, results of operations and financial condition
• Downgrades in our credit ratings could have a material adverse effect on our cost and availability of capital
• Increases in interest rates could have a material adverse effect on our cost of capital
• Certain subsidiaries might fail to qualify or remain qualified as a REIT
• The lease of qualified health care properties to a taxable REIT subsidiary is subject to special requirements
• We could be subject to changes in our tax rates, the adoption of new U.S. or international tax legislation, or exposure to additional tax liabilities