Welltower 10-Q 2026-06-30

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 June 30, 2026

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*)*

Delaware												34-1096634
(State or other jurisdiction of Incorporation)												(IRS Employer Identification No.)
4500 Dorr Street			Toledo,			Ohio						43615
(Address of principal executive office)												(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 class			Trading Symbol(s)			Name of each exchange on which registered
Common stock, $1.00 par value per share			WELL			New York Stock Exchange
Guarantee of 4.800% Notes due 2028 issued by Welltower OP LLC			WELL/28			New York Stock Exchange
Guarantee of 4.500% Notes due 2034 issued by Welltower OP LLC			WELL/34			New 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			☐

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 ☑

As of July 24, 2026, Welltower Inc. had 720,744,951 shares of common stock outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION						Page
Item 1. Financial Statements (Unaudited)						3
			Consolidated Balance Sheets			3
			Consolidated Statements of Comprehensive Income			4
			Consolidated Statements of Equity			6
			Consolidated Statements of Cash Flows			8
			Notes to Unaudited Consolidated Financial Statements			9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						35
Item 3. Quantitative and Qualitative Disclosures About Market Risk						59
Item 4. Controls and Procedures						60
PART II. OTHER INFORMATION
Item 1. Legal Proceedings						61
Item 1A. Risk Factors						61
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						61
Item 5. Other Information						61
Item 6. Exhibits						62
Signatures						63

PART I. FINANCIAL INFORMATION

CONSOLIDATED BALANCE SHEETS

WELLTOWER INC. AND SUBSIDIARIES

(In thousands)

						June 30, 2026 (Unaudited)						December 31, 2025 (Note)
Assets:
Real estate investments:
Real property owned:
Land and land improvements						$	7,235,877					$	6,681,131
Buildings and improvements						57,960,485						52,058,099
Acquired lease intangibles						3,167,918						2,845,686
Real property held for sale, net of accumulated depreciation						374,477						1,450,137
Construction in progress						848,347						738,859
Less accumulated depreciation and amortization						(11,533,470)						(10,350,621)
Net real property owned						58,053,634						53,423,291
Right of use assets, net						1,959,414						2,158,045
Investments in sales-type leases, net						—						497,963
Real estate loans receivable, net of credit allowance

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The following is a reconciliation of the properties included in our QTD Pool and YTD Pool for SSNOI:

						QTD Pool																								YTD Pool
SSNOI Property Reconciliations:						Seniors Housing Operating						Triple-net						Outpatient Medical						Total						Seniors Housing Operating						Triple-net						Outpatient Medical						Total
Consolidated properties						1,869						829						54						2,752						1,869						829						54						2,752
Unconsolidated properties						125						—						73						198						125						—						73						198
Total properties						1,994						829						127						2,950						1,994						829						127						2,950
Recent acquisitions/development conversions(1)						(636)						(320)						(4)						(960)						(756)						(379)						(7)						(1,142)
Under development						(41)						—						—						(41)						(41)						—						—						(41)
Under redevelopment(2)						(2)						—						—						(2)						(2)						—						—						(2)
Current held for sale						(22)						(2)						(29)						(53)						(22)						(2)						(29)						(53)
Land parcels, loans and leased properties						(171)						(4)						(5)						(180)						(171)						(4)						(5)						(180)
Transitions(3)						(134)						(3)						—						(137)						(87)						(3)						—						(90)
Other(4)						(8)						(1)						—						(9)						(8)						(1)						—						(9)
Same store properties						980						499						89						1,568						907						440						86						1,433
(1) Acquisitions and development conversions will enter the QTD Pool after five full quarters and YTD Pool after six full quarters from acquisition or certificate of occupancy.
(2) Redevelopment properties will enter the QTD Pool after five full quarters and YTD Pool after six full quarters of operations post redevelopment completion.
(3) Transitioned properties will enter the QTD Pool after five full quarters and YTD Pool after six full quarters of operations with the new operator in place or under the new structure.
(4) Represents properties that are either closed or being closed.

The following is a reconciliation of our consolidated NOI to same store NOI for the periods presented for the QTD Pool and YTD Pool (dollars in thousands):

						QTD Pool												YTD Pool
						Three Months Ended												Six Months Ended
						June 30,												June 30,
SSNOI Reconciliations:						2026						2025						2026						2025
Seniors Housing Operating:
Consolidated NOI						$	867,227					$	537,455					$	1,642,240					$	1,020,642
NOI attributable to unconsolidated investments						21,125						18,381						41,137						38,927
NOI attributable to noncontrolling interests						(15,462)						(12,726)						(29,567)						(25,811)
NOI attributable to non-same store properties						(288,148)						(58,945)						(577,766)						(149,635)
Non-cash NOI attributable to same store properties						(1,294)						(1,614)						(2,775)						(6,055)
Currency and ownership adjustments(1)						(833)						(939)						(2,268)						6,888
SSNOI at Welltower Share						582,615						481,612						1,071,001						884,956
Triple-net:
Consolidated NOI						407,498						265,102						791,804						511,314
NOI attributable to noncontrolling interests						(1,031)						(3,690)						(2,067)						(7,407)
NOI attributable to non-same store properties						(172,508)						(45,299)						(398,668)						(138,709)
Non-cash NOI attributable to same store properties						(37,391)						(35,676)						(51,763)						(54,053)
Currency and ownership adjustments(1)						(259)						1,983						(554)						5,359
SSNOI at Welltower Share						196,309						182,420						338,752						316,504
Outpatient Medical:
Consolidated NOI						38,034						148,977						91,333						295,387
NOI attributable to unconsolidated investments						4,450						4,170						8,706						8,204
NOI attributable to noncontrolling interests						(969)						(2,626)						(2,184)						(5,181)
NOI attributable to non-same store properties						(11,584)						(120,466)						(45,004)						(245,698)
Non-cash NOI attributable to same store properties						(3,036)						(3,573)						(4,783)						(5,640)
SSNOI at Welltower Share						26,895						26,482						48,068						47,073
SSNOI at Welltower Share:
Seniors Housing Operating						582,615						481,612						1,071,001						884,956
Triple-net						196,309						182,420						338,752						316,504
Outpatient Medical						26,895						26,482						48,068						47,073
Total						$	805,819					$	690,514					$	1,457,821					$	1,248,533
(1) Includes adjustments to reflect consistent property ownership percentages, to translate Canadian properties at a USD/CAD rate of 1.43 and to translate U.K. properties at a GBP/USD rate of 1.23.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The tables below reflect the reconciliation of EBITDA to net income, the most directly comparable U.S. GAAP measure, for the periods presented (dollars in thousands):

												Three Months Ended
												June 30,						March 31,						December 31,						September 30,						June 30,						March 31,
EBITDA Reconciliations:												2026						2026						2025						2025						2025						2025
Net income (loss)												$	462,975					$	752,324					$	117,767					$	282,186					$	304,618					$	257,266
Interest expense												181,914						192,715						203,784						162,052						141,157						144,962
Income tax expense (benefit)												(61,979)						11,633						(4,985)						2,335						1,053						(5,519)
Depreciation and amortization												737,764						622,752						594,151						509,812						495,036						485,869
EBITDA												$	1,320,674					$	1,579,424					$	910,717					$	956,385					$	941,864					$	882,578
Interest Coverage Ratio:
Interest expense												$	181,914					$	192,715					$	203,784					$	162,052					$	141,157					$	144,962
Capitalized interest												8,851						8,449						7,476						6,150						8,653						11,520
Non-cash interest expense												(15,122)						(10,162)						(14,546)						(14,227)						(10,231)						(12,625)
Total interest												175,643						191,002						196,714						153,975						139,579						143,857
EBITDA												$	1,320,674					$	1,579,424					$	910,717					$	956,385					$	941,864					$	882,578
Interest coverage ratio												7.52		x				8.27		x				4.63		x				6.21		x				6.75		x				6.14		x
Fixed Charge Coverage Ratio:
Total interest												$	175,643					$	191,002					$	196,714					$	153,975					$	139,579					$	143,857
Secured debt principal payments												19,798						17,056						16,698						16,707						16,558						14,444
Total fixed charges												195,441						208,058						213,412						170,682						156,137						158,301
EBITDA												$	1,320,674					$	1,579,424					$	910,717					$	956,385					$	941,864					$	882,578
Fixed charge coverage ratio												6.76		x				7.59		x				4.27		x				5.60		x				6.03		x				5.58		x

						Six Months Ended
						June 30,
EBITDA Reconciliations:						2026						2025
Net income (loss)						$	1,215,299					$	561,884
Interest expense						374,629						286,119
Income tax expense (benefit)						(50,346)						(4,466)
Depreciation and amortization						1,360,516						980,905
EBITDA						$	2,900,098					$	1,824,442
Interest Coverage Ratio:
Interest expense						$	374,629					$	286,119
Non-cash interest expense						(25,284)						(22,856)
Capitalized interest						17,300						20,173
Total interest						366,645						283,436
EBITDA						$	2,900,098					$	1,824,442
Interest coverage ratio						7.91		x				6.44		x
Fixed Charge Coverage Ratio:
Total interest						$	366,645					$	283,436
Secured debt principal payments						36,854						31,002
Total fixed charges						403,499						314,438
EBITDA						$	2,900,098					$	1,824,442
Fixed charge coverage ratio						7.19		x				5.80		x

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The table below reflects the reconciliation of Adjusted EBITDA to net income, the most directly comparable U.S. GAAP measure, for the periods presented (dollars in thousands):

												Twelve Months Ended
												June 30,						March 31,						December 31,						September 30,						June 30,						March 31,
Adjusted EBITDA Reconciliations:												2026						2026						2025						2025						2025						2025
Net income (loss)												$	1,615,252					$	1,456,895					$	961,837					$	967,823					$	1,142,437					$	1,098,489
Interest expense												740,465						699,708						651,955						602,640						579,638						571,905
Income tax expense (benefit)												(52,996)						10,036						(7,116)						(2,017)						(9,058)						(9,010)
Depreciation and amortization												2,464,479						2,221,751						2,084,868						1,971,123						1,865,090						1,752,099
EBITDA												4,767,200						4,388,390						3,691,544						3,539,569						3,578,107						3,413,483
Loss (income) from unconsolidated entities												27,823						17,246						14,297						12,310						3,738						(8,550)
Stock-based compensation expense												1,556,076						1,555,786						1,555,858						61,467						85,827						80,645
Loss (gain) on extinguishment of debt, net												5,800						3,816						9,245						6,156						6,575						8,280
Loss (gain) on real estate dispositions and acquisitions of controlling interests, net												(1,901,353)						(1,817,666)						(1,449,043)						(78,847)						(347,088)						(498,681)
Impairment of assets												79,605						73,707						121,283						99,006						119,346						101,864
Provision for loan losses, net												(2,481)						(5,777)						(9,416)						(2,277)						828						7,104
Loss (gain) on derivatives and financial instruments, net												26,026						25,617						22,407						18,961						(22,627)						(28,043)
Other expenses												288,610						248,278						201,201						109,762						85,302						117,388
Casualty losses, net of recoveries												13,107						10,565						11,367						13,178						14,488						13,945
Other impairment (1)												—						604						604						42,582						42,582						130,296
Adjusted EBITDA												$	4,860,413					$	4,500,566					$	4,169,347					$	3,821,867					$	3,567,078					$	3,337,731
Adjusted Interest Coverage Ratio:
Interest expense												$	740,465					$	699,708					$	651,955					$	602,640					$	579,638					$	571,905
Capitalized interest												30,926						30,728						33,799						40,483						50,001						55,826
Non-cash interest expense												(54,057)						(49,166)						(51,629)						(52,226)						(47,007)						(45,729)
Total interest												717,334						681,270						634,125						590,897						582,632						582,002
Adjusted EBITDA												$	4,860,413					$	4,500,566					$	4,169,347					$	3,821,867					$	3,567,078					$	3,337,731
Adjusted interest coverage ratio												6.78		x				6.61		x				6.57		x				6.47		x				6.12		x				5.73		x
Adjusted Fixed Charge Coverage Ratio:
Total interest												$	717,334					$	681,270					$	634,125					$	590,897					$	582,632					$	582,002
Secured debt principal payments												70,259						67,019						64,408						62,627						56,337						49,886
Total fixed charges												787,593						748,289						698,533						653,524						638,969						631,888
Adjusted EBITDA												$	4,860,413					$	4,500,566					$	4,169,347					$	3,821,867					$	3,567,078					$	3,337,731
Adjusted fixed charge coverage ratio												6.17		x				6.01		x				5.97		x				5.85		x				5.58		x				5.28		x
(1) Represents the write-off of straight-line rent receivable and unamortized lease incentive balances relating to leases placed on cash recognition.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our leverage ratios include book capitalization, undepreciated book capitalization and enterprise value. Book capitalization represents the sum of net debt (defined as total long-term debt excluding operating lease liabilities less cash and cash equivalents and restricted cash), total equity and redeemable noncontrolling interests. Undepreciated book capitalization represents book capitalization adjusted for accumulated depreciation and amortization. Enterprise value represents book capitalization adjusted for the fair market value of our common stock. Our leverage ratios are defined as the proportion of net debt to total capitalization.

The table below reflects the reconciliation of our leverage ratios to our balance sheets for the periods presented. Amounts are in thousands, except share price.

												As of
												June 30,						March 31,						December 31,						September 30,						June 30,						March 31,
												2026						2026						2025						2025						2025						2025
Book capitalization:
Unsecured credit facility and commercial paper												$	—					$	—					$	—					$	—					$	—					$	—
Long-term debt obligations(1)												18,218,544						18,455,978						19,737,446						16,960,008						16,079,566						15,831,799
Cash and cash equivalents and restricted cash												(2,097,164)						(4,819,293)						(5,209,539)						(6,940,573)						(4,523,511)						(3,610,285)
Total net debt												16,121,380						13,636,685						14,527,907						10,019,435						11,556,055						12,221,514
Total equity and noncontrolling interests(2)												47,663,572						44,929,270						43,202,939						39,312,382						36,546,301						34,581,977
Book capitalization												$	63,784,952					$	58,565,955					$	57,730,846					$	49,331,817					$	48,102,356					$	46,803,491
Net debt to book capitalization ratio												25%						23%						25%						20%						24%						26%
Undepreciated book capitalization:
Total net debt												$	16,121,380					$	13,636,685					$	14,527,907					$	10,019,435					$	11,556,055					$	12,221,514
Accumulated depreciation and amortization												11,533,470						10,822,151						10,350,621						10,107,309						11,673,306						11,092,885
Total equity and noncontrolling interests(2)												47,663,572						44,929,270						43,202,939						39,312,382						36,546,301						34,581,977
Undepreciated book capitalization												$	75,318,422					$	69,388,106					$	68,081,467					$	59,439,126					$	59,775,662					$	57,896,376
Net debt to undepreciated book capitalization ratio												21%						20%						21%						17%						19%						21%
Enterprise value:
Common shares outstanding												718,902						704,687						696,507						684,108						665,120						651,889
Period end share price												$	226.97					$	197.71					$	185.61					$	178.14					$	153.73					$	153.21
Common equity market capitalization												$	163,169,187					$	139,323,667					$	129,278,664					$	121,866,999					$	102,248,898					$	99,875,914
Total net debt												16,121,380						13,636,685						14,527,907						10,019,435						11,556,055						12,221,514
Noncontrolling interests(2)												1,249,224						1,135,595						1,073,441						555,564						645,775						625,218
Consolidated enterprise value												$	180,539,791					$	154,095,947					$	144,880,012					$	132,441,998					$	114,450,728					$	112,722,646
Net debt to consolidated enterprise value ratio												9%						9%						10%						8%						10%						11%
(1) Amounts include senior unsecured notes, secured debt and lease liabilities related to financing leases, as reflected on our Consolidated Balance Sheets. Operating lease liabilities related to ASC 842 are excluded.
(2) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests as reflected on our Consolidated Balance Sheets.

Critical Accounting Policies and Estimates

Our unaudited consolidated financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions. Management considers an accounting estimate or assumption critical if:

• the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and

• the impact of the estimates and assumptions on financial condition or operating performance is material.

Management has discussed the development and selection of its critical accounting policies and estimates with the Audit Committee of the Board of Directors. Management believes the current assumptions and other considerations used to estimate amounts reflected in our unaudited consolidated financial statements are appropriate and are not reasonably likely to change in the future. However, since these estimates require assumptions to be made that were uncertain at the time the estimate was made, they bear the risk of change. If actual experience differs from the assumptions and other considerations used in estimating amounts reflected in our unaudited consolidated financial statements, the resulting changes could have a material adverse effect on our consolidated results of operations, liquidity and/or financial condition. Please refer to Note 2 to our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for further information on significant accounting policies that impact us. There have been no material changes to these policies to date in 2026.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q 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,” “pro forma,” “estimate” or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. These statements include, among other things, the Company’s statements regarding its business strategy, expectations regarding new investments and investment dispositions, key underlying trends in its business and plans regarding future financing and availability of capital. 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: the impact of macroeconomic and geopolitical developments, including economic downturns, elevated inflation and interest rates, political or social conflict, unrest or violence or similar events; the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the healthcare industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the healthcare and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; Welltower’s ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters, public health emergencies and extreme weather affecting Welltower’s properties; Welltower’s ability to re-lease space at similar rates as vacancies occur; Welltower’s ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting Welltower’s properties; changes in rules or practices governing Welltower’s financial reporting; the movement of U.S. and foreign currency exchange rates and changes to U.S. and global monetary, fiscal or trade policies; Welltower’s approach to artificial intelligence; Welltower’s ability to maintain its qualification as a REIT; key management personnel recruitment and retention; geopolitical tensions or conflicts, such as the ongoing conflict between Russia and Ukraine and in the Middle East, and other risks described in Welltower’s reports filed from time to time with the SEC. Other important factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, including factors identified under the headings “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Finally, 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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market risks, including the potential loss arising from adverse changes in interest rates and foreign currency exchange rates. We seek to mitigate the underlying foreign currency exposures with gains and losses on derivative contracts hedging these exposures. We seek to mitigate the effects of fluctuations in interest rates by matching the terms of new investments with new long-term fixed rate borrowings to the extent possible. We may or may not elect to use financial derivative instruments to hedge interest rate exposure. These decisions are principally based on our policy to match our variable rate investments with comparable borrowings, but are also based on the general trend in interest rates at the applicable dates and our perception of the future volatility of interest rates. This section is presented to provide a discussion of the risks associated with potential fluctuations in interest rates and foreign currency exchange rates. For more information, see Notes 12 and 17 to our unaudited consolidated financial statements.

We historically borrow on our unsecured revolving credit facility and commercial paper program to acquire, construct or make loans relating to healthcare and seniors housing properties. Then, as market conditions dictate, we will issue equity or long-term fixed rate debt to repay the borrowings under our unsecured revolving credit facility and commercial paper program. We are subject to risks associated with debt financing, including the risk that existing indebtedness may not be refinanced or that the terms of refinancing may not be as favorable as the terms of current indebtedness. The majority of our borrowings were completed under indentures or contractual agreements that limit the amount of indebtedness we may incur. Accordingly, in the event that we are unable to raise additional equity or borrow money because of these limitations, our ability to acquire additional properties may be limited.

A change in interest rates will not affect the interest expense associated with our fixed rate debt. Interest rate changes, however, will affect the fair value of our fixed rate debt. Changes in the interest rate environment upon maturity of this fixed rate debt could have an effect on our future cash flows and earnings, depending on whether the debt is replaced with other fixed rate debt, variable rate debt or equity or repaid by the sale of assets. To illustrate the impact of changes in the interest rate markets, we performed a sensitivity analysis on our fixed rate debt instruments after considering the effects of interest rate swaps, whereby we modeled the change in net present values arising from a hypothetical 1% increase in interest rates to

determine the instruments’ change in fair value. The following table summarizes the analysis performed as of the dates indicated (in thousands):

						June 30, 2026												December 31, 2025
						Principal						Change in						Principal						Change in
						balance						fair value						balance						fair value
Senior unsecured notes						$	11,781,185					$	(521,553)					$	12,700,485					$	(575,958)
Secured debt						2,953,359						(120,762)						2,334,830						(98,414)
Totals						$	14,734,544					$	(642,315)					$	15,035,315					$	(674,372)

Our variable rate debt, including our unsecured revolving credit facility and commercial paper program, are reflected at fair value. At June 30, 2026, we had $2,888,103,000 outstanding related to our variable rate debt after considering the effects of interest rate swaps. Assuming no changes in outstanding balances, a 1% increase in interest rates would result in increased annual interest expense of $28,881,000. At December 31, 2025, we had $4,064,010,000 of outstanding variable-rate debt. Assuming no changes in outstanding balances, a 1% increase in interest rates would have resulted in increased annual interest expense of $40,640,000.

We are subject to currency fluctuations that may, from time to time, affect our financial condition and results of operations. Increases or decreases in the value of the Canadian Dollar or British Pounds Sterling relative to the U.S. Dollar impact the amount of net income we earn from our investments in Canada and the U.K. Based solely on our results for the three months ended June 30, 2026, a hypothetical 10% increase or decrease in the Canadian Dollar or British Pounds Sterling relative to the U.S. Dollar would result in a corresponding increase or decrease in our annualized net income from these investments of less than $51,000,000. We mitigate a portion of our foreign currency exposure through non-U.S. denominated borrowings and derivative instruments. Accordingly, the impact of changes in foreign currency exchange rates on our consolidated financial statements may differ from the sensitivity presented above. If we increase our international presence through investments in, or acquisitions or development of, seniors housing and healthcare properties outside the U.S., we may also decide to transact additional business or borrow funds in currencies other than U.S. Dollars, Canadian Dollars or British Pounds Sterling.

We have entered into various foreign currency debt obligations. As of June 30, 2026, the total principal amount of foreign currency debt obligations was $5,013,391,000, including $1,391,985,000 denominated in Pounds Sterling and $3,621,406,000 denominated in Canadian Dollars. Fluctuations in the exchange rates between these foreign currencies and the U.S. Dollar will impact the amount of U.S. Dollars that we will require to settle the foreign currency debt obligations at maturity. If the U.S. Dollar would have been weaker or stronger by 1% in comparison to these foreign currencies as of June 30, 2026, we estimate our obligation to cash settle the principal of these foreign currency debt obligations in U.S. Dollars would have increased or decreased by approximately $50,134,000. Our Pounds Sterling-denominated debt is hedged through cross currency swaps designated as fair value hedges, which are intended to substantially offset the impact of changes in foreign exchange rates on that exposure.

We are also party to foreign currency forward and cross currency swap contracts used to manage foreign currency exposures, including net investment hedging activities. As of June 30, 2026, the total notional amount of cross currency swap contracts, other than those designated as fair value hedges, was $18,687,934,000, including $11,733,383,000 denominated in Pounds Sterling and $6,954,551,000 denominated in Canadian Dollars. If the U.S. Dollar weakened or strengthened by 1% in comparison to foreign currencies, we estimate our obligation to cash settle these hedges would have increased or decreased by approximately $186,879,000.

For additional information regarding fair values of financial instruments, see “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies” and Notes 12 and 17 to our unaudited consolidated financial statements.