Welltower's Strategic Acquisition: Ultra-Luxury Amica Portfolio and Long-Term Growth Partnership

Welltower Inc. (NYSE: WELL), a leading healthcare real estate investment trust (REIT), has announced a significant acquisition and strategic partnership with Amica Senior Lifestyles, a premier operator of ultra-luxury seniors housing communities. The transaction, valued at C$4.6 billion, includes the acquisition of a 31-property in-place portfolio valued at C$3.2 billion, seven under-construction properties, and nine entitled development parcels. The acquisition and partnership align with Welltower's long-term investment strategy, focusing on high-quality, irreplaceable assets in desirable locations.



The Amica portfolio consists of ultra-luxury seniors housing communities located in highly affluent neighborhoods in Toronto, Vancouver, and Victoria. These properties feature ultra-luxe amenities and finishes, appealing to an affluent and sophisticated population. The trophy portfolio's location characteristics provide formidable barriers to entry, making it an attractive investment for Welltower.

Welltower is acquiring the in-place properties at a substantial discount to estimated replacement cost, capturing built-in appreciation and locking in favorable financial metrics. The stable Amica assets have exhibited significant pricing power with RevPOR growth even outperforming Welltower's overall SHO portfolio over the past five years. Additionally, Welltower plans to acquire seven properties currently under construction upon the achievement of certificates of occupancy, which is expected to occur in stages between 2025 and 2027. This structure allows Welltower to eliminate development risk while enabling the company to own trophy assets with untrended stabilized average RevPOR of over C$12,000.



As part of the transaction, Welltower will acquire a minority interest in Amica's highly regarded management company, with the Amica management team owning the majority interest. This drives further alignment and ensures that the properties maintain their premium positioning and service levels. The long-term strategic partnership paves the way for significant future expansion of Amica's ultra-luxury, higher acuity product within their target Toronto, Vancouver, and Victoria neighborhoods.

The acquisition and partnership align with Welltower's goal of maintaining a dynamic economy and fostering business confidence and growth in the senior housing industry. The premium hospitality and care offered by Amica's communities, combined with the dynamic environment for employees, contribute to the overall success and growth of the industry. Additionally, the partnership enables Amica to be key beneficiaries of Welltower's industry-leading data science capabilities, helping to scale their platform and drive growth.

In conclusion, Welltower's acquisition of Amica Senior Lifestyles' ultra-luxury portfolio and the formation of a long-term strategic partnership align with the company's long-term investment strategy, focusing on high-quality, irreplaceable assets in desirable locations. The transaction demonstrates Welltower's cautious approach to transformative strategies and emphasis on risk management, while also contributing to the growth and innovation of the senior housing industry.