Welltower(WELL) Prnewswire·2025-01-30 00:40Business Launch and Strategy - Welltower Inc announces the launch of its private funds management business to manage third-party capital, focusing on healthcare and wellness real estate sectors [1] - The first fund will be anchored by a wholly owned subsidiary of ADIA, committing 20% or up to 400 million [1] - The new business aims to identify and acquire seniors housing portfolios in the US, leveraging Welltower's data science platform and industry relationships [2] Market Opportunities and Acquisitions - The seniors housing sector presents attractive acquisition opportunities due to fragmented ownership and motivated sellers addressing debt maturities [3] - Welltower has deployed nearly 240 million, with 778 units, 92% occupancy, and 31% NOI margins [4] - Welltower is under contract to acquire NorthStar Healthcare Income Inc, comprising 40 seniors housing communities with 4,886 units, for an enterprise value of approximately $900 million [5] Strategic Benefits and Leadership - The private funds management business is expected to generate significant revenue through asset management fees and carried interest [6] - The new business will support talent retention and career growth, with management's carried interest allocated to emerging leaders [7] - Welltower's data science platform, powered by AI, will enhance the network effect and create a competitive advantage for the funds management business [7] Industry Outlook and Growth - Welltower anticipates a protracted period of compounding cash flow growth in the seniors housing sector, with expanding capital deployment opportunities [4] - The company's regional densification strategy aims to reduce employee turnover and enhance stakeholder satisfaction [7] - Welltower's leadership team and private funds management business will drive long-term compounding of per share cash flows for existing owners [8]