Welltower Expands Senior Housing Portfolio, CEO Warns of Challenges

The REIT is increasing its exposure to senior housing operating properties, but Welltower's CEO cautions that the transition is more complex than it appears.

Published on Feb. 11, 2026

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Welltower (NYSE: WELL) has been transforming itself in recent years, with a focus on senior housing operating (SHOP) properties as the cornerstone of that change. The REIT has been aggressively growing its SHOP portfolio, completing $11 billion in net new investments in 2025 and acquiring over 900 senior living communities. However, Welltower's CEO, Shankh Mitra, warns that building a successful senior housing operating portfolio is "harder than it looks," citing the past challenges faced by the company's predecessor, Health Care REIT.

Why it matters

Welltower's shift towards SHOP properties is part of a broader trend in the senior housing REIT industry, as companies like LTC Properties, National Health Investors, Healthpeak, and CareTrust have all embraced the SHOP structure in recent years. Mitra's cautionary tale highlights the complexities and risks involved in transitioning from a real estate-focused REIT to an operationally-intensive business model, which could have implications for the entire senior housing sector.

The details

Welltower's SHOP portfolio now comprises an even larger segment of the company's net operating income (NOI) following the $1.3 billion sale of its share of a joint venture investment in Integra Health. The REIT has also been accelerating its investment pace, closing its inaugural private fund vehicle, Seniors Housing Fund I, which secured about $2.5 billion in total equity commitments. Welltower also launched its first senior housing debt fund during the fourth quarter of 2025.

  • In the fourth quarter of 2025, Welltower's 875-community same-store senior housing operating portfolio added 20.4% to its net operating income compared with the same period in 2024.
  • Welltower's occupancy for the SHOP segment increased to 89.5% in the fourth quarter of 2025, representing a gain of 400 basis points compared with the fourth quarter of 2024.
  • In 2025, Welltower completed $11 billion of net new investments, including acquisitions of over 900 senior living communities.
  • Welltower is starting off 2026 with a similar eye for growth via M&A, with $5.7 billion of deals closed or under contract to close this year.
  • In the fourth quarter of 2025, Welltower closed a private fund vehicle, Seniors Housing Fund 1, netting $2.5 billion of equity commitments.

The players

Welltower

A real estate investment trust (REIT) that focuses on senior housing and healthcare properties.

Shankh Mitra

The CEO of Welltower, who has cautioned that building a successful senior housing operating portfolio is "harder than it looks."

Health Care REIT

The predecessor company to Welltower, which Mitra cited as a cautionary tale of the challenges in transitioning towards an operationally-intensive business model.

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What they’re saying

“These are full-cycle lessons and will be learned as such. Exposure alone does not define success in this challenging terrain.”

— Shankh Mitra, CEO (seniorhousingnews.com)

“The opportunity set is very robust in front of us, as long as we can make money through our operational and technological progress and our ability to allocate capital, we'll do it.”

— Shankh Mitra, CEO (seniorhousingnews.com)

What’s next

Welltower is seeking to grow its senior housing operating portfolio to 72% of its cash flow in the future, up from the current 59%. The REIT also plans to close $3.5 billion in dispositions in 2026, including the sale of its Integra portfolio and additional outpatient medical properties.

The takeaway

Welltower's transformation into a senior housing operating powerhouse highlights the complexities and risks involved in transitioning from a real estate-focused REIT to an operationally-intensive business model. Mitra's cautionary tale serves as a warning to other senior housing REITs that may be considering a similar shift, underscoring the importance of carefully managing the operational and technological challenges that come with owning and managing senior living communities.