Welltower, one of the best-performing public REITs, is the latest target of activist investor Land & Buildings Investment Management.

The real estate investment firm led by Jonathan Litt disclosed a short position in Welltower and released a report alleging the REIT’s executive compensation structure is strategically ill-conceived and transfers wealth from shareholders to management.

Land & Buildings describes the pay package as “one of the most egregiously management-friendly compensation structures in public REIT history” that includes easily reachable performance-based payout targets and has an emphasis on “growth for growth's sake” instead of value creation.

“Our recommendation is straightforward: sell Welltower,” the report says.

Shares in the REIT were down more than 2.5% in early trading Tuesday to around $204 per share. Welltower didn’t immediately respond to Bisnow’s request for comment.

Land & Buildings focuses on REITs and has built a reputation for its scathing white papers challenging management when disclosing short positions. The Connecticut-based firm didn’t disclose the size of its Welltower short position.

Its report on Welltower, a massive healthcare REIT, says the compensation plan approved in October offers management — and specifically CEO Shankh Mitra — the potential for “staggering” enrichment.

The compensation package would give Mitra shares worth roughly $2.6B if the stock trades at $300 per share, and Land & Buildings estimated that Mitra, who has been CEO since 2020, has already earned roughly $1B based on the stock’s performance since the compensation package was approved.

Land & Buildings also criticized the nine-figure payout that Welltower is on the hook for if the board fires Mitra without cause.

“Critically, the Board cannot fire Mr. Mitra for poor performance without triggering a $500 million golden parachute,” Litt said in a statement released with the report.

Land & Buildings' report says Welltower’s 144% share price premium compared to its Green Street-estimated net asset value, the highest in the company’s history, presents as much as 60% downside risk to shareholders if the stock reverts to performing in line with its peers.

“Welltower share price embeds an extraordinary amount of optimism about both the senior housing cycle and management’s ability to deploy capital at massive scale. Shareholders can obtain comparable or superior senior housing exposure through Ventas (VTR) and American Healthcare REIT (AHR),” the report says.

Welltower is one of the best-performing REITs, with shares up roughly 40% in 2025, compared to 28.5% average growth for the 17 healthcare REITs tracked by Nariet and a 2.3% gain for all equity REITs. The Nasdaq 100 grew by roughly 20% in 2025, and the Dow Jones Industrial Average was up nearly 13%.

The REIT announced a strategic pivot dubbed Welltower 3.0 in October to focus on senior housing acquisitions that included the $6B sale of 18M SF worth of medical offices, following a wave of other real estate investors into the sector and betting on demand from aging baby boomers.

The pivot makes performance-based compensation metrics easily achievable for Welltower’s management, Land & Buildings said in its report.

“The simultaneous sale of the outpatient medical portfolio and concentration into senior housing, the highest-growth, highest-beta segment, directly maximizes the probability of hitting market cap milestones in our view,” the report says.