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Diversified Healthcare Trust
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NASDAQ: DHC Real Estate IT 🔎 Screen
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$1.8B
Market Cap
4.2
P/E
—
PEG
-0.9%
ROCE
-15.8%
ROE
1.45
D/E
-2.6%
OPM
-21.1%
% from 52W High
87
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for DHC including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Diversified Healthcare Trust is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC’s portfolio is anchored by a strategically curated mix of senior housing, medical office and life science assets that combine high quality care, modern technology and amenity rich environments to meet rising demand across the healthcare continuum. As of June 30, 2026, DHC’s approximately 6.3 billion dollar portfolio included 285 properties in 33 states and Washington, D.C., with 23,797 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group, a leading U.S. alternative asset management company with over 37 billion dollar in assets under management as of June 30, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, Massachusetts. Diversified Healthcare Trust was established in 1998 and is incorporated in Maryland.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding DHC
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 315.0K $2.1M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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📊 MIXED DHC Q1 2026 Normalized FFO $33.1M, SHOP NOI up 13.5% YoY
Revenue & Profitability
DHC reported Q1 2026 Normalized FFO of $33.1 million ($0.14 per share) and Adjusted EBITDAre of $74 million. Consolidated NOI increased 4.7% year-over-year to $75.9 million. SHOP same-property NOI rose 13.5% to $44.3 million, driven by 110 bps occupancy growth and 5.9% average monthly rate growth. Medical office and life science segment NOI increased 3.7% to $25.4 million. Net debt to annualized Adjusted EBITDAre improved to 7.8x from 8.8x a year ago.
Outlook
Management cited powerful tailwinds from an aging population and historically low new supply pipeline for senior housing. These demographic and supply-demand fundamentals support continued demand growth. The company is confident in its positioning to capture further earnings and cash flow growth.
Growth Drivers
Growth is driven by same-property SHOP NOI expansion through occupancy gains (110 bps YoY to 82.4%), average monthly rate growth (5.9% YoY, 3.2% sequentially), and margin improvement (160 bps to 14.9%). Additionally, DHC is executing high-return ROI projects to convert underutilized skilled nursing wings into independent living, assisted living, or memory care units. Six initial projects are expected to cost ~$20 million and add ~150 units with mid-teen expected returns.
Balance Sheet & CapEx
DHC reaffirmed 2026 recurring CapEx guidance of $100 million-$115 million, with ~$80 million-$90 million directed to the SHOP portfolio. In Q1 2026, the company invested $21.8 million ($17.2 million in SHOP, $4.6 million in medical office/life science). The company also exercised land lease purchase options in April for $14.5 million, expected to generate low-to-mid-teen returns. A $20 million pipeline of ROI projects is planned for later in the year.
Margins
SHOP same-property NOI margin expanded 160 basis points year-over-year to 14.9%. Expense management improvements include a 370 bps sequential decrease in dietary costs, a 70 bps reduction in labor (adjusted for days), and a nearly 35% decline in contract labor year-over-year. Management expects further margin gains through continued cost discipline and operator-led efficiency initiatives.
Key Risks
Not discussed in this earnings call.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Second quarter results exceeded expectations with strong SHOP segment growth and margin expansion, despite slower-than-expected occupancy ramp-up. Guidance was reaffirmed, with SHOP NOI tracking toward the high end, and significant cost savings and capital projects underway.
Q1 2026 Q1 2026 2026-05-05
First quarter results exceeded expectations with strong NOI and margin growth, driven by operational improvements and disciplined capital allocation. Guidance for 2026 was reaffirmed, with continued momentum expected in SHOP and medical office segments.
Q4 2025 Q4 2025 2026-02-24
Delivered strong Q4 and full-year results with significant NOI and margin growth, reduced leverage, and robust operational execution. 2026 guidance anticipates further NOI and margin expansion, supported by disciplined capital allocation and favorable industry trends.
Q3 2025 Q3 2025 2025-11-04
Q3 revenue rose 4% year-over-year to $388.7M, with SHOP segment NOI up 7.8% and occupancy at 81.5%. Transition of 116 communities to new operators is nearly complete, supporting margin and cash flow growth. No debt maturities until 2028 after 2026 bond repayment.
Q2 2025 Q2 2025 2025-08-05
Second quarter 2025 results beat expectations with strong SHOP segment growth, higher margins, and improved occupancy. Asset sales and refinancing support deleveraging, while 2025 guidance for SHOP NOI and CapEx was raised and tightened, respectively.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
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