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Diversified Healthcare Trust (DHC) investor relations material
Diversified Healthcare Trust Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 results exceeded expectations, driven by strong SHOP segment performance, improved occupancy, and successful deleveraging through asset sales and refinancing.
Portfolio comprised 341 properties in 34 states and D.C., valued at $6.8B, with over 26,000 senior living units and 7.4M sq. ft. of medical office and life science space.
Strategic focus on growing SHOP NOI, selling noncore assets, and refinancing debt at lower rates continues to drive performance and reduce leverage.
Management is monitoring economic and market uncertainties, including interest rates, inflation, and labor market conditions.
Managed by The RMR Group, overseeing $40B in assets as of June 30, 2025.
Financial highlights
Q2 2025 total revenue was $382.7M, up 3% year-over-year; adjusted EBITDAre was $73.6M; normalized FFO increased 172% to $18.6M ($0.08/share).
Q2 2025 net loss was $91.6M ($0.38/share), improved from $97.9M in Q2 2024; six-month net loss was $100.6M, improved from $184.1M year-over-year.
Same property SHOP NOI grew 18.5% year-over-year to $37.4M; consolidated SHOP NOI up 26.3% to $36.6M.
NOI for Q2 2025 was $70.1M, up 4.2% year-over-year; six-month NOI was $142.7M, up 9.3%.
Annualized dividend declared per common share was $0.04, with a payout ratio of 16.7% for Normalized FFO.
Outlook and guidance
2025 SHOP NOI guidance increased by $10M at midpoint to $132M–$142M, reflecting strong year-to-date performance.
Expense increases anticipated in Q3 and Q4 due to seasonality and more days in the second half.
Year-end SHOP occupancy targeted above 82%, with gradual improvement expected.
2025 CapEx guidance reduced by $10M to $140M–$160M, reflecting lower spend and asset dispositions.
Management anticipates sufficient liquidity to meet obligations for at least the next 12 months.
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