Diversified Healthcare Trust (DHC) Q3 2026 earnings summary

Executive summary

• Same property cash basis NOI rose 25.6% YoY to $77.9M; Adjusted EBITDAre increased 28.4% to $73.4M, and Normalized FFO reached $0.13/share versus $0.02.

• Q3 revenue declined 5.4% YoY to $367.7M, while net loss narrowed to $50.2M from $164.0M.

• SHOP occupancy and rates improved; medical office and life science leasing achieved rents 25.2% above prior rents.

Financial highlights

• Consolidated NOI rose 27.5% YoY to $80.8M; Q3 Normalized FFO was $30.7M, or $0.13/share, versus $4.0M, or $0.02/share.

• Same property cash basis NOI increased 25.6% to $77.9M; CAD was $6.8M, or $0.03/share.

• Property operating expenses fell 11.8% to $286.9M; impairment charges were $14.5M versus $93.2M, and interest expense declined 24.0% to $37.2M.

• Nine-month operating cash flow was $74.1M versus $0.5M; cash and restricted cash ended the period at $130.9M.

Outlook and guidance

• FY2026 guidance: same property NOI $312M–$328M; Adjusted EBITDAre $275.7M–$290.7M; Normalized FFO $110.7M–$125.7M, or $0.46–$0.52/share.

• SHOP same property NOI guidance rose $5M at midpoint to $190M–$200M; occupancy growth assumption remains 200 bps.

• Recurring CapEx guidance is $90M–$105M, down $10M at midpoint; management expects SHOP CapEx per unit to decline modestly in 2027–28.

• 2027 growth drivers include a full year of Ensign rent, ~ $2M annual savings from new SHOP management agreements, conversion projects and occupancy/rate improvement.

• Redevelopment construction starts are expected in 2027, with some unit deliveries in H2; available funding is expected to cover obligations for at least 12 months, though projects may be deferred to preserve liquidity.