Diversified Healthcare Trust (DHC)
NASDAQ:DHC
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Earnings Data
Report Date
Aug 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.14Last Year’s EPS
0.08Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong operational momentum—particularly within the SHOP portfolio—driven by top-line rate growth, occupancy improvement, margin expansion, and notable expense reductions. Management affirmed guidance, improved liquidity, and received a credit upgrade, while also identifying a disciplined pipeline of accretive ROI projects and completing capital recycling. Near-term headwinds include still-elevated leverage (although improved), moderate interest coverage, seasonal occupancy timing and lease rollover risk in the MO/LS portfolio, and ongoing recurring CapEx needs. Overall, the positive operational and balance-sheet progress materially outweighs the remaining challenges.Company Guidance
FFO and Adjusted EBITDAre Beat Estimates
Reported normalized FFO of $33.1M ($0.14/share) and adjusted EBITDAre of $74M, both described as well ahead of analyst consensus.
Consolidated NOI and Same-Property Cash NOI Growth
Consolidated NOI of $75.9M with management reporting either a 4.7% year-over-year increase (consolidated NOI) or an 8.6% year-over-year increase (same‑property cash basis NOI), and a 7.8% sequential increase in same‑property cash basis NOI.
Strong SHOP Portfolio Performance
SHOP same-property NOI increased 13.5% year-over-year to $44.3M; same-property occupancy up 110 basis points to 82.4%; average monthly rate growth ~5.9% year-over-year; same-property NOI margin expanded 160 basis points to 14.9%.
Material Expense Improvements Driving Margin Expansion
Reported operational cost wins including a nearly 35% year-over-year decrease in contract labor, a 370 basis point sequential decrease in dietary costs, a 70 basis point sequential reduction in labor (adjusted), and moderation in same-property expense growth (350 bps year-over-year improvement and 120 bps since last quarter).
Disciplined Capital Deployment and High-Return Projects
Identified pipeline across 16 communities with an initial 6 projects costing ~$20M to add ~150 units; projects expected to be immediately accretive with expected returns starting in the mid‑teens and lower cost per unit vs replacement cost.
Medical Office & Life Science Strength
MO/LS same-property occupancy up 60 basis points to 95.3% and NOI of $25.4M (+3.7% year-over-year, +4.8% sequentially); 169k sq ft of new/renewal leasing at rents ~12% above prior rents and a 9.5-year weighted average lease term; subsequent Q leases of 390k sq ft signed.
Improved Liquidity and Balance Sheet Flexibility
Total liquidity of $272M (including $122M cash and full $150M revolver available); 197 unencumbered properties (~64% of gross book value) providing flexibility; no debt maturities until 2028 following 2025 transactions.
Leverage and Coverage Trending Favorably
Net debt to annualized adjusted EBITDAre improved to 7.8x from 8.8x a year ago; adjusted EBITDAre to interest expense improved to 2.0x from 1.3x, and management expects near-term leverage target of 6.5x–7.5x.
Capital Recycling and Strategic Dispositions
Sold 13 unencumbered non-core SHOP communities for $23M and exercised land lease purchase options on 2 properties for $14.5M to eliminate ground rent and capture full economics, with expected low- to mid‑teen returns on the land purchases.
Credit Upgrade and Strong Market Performance
Moody's upgraded the corporate family rating to B3 from Caa1 with a positive outlook; stock performance highlighted with year-to-date share price appreciation ~60% versus S&P 500 (+5.2%) and VNQ (+7.9%).
Guidance Reaffirmed and Recurring CapEx Reduced
Reaffirmed full-year 2026 guidance: SHOP NOI $175M–$185M, MO/LS NOI $94M–$98M, triple net NOI $28M–$30M, adjusted EBITDAre $290M–$305M and normalized FFO $0.52–$0.58/share. Reaffirmed 2026 recurring CapEx guidance of $100M–$115M (approximately 18% reduction at midpoint).
DHC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DHC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 04, 2026 | $7.76 | $8.17 | +5.28% |
Feb 24, 2026 | $6.09 | $6.38 | +4.76% |
Nov 03, 2025 | $4.41 | $4.19 | -4.88% |
Aug 04, 2025 | $3.39 | $3.41 | +0.59% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Diversified Healthcare Trust (DHC) report earnings?
Diversified Healthcare Trust (DHC) is schdueled to report earning on Aug 05, 2026, Before Open (Confirmed).
What is Diversified Healthcare Trust (DHC) earnings time?
Diversified Healthcare Trust (DHC) earnings time is at Aug 05, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DHC EPS forecast?
DHC EPS forecast for the fiscal quarter 2026 (Q2) is -0.14.