Diversified Healthcare Trust (DHC)
NASDAQ:DHC
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Diversified Healthcare Trust
(NASDAQ:DHC)
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Rating:61Neutral
Price Target:
$9.00
â–²(21.79% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak financial performance—especially negative net income and a turn to negative operating/free cash flow—despite manageable (but still elevated) leverage. Technicals and the latest earnings call point to improving operating momentum, liquidity, and reaffirmed guidance, which support the mid-range score, while valuation is mixed due to a negative P/E but very high dividend yield.
Positive Factors
SHOP portfolio operating momentum
Sustained SHOP NOI, rising occupancy and outsized monthly rate growth indicate structural recovery in senior housing operations. Durable rent and occupancy gains expand cash NOI and margins, underpinning FFO upside and enabling reinvestment and accretive unit additions over the next several quarters.
Negative Factors
Weakened operating and free cash flow
Negative operating and free cash flow is a persistent structural weakness that pressures liquidity, forces external financing for capex/dividends, and constrains strategic optionality. Until cash generation sustainably turns positive, the company remains dependent on disposals or credit markets to fund growth and payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
SHOP portfolio operating momentum
Sustained SHOP NOI, rising occupancy and outsized monthly rate growth indicate structural recovery in senior housing operations. Durable rent and occupancy gains expand cash NOI and margins, underpinning FFO upside and enabling reinvestment and accretive unit additions over the next several quarters.
Read all positive factors
Diversified Healthcare Trust Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by property type and service line—such as skilled nursing, assisted living, behavioral health, and management fees—showing which parts of Diversified Healthcare Trust generate the most cash. Reveals concentration risk, exposure to Medicare/Medicaid and private-pay mix, and whether occupancy or service demand trends are driving growth or decline.
Breaks down revenue by property type and service line—such as skilled nursing, assisted living, behavioral health, and management fees—showing which parts of Diversified Healthcare Trust generate the most cash. Reveals concentration risk, exposure to Medicare/Medicaid and private-pay mix, and whether occupancy or service demand trends are driving growth or decline.
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The Fly
The FlyDiversified Healthcare Trust (DHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21B
Dividend Yield0.8%
Average Volume (3M)1.49M
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth0.39%
EPS Growth-8.95%
CountryUS
Employees600
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)-1.33
Shares Outstanding242,106,930
10 Day Avg. Volume1,538,505
30 Day Avg. Volume1,490,528
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.70
Price to Sales (P/S)0.76
P/FCF Ratio-59.40
Enterprise Value/Market Cap2.01
Enterprise Value/Revenue2.93
Enterprise Value/Gross Profit138.88
Enterprise Value/Ebitda27.28
Forecast
1Y Price Target
$8.17Price Target Upside10.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.59
Revenue Forecast (FY)$1.52B
Diversified Healthcare Trust Business Overview & Revenue Model
Company Description
DHC is a real estate investment trust, or REIT, that owns medical office and life science properties, senior living communities and wellness centers throughout the United States. DHC is managed by the operating subsidiary of The RMR Group Inc., an...
How the Company Makes Money
DHC primarily makes money by owning healthcare real estate and monetizing it through real estate leasing and, where applicable, property-level operating participation.
Key revenue streams include:
1) Rental and lease income: The core of DHC’s ear...
Diversified Healthcare Trust Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
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.Positive Updates
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.
Negative Updates
Leverage Remains Elevated
Net debt to annualized adjusted EBITDAre at 7.8x, improved from 8.8x but still above management's target range (6.5x–7.5x) and therefore remains a near-term focus.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
DHC reaffirmed full‑year 2026 guidance calling for SHOP NOI of $175–$185 million, Medical Office & Life Science NOI of $94–$98 million, triple‑net senior living & wellness NOI of $28–$30 million, adjusted EBITDAre of $290–$305 million and normalized FFO of $0.52–$0.58 per share, with recurring CapEx of $100–$115 million (including $80–$90 million of SHOP recurring CapEx, $5–$10 million of refresh capital and an approximate 2026 maintenance run‑rate of $3,500 per unit). Management is targeting roughly a 300 basis‑point year‑over‑year increase in SHOP occupancy and 5%+ rate growth, expects SHOP NOI to continue tracking ahead of initial expectations with NOI uplift in Q2 (a modest Q3 drag and stronger Q4), and reiterated a near‑term leverage target of 6.5–7.5x (net debt/annualized adjusted EBITDAre was 7.8x at quarter‑end) supported by $272 million of liquidity.Diversified Healthcare Trust Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
42
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.52B | 1.54B | 1.50B | 1.41B | 1.28B | 1.38B |
| Gross Profit | 32.05M | -245.33M | 256.38M | 225.30M | 174.50M | 291.40M |
| EBITDA | 163.13M | 182.28M | 229.96M | 198.93M | 427.79M | 708.25M |
| Net Income | -320.18M | -285.89M | -370.25M | -293.57M | -15.77M | 174.51M |
Balance Sheet | ||||||
| Total Assets | 4.27B | 4.36B | 5.14B | 5.45B | 6.00B | 6.62B |
| Cash, Cash Equivalents and Short-Term Investments | 121.77M | 121.80M | 144.58M | 245.94M | 658.07M | 634.85M |
| Total Debt | 2.42B | 2.42B | 2.91B | 2.82B | 3.08B | 3.68B |
| Total Liabilities | 2.65B | 2.70B | 3.18B | 3.11B | 3.36B | 3.96B |
| Stockholders Equity | 1.62B | 1.67B | 1.96B | 2.34B | 2.64B | 2.66B |
Cash Flow | ||||||
| Free Cash Flow | -8.03M | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M |
| Operating Cash Flow | -8.03M | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M |
| Investing Cash Flow | 206.06M | 483.57M | -187.02M | -202.11M | 387.71M | 242.70M |
| Financing Cash Flow | -364.83M | -492.01M | -22.31M | -249.71M | -676.00M | 746.72M |
Diversified Healthcare Trust Technical Analysis
Positive
7.39
Price Trends
7.50
Positive
6.78
Positive
5.54
Positive
Market Momentum
0.41
Negative
65.75
Neutral
82.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHC, the sentiment is Positive. The current price of 7.39 is below the 20-day moving average (MA) of 8.21, below the 50-day MA of 7.50, and above the 200-day MA of 5.54, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHC.
Diversified Healthcare Trust Risk Analysis
Diversified Healthcare Trust disclosed 56 risk factors in its most recent earnings report. Diversified Healthcare Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diversified Healthcare Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.00B | 19.11 | 11.79% | 6.70% | 48.96% | 28.05% | |
74 Outperform | $14.59B | 21.54 | 12.40% | 6.11% | 13.95% | 27.68% | |
72 Outperform | $1.67B | 26.06 | 2.81% | 6.98% | 9.37% | 6.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $2.21B | -9.23 | -18.75% | 0.80% | 0.39% | -8.95% |
* Real Estate Sector Average
DHC
Diversified Healthcare Trust
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198.26%
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Diversified Healthcare Trust Corporate Events
Business Operations and StrategyFinancial Disclosures
Diversified Healthcare Trust Highlights Strategy and Strong Momentum
Positive
May 5, 2026
On May 5, 2026, Diversified Healthcare Trust released an investor presentation outlining its current positioning as a national healthcare REIT and highlighting the scale and composition of its portfolio, including senior housing, medical office an...
Business Operations and StrategyFinancial Disclosures
Diversified Healthcare Trust Highlights Strong 2025 Performance Outlook
Positive
Feb 24, 2026
In February 2026, Diversified Healthcare Trust published an investor presentation outlining its position as a national healthcare REIT with a $6.3 billion portfolio concentrated in senior housing, medical office and life science assets. The portfo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.