Diversified Healthcare Trust (DHC) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: 0.8%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 4.10%
• EPS Growth: 8.96%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 242,146,960
• 10 Day Avg. Volume: 1,673,920
• 30 Day Avg. Volume: 1,360,842
• PEG Ratio: -0.06
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 4.91
• Enterprise Value/Market Cap: 2.79
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 14.54
• Enterprise Value/Ebitda: 39.87
• 1Y Price Target: $5.75
• Price Target Upside: -1.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $6.00 ▲(3.27% Upside)

The score is held down primarily by weak financial performance—persistent losses, high leverage, and a sharp drop in recent cash generation—despite some deleveraging progress. Technicals are supportive due to a strong uptrend, but overbought indicators add near-term risk. Valuation is mixed: a very high yield helps, but negative earnings limit confidence in fundamentals. Earnings-call and recent corporate updates are directionally positive on liquidity and execution, yet leverage and transition-related cost pressure remain meaningful.

Positive Factors

Demographic-driven portfolio focus

DHC’s strategic focus on senior housing and medical office assets aligns with secular aging and healthcare demand trends, supporting durable occupancy and rental demand. This specialization tends to produce more predictable cash flows and tenant stickiness versus cyclical commercial segments.

Strong leasing and rent uplift in MOB/Life Sciences

Higher-quality, long-term leases with 9% rent uplift and nearly seven-year terms in medical office/life science assets lock in durable income growth and reduce vacancy risk. This enhances cash flow visibility and supports portfolio value through structural demand for specialized healthcare real estate.

Improving liquidity via capital recycling and refinancing

Active asset sales, operator transitions, and recent refinancing (no maturities until 2028) materially improve near-term liquidity and reduce immediate refinancing pressure. Sustained capital recycling can fund deleveraging and reposition the portfolio toward higher-return assets over the medium term.

Negative Factors

Very high leverage on adjusted EBITDA basis

A ~10x net debt/EBITDAre ratio materially increases financial risk, leaving limited cushion for earnings variability. High leverage amplifies refinancing and interest-rate exposure, constraining flexibility to invest, absorb operational shocks, or accelerate deleveraging without asset sales or equity issuance.

Weakened and volatile cash generation

Sharply reduced cash generation erodes the company’s ability to service debt, fund capex, or sustain distributions from operations. Historical volatility and prior negative operating cash flow episodes raise uncertainty around the durability of internally generated funds to support strategic objectives.

Persistent net losses and negative ROE

Ongoing net losses and negative returns on equity indicate the business has not yet converted revenue stability into profitability. This reduces retained capital, pressures NAV for a REIT, and limits the company’s ability to self-fund growth or materially improve leverage without external financing or portfolio restructuring.

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 alternative asset management company that is headquartered in Newton, MA.

How the Company Makes Money

DHC makes money primarily through rental income from its diversified portfolio of healthcare properties. The company leases its properties to operators and tenants, generating a steady stream of revenue. Key revenue streams include long-term leases with established healthcare providers, which often include built-in rent escalations to ensure income growth over time. Additionally, DHC may benefit from strategic partnerships with healthcare operators that enhance property management efficiency and tenant retention. The company's financial performance is also influenced by market demand for healthcare services, occupancy rates, and the overall economic environment, which can impact rental pricing and property valuations.

Diversified Healthcare Trust Financial Statement Overview

Summary

Revenue is stabilizing/improving versus prior years, but fundamentals remain weak: persistent sizable net losses, meaningfully negative ROE, elevated leverage (debt-to-equity ~1.4+), and sharply lower recent operating/free cash flow versus 2024. Some debt reduction since 2022 is a positive, but cash-flow durability and balance-sheet risk are still key constraints.

Income Statement

Revenue has stabilized at a higher level in TTM (Trailing-Twelve-Months) (~$1.54B) versus 2024 (~$1.50B) and 2023 (~$1.41B), but profitability remains weak. Net losses are persistent and sizable (TTM net margin ~-19%; 2024 ~-25%; 2023 ~-21%), and operating-level performance is inconsistent year to year, suggesting limited earnings quality and a still-challenged operating model. A modestly improving gross margin trend from 2022 to TTM is a positive, but it has not translated into bottom-line profitability.

Balance Sheet

Leverage is elevated for a healthcare REIT, with debt running higher than equity (TTM debt-to-equity ~1.43; 2024 ~1.49), which reduces flexibility. Total debt has come down versus 2021–2022 levels, offering some balance-sheet progress, but returns on equity are meaningfully negative in recent periods (TTM ~-15%; 2024 ~-19%) due to ongoing losses. Overall, the balance sheet shows some deleveraging momentum, but still carries notable financial risk.

Cash Flow

Cash generation is a key concern: operating cash flow and free cash flow in TTM (Trailing-Twelve-Months) are positive but very low (~$18.7M) and down sharply versus 2024 (~$112M), indicating weaker cash profitability and/or working-capital pressure. While cash flow is currently positive, the magnitude is thin relative to the business size, and the volatility across years (including negative operating cash flow in 2021–2022) raises uncertainty around durability. The company is not consistently converting reported results into steady cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.50B	1.41B	1.28B	1.38B	1.63B
Gross Profit	270.14M	256.38M	225.30M	174.50M	291.40M	394.86M
EBITDA	98.55M	229.96M	198.93M	427.79M	708.25M	356.86M
Net Income	-352.11M	-370.25M	-293.57M	-15.77M	174.51M	-139.45M
Balance Sheet
Total Assets	4.68B	5.14B	5.45B	6.00B	6.62B	6.48B
Cash, Cash Equivalents and Short-Term Investments	201.37M	144.58M	245.94M	658.07M	634.85M	74.42M
Total Debt	2.72B	2.91B	2.82B	3.08B	3.68B	3.50B
Total Liabilities	3.00B	3.18B	3.11B	3.36B	3.96B	3.86B
Stockholders Equity	1.69B	1.96B	2.34B	2.64B	2.66B	2.50B
Cash Flow
Free Cash Flow	18.69M	112.22M	10.48M	-40.35M	-63.32M	158.54M
Operating Cash Flow	18.69M	112.22M	10.48M	-40.35M	-63.32M	158.54M
Investing Cash Flow	210.02M	-187.02M	-202.11M	387.71M	242.70M	-40.44M
Financing Cash Flow	-280.48M	-22.31M	-249.71M	-676.00M	746.72M	-79.48M

Diversified Healthcare Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 5.81 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 5.09, and above the 200-day MA of 3.99, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 49.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHC.

Diversified Healthcare Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OHI	76 Outperform	$12.97B	24.65	11.28%	6.11%	13.50%	31.56%
SILA	67 Neutral	$1.34B	34.49	2.77%	6.98%	3.74%	77.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LTC	62 Neutral	$1.74B	49.94	3.49%	6.70%	11.89%	-68.41%
GMRE	55 Neutral	$502.74M	-139.39	0.49%	10.01%	2.73%	-131.16%
DHC	49 Neutral	$1.41B	―	-18.84%	0.80%	4.10%	8.96%
MPW	48 Neutral	$3.02B	-4.26	-14.02%	6.57%	45.56%	73.44%

Diversified Healthcare Trust Corporate Events

Diversified Healthcare Trust Gains Cash from AlerisLife Wind-Down

On January 9, 2026, Diversified Healthcare Trust received a cash dividend of $27.2 million from AlerisLife Inc. related to AlerisLife’s sale of all its assets and the wind-down of its business, and the company expects to receive an additional $3.0 million to $7.0 million upon completion of that wind-down, providing a notable cash inflow tied to the dissolution of this investment holding.

The most recent analyst rating on (DHC) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Reshapes Senior Living Operations

On December 31, 2025, Diversified Healthcare Trust completed the previously announced transition of management for 116 of its senior living communities from AlerisLife Inc. to seven different third-party operators, marking a significant reshaping of how this portion of its portfolio is run. As part of this shift, the company and AlerisLife mutually terminated their existing management agreements for these communities, signaling a strategic move to diversify operational oversight that may affect performance, risk distribution, and relationships with operating partners across its senior housing platform.

The most recent analyst rating on (DHC) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Outlines 2025 Strategic Initiatives

On December 8, 2025, Diversified Healthcare Trust released an investor presentation outlining its strategic initiatives and financial outlook for 2025. The presentation highlighted DHC’s plans for capital recycling, operator transitions, and occupancy growth within its senior housing operating portfolio. It also emphasized the company’s focus on maintaining a strong liquidity position and leveraging favorable industry trends to enhance its market positioning. The strategic initiatives are expected to impact DHC’s operations positively, with potential implications for stakeholders in terms of improved financial performance and market competitiveness.

The most recent analyst rating on (DHC) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.