Diversified Healthcare Trust (DHC)
NASDAQ:DHC
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Diversified Healthcare Trust
(NASDAQ:DHC)
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Rating:54Neutral
Price Target:
$7.50
â–²(2.88% Upside)
Action:ReiteratedDate:02/25/26
The score is held down primarily by weak financial performance (recurring losses and 2025 negative EBITDA and operating/free cash flow). Offsetting this, the latest earnings call outlined improving operating momentum and constructive 2026 guidance with better liquidity/deleveraging progress, while technicals are moderately supportive and valuation is mixed due to losses despite a high dividend yield.
Positive Factors
Consolidated NOI growth
A 31.3% consolidated NOI increase reflects durable operational improvement across the portfolio, signaling stronger cash generation potential from core assets. Sustained NOI growth supports internal capital for maintenance, debt reduction and reinvestment, improving long-term earnings resilience.
Negative Factors
Negative EBITDA and cash flow
Turning negative on EBITDA and operating/free cash flow in 2025 signals weak underlying earnings power and unstable cash generation. This undermines the REIT’s capacity to fund distributions, capex and deleveraging from operations alone, increasing reliance on asset sales or external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Consolidated NOI growth
A 31.3% consolidated NOI increase reflects durable operational improvement across the portfolio, signaling stronger cash generation potential from core assets. Sustained NOI growth supports internal capital for maintenance, debt reduction and reinvestment, improving long-term earnings resilience.
Read all positive factors
Diversified Healthcare Trust (DHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend Yield0.8%
Average Volume (3M)2.17M
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth4.10%
EPS Growth8.96%
CountryUS
Employees600
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.09
Shares Outstanding242,121,020
10 Day Avg. Volume1,165,560
30 Day Avg. Volume2,165,667
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 Cap2.30
Enterprise Value/Revenue2.64
Enterprise Value/Gross Profit26.29
Enterprise Value/Ebitda23.98
Forecast
1Y Price Target
$7.25Price Target Upside-0.55% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.55
Revenue Forecast (FY)$1.60B
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 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.
Data provided by:
The Fly
The FlyDiversified Healthcare Trust Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial narrative: strong NOI growth (+31.3% FY), meaningful SHOP performance improvement (Q4 SHOP NOI +27.6% YoY, same-store occupancy and rate gains, margin expansion), successful asset dispositions and deleveraging actions (net debt/EBITDAre down to 8.1x, no maturities until 2028), disciplined CapEx and robust liquidity. Challenges were acknowledged — integration/transition noise from the AlerisLife wind-down, remaining elevated leverage above target, pockets of underperforming SHOP assets being sold, and some near-term NOI headwinds in MOB/LS driven by prior sales. On balance the highlights substantially outweigh the lowlights, with clear operational levers and guidance that indicate continued improvement into 2026.Positive Updates
Strong Consolidated NOI Growth
Full-year consolidated NOI grew 31.3% in 2025, driven by operational execution and portfolio actions.
Negative Updates
Transition Noise from AlerisLife Wind-Down
Transition of 116 communities to seven operators created operational 'noise' during the year; while largely completed, some transitions weighed on sequential top-line growth and required integration time for operators to realize full benefits.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Consolidated NOI Growth
Full-year consolidated NOI grew 31.3% in 2025, driven by operational execution and portfolio actions.
Read all positive updates
Company Guidance
On the call DHC gave 2026 guidance calling for SHOP NOI of $175–185 million, Medical Office & Life Science NOI of $94–98 million, and triple‑net senior living/wellness NOI of $28–30 million, supporting consolidated adjusted EBITDAre of $290–305 million and normalized FFO of $0.52–$0.58 per share; recurring CapEx is guided to $100–115 million (SHOP $80–90M, MOB/Life Science $20–25M, including ~$10M of refresh/ROI spend). Management noted liquidity of roughly $255 million (≈$105M unrestricted cash and $150M available on the revolver), no debt maturities until 2028, a year‑end 2025 net debt/adjusted‑EBITDAre of 8.1x (down from 11.2x), a near‑term leverage target of 6.5x–7.5x, and an expectation that adjusted‑EBITDAre/interest expense will be at or above 2.0x by year‑end 2026 (weighted‑average cash interest was 5.7% as of 12/31); the guidance also reflects operational momentum in SHOP (2025 SHOP NOI $139.3M, same‑property occupancy +90 bps to 82.4% in 2025 and roughly a 300‑bp full‑year occupancy improvement implied for 2026) and remaining opportunistic dispositions (13 properties under agreement for $23M).Diversified Healthcare Trust Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.54B | 1.50B | 1.41B | 1.28B | 1.38B |
| Gross Profit | -245.33M | 256.38M | 225.30M | 174.50M | 291.40M |
| EBITDA | 182.28M | 229.96M | 198.93M | 427.79M | 708.25M |
| Net Income | -285.89M | -370.25M | -293.57M | -15.77M | 174.51M |
Balance Sheet | |||||
| Total Assets | 4.36B | 5.14B | 5.45B | 6.00B | 6.62B |
| Cash, Cash Equivalents and Short-Term Investments | 121.80M | 144.58M | 245.94M | 658.07M | 634.85M |
| Total Debt | 2.42B | 2.91B | 2.82B | 3.08B | 3.68B |
| Total Liabilities | 2.70B | 3.18B | 3.11B | 3.36B | 3.96B |
| Stockholders Equity | 1.67B | 1.96B | 2.34B | 2.64B | 2.66B |
Cash Flow | |||||
| Free Cash Flow | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M |
| Operating Cash Flow | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M |
| Investing Cash Flow | 483.57M | -187.02M | -202.11M | 387.71M | 242.70M |
| Financing Cash Flow | -492.01M | -22.31M | -249.71M | -676.00M | 746.72M |
Diversified Healthcare Trust Technical Analysis
Positive
7.29
Price Trends
6.67
Positive
5.84
Positive
4.87
Positive
Market Momentum
0.04
Positive
56.08
Neutral
80.66
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 7.29 is above the 20-day moving average (MA) of 6.97, above the 50-day MA of 6.67, and above the 200-day MA of 4.87, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 80.66 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 | $13.51B | 22.25 | 11.83% | 6.11% | 13.50% | 31.56% | |
73 Outperform | $1.36B | 38.71 | 2.44% | 6.98% | 3.74% | 77.82% | |
69 Neutral | $1.92B | 13.47 | 11.94% | 6.70% | 11.89% | -68.41% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $1.77B | -4.08 | -15.98% | 0.80% | 4.10% | 8.96% |
* Real Estate Sector Average
DHC
Diversified Healthcare Trust
7.29
5.21
249.64%
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Diversified Healthcare Trust Corporate Events
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...
Business Operations and Strategy
Diversified Healthcare Trust Gains Cash from AlerisLife Wind-Down
Positive
Jan 14, 2026
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 additiona...
Business Operations and Strategy
Diversified Healthcare Trust Reshapes Senior Living Operations
Neutral
Jan 5, 2026
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 ...
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.