Diversified Healthcare Trust (DHC) AI Stock Analysis

• Market Cap: $878.75M
• Dividend Yield: 1.15%
• Average Volume (3M): 940.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 4.29%
• EPS Growth: 18.89%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.08
• Shares Outstanding: 241,414,350
• 10 Day Avg. Volume: 705,899
• 30 Day Avg. Volume: 940,083
• 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: 3.83
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 6.54
• Enterprise Value/Ebitda: 14.17
• 1Y Price Target: $3.67
• Price Target Upside: 5.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $3.50 ▲(0.57% Upside)

The overall stock score reflects a mixed financial performance with growth in revenue but challenges in profitability and leverage. Positive earnings call sentiment and strategic initiatives provide some optimism, while technical indicators suggest caution.

Positive Factors

Debt Refinancing

DHC intends to issue agency-secured debt to repay the $440mm of 2025 notes at a 9.75% interest rate, aiming for new notes around 6%.

Earnings

DHC reported a 2Q24 earnings beat, generating Core FFO of $0.03 versus consensus at $0.02 and Citizens JMP at $0.01 per share.

NOI Growth

DHC’s same-store cash NOI increased 16.1% year-over-year, with a 38.4% increase to SHOP, partially offset by a slight change in the Medical Office / Life Science Portfolio.

Negative Factors

Core FFO Performance

The company reported Core FFO of $0.02, below consensus at $0.04, reflecting lower SHOP NOI and underperformance in the office/life science portfolio.

Guidance Revision

Management lowered FY 2024 SHOP NOI guidance to $102mm to $107mm from the previous range of $120mm to $140mm due to disappointing occupancy trends and expense challenges.

Occupancy Issues

Occupancy within the SHOP was below expectations this quarter as there was no functional change sequentially.

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 generates revenue primarily through leasing its properties to healthcare operators and tenants, which include senior living facilities and medical office spaces. The company collects rent payments from these tenants, which serve as its main source of income. Additionally, DHC may earn revenue through property management fees and other ancillary services associated with its real estate assets. Partnerships with leading healthcare providers and operators enhance its ability to attract and retain tenants, thereby stabilizing its cash flow. Moreover, the demand for healthcare real estate, driven by demographic trends such as an aging population, contributes to DHC's revenue potential.

Diversified Healthcare Trust Financial Statement Overview

Summary

Diversified Healthcare Trust shows revenue growth and improved cash flow management, but persistent net losses and negative profitability metrics remain challenges. The elimination of debt is a positive development, reducing leverage risks.

Income Statement

The income statement reveals a challenging period for Diversified Healthcare Trust. Despite an increase in total revenue from 2023 to 2024, net income remains negative, highlighting ongoing profitability issues. The gross profit margin is positive, but the negative EBITDA margin from 2024 indicates significant expenses or non-cash charges weighing down profitability. The revenue growth over the last year is a positive sign, but persistent net losses and negative EBIT margins highlight underlying financial struggles.

Balance Sheet

The balance sheet shows a moderate financial position. The company has positive equity, with a favorable equity ratio indicating a solid capital structure. The absence of debt in 2024 is a positive shift, reducing financial leverage risks. However, the return on equity is negative due to the net loss, indicating inefficiencies or challenges in generating returns from shareholders' investments. Overall, the balance sheet reflects stability but with underlying profitability concerns.

Cash Flow

The cash flow statement presents a mixed picture. Free cash flow turned positive in 2024, a notable improvement from previous years, suggesting better cash management or expense control. The operating cash flow ratio has improved, but the free cash flow to net income ratio indicates cash flow generation challenges despite the positive free cash flow. Continued focus on improving operational cash generation is essential for long-term strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.50B	1.41B	1.28B	1.38B	1.63B
Gross Profit	514.38M	258.88M	236.16M	174.50M	291.40M	395.67M
EBITDA	237.52M	229.86M	203.19M	163.99M	708.25M	383.30M
Net Income	-286.76M	-370.25M	-293.57M	-21.83M	174.51M	-134.31M
Balance Sheet
Total Assets	4.76B	5.14B	5.45B	6.00B	6.62B	6.48B
Cash, Cash Equivalents and Short-Term Investments	141.77M	144.58M	245.94M	658.07M	634.85M	74.42M
Total Debt	2.66B	2.91B	2.82B	3.05B	3.68B	3.57B
Total Liabilities	2.90B	3.18B	3.11B	3.36B	3.96B	3.86B
Stockholders Equity	1.85B	1.96B	2.34B	2.64B	2.66B	2.62B
Cash Flow
Free Cash Flow	142.65M	112.22M	10.48M	-339.74M	-290.93M	-27.04M
Operating Cash Flow	89.11M	112.22M	10.48M	-40.35M	-63.32M	158.54M
Investing Cash Flow	178.71M	-187.02M	-202.11M	387.71M	242.70M	-40.44M
Financing Cash Flow	-389.32M	-22.31M	-249.71M	-676.00M	746.72M	-79.48M

Diversified Healthcare Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.48 is above the 20-day moving average (MA) of 3.43, below the 50-day MA of 3.51, and above the 200-day MA of 2.79, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 80.78 is Negative, 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
SILA	75 Outperform	$1.40B	35.75	2.71%	6.53%	0.43%	58.57%
STRW	72 Outperform	$141.75M	18.14	51.91%	5.17%	24.72%	30.05%
Sector *	71 Outperform	¥233.75B	15.23	10.65%	3.48%	20.27%	28.19%
GMRE	61 Neutral	$491.12M	100.30	1.94%	11.56%	0.90%	―
UHT	61 Neutral	$550.11M	30.64	10.08%	7.66%	0.14%	-0.76%
CHCT	55 Neutral	$418.98M	―	-2.22%	12.94%	2.96%	-877.53%
DHC	54 Neutral	$878.75M	―	-14.32%	1.15%	4.29%	18.89%

Diversified Healthcare Trust Corporate Events

Diversified Healthcare Trust Outlines 2025 Strategic Initiatives

On June 2, 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, occupancy growth, and revenue management within its senior housing operating portfolio. The company also addressed its refinancing strategy and prospects for restoring its investment-grade credit rating. DHC’s performance is supported by favorable trends in the senior living industry and strong fundamentals in the medical office and life science sectors. The presentation also discussed potential risks and uncertainties, including market conditions, interest rates, and operational challenges, which could impact DHC’s future results.

The most recent analyst rating on (DHC) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Shareholders Approve Key Resolutions

At the Annual Meeting, Diversified Healthcare Trust shareholders elected seven Trustees to the Board for a one-year term until the 2026 annual meeting. Additionally, shareholders approved a non-binding advisory resolution on executive compensation, the Equity Compensation Plan, and ratified Deloitte & Touche LLP as independent auditors for the 2025 fiscal year.

The most recent analyst rating on (DHC) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Unveils 2025 Strategic Initiatives

On May 22, 2025, Diversified Healthcare Trust published an investor presentation highlighting its strategic initiatives and financial performance. The presentation outlined its 2025 guidance, focusing on potential dispositions, capital expenditures, and occupancy growth. DHC aims to strengthen its balance sheet by addressing upcoming debt maturities and leveraging its senior housing operating portfolio. The company also emphasized the favorable trends in the senior living and medical office sectors, which support its long-term growth strategy.

The most recent analyst rating on (DHC) stock is a Buy 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.