Diversified Healthcare Trust (DHC) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: 0.78%
• Average Volume (3M): 955.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• 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: 1,249,252
• 30 Day Avg. Volume: 955,474
• 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: 2.89
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 13.30
• Enterprise Value/Ebitda: 36.44
• 1Y Price Target: $5.75
• Price Target Upside: 11.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.05
• Revenue Forecast (FY): $1.55B

• Rating: 58 Neutral
• Price Target: $5.00 ▼(-2.72% Downside)

Diversified Healthcare Trust's overall score reflects a mixed financial performance with significant leverage challenges. Positive technical indicators and strategic initiatives provide some optimism, but valuation concerns and profitability issues weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for healthcare properties and effective leasing strategies, supporting long-term income stability.

Strategic Initiatives

Strategic initiatives enhance operational efficiency and market competitiveness, potentially leading to improved financial performance and resilience.

Successful Debt Refinancing

Successful refinancing strengthens financial stability by extending debt maturities, reducing near-term financial pressure, and improving liquidity.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues suggest challenges in cost management and operational efficiency, which may hinder long-term earnings potential.

Elevated Labor Costs

Increased labor costs can pressure margins and reduce profitability, affecting the company's ability to maintain competitive pricing and service levels.

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

Diversified Healthcare Trust shows revenue growth but faces profitability and leverage challenges. Improved cash flow management is a positive, but high debt levels and negative returns on equity are concerns. Continued focus on cost management and debt reduction is needed.

Income Statement

The income statement shows a mixed performance. While there is a positive revenue growth trend, the company is struggling with negative net and EBIT margins, indicating profitability issues. The gross profit margin has improved significantly in the TTM period, but the net profit margin remains negative, suggesting ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which poses a risk of financial leverage. The return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. However, the equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

The cash flow statement shows improvement in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from its operations despite net losses. However, the high free cash flow to net income ratio indicates reliance on non-operational cash sources.

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	-72.59M	112.22M	10.48M	-40.35M	-63.32M	158.54M
Operating Cash Flow	67.97M	112.22M	10.48M	-40.35M	-63.32M	158.54M
Investing Cash Flow	203.90M	-187.02M	-202.11M	387.71M	242.70M	-40.44M
Financing Cash Flow	-384.69M	-22.31M	-249.71M	-676.00M	746.72M	-79.48M

Diversified Healthcare Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.14
• 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 5.14 is above the 20-day moving average (MA) of 4.82, above the 50-day MA of 4.52, and above the 200-day MA of 3.60, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 91.11 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
OHI	76 Outperform	$12.99B	24.70	11.28%	6.10%	13.50%	31.56%
SILA	68 Neutral	$1.28B	32.83	2.77%	6.90%	3.74%	77.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LTC	64 Neutral	$1.63B	46.83	3.49%	6.67%	11.89%	-68.41%
DHC	58 Neutral	$1.24B	-3.51	-18.84%	0.78%	4.10%	8.96%
MPW	55 Neutral	$3.09B	-4.36	-14.02%	6.42%	45.56%	73.44%
GMRE	55 Neutral	$497.36M	-137.89	0.49%	9.66%	2.73%	-131.16%

Diversified Healthcare Trust Corporate Events

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.

Diversified Healthcare Trust Unveils Strategic Initiatives

On October 8, 2025, Diversified Healthcare Trust released an investor presentation highlighting its strategic initiatives and financial outlook. The company is focusing on improving its senior housing operating portfolio through various strategic initiatives, including operator transitions and occupancy growth. DHC is also engaging in capital recycling plans and expects favorable trends in the senior living and medical office sectors to support its growth. The presentation also outlined the company’s second-quarter results and 2025 guidance, showing improvements in SHOP margin and occupancy rates.

Diversified Healthcare Trust Completes $375M Note Offering

On September 26, 2025, Diversified Healthcare Trust completed a private offering of $375 million in senior secured notes due 2030, with net proceeds of approximately $365.9 million. The company used part of these proceeds to partially redeem its 2026 senior secured notes, with the remaining funds intended for fees, expenses, and general business purposes. The notes are guaranteed by subsidiaries owning 36 properties in the U.S. and are subject to restrictive covenants.