Diversified Healthcare Trust (DHC)

Price$7.54Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkShares look roughly fairly priced after a strong rebound, with operating gains offset by meaningful leverage.

Using management’s updated 2026 normalized FFO guidance, the stock trades at roughly 12 to 13 times expected FFO, a common REIT earnings measure that adds back real-estate depreciation. That is not obviously expensive, but it already credits part of the senior-housing recovery. Reported book equity is below the market capitalization, while the company’s real-estate base may carry value not fully captured by depreciated accounting values. The balance of signals supports a fair-priced view rather than a clear bargain.

Big pictureCash flow is improving, but heavy debt and capital needs still limit financial flexibility.

First-half operating cash flow was about $46.7 million, roughly matching total capital expenditures of about $47.6 million, so internally generated cash is not yet abundant. DHC ended June with about $116.8 million of cash and an undrawn $150 million revolver. Capital allocation has emphasized property sales, debt repayment, and reinvestment, while the common dividend remains small. Net debt was about $2.33 billion and leverage fell to 7.1 times annualized adjusted EBITDAre, but that is still high. The next major maturity wall arrives in 2028, with about $640.6 million due.

Business strengthSenior housing is recovering quickly, while medical-office occupancy and leasing remain supportive but less dynamic.

DHC is Diversified Healthcare Trust, a Nasdaq-listed healthcare REIT trading as DHC. In the second quarter, same-property senior-housing NOI rose 37.2% year over year as occupancy increased 160 basis points and average monthly rates rose 6.2%. Medical-office and life-science same-property occupancy was 95.8%, and recent leasing carried positive rent spreads. The main strength is operating leverage: higher occupancy can lift margins quickly. The weakness is cyclicality around labor, resident demand, property expenses, and capital spending needed to keep communities competitive.

What could change the storyUpside needs sustained margin gains and refinancing progress; downside comes from stalled occupancy or cost pressure.

A bull case assumes SHOP NOI reaches the high end of guidance, expense savings persist, leverage moves below 7 times, and the 2028 maturities are refinanced without a large jump in interest cost; that could justify a higher FFO multiple. A bear case assumes occupancy gains slow, labor or food costs reaccelerate, medical-office vacancies rise, and refinancing becomes expensive, pushing results toward the low end or below guidance. Dilution is currently limited because the share count is roughly flat, but future equity issuance remains a financing option.

AI: News

Second-quarter recoverySenior-housing margins improved sharply, leverage fell, and management reaffirmed its upgraded full-year outlook.

On August 3, DHC reported second-quarter normalized FFO of $38.9 million and consolidated NOI of $84.4 million. Same-property SHOP NOI increased 37.2% year over year, while net debt to annualized adjusted EBITDAre improved to 7.1 times. Management reaffirmed 2026 normalized FFO guidance of $0.56 to $0.62 per share, although its occupancy-growth assumption was reduced to about 200 basis points and lower revenue growth is now expected to be offset by tighter expense control.

Dividend stays minimalThe quarterly common dividend remained very small, preserving cash for property investment and balance-sheet needs.

On July 9, the board declared a regular quarterly cash distribution of $0.01 per common share, payable in August. The annualized rate remains $0.04 per share. That payout is modest relative to normalized FFO and signals that management is retaining most earnings capacity for recurring capital expenditures, liquidity, and debt management rather than maximizing current income. The board can reset the distribution, so a higher dividend would likely require stronger and more durable cash generation.

Guidance raisedFaster operator savings prompted management to lift expected senior-housing earnings and normalized FFO for 2026.

On June 1, DHC raised full-year guidance as cost savings from its senior-housing operator transitions arrived faster than expected. SHOP NOI guidance increased to $185 million to $195 million, total NOI to $307 million to $323 million, and normalized FFO to $0.56 to $0.62 per share. The upgrade rested on better expense management, procurement savings, occupancy gains, and rate increases. It strengthened the recovery case, while still depending on execution in a labor-intensive senior-housing business.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$1.54B	$1.50B	$1.41B	$1.28B	$1.38B	$1.63B	$1.04B	$1.12B	$1.07B	$1.06B	$998.8M	$844.9M	$761.4M	$634.8M	$440.0M	$340.1M	$297.4M	$233.2M
Operating expenses	$1.74B	$1.62B	$1.51B	$1.38B	$1.41B	$1.64B	$943.4M	$890.2M	$799.5M	$754.9M	$685.2M	$553.5M	$496.9M	$380.7M	$216.6M	$141.8M	$132.2M	$80.5M
Operating income	−$205.0M	−$125.8M	−$103.3M	−$93.8M	−$31.1M	−$12.9M	$96.7M	$226.9M	$275.2M	$303.1M	$313.5M	$291.4M	$264.5M	$254.1M	$223.4M	$198.3M	$165.2M	$152.7M
Operating margin	−13.33%	−8.41%	−7.32%	−7.31%	−2.25%	−0.79%	9.30%	20.31%	25.61%	28.65%	31.39%	34.49%	34.74%	40.03%	50.77%	58.30%	55.56%	65.48%
EBITDA	$57.0M	$159.1M	$180.8M	$145.5M	$240.0M	$257.3M	$385.8M	$513.2M	$552.1M	$590.9M	$571.3M	$476.8M	$417.5M	$393.1M	$334.4M	$288.7M	$243.8M	$213.5M
EBITDA margin	3.70%	10.64%	12.82%	11.33%	17.35%	15.77%	37.09%	45.93%	51.37%	55.85%	57.20%	56.43%	54.84%	61.93%	75.99%	84.88%	81.98%	91.57%
Net income	−$285.9M	−$370.3M	−$293.6M	−$15.8M	$174.5M	−$139.5M	−$88.2M	$286.9M	$147.6M	$141.3M	$124.0M	$158.6M	—	—	—	$116.5M	$109.7M	$106.5M
Net profit margin	−18.59%	−24.76%	−20.82%	−1.23%	12.62%	−8.54%	−8.48%	25.68%	13.73%	13.35%	12.41%	18.78%	—	—	—	34.25%	36.89%	45.67%
Basic EPSper basic share	-$1.19	-$1.55	-$1.23	-$0.07	$0.73	-$0.59	-$0.37	$1.21	$0.62	$0.60	$0.53	$0.80	$0.81	$0.80	$1.01	$0.91	$0.90	$1.01
Diluted EPSper diluted share	-$1.19	-$1.55	-$1.23	-$0.07	$0.73	-$0.59	-$0.37	$1.21	$0.62	$0.60	$0.53	$0.80	$0.81	$0.80	$1.01	$0.91	$0.90	$1.01

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈9.78%of listed shares

PORTNOY ADAM D.23.68M shares · Jun 10, 2026

View holders

Top 20 reported holders of DHC
Holder	% owned
PORTNOY ADAM D.	≈9.78%23.68M shares
Flat Footed LLC	9.70%23.49M shares
BlackRock, Inc.	9.53%23.08M shares
Silver Point Capital L.P.	6.40%15.5M shares
H/2 CREDIT MANAGER LP	5.29%12.82M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.37%10.59M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.99%9.68M shares
STATE STREET CORP	3.72%9M shares
GEODE CAPITAL MANAGEMENT, LLC	2.92%7.06M shares
Davidson Kempner Capital Management LP	2.65%6.41M shares
NOMURA HOLDINGS INC	2.59%6.28M shares
CARRONADE CAPITAL MANAGEMENT, LP	2.53%6.14M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	2.16%5.24M shares
HEALTHCARE OF ONTARIO PENSION PLAN TRUST FUND	2.06%5M shares
T. Rowe Price Investment Management, Inc.	1.79%4.34M shares
BlackBarn Capital Partners LP	1.68%4.08M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.26%3.04M shares
JPMORGAN CHASE & CO	1.24%3.01M shares
CENTERSQUARE INVESTMENT MANAGEMENT LLC	1.18%2.86M shares
NORTHERN TRUST CORP	1.16%2.8M shares

Percentages use 242.19M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$102.9K disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 15, 2025Form 4	Bilotto Christopher J.President and CEO	BuyCommon Shares of Beneficial Interest	20.0K	$4.89	$97.8K	266.3K
Nov 13, 2024Form 4	Brown Matthew C.CFO and Treasurer	BuyCommon Shares of Beneficial Interest	2.0K	$2.55	$5.1K	86.3K

Review ownership filings at SEC.gov ↗

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Diversified Healthcare Trust (DHC)

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