Diversified Healthcare Trust (DHC) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results with operational momentum, improved balance sheet metrics, and margin expansion, driven by active asset management and expanded operator partnerships.

• Portfolio comprised 285 properties across 33 states and D.C., with 23,901 senior living units and 5.6 million sq. ft. of medical office/life science space, valued at approximately $6.2 billion.

• Positive trends in the SHOP segment include rising rates, margins, and occupancy, with continued improvement expected.

• Strategic review and transition of underperforming assets and communities to new operators have driven improved performance.

• Closely monitoring macroeconomic risks, including inflation, labor costs, and interest rates.

Financial highlights

• Total revenues for Q1 2026 were $366.5M, down from $386.9M in Q1 2025.

• Net loss of $(43.3)M ($(0.18) per share) in Q1 2026, compared to $(9.0)M ($(0.04) per share) in Q1 2025.

• Normalized FFO was $33.1M ($0.14 per share), up from $14.3M ($0.06 per share) in Q1 2025.

• Adjusted EBITDAre reached $74M, with consolidated NOI of $75.9M, up 4.7% year-over-year.

• Quarterly distribution of $0.01 per share declared and paid.

Outlook and guidance

• Reaffirmed 2026 guidance: SHOP NOI $175M–$185M, medical office/life science NOI $94M–$98M, triple net/wellness NOI $28M–$30M, Adjusted EBITDAre $290M–$305M, Normalized FFO $0.52–$0.58 per share.

• SHOP NOI expected to grow 26%–33% in 2026, with 300 bps occupancy growth and 8% revenue growth at mid-point.

• Recurring CapEx guidance for 2026 is $100M–$115M, an 18% reduction at midpoint.

• Plans to continue investing in property redevelopment and capital improvements.

• Monitoring economic uncertainties, inflation, and labor market conditions for potential impacts.