Diversified Healthcare Trust (DHC) Q4 2025 earnings summary

Executive summary

• Achieved best performing REIT status in the U.S. for 2025 with a total shareholder return of 112.6%, driven by share price appreciation, strong SHOP segment performance, and strategic property dispositions.

• Completed over $1.4 billion in capital markets activity, including financings, asset sales, and a $150 million undrawn credit facility.

• Transitioned 116 senior housing communities to new operators and completed renovations at over 30 communities.

• Portfolio as of December 31, 2025, valued at approximately $6.3 billion, comprising 298 properties across 33 states and Washington, D.C., with about 25,000 senior living units and 5.6 million sq. ft. of medical office and life science properties.

Financial highlights

• Fourth quarter total revenue was $379.6 million, adjusted EBITDAre $72.4 million, and normalized FFO $21.8 million ($0.09/share); Q4 net loss was $21.2 million.

• Full year consolidated NOI grew 31.3% year-over-year; SHOP NOI for the year was $139.3 million, near the high end of guidance.

• Same-property SHOP NOI margin improved by 230 basis points year-over-year to 13.3%.

• Net debt to adjusted EBITDAre reduced from 11.2x to 8.1x during 2025.

• Medical Office and Life Science same property occupancy ended at 94.7% with a weighted average lease term of 5.0 years.

Outlook and guidance

• 2026 guidance: SHOP NOI $175–$185 million, medical office/life science NOI $94–$98 million, triple net lease NOI $28–$30 million, total NOI $297–$313 million.

• 2026 adjusted EBITDAre expected between $290–$305 million; normalized FFO $0.52–$0.58 per share ($125–$140 million).

• Recurring capital expenditures for 2026 expected at $100–$115 million, down over 18% from 2025.

• Margin expansion of approximately 200 basis points expected in 2026.

• No acquisitions planned; 13 communities under contract for disposition in early 2026.