Diversified Healthcare Trust (DHC) operates as a real estate investment trust (REIT) specializing in healthcare properties. Its extensive portfolio comprises medical office ...
Diversified Healthcare Trust (DHC) is a real estate investment trust (REIT) that specializes in owning high-quality healthcare properties. As of the latest data, DHC owns approximately $6.2 billion in assets, with a portfolio that spans 33 states and Washington, D.C. The company's properties are diversified across the health services spectrum, ...Diversified Healthcare Trust (DHC) is a real estate investment trust (REIT) that specializes in owning high-quality healthcare properties. As of the latest data, DHC owns approximately $6.2 billion in assets, with a portfolio that spans 33 states and Washington, D.C. The company's properties are diversified across the health services spectrum, including medical office buildings, life science facilities, senior living communities, and wellness centers. DHC's strategy is to provide shareholders with attractive risk-adjusted returns through a diversified portfolio that is not dependent on any single type of healthcare property. The company is managed by an operating subsidiary of The RMR Group Inc., an alternative asset management company headquartered in Newton, Massachusetts. Key financial metrics indicate a market cap of approximately $2.0 billion, with a P/E ratio of -7.45, reflecting the company's recent financial performance. DHC was established in 1998 and is incorporated in Maryland. The CEO is Christopher J. Bilotto, who has served as President and CEO since 2024. The company has a very small direct employee base, as its operations are largely outsourced to its external manager. DHC's portfolio includes over 65 life science and medical office properties totaling approximately 5.6 million square feet, and more than 23,000 senior living units. The company's financial metrics show an EBITDA margin of 13.5%, but negative net income and operating cash flow, indicating challenges. DHC pays a dividend, with a current yield of about 0.5%. Despite these financial headwinds, the company remains a significant player in the healthcare REIT sector, focusing on long-term growth and stability in its property portfolio.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.5B
+2.8%
-3.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-285.9M
+22.8%
-103.9%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
-16.0%
-193.1%
-0.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-2.6%
-116.6%
+55.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-18.6%
+24.9%
-111.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-19.6M
-117.5%
+141.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-1.3%
-117.0%
+143.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
145.2%
-2.3%
+2.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
100.72x
+792.1%
+12.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to the Diversified Healthcare Trust First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matt Murphy, Manager of Investor Relations. Please go ahead.
Matt Murphy: Good morning. Joining me on today's call are Chris Bilotto, President and Chief Executive Officer; Matt Brown, Chief Financial Officer and Treasurer; and Anthony Paula, Vice President. Today's call includes a presentation by management, followed by a question-and-answer session with sell-side analysts. Please note that the recording and retransmission of today's conference call is strictly prohibited without the prior written consent of the company. Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon DHC's beliefs and expectations as of today, Tuesday, May 5, 2026. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call, other than through filings with the Securities and Exchange Commission or SEC. In addition, this call may contain non-GAAP numbers, including normalized funds from operations or normalized FFO, net operating income or NOI and cash basis net operating income or cash basis NOI. A reconciliation of these non-GAAP measures to net income is available in our financial results package, which can be found on our website at www.dhcreit.com. Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements. And finally, we will be providing guidance on this call, including NOI. We are not providing a reconciliation of these non-GAAP measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all, such as gains and losses or impairment charges related to the disposition of real estate. With that, I would now like to turn the call over to Chris.
Christopher Bilotto: Thank you, Matt. Good morning, everyone, and thank you for joining our call today. DHC delivered a strong first quarter, demonstrating the powerful combination of our active asset management and the deep expertise of our expanded operating partners. The strategic changes we made within our SHOP portfolio in 2025 continue yielding results with the first quarter aligning with our outlook focus on driving revenue, expense synergies and overall margin improvement. Looking ahead, we are well positioned to capitalize on powerful tailwinds, including the burgeoning demand from an aging population and a historically …