Diversified Healthcare Trust (DHC) AI Stock Analysis

• Market Cap: $762.35M
• Dividend Yield: 1.24%
• Average Volume (3M): 797.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 5.33%
• EPS Growth: 10.68%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.06
• Shares Outstanding: 241,250,890
• 10 Day Avg. Volume: 581,891
• 30 Day Avg. Volume: 797,598
• PEG Ratio: -0.12
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.75
• Price Target Upside: 16.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $3.00 ▼(-6.83%Downside)

DHC's overall stock score reflects a mix of positive technical momentum and strategic initiatives against the backdrop of financial challenges and valuation concerns. Financial performance remains a significant risk due to negative profitability, but positive earnings call outcomes and strategic corporate actions contribute to a cautiously optimistic outlook.

Positive Factors

Debt Refinancing

DHC intends to issue agency-secured debt to repay the $440mm of 2025 notes at a 9.75% interest rate, aiming for new notes around 6%.

Earnings

DHC reported a 2Q24 earnings beat, generating Core FFO of $0.03 versus consensus at $0.02 and Citizens JMP at $0.01 per share.

NOI Growth

DHC’s same-store cash NOI increased 16.1% year-over-year, with a 38.4% increase to SHOP, partially offset by a slight change in the Medical Office / Life Science Portfolio.

Negative Factors

Core FFO Performance

The company reported Core FFO of $0.02, below consensus at $0.04, reflecting lower SHOP NOI and underperformance in the office/life science portfolio.

Guidance Revision

Management lowered FY 2024 SHOP NOI guidance to $102mm to $107mm from the previous range of $120mm to $140mm due to disappointing occupancy trends and expense challenges.

Occupancy Issues

Occupancy within the SHOP was below expectations this quarter as there was no functional change sequentially.

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 generated from its portfolio of healthcare-related properties. The company leases its properties to various tenants including healthcare providers, senior living operators, and life sciences companies. Long-term lease agreements provide a stable and predictable revenue stream. Additionally, DHC may engage in property sales or acquisitions to optimize its portfolio, potentially generating capital gains and reinvesting proceeds to enhance its overall asset value. Strategic partnerships with healthcare operators and management companies also contribute to DHC's operational efficiency and financial performance.

Diversified Healthcare Trust Financial Statement Overview

Summary

Diversified Healthcare Trust faces ongoing financial challenges despite revenue growth and improved cash flow management. Persistent net losses and negative EBITDA margins highlight profitability issues. The absence of debt in 2024 reduces financial leverage risks, but inefficiencies in generating returns remain a concern.

Income Statement

The income statement reveals a challenging period for Diversified Healthcare Trust. Despite an increase in total revenue from 2023 to 2024, net income remains negative, highlighting ongoing profitability issues. The gross profit margin is positive, but the negative EBITDA margin from 2024 indicates significant expenses or non-cash charges weighing down profitability. The revenue growth over the last year is a positive sign, but persistent net losses and negative EBIT margins highlight underlying financial struggles.

Balance Sheet

The balance sheet shows a moderate financial position. The company has positive equity, with a favorable equity ratio indicating a solid capital structure. The absence of debt in 2024 is a positive shift, reducing financial leverage risks. However, the return on equity is negative due to the net loss, indicating inefficiencies or challenges in generating returns from shareholders' investments. Overall, the balance sheet reflects stability but with underlying profitability concerns.

Cash Flow

The cash flow statement presents a mixed picture. Free cash flow turned positive in 2024, a notable improvement from previous years, suggesting better cash management or expense control. The operating cash flow ratio has improved, but the free cash flow to net income ratio indicates cash flow generation challenges despite the positive free cash flow. Continued focus on improving operational cash generation is essential for long-term strength.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.51B	1.50B	1.41B	1.28B	1.38B	1.63B
	Gross Profit
514.22M	258.88M	236.16M	174.50M	291.40M	395.67M
	EBIT
32.65M	-52.59M	-74.06M	-75.29M	6.82M	113.15M
	EBITDA
158.26M	229.86M	203.19M	163.99M	708.25M	383.30M
	Net Income Common Stockholders
-292.98M	-370.25M	-293.57M	-21.83M	174.51M	-134.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
208.16M	144.58M	245.94M	658.07M	634.85M	74.42M
	Total Assets
5.35B	5.14B	5.45B	6.00B	6.62B	6.48B
	Total Debt
2.86B	2.91B	2.82B	3.05B	3.68B	3.57B
	Net Debt
2.65B	2.77B	2.57B	2.39B	3.04B	3.49B
	Total Liabilities
3.10B	3.18B	3.11B	3.36B	3.96B	3.86B
	Stockholders Equity
2.25B	1.96B	2.34B	2.64B	2.66B	2.62B
Cash Flow		Free Cash Flow
127.10M	112.22M	10.48M	-339.74M	-290.93M	-27.04M
	Operating Cash Flow
80.38M	112.22M	10.48M	-40.35M	-63.32M	158.54M
	Investing Cash Flow
162.91M	-187.02M	-202.11M	387.71M	242.70M	-40.44M
	Financing Cash Flow
-144.80M	-22.31M	-249.71M	-676.00M	746.72M	-79.48M

Diversified Healthcare Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.22 is above the 20-day moving average (MA) of 3.11, above the 50-day MA of 2.62, and above the 200-day MA of 2.80, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, 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
UHT	69 Neutral	$556.00M	29.70	10.15%	7.30%	0.95%	15.07%
SILA	66 Neutral	$1.35B	38.59	2.46%	5.98%	-2.94%	46.24%
CHCT	64 Neutral	$463.89M	―	-1.67%	11.39%	1.33%	-149.80%
DHC	62 Neutral	$762.35M	―	-13.96%	1.24%	5.33%	10.68%
Sector *	61 Neutral	$2.81B	10.77	0.40%	8439.00%	5.73%	-20.81%
GMRE	56 Neutral	$459.92M	202.56	1.45%	13.29%	-1.66%	-86.24%
STRW	50 Neutral	$127.44M	17.38	36.40%	5.22%	22.41%	37.88%

Diversified Healthcare Trust Corporate Events

Diversified Healthcare Trust Outlines 2025 Strategic Initiatives

On June 2, 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, occupancy growth, and revenue management within its senior housing operating portfolio. The company also addressed its refinancing strategy and prospects for restoring its investment-grade credit rating. DHC’s performance is supported by favorable trends in the senior living industry and strong fundamentals in the medical office and life science sectors. The presentation also discussed potential risks and uncertainties, including market conditions, interest rates, and operational challenges, which could impact DHC’s future results.

The most recent analyst rating on (DHC) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Shareholders Approve Key Resolutions

At the Annual Meeting, Diversified Healthcare Trust shareholders elected seven Trustees to the Board for a one-year term until the 2026 annual meeting. Additionally, shareholders approved a non-binding advisory resolution on executive compensation, the Equity Compensation Plan, and ratified Deloitte & Touche LLP as independent auditors for the 2025 fiscal year.

The most recent analyst rating on (DHC) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Unveils 2025 Strategic Initiatives

On May 22, 2025, Diversified Healthcare Trust published an investor presentation highlighting its strategic initiatives and financial performance. The presentation outlined its 2025 guidance, focusing on potential dispositions, capital expenditures, and occupancy growth. DHC aims to strengthen its balance sheet by addressing upcoming debt maturities and leveraging its senior housing operating portfolio. The company also emphasized the favorable trends in the senior living and medical office sectors, which support its long-term growth strategy.

The most recent analyst rating on (DHC) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Elects Alan L. Felder as Trustee

On March 20, 2025, Diversified Healthcare Trust announced the election of Alan L. Felder as an Independent Trustee, expanding the board from seven to eight members. Mr. Felder, with extensive experience in investment banking, particularly in real estate, lodging, and leisure sectors, will serve on the Audit Committee. His election is expected to strengthen the board’s expertise in these areas, potentially enhancing the company’s strategic direction and governance.