Diversified Healthcare Trust (DHC) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: 0.94%
• Average Volume (3M): 619.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 4.10%
• EPS Growth: 8.96%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 242,146,960
• 10 Day Avg. Volume: 654,421
• 30 Day Avg. Volume: 619,401
• PEG Ratio: -0.06
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 4.91
• Enterprise Value/Market Cap: 3.53
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 17.37
• Enterprise Value/Ebitda: 40.78
• 1Y Price Target: $4.25
• Price Target Upside: -0.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.83
• Revenue Forecast (FY): $1.54B

• Rating: 54 Neutral
• Price Target: $4.50 ▲(5.63% Upside)

The overall stock score of 54 reflects a mixed outlook. The company's financial performance is challenged by high leverage and profitability issues, but there is positive momentum in the stock's technical indicators. The earnings call provided some optimism with strategic initiatives, although labor costs and leverage remain concerns. The valuation is hindered by a negative P/E ratio, but the high dividend yield offers some appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for healthcare real estate, supporting long-term business stability and expansion.

Successful Debt Refinancing

Refinancing improves financial flexibility and reduces near-term liquidity risks, allowing focus on strategic growth initiatives.

SHOP Occupancy Growth

Rising occupancy rates enhance revenue potential and reflect strong demand for senior living facilities, supporting stable cash flow.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting future investment and growth opportunities.

Elevated Labor Costs

Increased labor costs reduce profitability and may persist, affecting margins and operational efficiency in the long term.

Profitability Challenges

Ongoing profitability challenges hinder financial performance, requiring effective cost management to improve margins.

Diversified Healthcare Trust Business Overview & Revenue Model

Company Description

Diversified Healthcare Trust (DHC) is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing a diversified portfolio of healthcare properties. The company primarily invests in senior living communities and medical office buildings, catering to the growing demand for healthcare services and housing for the aging population. DHC aims to provide stable returns to its investors through its property management and leasing services, while maintaining a commitment to high-quality care and service in the healthcare sector.

How the Company Makes Money

DHC generates revenue primarily through leasing its properties to healthcare operators and tenants, which include senior living facilities and medical office spaces. The company collects rent payments from these tenants, which serve as its main source of income. Additionally, DHC may earn revenue through property management fees and other ancillary services associated with its real estate assets. Partnerships with leading healthcare providers and operators enhance its ability to attract and retain tenants, thereby stabilizing its cash flow. Moreover, the demand for healthcare real estate, driven by demographic trends such as an aging population, contributes to DHC's revenue potential.

Diversified Healthcare Trust Financial Statement Overview

Summary

Diversified Healthcare Trust shows revenue growth but struggles with profitability and high leverage. Improved cash flow is a positive, but high debt and negative returns on equity are concerns.

Income Statement

The income statement shows a mixed performance. While there is a positive revenue growth trend, the company is struggling with negative net and EBIT margins, indicating profitability issues. The gross profit margin has improved significantly in the TTM period, but the net profit margin remains negative, suggesting ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which poses a risk of financial leverage. The return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. However, the equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

The cash flow statement shows improvement in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from its operations despite net losses. However, the high free cash flow to net income ratio indicates reliance on non-operational cash sources.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.50B	1.41B	1.28B	1.38B	1.63B
Gross Profit	206.75M	256.38M	225.30M	171.89M	273.89M	394.86M
EBITDA	88.06M	229.96M	198.93M	145.70M	232.60M	356.86M
Net Income	-352.11M	-370.25M	-293.57M	-15.77M	174.51M	-139.45M
Balance Sheet
Total Assets	4.68B	5.14B	5.45B	6.00B	6.62B	6.48B
Cash, Cash Equivalents and Short-Term Investments	201.37M	144.58M	245.94M	658.07M	634.85M	74.42M
Total Debt	0.00	2.91B	2.82B	3.05B	3.68B	3.57B
Total Liabilities	3.00B	3.18B	3.11B	3.36B	3.96B	3.86B
Stockholders Equity	1.69B	1.96B	2.34B	2.64B	2.66B	2.62B
Cash Flow
Free Cash Flow	33.79M	112.22M	10.48M	-339.74M	-290.93M	-27.04M
Operating Cash Flow	67.97M	112.22M	10.48M	-40.35M	-63.32M	158.54M
Investing Cash Flow	203.90M	-187.02M	-202.11M	387.71M	242.70M	-40.44M
Financing Cash Flow	-384.69M	-22.31M	-249.71M	-676.00M	746.72M	-79.48M

Diversified Healthcare Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4.26 is above the 20-day moving average (MA) of 4.18, above the 50-day MA of 4.23, and above the 200-day MA of 3.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 73.00 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
OHI	76 Outperform	$12.70B	24.15	11.28%	6.23%	13.50%	31.56%
LTC	74 Outperform	$1.64B	19.51	3.49%	6.41%	11.89%	-68.41%
SILA	69 Neutral	$1.31B	33.37	2.78%	6.76%	3.74%	78.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GMRE	60 Neutral	$581.52M	89.60	0.49%	11.94%	0.57%	-131.16%
DHC	54 Neutral	$1.02B	―	-18.84%	0.94%	4.10%	8.96%
MPW	54 Neutral	$2.96B	―	-14.02%	6.57%	45.56%	73.44%

Diversified Healthcare Trust Corporate Events

Diversified Healthcare Trust Unveils Strategic Initiatives

On October 8, 2025, Diversified Healthcare Trust released an investor presentation highlighting its strategic initiatives and financial outlook. The company is focusing on improving its senior housing operating portfolio through various strategic initiatives, including operator transitions and occupancy growth. DHC is also engaging in capital recycling plans and expects favorable trends in the senior living and medical office sectors to support its growth. The presentation also outlined the company’s second-quarter results and 2025 guidance, showing improvements in SHOP margin and occupancy rates.

The most recent analyst rating on (DHC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Completes $375M Note Offering

On September 26, 2025, Diversified Healthcare Trust completed a private offering of $375 million in senior secured notes due 2030, with net proceeds of approximately $365.9 million. The company used part of these proceeds to partially redeem its 2026 senior secured notes, with the remaining funds intended for fees, expenses, and general business purposes. The notes are guaranteed by subsidiaries owning 36 properties in the U.S. and are subject to restrictive covenants.

The most recent analyst rating on (DHC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust Sells Senior Living Management

On September 3, 2025, Diversified Healthcare Trust announced the sale of management agreements for 116 senior living communities to seven different operators, as part of AlerisLife Inc.’s asset sale and business wind-down. This strategic move is expected to impact DHC’s operations by aligning with its capital recycling plans and enhancing its focus on core assets, potentially benefiting stakeholders through improved financial stability and positioning within the healthcare real estate market.

The most recent analyst rating on (DHC) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Diversified Healthcare Trust stock, see the DHC Stock Forecast page.

Diversified Healthcare Trust’s Optimistic Earnings Call Highlights

The recent earnings call of Diversified Healthcare Trust painted a largely optimistic picture, highlighting strong financial results and strategic initiatives poised for future growth. The company reported increased revenue, EBITDA, and FFO, alongside successful leasing activities and improved performance in its SHOP segment. However, challenges such as occupancy issues and anticipated expense increases were also noted, tempering the overall positive sentiment with a dose of caution.

Diversified Healthcare Trust Reports Q2 2025 Results

Diversified Healthcare Trust (DHC) is a real estate investment trust specializing in high-quality healthcare properties across the United States, with a diversified portfolio that includes senior living units, medical offices, and life science properties.