Diversified Healthcare Trust (DHC) SEC Filings & Earnings Calls

Net loss persists despite operational improvements

“Net loss of $37.4M in Q2 2026”

Medical Office and Life Science NOI declined slightly YoY

“Same Property Cash Basis NOI Medical Office and Life Science Portfolio decreased 1.3% YoY”

Labor cost inflation

“Property operating expenses increased at our comparable properties primarily due to increases in labor costs, management fees as a result of higher revenues and insurance costs” · word for word

Interest rate sensitivity

“We are closely monitoring the impacts of the current economic and market conditions on all aspects of our business, including, but not limited to, uncertainties surrounding interest rates and inflation” · word for word

Disposition/transition execution risk

“During the three months ended June 30, 2026, we incurred transition costs as a result of our transition of 116 communities to both new and existing third party managers.” · word for word

Leverage remains elevated at 7.8x, though improving.

“Net Debt to Annualized Adjusted EBITDAre 7.8x”

Net loss of $43.3M indicates ongoing profitability challenges.

“Net Loss $(43.3)M”

Labor cost inflation in SHOP segment

“Property operating expenses increased at our comparable properties primarily due to increases in labor costs, management fees as a result of higher revenues, insurance costs and other direct costs.” · word for word

Interest rate and refinancing risk

“We are closely monitoring the impacts of the current economic and market conditions on all aspects of our business, including, but not limited to, uncertainties surrounding interest rates and inflation.” · word for word

SHOP operational transition risk

“We transitioned 116 SHOP communities formerly managed by AlerisLife to a diversified group of new operators.” · word for word

Concentration of insider ownership

“All Trustees, Trustee nominees and executive officers as a group (eight persons) 24,583,566 10.15%” · word for word

Forward-looking statements contain extensive boilerplate risks including market conditions, interest rates, inflation, supply chain, tariffs, geopolitical tensions, and labor market conditions.

“Risks include: unfavorable market and commercial real estate industry conditions, uncertainties surrounding interest rates, wage and commodity price inflation, supply chain disruptions, changing tariffs and trade policies, geopolitical instability, pandemics, economic downturns, labor market conditions”

Medicaid Funding Cut Risk

“On July 4, 2025, the U.S. government enacted Public Law No. 119-21, commonly known as the One Big Beautiful Bill Act, which, among other things, included significant funding cuts and policy changes to Medicaid, which could have a material adverse effect on the ability of our tenants to pay us rent, the profitability of our managed senior living communities a” · word for word

Manager Concentration Risk

“The senior living communities in our SHOP segment managed by Sinceri Senior Living, Discovery Senior Living, Tutera Senior Living, Charter Senior Living and Phoenix Senior Living represented 30.8%, 23.7%, 8.9%, 7.0% and 5.7%, respectively, of our gross real estate value as of December 31, 2025.” · word for word

Interest Rate and Economic Sensitivity

“The impact of unfavorable market and commercial real estate industry conditions due to possible reduced demand for healthcare related space and senior living communities, uncertainties surrounding interest rates, wage and commodity price inflation, supply chain disruptions, changing tariffs and trade policies and related uncertainty, geopolitical instability” · word for word

No material risk signals identified

“Results at high end of expectations”

Dependence on AlerisLife wind-down for additional cash; amount uncertain.

“We expect to receive an additional cash dividend of approximately $3.0 million to $7.0 million at the completion of the wind-down.” · word for word

Operational disruption risk from transitioning 116 communities to new managers.

“transitioned the management of 116 of our senior living communities ... to seven different third party managers”

Loss of AlerisLife's management expertise and potential revenue impact.

“mutually terminated our management agreements for our senior living communities managed by AlerisLife” · word for word

Management Transition Disruption

“We may experience temporary disruption, including reductions in our cash flows, as we transition these communities from Five Star.” · word for word

Interest Rate and Inflation Uncertainty

“We are closely monitoring the impacts of the current economic and market conditions on all aspects of our business, including, but not limited to, uncertainties surrounding interest rates and inflation, volatility in the public debt and equity markets, global geopolitical hostilities and tensions, any U.S. government shutdown, economic uncertainties and tari” · word for word

Asset Impairment Risk

“Impairment of assets $93,243 vs $23,031 YoY.”

Healthcare REIT exposure; senior living and medical office performance

“Portfolio includes SHOP (senior living) and medical office/life science segments”