Business
Diversified Healthcare Trust Announces First Quarter 2020 Results
First Quarter Net Income Attributable to Common Shareholders of $0.04 Per Share First Quarter Normalized FFO Attributable to Common Shareholders of $0.29 Per
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nFirst Quarter Net Income Attributable to Common Shareholders of $0.04 Per Share\n\n\nFirst Quarter Normalized FFO Attributable to Common Shareholders of $0.29 Per Share\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter ended March 31, 2020.\n\n\n“Our portfolio of high quality healthcare real estate performed slightly above our internal expectations for January and February before the COVID-19 pandemic began to disrupt our operator and tenants’ businesses in March. Despite the disruptions in the quarter, our Office Portfolio segment produced same-store cash basis NOI growth of 2.6%,” stated Jennifer Francis, President and Chief Operating Officer of Diversified Healthcare Trust. “We note, however, that market conditions resulting from the pandemic have led to declines in move-ins in our SHOP segment and, in combination with ongoing wage pressures across our SHOP portfolio, EBITDARM was down 14.3%.\n\n\nAs a result of the disruptions to our operator and tenants’ businesses and the uncertainty of the duration and severity of the COVID-19 pandemic, in April, our Board of Trustees declared a quarterly distribution of $0.01 per share to preserve approximately $33 million of capital per quarter. Combined with our previously announced $56 million in asset sales since our last earnings call and the deferral of up to $150 million of capital expenditures, our balance sheet remains well positioned to address near term capital obligations, with enough revolver capacity and cash on hand to cover both debt maturities and a number of planned capital projects through 2020.”\n\n\nResults for the Quarter Ended March 31, 2020:\n\n\nNet income attributable to common shareholders was $9.7 million, or $0.04 per share, for the quarter ended March 31, 2020 compared to net income attributable to common shareholders of $30.1 million, or $0.13 per share, for the quarter ended March 31, 2019. As previously announced, on January 1, 2020, DHC completed the restructuring of its business arrangements, or the Restructuring Transaction, with Five Star Senior Living Inc. (Nasdaq: FVE), or Five Star. Pursuant to the Restructuring Transaction, effective January 1, 2020, the previously existing master leases and management and pooling agreements between DHC and Five Star were termin...