Business
Diversified Healthcare Trust Announces Third Quarter 2020 Results
Third Quarter Net Loss Attributable to Common Shareholders of $0.45 Per Share Third Quarter Normalized FFO Attributable to Common Shareholders of $0.06 Per
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nThird Quarter Net Loss Attributable to Common Shareholders of $0.45 Per Share\n\nThird Quarter Normalized FFO Attributable to Common Shareholders of $0.06 Per Share\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter and nine months ended September 30, 2020.\n\n\"While the senior living industry continues to experience significant challenges as a result of the COVID-19 pandemic, the stability of our medical office and life sciences portfolio and the steps we took earlier in the year to enhance liquidity put us in a strong position to withstand the effect of the pandemic,\" stated Jennifer Francis, President and Chief Operating Officer of Diversified Healthcare Trust. \"Our third quarter results have been materially impacted by COVID-19 and measures taken to ensure the safety and well-being of the residents and employees in our senior living communities, resulting in both continued occupancy declines and sharp increases in expenses related to employee healthcare and personal protective equipment.\n\nWhile the pandemic is expected to continue to negatively impact our near-term senior living results, we believe that we are strengthened by the diversity of our portfolio, and that healthcare real estate will benefit from the aging U.S. population in the long term.\"\n\nResults for the Quarter Ended September 30, 2020:\n\nNet loss attributable to common shareholders was $106.9 million, or $0.45 per share, for the quarter ended September 30, 2020 compared to $29.4 million, or $0.12 per share, for the quarter ended September 30, 2019. The change in net loss attributable to common shareholders for the quarter ended September 30, 2020 primarily resulted from:\n\n\nincreased impairment charges for the 2020 period primarily related to senior living communities scheduled for closure and/or sale;\n\n\na $4.0 million revenue reserve for an estimated Medicare refund DHC expects to pay with respect to one of its senior living communities and $2.2 million in estimated related penalties, compliance costs and professional fees, net of management fees reimbursable by Five Star Senior Living Inc. (Nasdaq: FVE), or Five Star;\n\n\nlosses on sale of properties during the 2020 period compared to gains during the 2019 period; and\n\n\ndecreased normalized funds from oper...