Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Q4 2024 Earnings Presentation
42 slides from Diversified Healthcare Trust's earnings presentation, Feb 25, 2025
Slide 1: Fourth Quarter 2024 Financial Results and Supplemental Information
Diversified Healthcare Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 25, 2025 Overture at Plano 500 Coit Road Plano, TX Exhibit 99.2
Slide 2: Table of Contents
Q4 2024 2 FINANCIAL RESULTS Diversified Healthcare Trust Announces Fourth Quarter 2024 Financial Results .......................................................................................... 3 Fourth Quarter 2024 Highlights........................................................................
Slide 3: Diversified Healthcare Trust Announces Fourth Quarter 2024 Financial Results
Q4 2024 3 "DHC ended the fourth quarter by reaching 80% SHOP occupancy for the first time since the first quarter of 2020. On a year-over-year basis, DHC achieved a 56% improvement in SHOP NOI, a 7.3% increase in SHOP revenues and a 6.7% improvement in average monthly rate, resulting in margin expan
Slide 4: Fourth Quarter 2024 Highlights
Q4 2024 4 Financial Results Fourth Quarter 2024 Highlights RETURN TO TABLE OF CONTENTS Operating Update Liquidity, Financing and Investing Activities • Net loss of $87.4 million, or $0.36 per share. • Normalized FFO of $5.3 million, or $0.02 per share. • Year over year fourth quarter SHOP occupancy
Slide 5: Fourth Quarter 2024 Results
Q4 2024 5 Fourth Quarter 2024 Results RETURN TO TABLE OF CONTENTS For the Three Months Ended Financial Results December 31, 2024 September 30, 2024 % Change December 31, 2023 % Change Net loss $ (87,446) $ (98,689) 11.4 % $ (102,564) 14.7 % Net loss per share $ (0.36) $ (0.41) 12.2 % $ (0.43) 16.3 %
Slide 6: Key Financial Data
Q4 2024 6 Key Financial Data RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Selected Balance Sheet Data: Total gross assets $ 7,219,782 $ 7,395,888 $ 7,440,385 $ 7,410,364 $ 7,466,979 Total assets $ 5,137,005 $ 5,285,196 $ 5,333,4
Slide 7: Condensed Consolidated Balance Sheets
Q4 2024 7 December 31, 2024 December 31, 2023 Assets Real estate properties: Land $ 605,973 $ 652,977 Buildings and improvements 5,817,279 6,165,490 Total real estate properties, gross 6,423,252 6,818,467 Accumulated depreciation (2,082,777) (2,020,843) Total real estate properties, net 4,340,475 4,
Slide 8: Consolidated Statements of Income (Loss)
Q4 2024 8 For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Revenues: Rental income $ 63,883 $ 67,199 $ 251,038 $ 258,400 Residents fees and services 315,736 294,336 1,244,389 1,151,908 Total revenues 379,619 361,535 1,495,427 1,410,308 Expenses: Property op
Slide 9: Debt Summary
Q4 2024 9 Coupon Interest Principal Maturity Due at Years to Rate Rate Balance Date Maturity Maturity Unsecured Fixed Rate Debt: Senior unsecured notes due 2025 (1) (2) 9.750% 9.750% $ 380,000 6/15/2025 $ 380,000 0.5 Senior unsecured notes due 2028 4.750% 4.966% 500,000 2/15/2028 500,000 3.1 Senior
Slide 10: Debt Maturity Schedule
Q4 2024 10 $380,000 $500,000 $500,000 $600,000 $1,940 $941,379 $245 $261 $278 $297 $317 $338 $360 $124,921 Unsecured Fixed Rate Debt Secured Fixed Rate Debt 2025 2026 2027 2028 2029 2030 2031 2032 2033 Thereafter $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 Debt Maturity Schedule (1) RETURN TO
Slide 11: Leverage Ratios, Coverage Ratios and Bond Covenants
Q4 2024 11 Leverage Ratios, Coverage Ratios and Bond Covenants RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Leverage Ratios: Net debt / total gross assets 40.2% 38.6% 38.3% 38.4% 37.6% Net debt / gross book value of real estate
Slide 12: Summary of Capital Expenditures
Q4 2024 12 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) Summary of Capital Expenditures RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Medical Office and Life Science Portfoli
Slide 13: Redevelopment Information
Q4 2024 13 DHC does not have any significant ongoing redevelopments as of December 31, 2024. (1) Reflects units prior to redevelopment. Redevelopment Information (dollars in millions) RETURN TO TABLE OF CONTENTS Medical Office and Life Science Portfolio As of December 31, 2024 Project Location Type
Slide 14: Property Dispositions Information Since January 1, 2024
Q4 2024 14 Property Dispositions Information Since January 1, 2024 Dispositions: Date Sold Location Segment Number of Properties Gross Sales Price Gross Sales Price Per Square Foot or Unit (1) Occupancy (2) 3/28/2024 Phoenix, AZ Medical Office and Life Science Portfolio 1 $ 3,600 $ 28.55 100.0 % 6/3
Slide 15: Investments in Unconsolidated Joint Ventures
Q4 2024 15 Investments in Unconsolidated Joint Ventures (1) (dollars in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2024 Three Months Ended December 31, 2024 Joint Venture Location Type of Property Number of Properties Square Feet Occupancy Weighted Average Lease Term DHC Ownership DHC
Slide 16: Investments in Unconsolidated Joint Ventures (continued)
Q4 2024 16 Investments in Unconsolidated Joint Ventures (continued) (1) (dollars in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2024 (1) DHC's property list, including properties owned by these unconsolidated joint ventures, is available on DHC's website. (2) Based on the aggregate ann
Slide 17: Portfolio Summary by Geographic Diversification and Property Type
Q4 2024 17 FL: 11% CA: 9% TX: 9% GA: 7% NC: 4% MD: 4% WI: 4% VA: 4% IN: 4% IL: 4% 26 Other States + D.C.: 40% (based on Gross Book Value of Real Estate Assets as of December 31, 2024) (1) Senior living communities are categorized by the type of living units which constitute a majority of the living
Slide 18: Portfolio Summary
Q4 2024 18 Portfolio Summary RETURN TO TABLE OF CONTENTS (dollars in thousands, except investment per square foot or unit) As of December 31, 2024 Number of Properties Square Feet or Number of Units Gross Book Value of Real Estate Assets % of Total Gross Book Value of Real Estate Assets Investment P
Slide 19: SHOP Units by Operator
Q4 2024 19 SHOP Units by Operator RETURN TO TABLE OF CONTENTS Unit Count as of December 31, 2024 Manager Location Number of Properties (1) Assisted Living Independent Living and Active Adult Memory Care Skilled Nursing Total Five Star Senior Living Various (28 States) 118 6,311 9,557 1,564 — 17,432
Slide 20: SHOP Segment and Same Property - Results of Operations
Q4 2024 20 SHOP Segment and Same Property - Results of Operations RETURN TO TABLE OF CONTENTS CONSOLIDATED RESULTS OF OPERATIONS As of and For the Three Months Ended 12/31/2024 9/30/2024 12/31/2023 Number of Properties 232 232 232 Number of Units 24,978 25,152 25,209 Occupancy 80.0 % 79.4 % 79.3 % A
Slide 21: SHOP Results by Manager Type
Q4 2024 21RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended December 31, 2024 As of and For the Three Months Ended December 31, 2023 Five Star Managed Communities Other Operator Managed Communities Total SHOP Segment Five Star Managed Communities Other Operator Managed Communities Tot
Slide 22: Senior Living NOI by Manager
Q4 2024 22 Senior Living NOI by Manager RETURN TO TABLE OF CONTENTS Q4 2024 NOI Manager Number of Properties SHOP Triple Net Leased Senior Living Communities Total NOI % of Total Q4 2024 NOI (1) Five Star Senior Living 118 $ 21,472 $ — $ 21,472 63.9% Brookdale Senior Living (2) 18 — 4,177 4,177 12.4
Slide 23: Senior Living Results of Operations by Location
Q4 2024 23 Senior Living Results of Operations by Location RETURN TO TABLE OF CONTENTS Q4 2024 NOI Core-Based Statistical Areas Number of Properties SHOP Triple Net Leased Senior Living Communities Total NOI % of Total Q4 2024 NOI Phoenix, AZ 5 $ 356 $ 2,258 $ 2,614 7.8% Miami, FL 10 2,567 — 2,567 7
Slide 24: Medical Office and Life Science Portfolio Results of Operations
Q4 2024 24 (1) Same property includes properties classified as same property for the three months ended December 31, 2024 for all periods presented. RETURN TO TABLE OF CONTENTS CONSOLIDATED RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended 12/31/2024 9/30/
Slide 25: Medical Office and Life Science Results by Type
Q4 2024 25RETURN TO TABLE OF CONTENTS CONSOLIDATED RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended December 31, 2024 As of and For the Three Months Ended December 31, 2023 Medical Office Life Science Total Medical Office and Life Science Portfolio Medica
Slide 26: Portfolio Leasing Summary
Q4 2024 26 Portfolio Leasing Summary (1) (1) The leasing summary on this page is based on leases entered into during the periods indicated. (2) Leasing data is only presented for periods in which there is leasing activity. (3) Percent difference in prior rents charged for same space or, in the case
Slide 27: Tenants Representing 1% Or More of Total Annualized Rental Income
Q4 2024 27 As of December 31, 2024 Tenants Representing 1% Or More of Total Annualized Rental Income RETURN TO TABLE OF CONTENTS (dollars in thousands) Tenant Type of Property Annualized Rental Income % of Annualized Rental Income Expiration 1 Advocate Aurora Health Medical office $ 16,939 6.8% 2026
Slide 28: Medical Office and Life Science Portfolio Lease Expiration Schedule
Q4 2024 28 Medical Office and Life Science Portfolio Lease Expiration Schedule RETURN TO TABLE OF CONTENTS (dollars in thousands) As of December 31, 2024 Annualized Rental Income Expiring (1) Year Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of Total An
Slide 29: All Other Lease Expiration Schedule
Q4 2024 29 Annualized Rental Income Expiring Year Number of Properties Number of Units or Square Feet Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of Total Annualized Rental Income Expiring 2025 — — $ — —% —% 2026 — — — —% —% 2027 4 533 units 4,659 11.7
Slide 30: The Company and Management
Q4 2024 30 The Company: DHC is a REIT focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As
Slide 31: Board of Trustees and Executive Officers
Q4 2024 31 Board of Trustees Christopher J. Bilotto John L. Harrington Managing Trustee Independent Trustee Lisa Harris Jones Phyllis M. Hollis Lead Independent Trustee Independent Trustee Dawn K. Neher Adam D. Portnoy Independent Trustee Chair of the Board & Managing Trustee Jeffrey P. Somers Indep
Slide 32: Calculation and Reconciliation of NOI and Cash Basis NOI
Q4 2024 32 Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Calculation of NOI and Cash Basis NOI: Revenues: Rental incom
Slide 33: Reconciliation of NOI and Same Property NOI by Segment
Q4 2024 33 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended December 31, 2024 For the Three Months Ended September 30, 2024 For the Three Months Ended Dec
Slide 34: Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Q4 2024 34 Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net loss $ (87,446) $ (98,689) $ (97,861) $ (86,259) $ (102,564) $ (370,2
Slide 35: Calculation and Reconciliation of FFO, Normalized FFO and CAD
Q4 2024 35 Calculation and Reconciliation of FFO, Normalized FFO and CAD (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net loss $ (87,446) $ (98,689) $ (97,861) $ (86,259) $ (
Slide 36: Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued)
Q4 2024 36 Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued) (amounts in thousands, except per share data) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Normalized FFO $ 5,29
Slide 37: Non-GAAP Financial Measures
Q4 2024 37 Non-GAAP Financial Measures DHC presents certain "non-GAAP financial measures" within the meaning of applicable rules of the Securities and Exchange Commission, or SEC, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property Cash Basis NOI, earnings before
Slide 38: Definitions: Adjusted Total Assets and Other Terms
Q4 2024 38 Adjusted total assets Adjusted total assets is the original cost of real estate assets calculated in accordance with GAAP before depreciation and after impairment write downs, if any, and excludes accounts receivable and intangible assets. AlerisLife AlerisLife means AlerisLife Inc. All O
Slide 39: Definitions: Development, Redevelopment and Other Activities
Q4 2024 39 Development, redevelopment and other activities Development, redevelopment and other activities generally include capital expenditures that reposition a property or result in new sources of revenue. From time to time DHC invests in revenue producing capital improvements at certain of its
Slide 40: Definitions: Occupancy and Portfolio Terms
Q4 2024 40 Occupancy Occupancy for DHC's Medical Office and Life Science Portfolio is presented as of the end of the period shown; occupancy for DHC's SHOP segment is presented for the duration of the period shown. Medical office and life science occupancy data includes (i) out of service assets und
Slide 41: Definitions: Square Feet and Other Terms
Q4 2024 41 Square feet Square feet measurements are subject to modest changes when space is periodically remeasured or reconfigured for new tenants. Square feet for prior periods exclude space remeasurements made subsequent to those periods. Excludes data from medical office and life science propert
Slide 42: Forward-Looking Statements
Q4 2024 42 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”, “expect”, “anticipate”, “intend”, “
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