Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Investor Presentation (September 2025)
40 slides from Diversified Healthcare Trust's investor presentation, Sep 3, 2025
Slide 1: Investor Presentation September 2025
1 1 Investor Presentation Overture at Plano 500 Coit Road Plano, TX September 2025
Slide 2: Forward-looking statements
2 2 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”, “plan”,
Slide 3: Table of Contents
3 3 Table of Contents Page COMPANY HIGHLIGHTS AND OUTLOOK 4 SHOP INITIATIVES 7 CAPITAL RECYCLING 10 CAPITAL AND LIQUIDITY OUTLOOK 11 SHOP OVERVIEW 13 MEDICAL OFFICE & LIFE SCIENCE PORTFOLIO OVERVIEW 21 TRIPLE NET LEASED SENIOR LIVING & WELLNESS CENTERS OVERVIEW 26 APPENDIX 28
Slide 4: Company Highlights
4 4 Company Highlights The Forum at Lincoln Heights 311 West Nottingham Place San Antonio, TX
Slide 5: DHC Today - National Healthcare REIT
5 5 DHC Today - National Healthcare REIT 341 Healthcare Related Properties 7.4M sf Medical Office & Life Science Space More than 26,000 Senior Living Units $6.8B Investment Portfolio 9 Triple Net Senior Living Communities and 10 Wellness Centers DHC’s NOI growth is supported by a favorable senior ho
Slide 6: Second Quarter Results and 2025 Guidance
6 6 Second Quarter Results and 2025 Guidance +180 bps SHOP margin improvement1 80.6% SHOP occupancy 89.9% Medical Office and Life Science same store occupancy Second Quarter 2025 Financial Results1 1. Comparisons reflect change from 2Q24. 2. Includes unencumbered and encumbered asset sales. 2025 Gui
Slide 7: Strategic Initiatives Driving Outsized Growth of SHOP Portfolio
7 7 Strategic Initiatives Driving Outsized Growth of SHOP Portfolio 2Q24 NOI 2Q25 Pro Forma Asset Sales NOI 1,200 bps year over year increase in pro forma SHOP portfolio NOI contribution Operational Improvement • Personalized care plans tailored to individual resident needs. • Streamlining workflows
Slide 8: Targeted SHOP Occupancy & Margin
8 8 Targeted SHOP Occupancy & Margin DHC is conducting top-to-bottom portfolio analyses to optimize occupancy growth and margin expansion. 1. Reflects occupancy for the three months ended December 31, 2019. Margin Growth Initiatives • Implemented standard operating procedures to ensure quality in op
Slide 9: SHOP Margin Expansion is Expected to Continue
9 9 (4.2%) 3.8% 7.0% 6.2% 5.4% 4.0% 3.3% 0.7% 4.1% 3.3% 72.5% 76.3% 79.3% 80.0% 80.6% 50% 55% 60% 65% 70% 75% 80% 85% -5% 0% 5% 10% 15% 2021 2022 2023 2024 2Q25 Occupancy RevPOR / ExpPOR Growth RevPOR Y/Y ∆% ExpPOR Y/Y ∆% Occupancy % SHOP Margin Expansion is Expected to Continue DHC is focused on dr
Slide 10: Capital Recycling Update
1010 Capital Recycling Update • Net proceeds totaling approximately $299 million from encumbered asset sales in 1Q25 used to pay down 2026 zero coupon secured notes. • Sales of non-core SHOP communities to further improve densification of the portfolio, boost NOI and improve overall performance to d
Slide 11: 2025 YTD Major Financing & Deleveraging Milestones
1111 In total, DHC has received ~$343 million in proceeds from secured financings at a 6.54% average interest rate. 2025 YTD Major Financing & Deleveraging Milestones 11 1Q25 Asset Sales March 31 April 25 May 29 & 30 June 11 1Q25 Life Science & SHOP Asset Sales • $159 million sale of MUSE, a 186,000
Slide 12: Balance Sheet Outlook and Debt Maturity Schedule
1212 $1.5 $643.3 $2.3 $640.7 $1.9 $60.2 $1,362.9 2025 2026 2027 2028 2029 2030 2031 & After Unsecured Fixed Rate Debt Secured Fixed Rate Debt Secured Floating Rate Debt Balance Sheet Outlook Debt Maturity Schedule (dollars in millions) Note: All information as of June 30, 2025, unless otherwise note
Slide 13: SHOP Segment
1313 SHOP Segment The Montebello on Academy 10500 Academy Road NE Albuquerque, NM
Slide 14: DHC's Strategic Transaction with AlerisLife
1414 AlerisLife to Sell DHC’s Management Contracts for 116 SHOP Communities and Transition Management to New Operators DHC’s Strategic Transaction with AlerisLife Transitioning Management agreements for 113 DHC owned communities +180 bps SHOP margin improvement1 80.6% SHOP occupancy 89.9% Medical Of
Slide 15: Embedded Upside With Occupancy and RevPOR Growth
1515 Coral Oaks 900 West Lake Road Palm Harbor, FL Embedded Upside With Occupancy and RevPOR Growth Portfolio Sale Overview (1) Communities 116 communities Units 17,212 units Acuity Mix (units) 9,483 IL, 6,197 AL, 1,532 MC Occupancy 81.4% Q2 2025 NOI $29.444M Transition Date 3Q25 – 1Q26 (1) Sale of
Slide 16: SHOP Overview
1616 SHOP Overview 230 SHOP communities spanned across 31 states. Portfolio largely located in areas where the growth rate of 75+ population is higher than NIC designated metro population growth rate. Good mix of properties strategically located in areas where home values are outpacing the national
Slide 17: Expect Favorable Industry Trends to Support Operational Momentum
1717 Expect Favorable Industry Trends to Support Operational Momentum • Senior living demographic of 80+ population is projected to grow at a 4.0% CAGR over the next 15 years while inventory growth is expected to remain depressed at 1.0%.1,2 • Rent growth remains elevated with top primary / secondar
Slide 18: Barrington Terrace at Boynton Beach Renovation
1818 $654,000 renovation completed in December 2023. Property Overview and Renovation Scope • Barrington Terrace at Boynton Beach is a 109-unit assisted living and memory care community offering a range of studio and one-bedroom accommodations and a robust suite of amenities. • The renovation includ
Slide 19: SHOP Completed Capital Projects
1919 SHOP Completed Capital Projects • Units: 86 • Occupancy1 : 91.9% • Project Cost: $930,000 • RevPOR % Increase2 : 35.2% • ROI3 : 54.7% • Interior refresh of common and program areas, intended to modernize the living spaces and reinforce Morningside’s commitment to providing a warm, family-orient
Slide 20: Operator Transitions To Enhance NOI Growth
2020 Operator Transitions To Enhance NOI Growth Transitioned Communities Transition Date April/May 2024 Stabilization 24 - 30 Months Communities / Units 13 / 783 Current Occupancy / NOI 1 65% / ($0.3)M Expected Stabilized Occupancy Expected Stabilized NOI 85% - 88% $4M - $5M Acuity Mix (units) 691 A
Slide 21: Medical Office & Life Science Segment
2121 Medical Office & Life Science Segment 4 Maguire Road Lexington, MA
Slide 22: High Quality Medical Office and Life Science Portfolio
2222 Milwaukee 22% Honolulu 8% Minneapolis-St. Paul 8% San Antonio 5% Atlanta 5% Albuquerque 5% Boston 5% VA Beach-Hampton Road 4% Orlando 3% Houston 3% Phoenix 3% Syracuse 3% Long Island 3% Pittsburgh 3% Other 20% Outpatient Service 51% Biotechnology & Pharmaceuticals 27% Medical Related Businesses
Slide 23: Pro Forma Medical Office & Life Science Portfolio Summary
2323 Pro Forma Medical Office & Life Science Portfolio Summary MOB & LS by Property Type – Current MOB & LS by Property Type – Post Dispositions 12.8% 32.8% 8.3% 23.0% 23.1% MOB On-Campus MOB Off-Campus Affiliated MOB Unaffiliated Life Science Other Pro Forma for Dispositions Number of Properties Sq
Slide 24: Medical Office Market Tailwinds
2424 Medical Office Market Tailwinds Medical office fundamentals support sector growth opportunity • Growing demand for healthcare services and increased spending, driven by an aging population and advancements in care provided. • Ongoing migration towards outpatient care is expected to drive demand
Slide 25: Life Science Sector Maintaining Fundamentals
2525 -4M SF 0M SF 4M SF 8M SF 12M SF 16M SF 2Q20 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 4Q24 2Q25 Net Occupancy Gain New Available SF $0 B $2 B $4 B $6 B $8 B $10 B $12 B $14 B 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 4Q24 2Q25 5 4 7 17 2022 2023 2024 YTD 2025 Life Science Sector Maintaining Fundamentals
Slide 26: Triple Net Leased Wellness Centers & Senior Living Segment
2626 Triple Net Leased Wellness Centers & Senior Living Segment The Stratford 2460 Glebe Street, Carmel, IN
Slide 27: Triple Net Leased Wellness Centers & Senior Living Portfolio Overview
2727 Triple Net Leased Wellness Centers & Senior Living Portfolio Overview Stable performance outlook with embedded growth through a mix of contracted rental increases and percentage rent. 1,180 Units 100% Occupancy 5.2 year WALT 1.88x Rent Coverage 812,246 SF 100% Occupancy 14.7 year WALT 2.93x Ren
Slide 28: Appendix
2828 Appendix
Slide 29: Impact Through Action
2929 1. Certifications as of December 31, 2024. Our business strategy for our Medical Office and Life Science Portfolio incorporates a focus on sustainable approaches to operating these properties in a manner that benefits our shareholders, tenants and the communities in which we are located. We see
Slide 30: RMR Platform: National Multi-Sector Investment Platform
3030 Private Clients DHC is managed by The RMR Group LLC, an alternative asset manager Approximately $40 Billion in AUM RMR Platform More than $5 Billion in Annual Revenues Over 18,000 Employees Approximately 1,900 Properties National Multi-Sector Investment Platform Industrial Residential Senior Li
Slide 31: National Vertically Integrated Real Estate Operating Platform
3131 National Vertically Integrated Real Estate Operating Platform is a Differentiator and Competitive Advantage RMR Shared Services Accounting Marketing Human Resources Investor Relations Property Management Development Finance Legal Information Technology Project Management Tax Portfolio Managemen
Slide 32: Management aligned with shareholder interests
3232 Management aligned with shareholder interests RMR base management fee tied to DHC share price performance • Consists of an annual fee based on 50 bps of the lower of: (1) DHC’s historical cost of real estate, or (2) DHC’s total market capitalization. • There is no incentive for RMR to complete
Slide 33: Calculation and Reconciliation of NOI and Cash Basis NOI
3333 (dollars in thousands) Calculation and Reconciliation of NOI and Cash Basis NOI For the Three Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 55,167 $ 58,558 $ 63,883 $ 61,635 $ 62,870 Resident fees and services 32
Slide 34: Reconciliation of NOI and Same Property NOI by Segment
3434 (dollars in thousands) Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment
Slide 35: Calculation and Reconciliation of FFO, Normalized FFO and CAD
3535 (dollars in thousands) 1. DHC did not recognize an incentive management fee for the year ended December 31, 2024. Calculation and Reconciliation of FFO, Normalized FFO and CAD For the Three Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Net loss $ (91,639) $ (8,986) $ (87,446)
Slide 36: Reconciliation of FFO, Normalized FFO and CAD (continued)
3636 (amounts in thousands, except per share data) Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued) For the Three Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Normalized FFO $ 18,572 $ 14,305 $ 5,290 $ 4,026 $ 6,830 General and administrative expense paid
Slide 37: NOI, Cash Basis NOI, Same Property NOI definitions
3737 NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI The calculations of NOI, Cash Basis NOI, same property NOI and same property cash basis NOI exclude certain components of net income (loss) in order to provide results that are more closely related to our property level res
Slide 38: Certain Definitions
3838 Certain Definitions: AL: Assisted Living senior living communities. Annualized rental income: Annualized rental income is based on rents pursuant to existing leases as of June 30, 2025. Annualized rental income includes estimated percentage rents, straight line rent adjustments and estimated re
Slide 39: Certain Definitions (continued)
3939 LS: Life Science building. MC: Memory Care senior living communities. Medical Office and Life Science Portfolio: Medical Office and Life Science Portfolio consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties l
Slide 40: Certain Definitions (continued)
4040 SHOP: SHOP, or Senior Housing Operating Portfolio, consists of senior living communities managed by third party senior living managers that provide short term and long term residential living and in some cases care and other services for residents where DHC pays fees to the managers to operate
Diversified Healthcare Trust — Investor Presentation (September 2025) on 6ix