Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Investor Presentation (May 2025)
33 slides from Diversified Healthcare Trust's investor presentation, May 22, 2025
Slide 1: Investor Presentation - Overture at Plano, May 2025
Investor Presentation Overture at Plano 500 Coit Road Plano, TX May 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 12 MEDICAL OFFICE & LIFE SCIENCE PORTFOLIO OVERVIEW 17 TRIPLE NET LEASED SENIOR LIVING & WELLNESS CENTERS OVERVIEW 21 APPENDIX 23
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 343 Healthcare Related Properties 7.6M 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 is supported by a favorable senior housing industr
Slide 6: First Quarter Results and 2025 Guidance
6 6 First Quarter Results and 2025 Guidance +320 bps SHOP margin improvement1 80.2% SHOP occupancy 90.1% Medical Office and Life Science same store occupancy First Quarter 2025 Financial Results1 1. Comparisons reflect change from Q1 2024. 2. Includes unencumbered and encumbered asset sales. 3. Incl
Slide 7: SHOP Performance Initiatives
7 7 SHOP Performance Initiatives $36.8 $(2.7) $5.0 $(0.2) $38.9 Q1 2025 Consolidated SHOP NOI One Time NOI Impacts Transitions Dispositions Q1 2025 Consolidated Adjusted SHOP NOI Category NOI Q1 2025 Consolidated SHOP NOI $36.8 Q1 2025 Business interruption proceeds recognized as revenue (2.7) Pro f
Slide 8: SHOP Margin Expansion is Expected to Continue
8 8 (4.2%) 3.8% 7.0% 6.2% 5.7% 4.0% 3.3% 0.7% 4.1% 2.0% 72.5% 76.3% 79.3% 80.0% 80.2% 50% 55% 60% 65% 70% 75% 80% 85% -5% 0% 5% 10% 15% 2021 2022 2023 2024 Q1 2025 Occupancy RevPOR / ExpPOR Growth RevPOR Y/Y ∆% ExpPOR Y/Y ∆% Occupancy % SHOP Margin Expansion is Expected to Continue A focus on drivin
Slide 9: Operator Transitions To Drive Growth
9 9 Operator Transitions To Drive Growth Transitioned Communities Transition Date April/May 2024 Stabilization 24 - 30 Months Communities / Units 13 / 783 Current Occupancy / NOI 1 62% / ($2.1)M Expected Stabilized Occupancy Expected Stabilized NOI 85% - 88% $4M - $5M Acuity Mix (units) 691 AL, 92 M
Slide 10: Capital Recycling Update
1010 Capital Recycling Update • Net proceeds totaling approximately $299 million from unencumbered asset sales in Q1 2025 used to pay down our 2026 zero coupon secured notes. • Sales of non-core SHOP communities to further improve densification of the portfolio, boost NOI and improve overall perform
Slide 11: Focused Strategy to Strengthen Balance Sheet
1111 • Payment of $280 million using mortgage loan proceeds and cash on hand. o Completed $140 million mortgage loan secured by 14 senior living communities in March 2025, valued at approximately $163,500 per unit. o Completed $109 million mortgage loan secured by 7 senior living communities in Apri
Slide 12: SHOP Segment
1212 SHOP Segment The Montebello on Academy 10500 Academy Road NE Albuquerque, NM
Slide 13: SHOP Overview
1313 SHOP Overview 231 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 14: Expect Favorable Industry Trends to Support Operational Momentum
1414 Expect Favorable Industry Trends to Support Operational Momentum • Senior living demographic of 80+ population is projected to grow at a 4.2% CAGR over the next 10 years while inventory growth is expected to remain depressed at 1.0%.1,2 • Rent growth remains elevated with top primary / secondar
Slide 15: Barrington Terrace at Boynton Beach Renovation
1515 $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 16: SHOP Portfolio Completed Capital Projects
1616 SHOP Portfolio Completed Capital Projects • Units: 86 • Occupancy1 : 93.6% • Project Cost: $930,000 • RevPOR % Increase2 : 32.5% • ROI3 : 56.6% • Interior refresh of common and program areas, intended to modernize the living spaces and reinforce Morningside’s commitment to providing a warm, fam
Slide 17: Medical Office & Life Science Segment
1717 Medical Office & Life Science Segment 4 Maguire Road Lexington, MA
Slide 18: Medical Office and Life Science Portfolio
1818 San Francisco Bay 36% Boston 30% San Diego/Los Angeles 19% Other 16% Milwaukee 16% Honolulu 9% Washington DC Metro 8% Minneapolis-St. Paul 8% Long Island 6% VA Beach-Austin 5% Hampton Road 6% Houston 5% San Antonio 4% Syracuse 4% Atlanta 4% Orlando 4% Dallas-Ft Worth 3% Denver 3% Other 17% Outp
Slide 19: Medical Office Market Tailwinds
1919 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 20: Life Science Sector Maintaining Strong Fundamentals
2020 -4M SF 0M SF 4M SF 8M SF 12M SF 16M SF 1Q2020 3Q2020 1Q2021 3Q2021 1Q2022 3Q2022 1Q2023 3Q2023 1Q2024 3Q2024 1Q2025 $0 B $4 B $8 B $12 B $16 B 0 2 4 6 2022 2023 2024 YTD 2025 Life Science Sector Maintaining Strong Fundamentals • Fundamental long-term growth drivers remain intact despite uncerta
Slide 21: Triple Net Leased Wellness Centers & Senior Living Segment
2121 Triple Net Leased Wellness Centers & Senior Living Segment The Stratford 2460 Glebe Street Carmel, IN
Slide 22: Triple Net Leased Wellness Centers & Senior Living Portfolio Overview
2222 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. 1,186 Units 100% Occupancy 5.4 year WALT 1.73x Rent Coverage 812,246 SF 100% Occupancy 14.9 year WALT 2.51x Ren
Slide 23: Appendix
23 Appendix
Slide 24: Impact Through Action
2424 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 25: RMR Platform and Private Clients
2525 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 26: National Vertically Integrated Real Estate Operating Platform
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 Management Tra
Slide 27: Management aligned with shareholder interests
2727 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 28: Calculation and Reconciliation of NOI and Cash Basis NOI
2828 (dollars in thousands) Calculation and Reconciliation of NOI and Cash Basis NOI For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 58,558 $ 63,883 $ 61,635 $ 62,870 $ 62,650 Residents fees and services 3
Slide 29: NOI Reconciliation by Segment
2929 (dollars in thousands) Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment For the Three Months Ended March 31, 2025 For the Three Months Ended December 31, 2024 For the Three Months Ended March 31, 2024 Calculation of NOI and Cas
Slide 30: Calculation and Reconciliation of FFO, Normalized FFO and CAD
3030 (dollars in thousands) 1. For the three months ended March 31, 2024, represents DHC's 34% pro rata share of AlerisLife's FFO and Normalized FFO for DHC's period of ownership from February 16, 2024 to March 31, 2024. 2. DHC did not recognize an incentive management fee for the year ended Decembe
Slide 31: Reconciliation of FFO, Normalized FFO and CAD (continued)
3131 (amounts in thousands, except per share data) 1. For the three months ended March 31, 2024, represents DHC's 34% pro rata share of AlerisLife's FFO and Normalized FFO for DHC's period of ownership from February 16, 2024 to March 31, 2024. Calculation and Reconciliation of FFO, Normalized FFO an
Slide 32: NOI, Cash Basis NOI, Same Property NOI Definitions
3232 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 33: Certain Definitions
3333 Certain Definitions: AL: Assisted Living senior living communities. ExpPOR: The average expenses generated per occupied room per month at Seniors Housing Operating properties. Health System Affiliations: Medical outpatient properties are considered affiliated with a health system if one or more
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