Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Q1 2025 Earnings Presentation
42 slides from Diversified Healthcare Trust's earnings presentation, May 5, 2025
Slide 1: Financial Results and Supplemental Information
Financial Results and Supplemental Information FIRST QUARTER 2025 May 5, 2025
Slide 2: Table of Contents
Table of Contents FINANCIAL RESULTS Diversified Healthcare Trust Announces First Quarter 2025 Financial Results .............................................................................................. 3 First Quarter 2025 Highlights..............................................................
Slide 3: Diversified Healthcare Trust Announces First Quarter 2025 Financial Results
Diversified Healthcare Trust Announces First Quarter 2025 Financial Results "During the first quarter, we made substantial progress in growing Newton, MA (May 5, 2025): Diversified Healthcare Trust (Nasdaq: DHC) today announced its SHOP NOI, which increased 47.7% and 49.0% on a sequential financial
Slide 4: First Quarter 2025 Highlights
First Quarter 2025 Highlights As of and for the three months ended March 31, 2025, unless otherwise noted • Net loss of $9.0 million, or $0.04 per share. • Normalized FFO of $14.3 million, or $0.06 per share. Same Property Cash Basis NOI For the Three Months Ended Financial Results (dollars in thous
Slide 5: First Quarter 2025 Results
First Quarter 2025 Results (dollars in thousands, except per share data) For the Three Months Ended Financial Results March 31, 2025 December 31, 2024 % Change March 31, 2024 % Change Net loss $ (8,986) $ (87,446) 89.7 % $ (86,259) 89.6 % Net loss per share $ (0.04) $ (0.36) 88.9 % $ (0.36) 88.9 % N
Slide 6: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Selected Balance Sheet Data: Total gross assets $ 7,108,119 $ 7,219,782 $ 7,395,888 $ 7,440,385 $ 7,410,364 Total assets $ 4,995,843 $ 5,137,005 $
Slide 7: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except share data) March 31, 2025 December 31, 2024 Assets Real estate properties: Land $ 599,262 $ 605,973 Buildings and improvements 5,768,101 5,817,279 Total real estate properties, gross 6,367,363 6,423,252 Accumulated depreciation (2,
Slide 8: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) For the Three Months Ended March 31, 2025 2024 Revenues: Rental income $ 58,558 $ 62,650 Residents fees and services 328,306 308,126 Total revenues 386,864 370,776 Expenses: Property operating expenses 3
Slide 9: Debt Summary
Debt Summary As of March 31, 2025 (dollars and sq. ft. in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate Balance Date Maturity Maturity Secured Floating Rate Debt: Mortgage - secured by 14 properties (1) 6.819% 6.819% $ 140,000 3/31/2028 $ 138,578 3.0 Weighted average rate /
Slide 10: Debt Maturity Schedule
Debt Maturity Schedule As of March 31, 2025 (dollars in thousands) $800,000 $700,000 (1) DHC has two one-year extension options for the maturity $248 $124,677 date of this loan, subject to satisfaction of certain conditions and payment of an extension fee. $600,000 (2) In April 2025, DHC used loan p
Slide 11: Leverage Ratios, Coverage Ratios and Bond Covenants
Leverage Ratios, Coverage Ratios and Bond Covenants As of and For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Leverage Ratios: Net debt / total gross assets 36.4% 40.2% 38.6% 38.3% 38.4% Net debt / gross book value of real estate assets 37.8% 40.5% 39.8% 39.5% 39.5% Sec
Slide 12: Summary of Capital Expenditures
Summary of Capital Expenditures (dollars and sq. ft. in thousands, except per sq. ft. and unit data) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Medical Office and Life Science Portfolio: Lease related costs $ 3,847 $ 5,347 $ 3,504 $ 6,409 $ 6,029 Building improveme
Slide 13: Redevelopment Information
Redevelopment Information As of March 31, 2025 (dollars in millions) Medical Office and Life Science Portfolio DHC does not have any significant ongoing redevelopments as of March 31, 2025. SHOP Total Costs Number of Estimated Incurred as of Estimated Completion Project Location Type of Property Uni
Slide 14: Property Dispositions Information Since January 1, 2025
Property Dispositions Information Since January 1, 2025 (dollars in thousands, except gross sales price per square foot or unit) Dispositions: Number of Gross Sales Gross Sales Price Per Date Sold Location Segment Properties Price Square Foot or Unit (1) Occupancy (2) 1/21/2025 Wilmington, DE SHOP 1
Slide 15: Investments in Unconsolidated Joint Ventures
Investments in Unconsolidated Joint Ventures (1) As of March 31, 2025 (dollars in thousands) Investments in Unconsolidated Joint Ventures Three Months Ended March 31, 2025 Joint Joint Type of Number of Weighted Average DHC DHC Carrying Value Venture Venture Joint Venture Location Property Properties
Slide 16: Investments in Unconsolidated Joint Ventures (continued)
Investments in Unconsolidated Joint Ventures (continued) (1) As of March 31, 2025 Property Type (2) Geographic Diversification (2) (dollars in thousands) Unconsolidated Joint Ventures Lease Expiration Schedule Seaport Innovation LLC The LSMD Fund REIT LLC MA: 71% Medical $140,000 Office: 24% $130,00
Slide 17: Portfolio Summary by Geographic Diversification and Property Type
Portfolio Summary by Geographic Diversification and Property Type (1) (2) Geographic Diversification Property Type (based on Gross Book Value of Real Estate Assets as of March 31, 2025) (based on Q1 2025 NOI) IL: 4% IN: 4% SNFs: 4% VA: 4% WI: 4% NC: 5% Life Science: 13% MD: 5% 24 Other States + D.C.
Slide 18: Portfolio Summary
Portfolio Summary As of March 31, 2025 (dollars in thousands, except investment per square foot or unit) % of Total Square Feet Gross Book Gross Book Investment Number of or Number of Value of Real Value of Real Per Square Q1 2025 % of Q1 2025 Q1 2025 % of Q1 2025 Properties Units Estate Assets Esta
Slide 19: SHOP Units by Operator
SHOP Units by Operator Unit Count as of March 31, 2025 Independent Number of Assisted Living and Skilled Manager Location Properties (1) Living Active Adult Memory Care Nursing Total Five Star Senior Living Various (28 States) 118 6,310 9,551 1,564 — 17,425 Charter Senior Living FL/MD/TN/VA/IL/ 30 1
Slide 20: SHOP Segment and Same Property - Results of Operations
SHOP Segment and Same Property - Results of Operations CONSOLIDATED RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended 3/31/2025 12/31/2024 3/31/2024 Number of Properties 231 232 232 Number of Units 25,005 24,978 25,220 Occupancy 80.2 % 80.
Slide 21: SHOP Segment and Same Property- Five Star and Other Operator Managed Communities Results of Operations
SHOP Segment and Same Property- Five Star and Other Operator Managed Communities Results of Operations CONSOLIDATED RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended March 31, 2025 As of and For the Three Months Ended March 31, 2024 Five S
Slide 22: Senior Living NOI by Manager
Senior Living NOI by Manager (dollars in thousands) Q1 2025 NOI Triple Net Leased Number of Senior Living % of Total Q1 Manager Properties SHOP Communities Total NOI 2025 NOI (1) Five Star Senior Living 118 $ 28,982 $ — $ 28,982 69.5% Phoenix Senior Living 23 2,782 — 2,782 6.7% Stellar Senior Living
Slide 23: Senior Living Results of Operations by Location
Senior Living Results of Operations by Location (dollars in thousands, except average monthly rate) As of and For the Three Months Ended NOI Occupancy Average Monthly Rate Number of Basis Point Markets Properties 3/31/2025 % 3/31/2024 Change 3/31/2025 3/31/2024 Change 3/31/2025 3/31/2024 Change Prim
Slide 24: Medical Office and Life Science Portfolio and Same Property - Results of Operations
Medical Office and Life Science Portfolio and Same Property - Results of Operations CONSOLIDATED RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended 3/31/2025 12/31/2024 3/31/2024 Number of Properties 93 98 102 Square Feet 7,620 7,953 8,487 Occupancy 80.6 %
Slide 25: Medical Office and Life Science Portfolio and Same Property - Results of Operations (continued)
Medical Office and Life Science Portfolio and Same Property - Results of Operations (continued) Three Months Ended March 31, 2025 and 2024 CONSOLIDATED RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended March 31, 2025 As of and For the Three Months Ended Ma
Slide 26: Portfolio Leasing Summary
Portfolio Leasing Summary (1) (dollars and sq. ft. in thousands, except per sq. ft. data) Medical Office and Life Science Portfolio Wellness Centers (2) As of and For the Three As of and For the Three Months Ended Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 3/31/2024 Properties 9
Slide 27: Tenants Representing 1% Or More of Total Annualized Rental Income
Tenants Representing 1% Or More of Total Annualized Rental Income As of March 31, 2025 (dollars in thousands) Annualized Rental % of Annualized Tenant Type of Property Income Rental Income Expiration 1 Advocate Aurora Health Medical office $ 16,939 7.6% 2026 - 2031 2 Life Time Athletic Wellness cent
Slide 28: Medical Office and Life Science Portfolio Lease Expiration Schedule
Medical Office and Life Science Portfolio Lease Expiration Schedule As of March 31, 2025 (dollars in thousands) Annualized Rental Income Expiring (1) Cumulative % of Total Annualized Rental Income % of Total Annualized Rental Annualized Rental Income Year Expiring Income Expiring Expiring 2025 $ 9,2
Slide 29: All Other Lease Expiration Schedule
All Other Lease Expiration Schedule As of March 31, 2025 (dollars in thousands) Annualized Rental Income Expiring Cumulative % of Total Number of Number of Units or Square Annualized Rental % of Total Annualized Annualized Rental Year Properties Feet Income Expiring Rental Income Expiring Income Exp
Slide 30: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage DHC is a REIT focused on owning high-quality healthcare properties located B. Riley Securities, Inc. Citizens throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and p
Slide 31: Governance Information
Governance Information Board of Trustees Christopher J. Bilotto Alan L. Felder Managing Trustee Independent Trustee John L. Harrington Lisa Harris Jones Independent Trustee Lead Independent Trustee Phyllis M. Hollis Dawn K. Neher Independent Trustee Independent Trustee Adam Portnoy Jeffrey P. Somers
Slide 32: Calculation and Reconciliation of NOI and Cash Basis NOI
Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) 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 328,30
Slide 33: Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment
Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (dollars in thousands) For the Three Months Ended March 31, 2025 For the Three Months Ended December 31, 2024 For the Three Months Ended March 31, 2024 Medical Office Medical Office M
Slide 34: Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net loss $ (8,986) $ (87,446) $ (98,689) $ (97,861) $ (86,259) Interest expense 57,831 59,518 59,443 58,702 57,576 Income tax
Slide 35: Calculation and Reconciliation of FFO, Normalized FFO and CAD
Calculation and Reconciliation of FFO, Normalized FFO and CAD (dollars in thousands) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net loss $ (8,986) $ (87,446) $ (98,689) $ (97,861) $ (86,259) Depreciation and amortization 68,325 77,508 68,959 68,357 70,133 (Gain) lo
Slide 36: Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued)
Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued) (amounts in thousands, except per share data) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Normalized FFO $ 14,305 $ 5,290 $ 4,026 $ 6,830 $ 3,523 General and administrative expense paid in com
Slide 37: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions 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
Slide 38: Non-GAAP Financial Measures and Certain Definitions (continued)
Non-GAAP Financial Measures and Certain Definitions (continued) 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 asse
Slide 39: Non-GAAP Financial Measures and Certain Definitions (continued)
Non-GAAP Financial Measures and Certain Definitions (continued) Estimated completion date Estimated completion date can depend on various factors, including when lease agreements are signed with tenants in DHC's Medical Office and Life Science Portfolio. Therefore, the actual completion date may var
Slide 40: Non-GAAP Financial Measures and Certain Definitions (continued)
Non-GAAP Financial Measures and Certain Definitions (continued) 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
Slide 41: Non-GAAP Financial Measures and Certain Definitions (continued)
Non-GAAP Financial Measures and Certain Definitions (continued) 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. Exclu
Slide 42: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements 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”,
Diversified Healthcare Trust — Q1 2025 Earnings Presentation on 6ix