Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Investor Presentation (June 2025)
36 slides from Diversified Healthcare Trust's investor presentation, Jun 2, 2025
Slide 1: Investor Presentation
Investor Presentation Overture at Plano 500 Coit Road Plano, TX June 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 11 CAPITAL AND LIQUIDITY OUTLOOK 12 SHOP OVERVIEW 14 MEDICAL OFFICE & LIFE SCIENCE PORTFOLIO OVERVIEW 19 TRIPLE NET LEASED SENIOR LIVING & WELLNESS CENTERS OVERVIEW 24 APPENDIX 26
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’s NOI growth is supported by a favorable senior ho
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 1Q24. 2. Includes unencumbered and encumbered asset sales. 3. Include
Slide 7: SHOP Performance Initiatives
7 7 SHOP Performance Initiatives $36.8 $(2.7) $5.0 $(0.2) $38.9 1Q25 Consolidated SHOP NOI One Time NOI Impacts Transitions Dispositions 1Q25 Consolidated Adjusted SHOP NOI Category NOI 1Q25 Consolidated SHOP NOI $36.8 1Q25 Business interruption proceeds recognized as revenue (2.7) Pro forma for sta
Slide 8: Targeted SHOP Portfolio Occupancy & Margin
8 8 Targeted SHOP Portfolio 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 qua
Slide 9: SHOP Margin Expansion is Expected to Continue
9 9 (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 1Q25 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: Operator Transitions To Enhance NOI Growth
1010 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 62% / ($2.1)M Expected Stabilized Occupancy Expected Stabilized NOI 85% - 88% $4M - $5M Acuity Mix (units) 691 A
Slide 11: Capital Recycling Update
1111 Capital Recycling Update • Net proceeds totaling approximately $299 million from unencumbered asset sales in 1Q25 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 performanc
Slide 12: 2025 YTD Major Financing & Deleveraging Milestones
1212 • In total, DHC has received ~$343 million in proceeds from secured financings at a 6.55% average interest rate, enabling the full, accretive repayment of its 9.75% senior notes due June 2025. 2025 YTD Major Financing & Deleveraging Milestones 12 January 31 February 27 March 31 April 25 May 29
Slide 13: Balance Sheet Outlook
1313 $1.9 $643.2 $2.3 $640.6 $1.9 $60.4 $1,363.1 2025 2026 2027 2028 2029 2030 2031 & After Unsecured Fixed Rate Debt Secured Fixed Rate Debt Secured Floating Rate Debt Balance Sheet Outlook Pro Forma Debt Maturity Schedule3 (dollars in millions) Note: All information as of March 31, 2025, unless ot
Slide 14: SHOP Segment
1414 SHOP Segment The Montebello on Academy 10500 Academy Road NE Albuquerque, NM
Slide 15: SHOP Overview
1515 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 16: Expect Favorable Industry Trends to Support Operational Momentum
1616 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 17: Barrington Terrace at Boynton Beach renovation
1717 $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 18: SHOP Portfolio Completed Capital Projects
1818 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, family
Slide 19: Medical Office & Life Science Segment
1919 Medical Office & Life Science Segment 4 Maguire Road Lexington, MA
Slide 20: High quality Medical Office and Life Science Portfolio
2020 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% Out
Slide 21: Pro Forma Medical Office & Life Science Portfolio Summary
2121 Pro Forma Medical Office & Life Science Portfolio Summary MOB & LS by Property Type – Current MOB & LS by Property Type – Post Dispositions 25.8% 24.5% 18.2% 15.5% 2.4% 12.5% 1.1% Life Science Affiliated Off-Campus Other Unaffiliated Affiliated On-Campus Medical Distribution Manufacturing Pro F
Slide 22: Medical Office Market Tailwinds
2222 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 23: Life Science Sector Maintaining Fundamentals
2323 -4M SF 0M SF 4M SF 8M SF 12M SF 16M SF 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 1Q25 $0 B $4 B $8 B $12 B $16 B 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 1Q25 0 2 4 6 2022 2023 2024 YTD 2025 Life Science Sector Maintaining Fundamentals • Fundamental long-term growth drivers remain intact
Slide 24: Triple Net Leased Wellness Centers & Senior Living Segment
2424 Triple Net Leased Wellness Centers & Senior Living Segment The Stratford 2460 Glebe Street, Carmel, IN
Slide 25: Triple Net Leased Wellness Centers & Senior Living Portfolio Overview
2525 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 26: Appendix
2626 Appendix
Slide 27: Impact Through Action
2727 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 28: RMR Private Clients and Platform
2828 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 29: National Vertically Integrated Real Estate Operating Platform
2929 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 30: Management aligned with shareholder interests
3030 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 31: Calculation and Reconciliation of NOI and Cash Basis NOI
3131 (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 Resident fees and services 32
Slide 32: Reconciliation of NOI by Segment
3232 (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 33: Calculation and Reconciliation of FFO, Normalized FFO and CAD
3333 (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 Decemb
Slide 34: Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued)
3434 (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 a
Slide 35: NOI, Cash Basis NOI, Same Property NOI definitions
3535 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 36: Certain Definitions
3636 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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