Diversified Healthcare Trust Q3 net loss narrows amid occupancy growth

By Reuters News


Overview

  • US healthcare REIT reported Q3 net loss of $50.2 mln vs loss of $164 mln yr ago

  • Q3 loss per share was $0.21 vs loss of $0.68 yr ago

  • Company updated full-year 2026 financial guidance


Outlook

  • iversified Healthcare Trust lowers FY26 normalized FFO guidance to $110.7 mln-$125.7 mln from $135 mln-$150 mln

  • DHC lowers FY26Adjusted EBITDAre guidance to $275.7 mln-$290.7 mln from $300 mln-$315 mln

  • Same Property SHOP NOI guidance rises to $190 mln-$200 mln from $185 mln-$195 mln for FY26


Result Drivers

  • SHOP OCCUPANCY AND RATES – Q3 same-property SHOP NOI rose 50.4% yr/yr, driven by 200-bps occupancy growth and a 5.2% increase in average monthly rates

  • MEDICAL OFFICE LEASING – Leased 130,000 sq. ft. at rents 25.2% above prior levels, with a 9.7-year weighted average lease term

  • SHOP UTILITY COSTS – Same-property SHOP NOI fell q/q as Q2 one-time expense benefits lapped and seasonal utility costsincreased


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.21

Q3 Net Loss

$50.2 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy"

  • Wall Street's median 12-month price target for Diversified Healthcare Trust is $10.55, about 35.6% above its October 30 closing price of $7.78


Reuters Recommended Reads

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  • Nov 2 - Sabra Health Care REIT Q3 revenue rises year-over-year

  • Nov 2 - Healthpeak Properties Q3 adjusted FFO falls; full year outlook lifted


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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