Diversified Healthcare Pref Share DHCNI 5.625 08/01/42 | 10-Q: FY2025 Q3 Revenue: USD 388.71 M

Revenue: As of FY2025 Q3, the actual value is USD 388.71 M.

EPS: As of FY2025 Q3, the actual value is USD -0.68.

EBIT: As of FY2025 Q3, the actual value is USD -60.31 M.

Segment Revenue

• SHOP Segment: Revenue from residents fees and services was $333.39 million for the three months ended September 30, 2025, compared to $312.01 million for the same period in 2024.
• Medical Office and Life Science Portfolio Segment: Rental income was $48.20 million for the three months ended September 30, 2025, compared to $52.90 million for the same period in 2024.

Operational Metrics

• Net Loss: The net loss for the three months ended September 30, 2025 was $164.04 million, compared to $98.69 million for the same period in 2024.
• Impairment of Assets: Impairment charges were $93.24 million for the three months ended September 30, 2025, compared to $23.03 million for the same period in 2024.
• Interest Expense: Interest expense was $48.89 million for the three months ended September 30, 2025, compared to $59.44 million for the same period in 2024.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities was $0.49 million for the nine months ended September 30, 2025, compared to $94.03 million for the same period in 2024.
• Investing Cash Flow: Net cash provided by investing activities was $276.15 million for the nine months ended September 30, 2025, compared to -$120.88 million for the same period in 2024.
• Financing Cash Flow: Net cash used in financing activities was -$216.88 million for the nine months ended September 30, 2025, compared to $41.29 million for the same period in 2024.

Unique Metrics

• Occupancy Rates: SHOP segment occupancy was 81.5% as of September 30, 2025, compared to 79.4% as of September 30, 2024.
• Average Monthly Rate: The average monthly rate for SHOP was $5,472 for the three months ended September 30, 2025, compared to $5,199 for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company is encouraged by positive trends in its SHOP segment, including increases in rates, margins, and occupancy. It expects favorable supply and demand dynamics in the senior living industry to enable managers to continue to grow occupancy and drive positive performance.
• Non-Core Business: The company is transitioning the management of 116 senior living communities from Five Star to new managers, which may cause temporary disruptions, including reductions in cash flows.

Priority

• The company is closely monitoring the impacts of current economic and market conditions, including interest rates, inflation, and geopolitical tensions, which could affect financial condition and operations.