Diversified Healthcare Trust | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 388.71 M

Revenue: As of FY2025 Q3, the actual value is USD 388.71 M, beating the estimate of USD 382.1 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.

Senior Housing Operating Portfolio (SHOP) Segment

• Revenues: $333.39 million for the three months ended September 30, 2025, a 6.9% increase from $312.01 million in 2024.
• Net Operating Income (NOI): $29.62 million, an 8.0% increase from $27.43 million in 2024.
• Occupancy: 81.5% as of September 30, 2025, up from 79.4% in 2024.
• Average Monthly Rate: $5,472, compared to $5,199 in 2024.

Medical Office and Life Science Portfolio Segment

• Revenues: $48.20 million, an 8.9% decrease from $52.90 million in 2024.
• Net Operating Income (NOI): $26.68 million, a 4.1% decrease from $27.83 million in 2024.
• Occupancy: 86.6% as of September 30, 2025, up from 80.8% in 2024.

All Other Operations

• Revenues: $7.12 million, an 18.5% decrease from $8.73 million in 2024.
• Net Operating Income (NOI): $7.02 million, a 19.1% decrease from $8.68 million in 2024.

Cash Flow

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

Future Outlook and Strategy

• Core Business Focus: The company is optimizing performance in the SHOP segment by reviewing each senior living community and operator, aiming to drive positive performance through potential dispositions or transitions to different operators.
• Non-Core Business: Transitioning management of 116 senior living communities from Five Star to new managers, with 85 communities transitioned by November 3, 2025, and completion expected by December 31, 2025.
• Priority: Monitoring economic and market conditions, including interest rates, inflation, and labor market conditions, which could impact financial performance and strategic decisions.