DHC Q4 performance exceeds expectations, stock price rises

2026-02-24 00:39:21

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Investing.com – Diversified Healthcare Trust (NASDAQ: DHC) reported a fourth-quarter loss of $0.09 per share, better than analysts’ expected loss of $0.18 per share. Revenue was $379.57 million, below the market consensus of $393.49 million, and flat compared to the same period last year.

The company’s same-store senior housing operating portfolio (SHOP) net operating income surged 27.6% year-over-year to $38.3 million, primarily driven by higher occupancy rates and increased fees. Same-store SHOP occupancy reached 82.4%, up 90 basis points from the same period last year, while the average monthly fee rate increased by 5.8%. DHC completed the transition of 116 AlerisLife managed communities to different operators this quarter and sold 37 non-core properties for approximately $250 million, with proceeds used to fully repay the zero-coupon notes due in 2026.

In after-hours trading on Monday, the company’s stock rose 2.1% following the earnings release.

President and CEO Christopher Bilotto stated, “DHC finished a strong and active 2025 and is bringing significant positive momentum into 2026. Thanks to these initiatives, DHC was the best-performing real estate investment trust in the U.S. in 2025, with a total shareholder return of 112.6%.”

For the full fiscal year 2026, DHC issued guidance expecting SHOP net operating income of $175 million to $185 million, representing a 26% to 33% increase over 2025. The company projects total net operating income of $297 million to $313 million, normalized funds from operations (FFO) of $125 million to $140 million, or $0.52 to $0.58 per share. The median normalized FFO guidance is $0.55 per share. Due to the absence of market consensus estimates, a comparison with analyst expectations is not available.

The company’s medical office and life sciences investment portfolio had a same-store occupancy rate of 94.7% at year-end. DHC reported normalized funds from operations of $21.8 million this quarter, or $0.09 per share.

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