Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Diversified Healthcare Trust Provides Monthly SHOP Performance Update By: Diversified Healthcare Trust via Business Wire November 29, 2023 at 08:00 AM EST Diversified Healthcare Trust (Nasdaq: DHC) today provided an update regarding the recent performance of its Senior Housing Operating Portfolio, or SHOP, segment. Monthly Unaudited Results in DHC’s Total SHOP Comparable Properties: October 2023 occupancy was 79.9%, 600 basis points below October 2019, and 50 basis points above September 2023. October 2023 Resident Fees and Services revenue was $95.4 million, $7.6 million, or 7.4%, below October 2019, and $0.8 million, or 0.8%, below September 2023. October 2023 net operating income, or NOI, was $6.8 million, $8.2 million, or 54.7%, below October 2019, and $2.0 million, or 22.7%, below September 2023. October 2023 NOI margin was 7.1%, 750 basis points below October 2019, and 210 basis points below September 2023. Year to Date Unaudited Results in DHC’s Total SHOP Comparable Properties: Year to date occupancy through October 31, 2023, was 78.5%, 790 basis points below the same period in 2019. Year to date Resident Fees and Services revenue through October 31, 2023, was $929.3 million, $93.8 million, or 9.2%, below the same period in 2019. Year to date NOI through October 31, 2023, was $66.0 million, $107.6 million, or 62.0%, below the same period in 2019. Year to date NOI margin through September 30, 2023, was 7.1%, 990 basis points below the same period in 2019. Diversified Healthcare Trust(1) (dollars in thousands, except average monthly rate) 2023 COMPARABLE (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD ALR/Five Star Managed Communities Number of Properties 117 117 117 117 117 117 117 117 117 117 117 Number of Units 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,951 16,951 16,951 Occupancy 78.0% 77.9% 78.5% 78.7% 78.8% 79.3% 79.5% 79.9% 80.0% 80.5% 79.1% Average Monthly Rate $ 4,278 $ 4,907 $ 4,384 $ 4,541 $ 4,417 $ 4,549 $ 4,405 $ 4,411 $ 4,582 $ 4,423 $ 4,484 Residents Fees and Services $ 58,695 $ 60,666 $ 60,434 $ 60,769 $ 61,178 $ 61,309 $ 61,524 $ 61,831 $ 62,160 $ 62,375 $ 610,941 Property Operating Expenses (52,606) (51,786) (54,777) (50,892) (54,500) (54,324) (55,532) (55,526) (55,153) (55,470) (540,566) NOI (3) $ 6,089 $ 8,880 $ 5,657 $ 9,877 $ 6,678 $ 6,985 $ 5,992 $ 6,305 $ 7,007 $ 6,905 $ 70,375 NOI Margin 10.4% 14.6% 9.4% 16.3% 10.9% 11.4% 9.7% 10.2% 11.3% 11.1% 11.5% Other Operator Managed Communities Number of Properties 106 106 106 106 106 106 106 106 106 106 106 Number of Units 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,154 7,154 7,154 Occupancy 74.2% 75.9% 76.2% 76.6% 76.3% 77.2% 77.6% 77.8% 77.9% 78.5% 76.8% Average Monthly Rate $ 5,665 $ 5,944 $ 5,662 $ 5,668 $ 5,566 $ 5,749 $ 5,675 $ 5,723 $ 6,095 $ 5,750 $ 5,748 Residents Fees and Services $ 30,788 $ 29,808 $ 31,504 $ 30,938 $ 31,303 $ 31,664 $ 32,461 $ 32,933 $ 33,981 $ 33,015 $ 318,395 Property Operating Expenses (33,025) (30,118) (32,590) (31,725) (32,096) (31,472) (32,549) (33,946) (32,181) (33,112) (322,814) NOI (3) $ (2,237) $ (310) $ (1,086) $ (787) $ (793) $ 192 $ (88) $ (1,013) $ 1,800 $ (97) $ (4,419) NOI Margin (7.3)% (1.0)% (3.4)% (2.5)% (2.5)% 0.6% (0.3)% (3.1)% 5.3% (0.3)% (1.4)% Total SHOP Comparable Number of Properties 223 223 223 223 223 223 223 223 223 223 223 Number of Units 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,105 24,105 24,105 Occupancy 76.9% 77.3% 77.8% 78.1% 78.1% 78.7% 79.0% 79.3% 79.4% 79.9% 78.5% Average Monthly Rate $ 4,671 $ 5,206 $ 4,751 $ 4,868 $ 4,749 $ 4,897 $ 4,774 $ 4,793 $ 5,023 $ 4,807 $ 4,850 Residents Fees and Services $ 89,483 $ 90,474 $ 91,938 $ 91,707 $ 92,481 $ 92,973 $ 93,985 $ 94,764 $ 96,141 $ 95,390 $ 929,336 Property Operating Expenses (85,631) (81,904) (87,367) (82,617) (86,596) (85,796) (88,081) (89,472) (87,334) (88,582) (863,380) NOI (3) $ 3,852 $ 8,570 $ 4,571 $ 9,090 $ 5,885 $ 7,177 $ 5,904 $ 5,292 $ 8,807 $ 6,808 $ 65,956 NOI Margin 4.3% 9.5% 5.0% 9.9% 6.4% 7.7% 6.3% 5.6% 9.2% 7.1% 7.1% 2019 Pro Forma (4) COMPARABLE (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD ALR/Five Star Managed Communities Number of Properties 117 117 117 117 117 117 117 117 117 117 117 Number of Units 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,951 16,951 16,951 Occupancy 88.0% 88.0% 88.0% 88.0% 87.9% 88.0% 87.9% 87.9% 87.3% 87.1% 87.8% Average Monthly Rate $ 4,709 $ 5,099 $ 4,723 $ 4,833 $ 4,703 $ 4,834 $ 4,695 $ 4,695 $ 4,756 $ 4,755 $ 4,777 Residents Fees and Services $ 72,761 $ 71,079 $ 72,954 $ 72,277 $ 72,562 $ 72,250 $ 72,451 $ 72,447 $ 70,879 $ 73,102 $ 722,762 Property Operating Expenses (57,168) (53,411) (59,496) (56,989) (58,708) (56,515) (60,161) (59,247) (58,304) (59,880) (579,879) NOI (3) $ 15,593 $ 17,668 $ 13,458 $ 15,288 $ 13,854 $ 15,735 $ 12,290 $ 13,200 $ 12,575 $ 13,222 $ 142,883 NOI Margin 21.4% 24.9% 18.4% 21.2% 19.1% 21.8% 17.0% 18.2% 17.7% 18.1% 19.8% Other Operator Managed Communities Number of Properties 106 106 106 106 106 106 106 106 106 106 106 Number of Units 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,154 7,154 7,154 Occupancy 82.5% 82.6% 82.6% 82.6% 82.5% 82.6% 82.7% 82.6% 82.6% 82.6% 82.6% Average Monthly Rate $ 5,889 $ 6,344 $ 5,929 $ 6,041 $ 5,896 $ 6,011 $ 5,889 $ 5,855 $ 5,872 $ 5,799 $ 5,948 Residents Fees and Services $ 30,304 $ 29,501 $ 30,539 $ 30,100 $ 30,336 $ 29,956 $ 30,355 $ 30,158 $ 29,256 $ 29,865 $ 300,370 Property Operating Expenses (26,798) (24,627) (27,785) (26,329) (27,284) (26,260) (27,853) (27,539) (27,145) (28,053) (269,673) NOI (3) $ 3,506 $ 4,874 $ 2,754 $ 3,771 $ 3,052 $ 3,696 $ 2,502 $ 2,619 $ 2,111 $ 1,812 $ 30,697 NOI Margin 11.6% 16.5% 9.0% 12.5% 10.1% 12.3% 8.2% 8.7% 7.2% 6.1% 10.2% Total SHOP Comparable Number of Properties 223 223 223 223 223 223 223 223 223 223 223 Number of Units 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,105 24,105 24,105 Occupancy 86.6% 86.6% 86.6% 86.6% 86.5% 86.5% 86.5% 86.5% 86.0% 85.9% 86.4% Average Monthly Rate $ 5,004 $ 5,410 $ 5,024 $ 5,135 $ 5,001 $ 5,128 $ 4,994 $ 4,985 $ 5,035 $ 5,017 $ 5,070 Residents Fees and Services $ 103,065 $ 100,580 $ 103,493 $ 102,377 $ 102,898 $ 102,206 $ 102,806 $ 102,605 $ 100,135 $ 102,967 $ 1,023,132 Property Operating Expenses (83,966) (78,038) (87,281) (83,318) (85,992) (82,775) (88,014) (86,786) (85,449) (87,933) (849,552) NOI (3) $ 19,099 $ 22,542 $ 16,212 $ 19,059 $ 16,906 $ 19,431 $ 14,792 $ 15,819 $ 14,686 $ 15,034 $ 173,580 NOI Margin 18.5% 22.4% 15.7% 18.6% 16.4% 19.0% 14.4% 15.4% 14.7% 14.6% 17.0% (1) The information regarding DHC’s SHOP segment results for October 2023 and year to date 2023, and on a pro forma basis for the 2019 periods indicated, reflects preliminary estimates with respect to certain results of DHC for such periods, based on currently available information. Because the quarterly financial close process and review for those periods is not yet complete, DHC’s final results upon completion of its quarterly close process and review may vary from these preliminary estimates. (2) Comparable properties consist of properties owned and in service continuously since January 1, 2019; excludes properties classified as held for sale, closed or out of service and communities previously leased to operators that did not provide monthly financial results. (3) The calculation of NOI shown excludes certain components of net income (loss) in order to provide results that are more closely related to DHC's property level results of operations. DHC defines NOI as income from its real estate less its property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that DHC records as depreciation and amortization. DHC calculates comparable property NOI in the same manner that it calculates the corresponding NOI amount, except that it only includes comparable properties in calculating comparable property NOI. DHC uses NOI and comparable property NOI to evaluate individual and company wide property level performance. Other real estate companies and real estate investment trusts, or REITs, may calculate NOI and comparable property NOI differently than DHC does. (4) Many of the senior living communities currently operated on DHC’s behalf in its SHOP segment were leased in 2019. DHC believes pro forma operating results are a meaningful supplemental performance measure as they present historical community level operating results regardless of the form of contractual arrangements. The table presents pro forma residents fees and services revenue, pro forma property operating expenses and pro forma NOI as if the communities had been managed for DHC’s account throughout all periods presented to assist in understanding community level operating results. Calculation and Reconciliation of NOI and Comparable Property NOI for SHOP Segment (dollars in thousands) For the Ten Months Ended 10/31/2019 10/31/2023 Calculation of NOI: SHOP Restructuring Transaction Pro Forma SHOP Rental income $ 116,267 $ (116,267 ) $ - $ - Residents fees and services 361,516 700,482 1,061,998 955,721 Property operating expenses (294,808 ) (587,097 ) (881,905 ) (887,958 ) NOI 182,975 (2,882 ) 180,093 67,763 Reconciliation of NOI to Comparable Property NOI: NOI $ 182,975 $ (2,882 ) $ 180,093 $ 67,763 NOI of properties not included in comparable results (986 ) (5,527 ) (6,513 ) (1,807 ) Comparable property NOI $ 181,989 $ (8,409 ) $ 173,580 $ 65,956 For the Ten Months Ended 10/31/2019 10/31/2023 SHOP Restructuring Transaction Pro Forma SHOP Revenues: Rental income $ 116,267 $ (116,267 ) $ - $ - Residents fees and services 361,516 700,482 1,061,998 955,721 Total revenues 477,783 584,215 1,061,998 955,721 Expenses: Property operating expenses 294,808 587,097 881,905 887,958 Depreciation and amortization 111,695 - 111,695 144,694 Impairment of assets 9,041 - 9,041 4,346 Total expenses 415,544 587,097 1,002,641 1,036,998 Gain on sale of properties 15,207 - 15,207 1,860 Interest and other income - - - 1,581 Interest expense (2,503 ) - (2,503 ) (502 ) Loss on early extinguishment of debt (17 ) - (17 ) - Net income (loss) 74,926 (2,882 ) 72,044 (78,338 ) Add (less): Interest expense 2,503 502 Interest and other income - (1,581 ) Depreciation and amortization 111,695 144,694 Impairment of assets 9,041 4,346 Gain on sale of properties (15,207 ) (1,860 ) Loss on early extinguishment of debt 17 - NOI 180,093 67,763 NOI of properties not included in comparable results (6,513 ) (1,807 ) Comparable property NOI $ 173,580 $ 65,956 About Diversified Healthcare Trust: DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of September 30, 2023, DHC’s approximately $7.2 billion portfolio included 376 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 9 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of September 30, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. To learn more about DHC, visit www.dhcreit.com. Warning Concerning Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever DHC uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, it is making forward-looking statements. These forward-looking statements are based upon DHC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements as a result of various factors. For example, the information regarding DHC’s SHOP segment results provided in this press release reflects certain preliminary estimates based on currently available information, and DHC’s final results upon completion of its quarterly financial close process and review may vary from these preliminary estimates, and as a result, the information provided herein may not provide a meaningful measure of DHC’s SHOP segment results as expected. The information contained in DHC's periodic reports filed with the Securities and Exchange Commission, or the SEC, including under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or incorporated therein, also identifies important factors that could cause DHC's actual results to differ materially from those stated in or implied by DHC's forward-looking statements. DHC's filings with the SEC are available on the SEC's website at www.sec.gov. You should not place undue reliance upon any forward-looking statements. Except as required by law, DHC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq. No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust. View source version on businesswire.com: https://www.businesswire.com/news/home/20231128922749/en/Contacts Melissa McCarthy, Manager, Investor Relations (617) 796-8234 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Diversified Healthcare Trust Provides Monthly SHOP Performance Update By: Diversified Healthcare Trust via Business Wire November 29, 2023 at 08:00 AM EST Diversified Healthcare Trust (Nasdaq: DHC) today provided an update regarding the recent performance of its Senior Housing Operating Portfolio, or SHOP, segment. Monthly Unaudited Results in DHC’s Total SHOP Comparable Properties: October 2023 occupancy was 79.9%, 600 basis points below October 2019, and 50 basis points above September 2023. October 2023 Resident Fees and Services revenue was $95.4 million, $7.6 million, or 7.4%, below October 2019, and $0.8 million, or 0.8%, below September 2023. October 2023 net operating income, or NOI, was $6.8 million, $8.2 million, or 54.7%, below October 2019, and $2.0 million, or 22.7%, below September 2023. October 2023 NOI margin was 7.1%, 750 basis points below October 2019, and 210 basis points below September 2023. Year to Date Unaudited Results in DHC’s Total SHOP Comparable Properties: Year to date occupancy through October 31, 2023, was 78.5%, 790 basis points below the same period in 2019. Year to date Resident Fees and Services revenue through October 31, 2023, was $929.3 million, $93.8 million, or 9.2%, below the same period in 2019. Year to date NOI through October 31, 2023, was $66.0 million, $107.6 million, or 62.0%, below the same period in 2019. Year to date NOI margin through September 30, 2023, was 7.1%, 990 basis points below the same period in 2019. Diversified Healthcare Trust(1) (dollars in thousands, except average monthly rate) 2023 COMPARABLE (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD ALR/Five Star Managed Communities Number of Properties 117 117 117 117 117 117 117 117 117 117 117 Number of Units 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,951 16,951 16,951 Occupancy 78.0% 77.9% 78.5% 78.7% 78.8% 79.3% 79.5% 79.9% 80.0% 80.5% 79.1% Average Monthly Rate $ 4,278 $ 4,907 $ 4,384 $ 4,541 $ 4,417 $ 4,549 $ 4,405 $ 4,411 $ 4,582 $ 4,423 $ 4,484 Residents Fees and Services $ 58,695 $ 60,666 $ 60,434 $ 60,769 $ 61,178 $ 61,309 $ 61,524 $ 61,831 $ 62,160 $ 62,375 $ 610,941 Property Operating Expenses (52,606) (51,786) (54,777) (50,892) (54,500) (54,324) (55,532) (55,526) (55,153) (55,470) (540,566) NOI (3) $ 6,089 $ 8,880 $ 5,657 $ 9,877 $ 6,678 $ 6,985 $ 5,992 $ 6,305 $ 7,007 $ 6,905 $ 70,375 NOI Margin 10.4% 14.6% 9.4% 16.3% 10.9% 11.4% 9.7% 10.2% 11.3% 11.1% 11.5% Other Operator Managed Communities Number of Properties 106 106 106 106 106 106 106 106 106 106 106 Number of Units 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,154 7,154 7,154 Occupancy 74.2% 75.9% 76.2% 76.6% 76.3% 77.2% 77.6% 77.8% 77.9% 78.5% 76.8% Average Monthly Rate $ 5,665 $ 5,944 $ 5,662 $ 5,668 $ 5,566 $ 5,749 $ 5,675 $ 5,723 $ 6,095 $ 5,750 $ 5,748 Residents Fees and Services $ 30,788 $ 29,808 $ 31,504 $ 30,938 $ 31,303 $ 31,664 $ 32,461 $ 32,933 $ 33,981 $ 33,015 $ 318,395 Property Operating Expenses (33,025) (30,118) (32,590) (31,725) (32,096) (31,472) (32,549) (33,946) (32,181) (33,112) (322,814) NOI (3) $ (2,237) $ (310) $ (1,086) $ (787) $ (793) $ 192 $ (88) $ (1,013) $ 1,800 $ (97) $ (4,419) NOI Margin (7.3)% (1.0)% (3.4)% (2.5)% (2.5)% 0.6% (0.3)% (3.1)% 5.3% (0.3)% (1.4)% Total SHOP Comparable Number of Properties 223 223 223 223 223 223 223 223 223 223 223 Number of Units 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,105 24,105 24,105 Occupancy 76.9% 77.3% 77.8% 78.1% 78.1% 78.7% 79.0% 79.3% 79.4% 79.9% 78.5% Average Monthly Rate $ 4,671 $ 5,206 $ 4,751 $ 4,868 $ 4,749 $ 4,897 $ 4,774 $ 4,793 $ 5,023 $ 4,807 $ 4,850 Residents Fees and Services $ 89,483 $ 90,474 $ 91,938 $ 91,707 $ 92,481 $ 92,973 $ 93,985 $ 94,764 $ 96,141 $ 95,390 $ 929,336 Property Operating Expenses (85,631) (81,904) (87,367) (82,617) (86,596) (85,796) (88,081) (89,472) (87,334) (88,582) (863,380) NOI (3) $ 3,852 $ 8,570 $ 4,571 $ 9,090 $ 5,885 $ 7,177 $ 5,904 $ 5,292 $ 8,807 $ 6,808 $ 65,956 NOI Margin 4.3% 9.5% 5.0% 9.9% 6.4% 7.7% 6.3% 5.6% 9.2% 7.1% 7.1% 2019 Pro Forma (4) COMPARABLE (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD ALR/Five Star Managed Communities Number of Properties 117 117 117 117 117 117 117 117 117 117 117 Number of Units 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,951 16,951 16,951 Occupancy 88.0% 88.0% 88.0% 88.0% 87.9% 88.0% 87.9% 87.9% 87.3% 87.1% 87.8% Average Monthly Rate $ 4,709 $ 5,099 $ 4,723 $ 4,833 $ 4,703 $ 4,834 $ 4,695 $ 4,695 $ 4,756 $ 4,755 $ 4,777 Residents Fees and Services $ 72,761 $ 71,079 $ 72,954 $ 72,277 $ 72,562 $ 72,250 $ 72,451 $ 72,447 $ 70,879 $ 73,102 $ 722,762 Property Operating Expenses (57,168) (53,411) (59,496) (56,989) (58,708) (56,515) (60,161) (59,247) (58,304) (59,880) (579,879) NOI (3) $ 15,593 $ 17,668 $ 13,458 $ 15,288 $ 13,854 $ 15,735 $ 12,290 $ 13,200 $ 12,575 $ 13,222 $ 142,883 NOI Margin 21.4% 24.9% 18.4% 21.2% 19.1% 21.8% 17.0% 18.2% 17.7% 18.1% 19.8% Other Operator Managed Communities Number of Properties 106 106 106 106 106 106 106 106 106 106 106 Number of Units 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,154 7,154 7,154 Occupancy 82.5% 82.6% 82.6% 82.6% 82.5% 82.6% 82.7% 82.6% 82.6% 82.6% 82.6% Average Monthly Rate $ 5,889 $ 6,344 $ 5,929 $ 6,041 $ 5,896 $ 6,011 $ 5,889 $ 5,855 $ 5,872 $ 5,799 $ 5,948 Residents Fees and Services $ 30,304 $ 29,501 $ 30,539 $ 30,100 $ 30,336 $ 29,956 $ 30,355 $ 30,158 $ 29,256 $ 29,865 $ 300,370 Property Operating Expenses (26,798) (24,627) (27,785) (26,329) (27,284) (26,260) (27,853) (27,539) (27,145) (28,053) (269,673) NOI (3) $ 3,506 $ 4,874 $ 2,754 $ 3,771 $ 3,052 $ 3,696 $ 2,502 $ 2,619 $ 2,111 $ 1,812 $ 30,697 NOI Margin 11.6% 16.5% 9.0% 12.5% 10.1% 12.3% 8.2% 8.7% 7.2% 6.1% 10.2% Total SHOP Comparable Number of Properties 223 223 223 223 223 223 223 223 223 223 223 Number of Units 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,105 24,105 24,105 Occupancy 86.6% 86.6% 86.6% 86.6% 86.5% 86.5% 86.5% 86.5% 86.0% 85.9% 86.4% Average Monthly Rate $ 5,004 $ 5,410 $ 5,024 $ 5,135 $ 5,001 $ 5,128 $ 4,994 $ 4,985 $ 5,035 $ 5,017 $ 5,070 Residents Fees and Services $ 103,065 $ 100,580 $ 103,493 $ 102,377 $ 102,898 $ 102,206 $ 102,806 $ 102,605 $ 100,135 $ 102,967 $ 1,023,132 Property Operating Expenses (83,966) (78,038) (87,281) (83,318) (85,992) (82,775) (88,014) (86,786) (85,449) (87,933) (849,552) NOI (3) $ 19,099 $ 22,542 $ 16,212 $ 19,059 $ 16,906 $ 19,431 $ 14,792 $ 15,819 $ 14,686 $ 15,034 $ 173,580 NOI Margin 18.5% 22.4% 15.7% 18.6% 16.4% 19.0% 14.4% 15.4% 14.7% 14.6% 17.0% (1) The information regarding DHC’s SHOP segment results for October 2023 and year to date 2023, and on a pro forma basis for the 2019 periods indicated, reflects preliminary estimates with respect to certain results of DHC for such periods, based on currently available information. Because the quarterly financial close process and review for those periods is not yet complete, DHC’s final results upon completion of its quarterly close process and review may vary from these preliminary estimates. (2) Comparable properties consist of properties owned and in service continuously since January 1, 2019; excludes properties classified as held for sale, closed or out of service and communities previously leased to operators that did not provide monthly financial results. (3) The calculation of NOI shown excludes certain components of net income (loss) in order to provide results that are more closely related to DHC's property level results of operations. DHC defines NOI as income from its real estate less its property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that DHC records as depreciation and amortization. DHC calculates comparable property NOI in the same manner that it calculates the corresponding NOI amount, except that it only includes comparable properties in calculating comparable property NOI. DHC uses NOI and comparable property NOI to evaluate individual and company wide property level performance. Other real estate companies and real estate investment trusts, or REITs, may calculate NOI and comparable property NOI differently than DHC does. (4) Many of the senior living communities currently operated on DHC’s behalf in its SHOP segment were leased in 2019. DHC believes pro forma operating results are a meaningful supplemental performance measure as they present historical community level operating results regardless of the form of contractual arrangements. The table presents pro forma residents fees and services revenue, pro forma property operating expenses and pro forma NOI as if the communities had been managed for DHC’s account throughout all periods presented to assist in understanding community level operating results. Calculation and Reconciliation of NOI and Comparable Property NOI for SHOP Segment (dollars in thousands) For the Ten Months Ended 10/31/2019 10/31/2023 Calculation of NOI: SHOP Restructuring Transaction Pro Forma SHOP Rental income $ 116,267 $ (116,267 ) $ - $ - Residents fees and services 361,516 700,482 1,061,998 955,721 Property operating expenses (294,808 ) (587,097 ) (881,905 ) (887,958 ) NOI 182,975 (2,882 ) 180,093 67,763 Reconciliation of NOI to Comparable Property NOI: NOI $ 182,975 $ (2,882 ) $ 180,093 $ 67,763 NOI of properties not included in comparable results (986 ) (5,527 ) (6,513 ) (1,807 ) Comparable property NOI $ 181,989 $ (8,409 ) $ 173,580 $ 65,956 For the Ten Months Ended 10/31/2019 10/31/2023 SHOP Restructuring Transaction Pro Forma SHOP Revenues: Rental income $ 116,267 $ (116,267 ) $ - $ - Residents fees and services 361,516 700,482 1,061,998 955,721 Total revenues 477,783 584,215 1,061,998 955,721 Expenses: Property operating expenses 294,808 587,097 881,905 887,958 Depreciation and amortization 111,695 - 111,695 144,694 Impairment of assets 9,041 - 9,041 4,346 Total expenses 415,544 587,097 1,002,641 1,036,998 Gain on sale of properties 15,207 - 15,207 1,860 Interest and other income - - - 1,581 Interest expense (2,503 ) - (2,503 ) (502 ) Loss on early extinguishment of debt (17 ) - (17 ) - Net income (loss) 74,926 (2,882 ) 72,044 (78,338 ) Add (less): Interest expense 2,503 502 Interest and other income - (1,581 ) Depreciation and amortization 111,695 144,694 Impairment of assets 9,041 4,346 Gain on sale of properties (15,207 ) (1,860 ) Loss on early extinguishment of debt 17 - NOI 180,093 67,763 NOI of properties not included in comparable results (6,513 ) (1,807 ) Comparable property NOI $ 173,580 $ 65,956 About Diversified Healthcare Trust: DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of September 30, 2023, DHC’s approximately $7.2 billion portfolio included 376 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 9 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of September 30, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. To learn more about DHC, visit www.dhcreit.com. Warning Concerning Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever DHC uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, it is making forward-looking statements. These forward-looking statements are based upon DHC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements as a result of various factors. For example, the information regarding DHC’s SHOP segment results provided in this press release reflects certain preliminary estimates based on currently available information, and DHC’s final results upon completion of its quarterly financial close process and review may vary from these preliminary estimates, and as a result, the information provided herein may not provide a meaningful measure of DHC’s SHOP segment results as expected. The information contained in DHC's periodic reports filed with the Securities and Exchange Commission, or the SEC, including under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or incorporated therein, also identifies important factors that could cause DHC's actual results to differ materially from those stated in or implied by DHC's forward-looking statements. DHC's filings with the SEC are available on the SEC's website at www.sec.gov. You should not place undue reliance upon any forward-looking statements. Except as required by law, DHC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq. No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust. View source version on businesswire.com: https://www.businesswire.com/news/home/20231128922749/en/Contacts Melissa McCarthy, Manager, Investor Relations (617) 796-8234
Diversified Healthcare Trust (Nasdaq: DHC) today provided an update regarding the recent performance of its Senior Housing Operating Portfolio, or SHOP, segment. Monthly Unaudited Results in DHC’s Total SHOP Comparable Properties: October 2023 occupancy was 79.9%, 600 basis points below October 2019, and 50 basis points above September 2023. October 2023 Resident Fees and Services revenue was $95.4 million, $7.6 million, or 7.4%, below October 2019, and $0.8 million, or 0.8%, below September 2023. October 2023 net operating income, or NOI, was $6.8 million, $8.2 million, or 54.7%, below October 2019, and $2.0 million, or 22.7%, below September 2023. October 2023 NOI margin was 7.1%, 750 basis points below October 2019, and 210 basis points below September 2023. Year to Date Unaudited Results in DHC’s Total SHOP Comparable Properties: Year to date occupancy through October 31, 2023, was 78.5%, 790 basis points below the same period in 2019. Year to date Resident Fees and Services revenue through October 31, 2023, was $929.3 million, $93.8 million, or 9.2%, below the same period in 2019. Year to date NOI through October 31, 2023, was $66.0 million, $107.6 million, or 62.0%, below the same period in 2019. Year to date NOI margin through September 30, 2023, was 7.1%, 990 basis points below the same period in 2019. Diversified Healthcare Trust(1) (dollars in thousands, except average monthly rate) 2023 COMPARABLE (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD ALR/Five Star Managed Communities Number of Properties 117 117 117 117 117 117 117 117 117 117 117 Number of Units 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,951 16,951 16,951 Occupancy 78.0% 77.9% 78.5% 78.7% 78.8% 79.3% 79.5% 79.9% 80.0% 80.5% 79.1% Average Monthly Rate $ 4,278 $ 4,907 $ 4,384 $ 4,541 $ 4,417 $ 4,549 $ 4,405 $ 4,411 $ 4,582 $ 4,423 $ 4,484 Residents Fees and Services $ 58,695 $ 60,666 $ 60,434 $ 60,769 $ 61,178 $ 61,309 $ 61,524 $ 61,831 $ 62,160 $ 62,375 $ 610,941 Property Operating Expenses (52,606) (51,786) (54,777) (50,892) (54,500) (54,324) (55,532) (55,526) (55,153) (55,470) (540,566) NOI (3) $ 6,089 $ 8,880 $ 5,657 $ 9,877 $ 6,678 $ 6,985 $ 5,992 $ 6,305 $ 7,007 $ 6,905 $ 70,375 NOI Margin 10.4% 14.6% 9.4% 16.3% 10.9% 11.4% 9.7% 10.2% 11.3% 11.1% 11.5% Other Operator Managed Communities Number of Properties 106 106 106 106 106 106 106 106 106 106 106 Number of Units 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,154 7,154 7,154 Occupancy 74.2% 75.9% 76.2% 76.6% 76.3% 77.2% 77.6% 77.8% 77.9% 78.5% 76.8% Average Monthly Rate $ 5,665 $ 5,944 $ 5,662 $ 5,668 $ 5,566 $ 5,749 $ 5,675 $ 5,723 $ 6,095 $ 5,750 $ 5,748 Residents Fees and Services $ 30,788 $ 29,808 $ 31,504 $ 30,938 $ 31,303 $ 31,664 $ 32,461 $ 32,933 $ 33,981 $ 33,015 $ 318,395 Property Operating Expenses (33,025) (30,118) (32,590) (31,725) (32,096) (31,472) (32,549) (33,946) (32,181) (33,112) (322,814) NOI (3) $ (2,237) $ (310) $ (1,086) $ (787) $ (793) $ 192 $ (88) $ (1,013) $ 1,800 $ (97) $ (4,419) NOI Margin (7.3)% (1.0)% (3.4)% (2.5)% (2.5)% 0.6% (0.3)% (3.1)% 5.3% (0.3)% (1.4)% Total SHOP Comparable Number of Properties 223 223 223 223 223 223 223 223 223 223 223 Number of Units 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,105 24,105 24,105 Occupancy 76.9% 77.3% 77.8% 78.1% 78.1% 78.7% 79.0% 79.3% 79.4% 79.9% 78.5% Average Monthly Rate $ 4,671 $ 5,206 $ 4,751 $ 4,868 $ 4,749 $ 4,897 $ 4,774 $ 4,793 $ 5,023 $ 4,807 $ 4,850 Residents Fees and Services $ 89,483 $ 90,474 $ 91,938 $ 91,707 $ 92,481 $ 92,973 $ 93,985 $ 94,764 $ 96,141 $ 95,390 $ 929,336 Property Operating Expenses (85,631) (81,904) (87,367) (82,617) (86,596) (85,796) (88,081) (89,472) (87,334) (88,582) (863,380) NOI (3) $ 3,852 $ 8,570 $ 4,571 $ 9,090 $ 5,885 $ 7,177 $ 5,904 $ 5,292 $ 8,807 $ 6,808 $ 65,956 NOI Margin 4.3% 9.5% 5.0% 9.9% 6.4% 7.7% 6.3% 5.6% 9.2% 7.1% 7.1% 2019 Pro Forma (4) COMPARABLE (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD ALR/Five Star Managed Communities Number of Properties 117 117 117 117 117 117 117 117 117 117 117 Number of Units 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,995 16,951 16,951 16,951 Occupancy 88.0% 88.0% 88.0% 88.0% 87.9% 88.0% 87.9% 87.9% 87.3% 87.1% 87.8% Average Monthly Rate $ 4,709 $ 5,099 $ 4,723 $ 4,833 $ 4,703 $ 4,834 $ 4,695 $ 4,695 $ 4,756 $ 4,755 $ 4,777 Residents Fees and Services $ 72,761 $ 71,079 $ 72,954 $ 72,277 $ 72,562 $ 72,250 $ 72,451 $ 72,447 $ 70,879 $ 73,102 $ 722,762 Property Operating Expenses (57,168) (53,411) (59,496) (56,989) (58,708) (56,515) (60,161) (59,247) (58,304) (59,880) (579,879) NOI (3) $ 15,593 $ 17,668 $ 13,458 $ 15,288 $ 13,854 $ 15,735 $ 12,290 $ 13,200 $ 12,575 $ 13,222 $ 142,883 NOI Margin 21.4% 24.9% 18.4% 21.2% 19.1% 21.8% 17.0% 18.2% 17.7% 18.1% 19.8% Other Operator Managed Communities Number of Properties 106 106 106 106 106 106 106 106 106 106 106 Number of Units 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,154 7,154 7,154 Occupancy 82.5% 82.6% 82.6% 82.6% 82.5% 82.6% 82.7% 82.6% 82.6% 82.6% 82.6% Average Monthly Rate $ 5,889 $ 6,344 $ 5,929 $ 6,041 $ 5,896 $ 6,011 $ 5,889 $ 5,855 $ 5,872 $ 5,799 $ 5,948 Residents Fees and Services $ 30,304 $ 29,501 $ 30,539 $ 30,100 $ 30,336 $ 29,956 $ 30,355 $ 30,158 $ 29,256 $ 29,865 $ 300,370 Property Operating Expenses (26,798) (24,627) (27,785) (26,329) (27,284) (26,260) (27,853) (27,539) (27,145) (28,053) (269,673) NOI (3) $ 3,506 $ 4,874 $ 2,754 $ 3,771 $ 3,052 $ 3,696 $ 2,502 $ 2,619 $ 2,111 $ 1,812 $ 30,697 NOI Margin 11.6% 16.5% 9.0% 12.5% 10.1% 12.3% 8.2% 8.7% 7.2% 6.1% 10.2% Total SHOP Comparable Number of Properties 223 223 223 223 223 223 223 223 223 223 223 Number of Units 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,125 24,105 24,105 24,105 Occupancy 86.6% 86.6% 86.6% 86.6% 86.5% 86.5% 86.5% 86.5% 86.0% 85.9% 86.4% Average Monthly Rate $ 5,004 $ 5,410 $ 5,024 $ 5,135 $ 5,001 $ 5,128 $ 4,994 $ 4,985 $ 5,035 $ 5,017 $ 5,070 Residents Fees and Services $ 103,065 $ 100,580 $ 103,493 $ 102,377 $ 102,898 $ 102,206 $ 102,806 $ 102,605 $ 100,135 $ 102,967 $ 1,023,132 Property Operating Expenses (83,966) (78,038) (87,281) (83,318) (85,992) (82,775) (88,014) (86,786) (85,449) (87,933) (849,552) NOI (3) $ 19,099 $ 22,542 $ 16,212 $ 19,059 $ 16,906 $ 19,431 $ 14,792 $ 15,819 $ 14,686 $ 15,034 $ 173,580 NOI Margin 18.5% 22.4% 15.7% 18.6% 16.4% 19.0% 14.4% 15.4% 14.7% 14.6% 17.0% (1) The information regarding DHC’s SHOP segment results for October 2023 and year to date 2023, and on a pro forma basis for the 2019 periods indicated, reflects preliminary estimates with respect to certain results of DHC for such periods, based on currently available information. Because the quarterly financial close process and review for those periods is not yet complete, DHC’s final results upon completion of its quarterly close process and review may vary from these preliminary estimates. (2) Comparable properties consist of properties owned and in service continuously since January 1, 2019; excludes properties classified as held for sale, closed or out of service and communities previously leased to operators that did not provide monthly financial results. (3) The calculation of NOI shown excludes certain components of net income (loss) in order to provide results that are more closely related to DHC's property level results of operations. DHC defines NOI as income from its real estate less its property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that DHC records as depreciation and amortization. DHC calculates comparable property NOI in the same manner that it calculates the corresponding NOI amount, except that it only includes comparable properties in calculating comparable property NOI. DHC uses NOI and comparable property NOI to evaluate individual and company wide property level performance. Other real estate companies and real estate investment trusts, or REITs, may calculate NOI and comparable property NOI differently than DHC does. (4) Many of the senior living communities currently operated on DHC’s behalf in its SHOP segment were leased in 2019. DHC believes pro forma operating results are a meaningful supplemental performance measure as they present historical community level operating results regardless of the form of contractual arrangements. The table presents pro forma residents fees and services revenue, pro forma property operating expenses and pro forma NOI as if the communities had been managed for DHC’s account throughout all periods presented to assist in understanding community level operating results. Calculation and Reconciliation of NOI and Comparable Property NOI for SHOP Segment (dollars in thousands) For the Ten Months Ended 10/31/2019 10/31/2023 Calculation of NOI: SHOP Restructuring Transaction Pro Forma SHOP Rental income $ 116,267 $ (116,267 ) $ - $ - Residents fees and services 361,516 700,482 1,061,998 955,721 Property operating expenses (294,808 ) (587,097 ) (881,905 ) (887,958 ) NOI 182,975 (2,882 ) 180,093 67,763 Reconciliation of NOI to Comparable Property NOI: NOI $ 182,975 $ (2,882 ) $ 180,093 $ 67,763 NOI of properties not included in comparable results (986 ) (5,527 ) (6,513 ) (1,807 ) Comparable property NOI $ 181,989 $ (8,409 ) $ 173,580 $ 65,956 For the Ten Months Ended 10/31/2019 10/31/2023 SHOP Restructuring Transaction Pro Forma SHOP Revenues: Rental income $ 116,267 $ (116,267 ) $ - $ - Residents fees and services 361,516 700,482 1,061,998 955,721 Total revenues 477,783 584,215 1,061,998 955,721 Expenses: Property operating expenses 294,808 587,097 881,905 887,958 Depreciation and amortization 111,695 - 111,695 144,694 Impairment of assets 9,041 - 9,041 4,346 Total expenses 415,544 587,097 1,002,641 1,036,998 Gain on sale of properties 15,207 - 15,207 1,860 Interest and other income - - - 1,581 Interest expense (2,503 ) - (2,503 ) (502 ) Loss on early extinguishment of debt (17 ) - (17 ) - Net income (loss) 74,926 (2,882 ) 72,044 (78,338 ) Add (less): Interest expense 2,503 502 Interest and other income - (1,581 ) Depreciation and amortization 111,695 144,694 Impairment of assets 9,041 4,346 Gain on sale of properties (15,207 ) (1,860 ) Loss on early extinguishment of debt 17 - NOI 180,093 67,763 NOI of properties not included in comparable results (6,513 ) (1,807 ) Comparable property NOI $ 173,580 $ 65,956 About Diversified Healthcare Trust: DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of September 30, 2023, DHC’s approximately $7.2 billion portfolio included 376 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 9 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of September 30, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. To learn more about DHC, visit www.dhcreit.com. Warning Concerning Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever DHC uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, it is making forward-looking statements. These forward-looking statements are based upon DHC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements as a result of various factors. For example, the information regarding DHC’s SHOP segment results provided in this press release reflects certain preliminary estimates based on currently available information, and DHC’s final results upon completion of its quarterly financial close process and review may vary from these preliminary estimates, and as a result, the information provided herein may not provide a meaningful measure of DHC’s SHOP segment results as expected. The information contained in DHC's periodic reports filed with the Securities and Exchange Commission, or the SEC, including under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or incorporated therein, also identifies important factors that could cause DHC's actual results to differ materially from those stated in or implied by DHC's forward-looking statements. DHC's filings with the SEC are available on the SEC's website at www.sec.gov. You should not place undue reliance upon any forward-looking statements. Except as required by law, DHC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq. No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust. View source version on businesswire.com: https://www.businesswire.com/news/home/20231128922749/en/