Diversified Healthcare Trust

F:SNF

Beat: DHC said second quarter results exceeded analyst estimates, with normalized FFO of $39 million, or $0.16 per share, and consolidated NOI up 20.4% year over year.

SHOP strength: The senior housing portfolio drove the quarter, with same-property NOI up 37.2% to $52 million as occupancy, pricing, and margins all improved.

Guidance reaffirmed: Management reaffirmed the higher full-year outlook it raised in June, saying current results are tracking toward the high end of guidance.

Mix shift: Top-line occupancy growth is running a bit below plan, but management said profitability is outperforming because of stronger acuity, expense savings, and operator synergies.

New contracts: DHC is renegotiating legacy operator agreements for 2027, which it expects to save about $2 million annually before any incentive upside.

Balance sheet: Leverage improved to 7.1x net debt to EBITDA from 8.7x a year ago, and liquidity ended the quarter at $267 million.