One-glance verdict
Within fair range
$7.66 our estimate vs market $8.12
Wall Street consensus: $10.15 (32.5% higher than our fair-value estimate)
6% above our estimate
Fundamentals snapshot
Diversified Healthcare Trust
DHC · NMS · Real Estate · REIT - Healthcare Facilities
Current price
$8.12
52-week range
$3.92 - $9.66
Market cap
$1.97B
Balance sheet
Distressed
-0.14x Concerning
Net debt $2.30B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 0.5% with 27-year payout history.
- Risk Return on equity was -15.5% last year — the company lost money on shareholders' equity.
What this company does
Diversified Healthcare Trust
Diversified Healthcare Trust is a real estate investment trust, or REIT (a company that owns a collection of income-producing properties), which focuses on healthcare buildings across the U.S. It primarily makes money by collecting rent from the tenants (the businesses that operate there) in its senior housing communities, medical offices, and life science labs. This is important because the company's success is tied to the growing need for healthcare facilities as the population ages.
How the company got here
Established in 1998, Diversified Healthcare Trust started as a company focused on owning healthcare-related properties. It is structured as a Real Estate Investment Trust, or REIT (a company that owns and often operates income-producing real estate). Over the years, it has grown by acquiring a diverse mix of senior living communities, medical offices, and buildings for life science research. A key part of its history involves navigating the ups and downs of the healthcare and real estate markets, leading to its current focus on a diversified portfolio to create more stable income. The company is externally managed by The RMR Group, which has a long history in the real estate industry and handles DHC's operations.
What it actually does
Diversified Healthcare Trust is essentially a landlord for various healthcare-related businesses across the United States. Think of them as owning the buildings where seniors live, doctors see patients, and scientists conduct research. They make money by leasing these specialized spaces to tenants, such as healthcare providers and life science companies, and by managing senior living communities. Their goal is to own a mix of high-quality properties in different healthcare sectors to meet the rising demand for medical services and senior housing.
Senior Housing Operating Portfolio (SHOP)
This is the company's largest business segment, making up the majority of its revenue. Instead of just collecting rent, DHC is more involved in the day-to-day business of over 200 senior living communities. They partner with third-party companies who manage the properties, which include independent living, assisted living, and memory care facilities for seniors. DHC earns money from the fees residents pay for housing and care, so its income from these properties can go up or down depending on how many people are living there, a key metric known as occupancy.
Medical Office and Life Science Portfolio
This part of the business owns and leases out specialized buildings to about 250 tenants. These properties include medical office buildings where you might see your doctor, outpatient clinics, and surgery centers. It also includes life science properties, which are buildings with laboratories and research spaces for companies developing new therapies and medical technologies. In this segment, DHC acts like a traditional landlord, earning a steady stream of rental income from its tenants' lease payments.
What management is betting on now
The company's current strategy focuses on taking advantage of the aging U.S. population, which is expected to increase demand for senior housing and healthcare services. Management is also focused on improving the performance of its senior housing properties by working with operators to increase occupancy (the percentage of units that are filled). Another key priority is a "capital recycling" program, which means selling older, non-essential properties and using that money to pay down debt and invest in more promising assets. This strategy aims to strengthen the company's financial health and focus on owning a higher-quality portfolio of properties for long-term growth.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-26.11M
FY2024 Q4
$-48.54M
FY2025 Q1
$-42.89M
FY2025 Q2
$18.84M
FY2025 Q3
$-89.84M
FY2025 Q4
$-52.54M
FY2026 Q1
$-26.82M
FY2026 Q2
$14.20M
Revenue
$365.39M
Net income
$-37.42M
Diluted EPS
-0.16
Operating cash flow
$38.38M
Free cash flow
$14.20M
Fetching…
Sources
Revenue
$366.47M
Net income
$-43.27M
Diluted EPS
-0.18
Operating cash flow
$8.34M
Free cash flow
$-26.82M
Fetching…
Sources
Revenue
$379.57M
Net income
$-21.22M
Diluted EPS
-0.09
Operating cash flow
$-20.11M
Free cash flow
$-52.54M
Fetching…
Sources
Revenue
$388.71M
Net income
$-164.04M
Diluted EPS
-0.68
Operating cash flow
$-49.28M
Free cash flow
$-89.84M
Fetching…
Sources
Revenue
$382.71M
Net income
$-91.64M
Diluted EPS
-0.38
Operating cash flow
$53.02M
Free cash flow
$18.84M
Fetching…
Sources
Revenue
$386.86M
Net income
$-8.99M
Diluted EPS
-0.04
Operating cash flow
$-3.24M
Free cash flow
$-42.89M
Fetching…
Sources
Revenue
$379.62M
Net income
$-87.45M
Diluted EPS
-0.37
Operating cash flow
$18.20M
Free cash flow
$-48.54M
Fetching…
Sources
Revenue
$373.64M
Net income
$-98.69M
Diluted EPS
-0.41
Operating cash flow
$21.13M
Free cash flow
$-26.11M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.66 vs current price $8.12
Wall Street consensus is the average analyst price target: $10.15 (32.5% higher than our fair-value estimate).
Our most-likely fair value is $7.66 a share — about 5.7% away from today's price of $8.12, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.3B. Interest coverage -0.1x.
Net debt
$2.30B
Interest coverage
-0.14x
Diversified Healthcare Trust's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
DHC
BASELINE
Diversified Healthcare Trust
Total debt $2.42B Interest coverage -0.14x This is the baseline the peer rows are being compared against.
Total debt $779.49M Interest coverage 3.53x This peer still has a real interest-payment cushion, while DHC does not.
Total debt $9.70B Interest coverage 1.05x This peer still has a real interest-payment cushion, while DHC does not.
Total debt $1.28B Interest coverage 3.53x This peer still has a real interest-payment cushion, while DHC does not.
Total debt $2.63B Interest coverage 2.35x This peer still has a real interest-payment cushion, while DHC does not.
What you should know
The case for and against DHC
2 Rewards
1 Risk
Rewards
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 0.5% with 27-year payout history.
Risks
-
Return on equity was -15.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-18.67x
P/B
1.24x
P/S
1.31x
EV/EBITDA
19.34x
PEG ratio
1.89x
Profitability
How much profit each dollar creates
Gross margin
18.6%
Operating margin
-0.1%
Net margin
-17.7%
ROE
-15.5%
ROA
-0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.53x
Current ratio
6.65x
Quick ratio
6.00x
Total debt
$2.42B
Total cash
$116.85M
Growth
How the business has been compounding
Revenue TTM
$1.50B
Revenue 5Y CAGR
2.7%
EPS TTM
-1.11
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-22.67M
Free CF TTM
$-166.44M
FCF margin
-11.1%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
2.3%
Last ex-div date
2026-07-20