Diversified Healthcare Trust (NASDAQ: DHC) reported first‑quarter 2026 results that ended March 31 2026. The company posted a net loss of $43.3 million, or $0.18 per share, missing consensus estimates of a loss of $0.15 to $0.16. Total revenue was $366.5 million, down 5 % from $386.9 million a year earlier and below the $380.18 million consensus estimate. Despite the miss, normalized FFO reached $33.1 million, or $0.14 per share, beating the consensus of $0.13 per share.
The earnings miss was largely driven by the absence of the large property‑sale gain that helped offset operating losses in the prior year. Operating income was $-43.3 million, but the company’s core senior‑housing operations generated a $33.1 million normalized FFO, reflecting strong same‑property NOI growth and disciplined cost control under new operating partners.
Revenue decline was concentrated in the Medical Office and Life Science segments, which saw lower sales, while the Senior Housing Operating Portfolio (SHOP) segment posted a 13.5 % year‑over‑year increase in same‑property NOI. Occupancy in SHOP remained at 82.4 % and average monthly rates rose 5.9 %, supporting the segment’s margin expansion to 14.9 % from 13.3 % a quarter earlier.
Management reaffirmed its full‑year 2026 guidance, maintaining a Normalized FFO range of $125–$140 million ($0.52–$0.58 per share) and total NOI of $297–$313 million. The unchanged outlook signals confidence that the operator‑transition and balance‑sheet cleanup will continue to lift operating performance.
CEO Chris Bilotto said the company has successfully completed a significant operator diversification and balance‑sheet cleanup in 2025, providing a multi‑year runway to focus on operational performance and disciplined capital allocation. He added that the continued growth in SHOP NOI is tracking ahead of initial expectations.
Investors focused on the FFO beat and the steady guidance, though the revenue miss and net‑loss miss tempered enthusiasm for the quarter’s results.
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