DHC

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 20.4% year-over-year consolidated NOI growth to successful business plan execution following the completion of senior housing operator transitions in late 2025. The SHOP segment's 37.2% same-property NOI increase was driven by a combination of 160 basis points in occupancy gains and a 6.2% rise in average monthly rates. Profitability is currently outperforming original underwriting due to an accelerated capture of higher acuity care levels and rapid realization of expense synergies by new operators. Management noted that while occupancy volume is pacing slightly below initial projections, the 'structural margin enhancements' are fully offsetting top-line volume moderation. The company is leveraging a regionalized community oversight model to share best practices, which has directly contributed to significant margin expansion. Operational focus has shifted from large-scale capital recycling to improving organic operations and identifying high-return internal redevelopment projects. The Medical Office and Life Science portfolio remains stable with 95.8% occupancy, though management is proactively addressing three known tenant vacates representing 4.6% of segment revenue. Full-year 2026 SHOP NOI guidance assumes a 200 basis point occupancy growth and 5.5% average monthly rate growth, reflecting a more disciplined approach to profitability over pure volume. Management expects to commence new legacy operator contracts in January 2027, transitioning them to a highly aligned fee structure with lower base fees and performance-based tiers. A $20 million initial investment in SHOP repositioning is expected to convert closed skilled nursing wings into 150 revenue-generating units by the second half of 2027. The company anticipates annualized cost savings of $14 million to $16 million from new food and beverage contracts, with approximately $8 million of that benefit recognized in 2026. Future capital allocation will prioritize deleveraging and internal high-return projects, with the Board reviewing the potential for dividend adjustments on a quarterly basis. Second quarter G&A expense included a $10 million incentive management fee driven by DHC's significant total shareholder return outperformance. A $2.3 million non-cash share-based compensation charge was recorded, with more than half representing a one-time expense for accelerated vesting of awards. SHOP same-store NOI included a $1.5 million one-time expense benefit related to timing of accruals that is not expected to recur in the third quarter. The Medical Office segment recorded a $1 million one-time bad debt charge in the second quarter, which was unrelated to the previously disclosed upcoming tenant vacancies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the slower occupancy ramp-up is a function of 'transition noise' as new operators rebuild local sales teams and leadership infrastructure. The delay is characterized as a timing issue rather than a lack of demand or a failure to hit specific occupancy levers. The new contracts will cover the remaining 80-plus communities not included in the Aleris transition, effectively standardizing the entire portfolio under an aligned fee framework. The shift aims to provide immediate cost savings of approximately $2 million annually through tighter cost controls and reduced base fees. Management expects additional synergies in 2027 as legacy operators adopt the new contract structures and dietary/maintenance savings continue to materialize. Current expense improvements are supported by prior capital expenditures that have reduced ongoing maintenance requirements. While tracking toward the high end of guidance, management expects typical third-quarter seasonality related to increased utility costs. The company remains comfortable with current RevPOR growth trajectories and expects consistent performance to carry into 2027.

Interested in Diversified Healthcare Trust? Here are five stocks we like better. Strong second-quarter performance: Diversified Healthcare Trust’s consolidated NOI rose 20.4% year over year to $84 million, driven by a 37.2% increase in same-property SHOP NOI. Senior housing occupancy and rates improved, while procurement and operating efficiencies supported margins despite a slower-than-expected occupancy ramp. Growth initiatives are advancing: DHC is renegotiating legacy SHOP operator agreements expected to deliver nearly $2 million in annual savings starting in 2027. It also plans to invest about $20 million to redevelop six communities, adding roughly 150 senior housing units beginning in late 2027. Guidance and balance sheet improved: The company reaffirmed its 2026 outlook, with adjusted EBITDARE of $300 million to $315 million and normalized FFO of $0.56 to $0.62 per share. Net debt to annualized adjusted EBITDARE fell to 7.1 times from 8.7 times a year earlier, supported by asset sales and stronger operations. Diversified Healthcare Trust (NASDAQ:DHC) reported second-quarter results marked by higher senior housing profitability, continued occupancy and pricing gains, and reduced leverage, while reaffirming the full-year guidance it raised in June. Normalized funds from operations totaled $39 million, or $0.16 per share, in the second quarter, while adjusted EBITDARE was $82 million. Consolidated net operating income rose 20.4% year over year to $84 million, according to President and Chief Executive Officer Chris Bilotto. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The company’s senior housing operating portfolio, or SHOP segment, remained the principal source of growth. Same-property SHOP NOI increased 37.2% year over year to $52 million, supported by a 160-basis-point increase in occupancy to 83.1%, a 6.2% gain in average monthly rates and margin expansion. Bilotto said the company’s operator transitions, completed in late 2025, are beginning to produce benefits from more regional oversight and shared operating practices. However, management said occupancy growth and related revenue are tracking slightly below its initial 2026 expectations because of the timing required to rebuild local leadership, sales teams and operating infrastructure at transitioned communities. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? “This isn’t a function in our view of hitting certain occupancy levels,” Bilotto said in response to an analyst question. “It’s just a delay in the timing of that ramp up.” Management said the slower occupancy ramp is being offset by better-than-expected profitability per occupied unit. Higher-acuity care revenue, ancillary revenue and expense efficiencies have supported revenue per occupied room and expense performance. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Anthony Paula, vice president, said same-property SHOP occupancy increased 70 basis points sequentially during the quarter, while average monthly rates rose 100 basis points sequentially and 620 basis points year over year. In-property expense per occupied room declined 170 basis points from the first quarter and increased 150 basis points from the prior year. The company cited new food-and-beverage procurement contracts among the cost-saving measures. Paula said those agreements are expected to produce annualized savings of $14 million to $16 million, including about $8 million expected to be recognized during 2026. Second-quarter SHOP NOI also included about $1.5 million of one-time expense benefits related to timing of expense recognition and first-quarter overaccruals, CFO and Treasurer Matt Brown said. The benefit is not expected to recur in the third quarter. DHC is renegotiating contracts with its legacy SHOP operators, seeking to align them with the framework used for recently transitioned communities. The revised agreements are expected to include lower base fees, incentive fees tied to annual operational performance and tighter cost controls. Bilotto said the agreements are expected to generate immediate annual cost savings of nearly $2 million before potential incentive-fee-related growth. The new contracts are expected to begin in January 2027 and cover the remainder of the portfolio outside of communities transitioned from the former AlerisLife arrangement. The company also continues to pursue redevelopment opportunities at 16 SHOP communities, where closed skilled nursing wings or floors could be converted into independent living, assisted living and memory care units. DHC plans an initial investment of about $20 million at six communities to add roughly 150 units. Construction on the initial phase is expected to begin later this year, with the first units scheduled to come online in the second half of 2027. Management expects the projects to generate unlevered returns in the mid-teens while converting carrying costs on closed space into revenue-producing units. In DHC’s medical office and life science portfolio, same-property occupancy increased 110 basis points year over year to 95.8%. The company completed approximately 477,000 square feet of new and renewal leasing during the quarter, with a 6.7% rent roll-up and a weighted-average lease term of 7.1 years. Same-property NOI in the segment was $24.1 million, essentially unchanged from a year earlier. Brown said second-quarter rental revenue was affected by a one-time bad-debt charge of about $1 million that was unrelated to upcoming vacancies. The company has three known tenant departures representing approximately 4.6% of the segment’s expiring annualized revenue. Two tenants vacated July 1, accounting for 3.5% of annualized revenue and 213,000 square feet, while another tenant is expected to leave Dec. 1. DHC plans to market one 150,000-square-foot property for sale and is marketing the other two properties for lease. DHC ended the quarter with $267 million of liquidity, including $117 million of cash and an undrawn $150 million secured revolving credit facility. Net debt to annualized adjusted EBITDARE declined to 7.1 times from 8.7 times a year earlier, helped by SHOP performance and more than $600 million of asset sales completed since the beginning of 2025. Interest coverage improved to 2.2 times from 1.4 times in the prior-year period. The company’s next debt maturity is not until February 2028, Brown said. The company reaffirmed its 2026 outlook: Total NOI of $307 million to $323 million. SHOP NOI of $185 million to $195 million. Adjusted EBITDARE of $300 million to $315 million. Normalized FFO of $0.56 to $0.62 per share. While retaining its SHOP NOI forecast, DHC lowered its occupancy-growth assumption to 200 basis points and its revenue-growth assumption to 6.6%. It raised its average monthly rate growth assumption to 5.5% and reduced its operating expense growth assumption to 2.5%, reflecting stronger-than-expected cost controls. Brown said SHOP NOI is tracking toward the high end of the company’s June guidance range, though DHC expects some third-quarter utility-cost seasonality. The company also reaffirmed recurring capital expenditure guidance of $100 million to $115 million for 2026. Bilotto said DHC’s capital recycling program is substantially complete and that the company is focused on operations, deleveraging and internal investment opportunities. He added that the board reviews the dividend quarterly as the company evaluates options to enhance shareholder returns. Diversified Healthcare Trust is a real estate investment trust (REIT) specializing in the acquisition, ownership and management of healthcare properties across the United States. The company focuses on assets that serve the senior housing and post-acute care sectors, including skilled nursing facilities, assisted living communities, memory care centers and medical office buildings. By partnering with experienced operators, Diversified Healthcare Trust aims to generate stable, long-term cash flows through triple-net leases and percentage rent structures tailored to each property type. The company's portfolio spans multiple states and encompasses a mix of single-tenant and multi-tenant properties. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Diversified Healthcare Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Normalized FFO: $39 million, or $0.16 per share. Adjusted EBITDA RE: $82 million. Consolidated NOI: Increased 20.4% year-over-year to $84 million. SHOP Same-Property NOI: Increased 37.2% year-over-year to $52 million. SHOP Same-Property Occupancy: Increased 160 basis points year-over-year to 83.1%. SHOP Average Monthly Rate: Increased 6.2% year-over-year. Medical Office and Life Science Same-Property Occupancy: Increased 110 basis points year-over-year to 95.8%. Medical Office and Life Science Same-Property NOI: $24.1 million, essentially flat year-over-year. Leasing Activity: Approximately 477,000 square feet of new and renewal leasing at a 6.7% rent rollup. Liquidity: Approximately $267 million at quarter end. Net Debt to Adjusted EBITDA RE: 7.1 times, down from 8.7 times in the prior year. Adjusted EBITDA RE to Interest Expense: Improved to 2.2 times from 1.4 times in the prior year. G&A Expense: $7.1 million for the quarter, excluding a $10 million incentive management fee and $2.3 million of non-cash share-based compensation. Capital Expenditures: $25.8 million invested in the quarter, including $19.1 million in SHOP communities and $6.7 million in medical office and life science portfolio. Warning! GuruFocus has detected 6 Warning Signs with DHC. Is DHC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Diversified Healthcare Trust (NASDAQ:DHC) reported strong second quarter results, with normalized FFO of $39 million and consolidated NOI increasing 20.4% year-over-year, exceeding analyst estimates. SHOP segment same-property NOI surged 37.2% year-over-year, driven by a 160 basis point occupancy increase, a 6.2% rise in average monthly rate, and continued margin expansion. The company is renegotiating legacy operator contracts to align with a more favorable fee structure, expected to deliver immediate annual cost savings of nearly $2 million starting in January 2027. DHC is executing a $20 million repositioning plan to convert closed skilled nursing wings into high-demand senior housing units, projected to generate mid-teens unlevered returns and add roughly 150 units. Leverage improved significantly, with net debt to EBITDA down to 7.1 times from 8.7 times year-over-year, and liquidity stands at $267 million, providing financial flexibility. The company reaffirmed its full-year guidance, with SHOP NOI tracking towards the high end, supported by expense synergies such as new food and beverage contracts yielding $14-16 million in annualized savings. SHOP occupancy growth is pacing below initial 2026 projections, with average occupancy growth guidance reduced by 100 basis points to 200 basis points, reflecting a slower-than-expected ramp-up. Revenue growth in the SHOP segment was revised down by 140 basis points to 6.6%, indicating top-line momentum is temporarily muted due to transition-related disruptions. The company noted a one-time benefit of $1.5 million in Q2 SHOP NOI from expense timing that will not repeat in Q3, potentially impacting sequential performance. Medical office and life science segment NOI was essentially flat year-over-year, with known tenant vacates representing 4.6% of annualized revenue, including two that vacated in July. G&A expenses included a $10 million incentive management fee and $2.3 million in non-cash share-based compensation, with over half of the latter being a one-time accelerated vesting expense. The company faces ongoing challenges in fully integrating new operators, with sales teams and infrastructure still being rebuilt, which has delayed occupancy gains. Q: Can you provide additional color on why the SHOP topline is tracking below expectations, and is this mainly driven by a slower leasing season or something more temporary?A: Christopher Bilotto, President and CEO, attributed the slower pace to "transition noise" from operator changes. New operators have spent the last six months rebuilding local leadership and sales teams. These teams are now largely in place, and benefits are starting to flow through, but the pace of occupancy growth is expected to be somewhat muted in the near term. He remains bullish on the long-term outlook for driving occupancy. Q: Is the lower RevPAR driven by the occupancy uptick, or did you have to be more judicious on increasing rates for existing residents due to the transitions?A: CEO Christopher Bilotto clarified that total RevPOR is actually increasing. The decrease in total revenue is tied to occupancy levels. The company is seeing strong uptake in ancillary revenues and higher acuity care levels, which is driving outsized results in RevPOR. As occupancy ramps, they expect to recapture the incremental revenue. Q: On the expense side, is the benefit from new group contracts a good baseline going forward, or is there more benefit moving into 2017?A: CFO Matthew Brown stated that the new guidance is a good run rate for the end of this year. However, they expect additional synergies moving into 2027, both from new operators and from expected changes to legacy operator management contracts. For 2026, they are seeing significant savings in dietary, maintenance, and contract labor. Q: Regarding the new management agreements starting in 2027, are there opportunities for additional agreement changes longer-term, or does this encompass the entire portfolio?A: CEO Christopher Bilotto confirmed that once these new agreements are in place, they will encompass the entire portfolio, covering the balance of 80-plus communities outside of the Aleris transition. He does not anticipate major changes to the contracts in the near term, though they are evaluating other opportunities related to operators. Q: Can you provide color on the $1.5 million of one-time expense benefits in the quarter that won't roll forward?A: CFO Matthew Brown explained that it was due to the timing of expense recognition, specifically over-accruals in the first quarter that were offset in the second quarter. Q: Given the strong 1H SHOP NOI performance, are you tracking towards the high end of guidance, and is there any seasonality to be aware of in 3Q or 4Q?A: CFO Matthew Brown confirmed they are tracking to the high end of guidance. They expect a little bit of seasonality in the third quarter related to increases in utilities, but nothing overly material. Overall, they feel good about the high end of the guidance. Q: You've already achieved a rate growth of close to 6% in 1H, but guidance is 5.5% for the full year. Any reason not to raise that further?A: CEO Christopher Bilotto stated they are comfortable with the current trajectory and are being mindful of the many moving pieces related to transitions. He believes there is a reasonable expectation to continue the run rate into 2027 with consistent growth across the portfolio. Q: Is the lower occupancy guidance a result of new operators not chasing expensive occupancy, or is it just a timing issue?A: CEO Christopher Bilotto indicated it is a timing issue, not a lack of focus on top-line growth. The guidance reflects average occupancy growth for the year, and they still feel good about real growth by year-end. There are also other upsides from levels of care and ancillary revenue that will continue to drive performance. Q: What drove the quarter-over-quarter decline in MOB Life Science rental revenue?A: CFO Matthew Brown noted there was a one-time bad debt charge of about $1 million impacting Q2 results. This was unrelated to the upcoming vacancies. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Provides Updated Full Year 2026 Financial Guidance NEWTON, Mass., August 03, 2026--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter ended June 30, 2026, and provided updated full year 2026 financial guidance, which can be found at the Quarterly Reports section of DHC's website at https://www.dhcreit.com/investors/financial-information/quarterly/default.aspx. The updated full year 2026 financial guidance is consistent with DHC's news release issued on June 1, 2026. A conference call to discuss DHC's second quarter 2026 financial results will be held on Tuesday, August 4, 2026 at 10:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 329-4297 or (412) 317-5435 (if calling from outside the United States and Canada); a pass code is not required. A replay will be available for one week by dialing (855) 669-9658; the replay pass code is 4724843. A live audio webcast of the conference call will also be available in a listen-only mode on DHC's website, at www.dhcreit.com. The archived webcast will be available for replay on DHC's website after the call. The transcription, recording and retransmission in any way of DHC's second quarter conference call are strictly prohibited without the prior written consent of DHC. About Diversified Healthcare Trust: DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC’s portfolio is anchored by a strategically curated mix of senior housing, medical office and life science assets that combine high quality care, modern technology and amenity rich environments to meet rising demand across the healthcare continuum. As of June 30, 2026, DHC’s approximately $6.3 billion portfolio included 285 properties in 33 states and Washington, D.C., with 23,797 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of June 30, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com. 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/20260803450003/en/ Contacts Bryan Maher, Senior Vice President(617) 796-8234

NEWTON, Mass., July 09, 2026--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced a regular quarterly cash distribution on its common shares of $0.01 per share ($0.04 per share per year). This distribution will be paid to DHC’s common shareholders of record as of the close of business on July 20, 2026 and distributed on or about August 13, 2026. 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 March 31, 2026, DHC’s approximately $6.2 billion portfolio included 285 properties in 33 states and Washington, D.C., with 23,901 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of March 31, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, 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. These forward-looking statements are based upon DHC’s present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond DHC’s control. For example, this press release states that DHC’s regular quarterly cash distribution rate is $0.01 per share per quarter or $0.04 per share per year. A possible implication of this statement is that DHC will continue to pay quarterly distributions of $0.01 per share per quarter or $0.04 per share per year in the future. DHC’s distribution rate may be set and reset from time to time by DHC’s Board of Trustees. DHC’s Board of Trustees considers many factors when setting or resetting DHC’s distribution rate, including DHC’s funds from operations and normalized funds from operations, cash available for distribution, requirements to maintain DHC’s qualification for taxation as a REIT, the then current and expected needs and availability of cash to pay DHC’s obligations and fund its investments, limitations in DHC’s debt agreements, the availability to DHC of debt and equity capital, DHC’s dividend yield and its dividend yield compared to the dividend yields of other REITs, DHC’s expectation of its future capital requirements and operating performance, DHC’s expected needs for and availability of cash to pay its obligations and other factors deemed relevant by DHC’s Board of Trustees in its discretion. Accordingly, future distributions to DHC’s shareholders may be increased or decreased and DHC cannot be sure as to the rate at which future distributions will be paid. You should not place undue reliance upon 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/20260708530400/en/ Contacts Bryan Maher, Senior Vice President(617) 796-8234

NEWTON, Mass., July 06, 2026--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced that it will issue a press release containing its second quarter 2026 financial results after the Nasdaq closes on Monday, August 3, 2026. On Tuesday, August 4, 2026 at 10:00 a.m. Eastern Time, President and Chief Executive Officer Chris Bilotto, Chief Financial Officer and Treasurer Matthew Brown and Vice President Anthony Paula will host a conference call to discuss these results. The conference call telephone number is (877) 329-4297. Participants calling from outside the United States and Canada should dial (412) 317-5435. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on Tuesday, August 11, 2026. To hear the replay, dial (855) 669-9658. The replay pass code is 4724843. A live audio webcast of the conference call will also be available in a listen-only mode on the company’s website, which is located at www.dhcreit.com. Participants wanting to access the webcast should visit the company’s website about five minutes before the call. The archived webcast will be available for replay on the company’s website after the call. 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 March 31, 2026, DHC’s approximately $6.2 billion portfolio included 285 properties in 33 states and Washington, D.C., with 23,901 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of March 31, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com. 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/20260706101738/en/ Contacts Bryan Maher, Senior Vice President(617) 796-8234

Interested in The RMR Group Inc.? Here are five stocks we like better. The RMR Group said fiscal Q2 2026 results came in at or above the high end of guidance, with distributable earnings of $0.44 per share and Adjusted EBITDA of $18.5 million. Management also said the company earned $23.6 million in incentive fees for 2025 and expects more incentive fees this year. RMR highlighted progress at its managed REITs, including stronger operating trends at Diversified Healthcare Trust, a major deleveraging move at Service Properties Trust, and better-than-expected results and refinancing at Industrial Logistics Properties Trust. Office Properties Income Trust also received court approval for its reorganization plan and is expected to emerge from bankruptcy by the end of the quarter. The company said its private capital platform has grown to nearly $12 billion in assets under management, even as fundraising remains challenged by geopolitical uncertainty. RMR also entered the Greenwich multifamily market with a roughly $350 million acquisition, and management guided for Q3 distributable earnings of $0.48 to $0.50 per share. The RMR Group (NASDAQ:RMR) reported fiscal second-quarter 2026 results at or above the high end of its outlook, as management highlighted incentive fees from managed REITs, ongoing private capital fundraising efforts and recent balance sheet investments. President and CEO Adam Portnoy said RMR generated distributable earnings of $0.44 per share and Adjusted EBITDA of $18.5 million for the quarter. He said the results came “despite operating in what remains an unsettled economic environment,” citing market volatility and geopolitical uncertainty. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% RMR earned $23.6 million of incentive fees for 2025, and Portnoy said the company is on track to earn incentive fees again this year, with both Diversified Healthcare Trust and Industrial Logistics Properties Trust accruing incentive fees during the quarter. Portnoy reviewed several developments across RMR’s managed REITs, saying the company has been active in executing clients’ strategic initiatives. → Light Speed Returns: Corning Cashes In on NVIDIA Growth At Diversified Healthcare Trust, or DHC, Portnoy said the company has focused on improving senior housing operating performance after transitioning 116 senior living communities to new operators in the second half of 2025. DHC generated first-quarter Normalized FFO of $33 million, or $0.14 per share, and Adjusted EBITDA of $74 million, both above analyst consensus estimates, according to Portnoy. Same-property NOI in the senior housing operating portfolio rose 13.5% year over year, while occupancy increased 110 basis points. DHC also sold 13 unencumbered non-core communities in March for gross proceeds of approximately $23 million. Portnoy said asset sales are expected to slow in 2026 after DHC completed about $605 million of sales in 2025, with management now focused on improving NOI in the retained portfolio. He also noted that Moody’s upgraded DHC’s debt ratings in April and revised its outlook to positive from stable. → Years in the Making, AMD’s Upside Movement Has Just Begun At Service Properties Trust, or SVC, Portnoy said RMR helped complete a $575 million equity offering that accelerated deleveraging, eliminated near-term refinancing risk and provided flexibility to improve hotel performance and pursue additional asset sales. RMR participated in the offering with a $50 million anchor investment. Portnoy said the proceeds allowed SVC to eliminate all unsecured debt maturities until 2028. For Industrial Logistics Properties Trust, or ILPT, Portnoy said first-quarter Normalized FFO of $0.33 per share and Adjusted EBITDA of $87 million exceeded the high end of management’s guidance. ILPT completed about 862,000 square feet of leasing during the quarter at rental rates 26% above prior rents. RMR also assisted ILPT with the refinancing of $1.6 billion of debt for its consolidated Mountain Joint Venture, replacing floating-rate and amortizing debt with interest-only fixed-rate debt at a 5.7% rate. Seven Hills Realty Trust originated three loans totaling $67.5 million during the quarter and generated distributable earnings of $0.24 per share, Portnoy said. Total loan commitments reached approximately $776 million, a record high for the portfolio. Portnoy also said Office Properties Income Trust, or OPI, received court approval for its plan of reorganization and is expected to emerge from bankruptcy by the end of the fiscal second quarter. He said RMR expects to continue managing OPI under previously disclosed terms, including a five-year term and a flat business management fee of $14 million per year for the first two years, while property management economics remain unchanged. Chief Operating Officer Matt Jordan said RMR’s private capital business has grown from “essentially zero” assets under management in 2020 to nearly $12 billion today. He said RMR is building brand awareness with global investors and has met with nearly 200 global investors representing almost $7 trillion in assets under management. Jordan said fundraising has been disrupted by the ongoing conflict in the Middle East, with global fundraising in the first quarter of 2026 down 50% from the prior year. However, he said North American real estate still attracted 65% of all dollars raised, and value-add strategies accounted for 56% of fundraising. RMR’s residential business now represents more than $4.7 billion in value-add residential real estate across 18,500 owned and managed units, Jordan said. In April, RMR closed on the acquisition of a multifamily portfolio in Greenwich, Connecticut, for almost $350 million. The transaction was sourced off-market and marks RMR’s entry into what Jordan described as one of the country’s most supply-constrained and affluent housing markets. RMR Residential will manage the properties and pursue a multiyear strategy to modernize communities, enhance the resident experience and improve efficiencies. The acquisition was completed through a joint venture in which RMR is a co-general partner and invested $6 million for a 5% ownership interest. Jordan said the remaining approximately $120 million of equity was raised from two institutional partners. RMR expects to recognize $600,000 of revenue from the transaction in fiscal Q3 and earn ongoing operating fees of about $750,000 annually. Jordan said the venture is expected to generate annual cash-on-cash returns of approximately 7.5% over the longer term, with potential carried interest as investment hurdles are met. Chief Financial Officer Matt Brown said recurring service revenues were $42 million in the quarter, down about $1 million sequentially, primarily due to hotel sales, lower enterprise values at SVC and DHC as those companies paid down debt, and the wind-down of AlerisLife’s business. Brown said RMR expects recurring service revenues to rise to about $44 million next quarter, driven by revenue from the Greenwich acquisition, higher construction management fees and enterprise value improvements at certain managed REITs. Recurring cash compensation was $37.7 million, up modestly from the prior quarter due to payroll tax and benefit resets, and is expected to remain consistent in fiscal Q3. Recurring general and administrative expense was $10.1 million, excluding $600,000 in annual director share grants, and is expected to remain around that level for the rest of the fiscal year. For fiscal Q3, Brown guided for Adjusted EBITDA of approximately $19 million to $21 million and distributable earnings of $0.48 to $0.50 per share. He said RMR will no longer provide guidance for adjusted net income because investments in leveraged real estate have reduced the metric’s usefulness due to depreciation and interest expense. Brown said RMR’s current liquidity is approximately $133 million, including $75 million of capacity on its revolving credit facility, after the $50 million SVC investment and the $6 million Greenwich joint venture investment. The SVC investment is expected to generate about $420,000 of incremental quarterly dividends. During the question-and-answer session, Portnoy said RMR’s multifamily investments are likely to remain private and continue to be structured through joint ventures and small portfolio investments. He said RMR is also trying to build a dedicated fund around the strategy, but he does not expect a transaction that would roll up the full $4.7 billion multifamily portfolio into a public vehicle. Portnoy said development and credit remain priorities, though development is difficult in the current market because of uncertainty and elevated required returns. He said Seven Hills has close to $500 million of capacity for new investments over the next year, supported by new capital and expected loan payoffs. Asked about RMR’s cash position, Portnoy said the company remains “all systems go” for the right opportunities, with more than $100 million of liquidity between cash and revolver capacity. He added that RMR is optimistic it could recover cash if it successfully syndicates its Enhanced Growth Venture tied to the multifamily strategy. Jordan said fundraising for equity remains challenging, with geopolitical volatility slowing conversations with investors. He said allocations to real estate remain in place over the long term, but fundraising cycles are taking longer. The RMR Group, Inc (NASDAQ: RMR) is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors. Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities. The article "The RMR Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

NEWTON, Mass., May 04, 2026--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter ended March 31, 2026, which can be found at the Quarterly Reports section of DHC's website at https://www.dhcreit.com/investors/financial-information/quarterly/default.aspx. A conference call to discuss DHC's first quarter 2026 financial results will be held on Tuesday, May 5, 2026 at 10:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 329-4297 or (412) 317-5435 (if calling from outside the United States and Canada); a pass code is not required. A replay will be available for one week by dialing (855) 669-9658; the replay pass code is 1482489. A live audio webcast of the conference call will also be available in a listen-only mode on DHC's website, at www.dhcreit.com. The archived webcast will be available for replay on DHC's website after the call. The transcription, recording and retransmission in any way of DHC's first quarter conference call are strictly prohibited without the prior written consent of DHC. 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 March 31, 2026, DHC’s approximately $6.2 billion portfolio included 285 properties in 33 states and Washington, D.C., with 23,901 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of March 31, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com. 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/20260504286881/en/ Contacts Bryan Maher, Senior Vice President (617) 796-8234

Operational outperformance: DHC reported Q1 Normalized FFO of $33.1M ($0.14/share) and Adjusted EBITDAre of $74M, both above consensus, with same-property SHOP NOI up 13.5% YoY as occupancy reached 82.4% and average monthly rates rose roughly 5.9%. Expense controls and new operator partnerships drove meaningful savings—dietary costs fell 370 basis points sequentially, contract labor was down nearly 35% YoY, and labor costs declined about 70 basis points sequentially—supporting margin expansion. Balance-sheet and capital priorities: liquidity totaled $272M (cash $122M, $150M revolver), net debt/Adjusted EBITDAre improved to 7.8x, Moody’s upgraded to B3 with a positive outlook and no maturities until 2028, management reaffirmed 2026 guidance and is focusing on accretive conversions (phase one ~$20M to add ~150 units) to target mid‑teen returns and a 6.5–7.5x leverage goal. Interested in Diversified Healthcare Trust? Here are five stocks we like better. Diversified Healthcare Trust (NASDAQ:DHC) reported first-quarter 2026 results that management said reflected improving operating performance following strategic changes made in its senior housing operating portfolio last year, alongside continued progress on balance sheet initiatives. President and CEO Christopher Bilotto said the company “delivered a strong first quarter” that highlighted the impact of “active asset management and the deep expertise of our expanded operating partners.” He said changes made within the company’s SHOP (senior housing operating portfolio) in 2025 continued to produce results, with a focus on “driving revenue, expense synergies, and overall margin improvement.” → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook DHC reported Normalized funds from operations (FFO) of $33.1 million, or $0.14 per share, and Adjusted EBITDAre of $74 million. Bilotto said both were “well ahead of the analyst consensus estimate.” Consolidated net operating income (NOI) rose 4.7% year over year to $75.9 million. The company’s same-property SHOP portfolio posted NOI of $44.3 million, up 13.5% year over year. Bilotto attributed the improvement to same-property occupancy growth of 110 basis points and average monthly rate growth of 5.9%. He also said same-property NOI margin expanded 160 basis points to 14.9%, with occupancy at 82.4%. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Bilotto said revenue gains were supported by an average annual rate increase of 4.5% across 70% of the SHOP portfolio in January, as well as “a favorable shift in resident levels of care.” On the cost side, he said DHC’s new operator partnerships were helping to drive savings, citing new dietary and food and beverage contracts that improved the resident experience while “locking in significant cost savings for the year.” He also said labor costs were moderating due to reduced contract labor and rightsizing of regional and community staffing. Vice President Anthony Paula provided additional detail on expense trends, noting that within the same-property SHOP portfolio the quarter included: A 370 basis point decrease in dietary costs sequentially, A 70 basis point sequential reduction in labor (adjusting for the number of days in the period), and A nearly 35% decrease in contract labor year over year. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Paula said same-property average monthly rate increased 590 basis points year over year and 320 basis points sequentially. He added that consolidated same-property cash basis NOI was $75.9 million, up 8.6% year over year and 7.8% sequentially, and that SHOP same-property NOI would have increased 22% year over year when adjusting for insurance proceeds received in the first quarter of 2025. In the Q&A, management discussed quarter-over-quarter flat SHOP occupancy. Bilotto said the result reflected both seasonality and the effects of operator transitions, adding that “given the fact that we can hold occupancy while we're going through a major transition across the entire portfolio, I think is a real win.” He said the company expected to focus on occupancy growth as it enters seasonally stronger periods, but did not provide specific second-quarter figures, noting April results were still being finalized. DHC also reported what Bilotto described as “solid results” in its medical office and life science portfolio. Same-property occupancy rose 60 basis points year over year to 95.3%, and NOI increased 3.7% from the prior year to $25.4 million, along with a 4.8% sequential increase. Leasing activity included 169,000 square feet of new and renewal leases at rents 12% above prior rents and a 9.5-year weighted average lease term, according to Bilotto. He said just over 9% of analyzed rental income in the segment is scheduled to expire through 2026, with 304,000 square feet—about 4.9% of annualized rental income—expected to vacate. He also noted that after quarter-end the company signed 390,000 square feet of leases, primarily renewals, representing 29% of its 2027 expirations. Bilotto said DHC is increasingly focused on selectively deploying capital into what he described as higher-return projects, including converting underutilized or closed skilled nursing wings into independent living, assisted living, or memory care. He said the company identified opportunities across 16 communities, with six communities in a first phase expected to cost about $20 million and add roughly 150 units. Bilotto said DHC currently absorbs carrying costs on the vacant wings, and the projects are expected to be “immediately accretive” upon completion, with expected returns “starting in the mid-teens.” On portfolio and balance sheet actions, Bilotto said DHC sold 13 unencumbered non-core SHOP communities in March for aggregate proceeds of $23 million. He also said the company exercised land lease purchase options on two properties in April for $14.5 million, and expects “low to mid-teen returns” from eliminating ground rent on those communities. Bilotto added that with its “large-scale capital recycling program now complete,” DHC has shifted from portfolio transformation “to value creation,” and he emphasized the company’s debt profile includes “no maturities until 2028.” Chief Financial Officer Matthew Brown said total liquidity at quarter-end was $272 million, including $122 million of cash and cash equivalents and $150 million available under a secured revolving credit facility. Net debt to annualized Adjusted EBITDAre was 7.8 times, down from 8.8 times a year ago, which Brown said was driven primarily by improved operating performance. Adjusted EBITDAre to interest expense improved to 2.0 times from 1.3 times a year earlier. Brown said DHC remained confident in reaching a near-term leverage target of 6.5–7.5 times, with most improvement expected from continued growth in SHOP NOI. Brown also noted that Moody’s upgraded DHC’s corporate family rating to B3 from Caa1 in April and revised its outlook to positive, citing progress in operations and balance sheet strengthening. He added that DHC has 197 unencumbered properties, representing nearly 64% of the portfolio’s gross book value. For full-year 2026, Brown said DHC reaffirmed guidance ranges previously outlined in its fourth-quarter earnings, including: $175 million–$185 million of SHOP NOI, $94 million–$98 million of medical office and life science segment NOI, $28 million–$30 million of NOI from triple net lease senior living communities and wellness centers, Adjusted EBITDAre of $290 million–$305 million, and Normalized FFO of $0.52–$0.58 per share. Paula said first-quarter general and administrative expense included $6.6 million of incentive management fees due to stock performance; excluding the incentive fee, G&A expense would have been $7.4 million. He also said DHC invested $21.8 million of capital during the quarter—$17.2 million in SHOP communities and $4.6 million in the medical office and life science portfolio—and reaffirmed 2026 recurring capital expenditure guidance of $100 million to $115 million, which he said represented an approximately 18% reduction at the midpoint. In response to analyst questions, management said recurring CapEx in SHOP includes both maintenance and some “refresh” capital, and indicated the per-unit maintenance run rate is expected to decline in future periods. Bilotto said new investment activity is expected to be “mostly the renovations” within the portfolio, rather than acquisitions, as the company prioritizes internal opportunities. Diversified Healthcare Trust is a real estate investment trust (REIT) specializing in the acquisition, ownership and management of healthcare properties across the United States. The company focuses on assets that serve the senior housing and post-acute care sectors, including skilled nursing facilities, assisted living communities, memory care centers and medical office buildings. By partnering with experienced operators, Diversified Healthcare Trust aims to generate stable, long-term cash flows through triple-net leases and percentage rent structures tailored to each property type. The company's portfolio spans multiple states and encompasses a mix of single-tenant and multi-tenant properties. The article "Diversified Healthcare Trust Q1 Earnings Call Highlights" was originally published by MarketBeat.