Diversified Healthcare Trust Q1 FY2026 earnings call

• DHC delivered strong first quarter with normalized FFO of $33.1 million, or 14 cents per share, and adjusted EBITDA RE of $74 million, both ahead of analyst consensus. • Same-property shop portfolio benefited from active asset management, occupancy growth, and rate growth, with margin expansion due to revenue and expense progress. • Focus on deploying capital into high return ROI projects, repositioning underutilized skilled nursing weeks into other living types across 16 communities, six in first phase costing ~$20 million adding ~150 units. • Medical office and life science portfolio had healthy leasing activity. • Sold 13 unencumbered non-core shop communities for $23 million in March and exercised land lease purchase options on two properties for $14.5 million in April.

Consolidated NOI increased 4.7% year-over-year to $75.9 million. Same-property shop portfolio delivered a robust 13.5% increase in NOI year-over-year, reaching $44.3 million, driven by same-property occupancy growth of 110 basis points and average monthly rate growth of 5.9%. Same-property cash basis NOI was $75.9 million, representing an 8.6% increase year-over-year and a 7.8% increase sequentially. Medical office and life science portfolio had same property occupancy increase 60 basis points year over year to 95.3%, generating $25.4 million of NOI, a 3.7% increase over last year, and a 4.8% increase sequentially. Leasing activity was healthy with 169,000 square feet of new and renewal leasing at rents 12% above prior rents with a 9.5-year weighted average lease term.

• Reaffirming 2026 ranges: $175 to $185 million of shop NOI, $94 to $98 million of medical office and life science segment NOI, $28 to $30 million of NOI from triple net lease senior living communities and wellness centers, adjusted EBITDA RE of $290 to $305 million, and normalized FFO of 52 to 58 cents per share. • Reaffirming 2026 recurring CapEx guidance of $100 to $115 million, representing ~18% reduction at midpoint. • First quarter results show Shop NOI tracking ahead of initial expectations.

Q: Michael Carroll with RBC Capital Markets asked about recurring CapEx expectations, maintenance CapEx run rate, investment opportunities, GNA number.

A: Chris and Anthony responded about recurring CapEx including maintenance and refresh, investment mostly in renovations, GNA volatility tied to share price.

Q: John Masaka with B. Riley asked about one-time items, Alaris property transition, shop occupancy, shop NOI growth, CapEx flow through.

A: Anthony and Chris answered about no major one-time items, smooth Alaris transitions, occupancy affected by seasonality and operator transitions, shop NOI growth expectations, CapEx flow through timelines