DHCNL

• AlerisLife management contract transition: 21 of 116 communities transitioned by quarter end, 85 by call date, tracking all 116 to transition by year-end, expecting $25M to $40M net proceeds on wind down in 2026. New operating agreements have 10-year terms with performance-based incentives. - SHOP performance: Occupancy increased 210 basis points y-o-y to 81.5%, RevPOR rose 5.3%, expensePOR up 5.1%, resulting in 6.9% y-o-y revenue growth and 7.8% increase in consolidated SHOP NOI to $29.6M. - Medical Office and Life Science: Completed ~86,000 sq ft leasing, consolidated occupancy 86.6%, same-property cash basis NOI up 1.6% y-o-y. - Capital markets and balance sheet: Seaport Innovation joint venture refinanced Vertex HQ, $375M senior secured notes issued, no debt maturities until 2028, sold 44 properties YTD for $396M, under agreements/LOI to sell 38 properties for $237M, tracking close on 25 in Q4 for $211M with remaining in Q1 2026.

• Maintained full year SHOP NOI guidance range of $132 million to $142 million. - 2025 CapEx guidance reaffirmed at $140 million to $160 million. - Full year 2025 adjusted EBITDAre range $275 million to $285 million, trending towards positive cash flow as SHOP stabilizes and leverage declines. - Expect $1.5M to $2M operator transition OpEx impact in 4Q '25.

Total revenue for the quarter was $388.7 million, an increase of 4% year-over-year. Adjusted EBITDAre was $62.9 million and normalized FFO was $9.7 million or $0.04 per share. For the SHOP segment, same-property cash basis NOI was $62.6 million, with same-property occupancy increasing 140 basis points year-over-year and 100 basis points sequentially, and same-property SHOP average monthly rate up 5.3% year-over-year and 60 basis points sequentially. For the Medical Office and Life Science portfolio, approximately 86,000 square feet of leasing was completed at weighted average rents 9% above prior rents for the same space with an average term of nearly 7 years, consolidated occupancy increased 370 basis points sequentially to 86.6%, and same-property cash basis NOI increased 1.6% year-over-year with margins improving 100 basis points to 58.9%.

• Temporary labor costs from operator transitions could impact NOI. - Timing of noncore asset sales closing could affect cash flow and debt repayment. - Uncertainty around full impact of operator transitions on top-line revenue remains.

Q: Maybe looking towards 4Q '25 and in light of the unchanged GAAP NOI guidance, what impact are you expecting from operator transition OpEx costs in 4Q, especially relative to what you experienced in 3Q?

A: As noted, ~$5.1M of costs in 3Q related to transitions, with majority of communities now transitioned, expecting ~$1.5M to $2M impact in 4Q.

Q: In the prepared remarks, you mentioned you had 10.1% margin ex the transition labor compensation expense. Was that a same-store number? Or was that just for the consolidated portfolio?

A: That's a consolidated number.

Q: Continuing with kind of the operator transition costs, is that something that was kind of contemplated when you put out guidance -- your adjusted guidance in October or even earlier this year? And maybe kind of why -- I understand there are other parties involved but why now for the transition from the AlerisLife assets to third-party operators?

A: With respect to guidance, hadn't necessarily contemplated specific interruption or quantified that with AlerisLife management contracts. Opportunity to meet needs and go through process. Aleris-managed communities outperformed, strategic decision by AlerisLife to wind down, benefit for DHC including diversification of operators.

Q: Sticking with the SHOP portfolio, I know you kind of gave the updated guidance on the NOI. But are you still expecting occupancy to be in the 82% to 83% range by year-end?

A: Yes.

Q: And then any kind of, I guess, maybe pull on the revenue side you've seen from the transition, just any kind of temporary disruption there? Or has that largely been unaffected by these operator transitions?

A: Difficult to quantify top line disruption, but expense side impacted. Transitions largely through October, all but a handful wrapping up mid-November, which will remove transition noise.

Q: Anything else to call out on the SHOP operating expense side that was maybe unrelated to these transitions that increased in the quarter versus in 2Q or 1Q?

A: Major headline was ~$5.1M elevated comp costs, with ~$2.5M sequential increase in utilities expected as highlighted in Q2.

Q: Switching gears to the disposition activity. Can you maybe provide a little more color on the items in the pipeline today? How close are those to closing? Do you expect that entire pipeline to close by year-end? And I guess maybe what are the variables that could cause some of those to slip into 2026 or maybe fall out of the pipeline, if at all?

A: Expect small portion of dispositions to close in Q1 2026, primarily SHOP side. ~$200M expected to close in balance of 2025, risk minimal, with some SHOP communities in portfolio transactions.

Q: With the disposition activity as it seems to be closing, is there any potential to pay down additional debt with disposition activity completed in '25 beyond those -- that debt maturing in 2026? Or is that more likely to stay as kind of dry powder to deal with whatever comes next in 2026?

A: Better off leaving debt on balance sheet as dry powder, next debt maturity in 2028 at 4.75% interest rate.