Diversified Healthcare Trust (Nasdaq: DHC) today provided an update regarding the recent performance of its Senior Housing Operating Portfolio, or SHOP, segment.
Jennifer Francis, DHC’s President and Chief Executive Officer made the following statement:
“DHC’s July 2023 SHOP segment operating performance is slightly below June 2023 but well below 2019 levels. We expect higher expenses will continue to weigh on financial results in the near term. As a result, the outlook for SHOP for the second half of the year remains highly uncertain and unpredictable and we continue to believe that the previously announced merger with Office Properties Income Trust is the best path forward for DHC and its shareholders.”
Monthly Unaudited Results in DHC’s Total SHOP Comparable Properties:
- July 2023 occupancy was 79.0%, 750 basis points below July 2019, and 30 basis points above June 2023.
- July 2023 Resident Fees and Services revenue was $94.0 million, $8.8 million, or 8.6%, below July 2019, and $1.0 million, or 1.1%, above June 2023.
- July 2023 net operating income, or NOI, was $5.9 million, $8.9 million, or 60.1%, below July 2019, and $1.3 million, or 17.7%, below July 2023.
- July 2023 NOI margin was 6.3%, 810 basis points below July 2019, and 140 basis points below June 2023.
Year to Date Unaudited Results in DHC’s Total SHOP Comparable Properties:
- Year to date occupancy through July 31, 2023, was 78.0%, 850 basis points below the same period in 2019.
- Year to date Resident Fees and Services revenue through July 31, 2023, was $643.0 million, $74.4 million, or 10.4%, below the same period in 2019.
- Year to date NOI through July 31, 2023, was $45.0 million, $83.0 million, or 64.8%, below the same period in 2019.
- Year to date NOI margin through July 31, 2023, was 7.0%, 1,080 basis points below the same period in 2019.
Diversified Healthcare Trust(1)
(dollars in thousands, except average monthly rate)
2019 Pro Forma (2) | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
| COMPARABLE (3) | Jan | Feb | Mar | Apr | May | Jun | Jul | YTD | Jan | Feb | Mar | Apr | May | Jun | Jul | YTD | |||||||||||||||||||||||||||||||||
| ALR/Five Star Managed Communities | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of Properties | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | 117 | |||||||||||||||||||||||||||||||||
Number of Units | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | 16,995 | |||||||||||||||||||||||||||||||||
Occupancy | 88.0 | % | 88.0 | % | 88.0 | % | 88.0 | % | 87.9 | % | 88.0 | % | 87.9 | % | 87.9 | % | 78.0 | % | 77.9 | % | 78.5 | % | 78.7 | % | 78.8 | % | 79.3 | % | 79.5 | % | 78.7 | % | |||||||||||||||||
Average Monthly Rate | $ | 4,709 | $ | 5,099 | $ | 4,723 | $ | 4,833 | $ | 4,703 | $ | 4,834 | $ | 4,695 | $ | 4,795 | $ | 4,278 | $ | 4,907 | $ | 4,384 | $ | 4,541 | $ | 4,417 | $ | 4,549 | $ | 4,405 | $ | 4,491 | |||||||||||||||||
Residents Fees and Services | $ | 72,761 | $ | 71,079 | $ | 72,954 | $ | 72,277 | $ | 72,562 | $ | 72,250 | $ | 72,451 | $ | 506,334 | $ | 58,695 | $ | 60,666 | $ | 60,434 | $ | 60,769 | $ | 61,178 | $ | 61,309 | $ | 61,524 | $ | 424,575 | |||||||||||||||||
Property Operating Expenses | (57,168 | ) | (53,411 | ) | (59,496 | ) | (56,989 | ) | (58,708 | ) | (56,515 | ) | (60,161 | ) | (402,448 | ) | (52,606 | ) | (51,786 | ) | (54,777 | ) | (50,892 | ) | (54,500 | ) | (54,324 | ) | (55,532 | ) | (374,417 | ) | |||||||||||||||||
NOI (4) | $ | 15,593 | $ | 17,668 | $ | 13,458 | $ | 15,288 | $ | 13,854 | $ | 15,735 | $ | 12,290 | $ | 103,886 | $ | 6,089 | $ | 8,880 | $ | 5,657 | $ | 9,877 | $ | 6,678 | $ | 6,985 | $ | 5,992 | $ | 50,158 | |||||||||||||||||
NOI Margin | 21.4 | % | 24.9 | % | 18.4 | % | 21.2 | % | 19.1 | % | 21.8 | % | 17.0 | % | 20.5 | % | 10.4 | % | 14.6 | % | 9.4 | % | 16.3 | % | 10.9 | % | 11.4 | % | 9.7 | % | 11.8 | % | |||||||||||||||||
Other Operator Managed Communities | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of Properties | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | 106 | |||||||||||||||||||||||||||||||||
Number of Units | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | 7,130 | |||||||||||||||||||||||||||||||||
Occupancy | 82.5 | % | 82.6 | % | 82.6 | % | 82.6 | % | 82.5 | % | 82.6 | % | 82.7 | % | 82.6 | % | 74.2 | % | 75.9 | % | 76.2 | % | 76.6 | % | 76.3 | % | 77.2 | % | 77.6 | % | 76.3 | % | |||||||||||||||||
Average Monthly Rate | $ | 5,889 | $ | 6,344 | $ | 5,929 | $ | 6,041 | $ | 5,896 | $ | 6,011 | $ | 5,889 | $ | 5,995 | $ | 5,665 | $ | 5,944 | $ | 5,662 | $ | 5,668 | $ | 5,566 | $ | 5,749 | $ | 5,675 | $ | 5,701 | |||||||||||||||||
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