Diversified Healthcare Trust Provides Monthly SHOP Performance Update

Sep 25, 2023

Diversified Healthcare Trust (Nasdaq: DHC) today provided an update regarding the recent performance of its Senior Housing Operating Portfolio, or SHOP, segment.

Monthly Unaudited Results in DHC’s Total SHOP Comparable Properties:

August 2023 occupancy was 79.3%, 720 basis points below August 2019, and 30 basis points above July 2023.
August 2023 Resident Fees and Services revenue was $94.8 million, $7.8 million, or 7.6%, below August 2019, and $0.8 million, or 0.8%, above July 2023.
August 2023 net operating income, or NOI, was $5.3 million, $10.5 million, or 66.5%, below August 2019, and $0.6 million, or 10.4%, below July 2023.
August 2023 NOI margin was 5.6%, 980 basis points below August 2019, and 70 basis points below July 2023.

Year to Date Unaudited Results in DHC’s Total SHOP Comparable Properties:

Year to date occupancy through August 31, 2023, was 78.1%, 840 basis points below the same period in 2019.
Year to date Resident Fees and Services revenue through August 31, 2023, was $737.8 million, $82.2 million, or 10.0%, below the same period in 2019.
Year to date NOI through August 31, 2023, was $50.3 million, $93.5 million, or 65.0%, below the same period in 2019.
Year to date NOI margin through August 31, 2023, was 6.8%, 1,070 basis points below the same period in 2019.

Diversified Healthcare Trust⁽¹⁾(dollars in thousands, except average monthly rate)

		2023
COMPARABLE ⁽²⁾		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	YTD
*ALR/Five Star Managed Communities*
	Number of Properties	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
	Occupancy	78.0%	77.9%	78.5%	78.7%	78.8%	79.3%	79.5%	79.9%	78.8%
	Average Monthly Rate	$ 4,278	$ 4,907	$ 4,384	$ 4,541	$ 4,417	$ 4,549	$ 4,405	$ 4,411	$ 4,480

	Residents Fees and Services	$58,695	$60,666	$60,434	$60,769	$61,178	$61,309	$61,524	$61,831	$486,406
	Property Operating Expenses	(52,606)	(51,786)	(54,777)	(50,892)	(54,500)	(54,324)	(55,532)	(55,526)	(429,943)
	NOI ⁽³⁾	$ 6,089	$ 8,880	$ 5,657	$ 9,877	$ 6,678	$ 6,985	$ 5,992	$ 6,305	$ 56,463
	NOI Margin	10.4%	14.6%	9.4%	16.3%	10.9%	11.4%	9.7%	10.2%	11.6%
*Other Operator Managed Communities*
	Number of Properties	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
	Occupancy	74.2%	75.9%	76.2%	76.6%	76.3%	77.2%	77.6%	77.8%	76.5%
	Average Monthly Rate	$ 5,665	$ 5,944	$ 5,662	$ 5,668	$ 5,566	$ 5,749	$ 5,675	$ 5,723	$ 5,704

	Residents Fees and Services	$30,788	$29,808	$31,504	$30,938	$31,303	$31,664	$32,461	$32,933	$251,399
	Property Operating Expenses	(33,025)	(30,118)	(32,590)	(31,725)	(32,096)	(31,472)	(32,549)	(33,946)	(257,521)
	NOI ⁽³⁾	$ (2,237)	$ (310)	$ (1,086)	$ (787)	$ (793)	$ 192	$ (88)	$ (1,013)	$ (6,122)
	NOI Margin	(7.3)%	(1.0)%	(3.4)%	(2.5)%	(2.5)%	0.6%	(0.3)%	(3.1)%	(2.4)%
*Total SHOP Comparable*
	Number of Properties	223	223	223	223	223	223	223	223	223
	Number of Units	24,125	24,125	24,125	24,125	24,125	24,125	24,125	24,125	24,125
	Occupancy	76.9%	77.3%	77.8%	78.1%	78.1%	78.7%	79.0%	79.3%	78.1%
	Average Monthly Rate	$ 4,671	$ 5,206	$ 4,751	$ 4,868	$ 4,749	$ 4,897	$ 4,774	$ 4,793	$ 4,833

	Residents Fees and Services	$89,483	$90,474	$91,938	$91,707	$92,481	$92,973	$93,985	$94,764	$737,805
	Property Operating Expenses	(85,631)	(81,904)	(87,367)	(82,617)	(86,596)	(85,796)	(88,081)	(89,472)	(687,464)
	NOI ⁽³⁾	$ 3,852	$ 8,570	$ 4,571	$ 9,090	$ 5,885	$ 7,177	$ 5,904	$ 5,292	$ 50,341
	NOI Margin	4.3%	9.5%	5.0%	9.9%	6.4%	7.7%	6.3%	5.6%	6.8%

		2019 Pro Forma ⁽⁴⁾
COMPARABLE ⁽²⁾		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	YTD
*ALR/Five Star Managed Communities*
	Number of Properties	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
	Occupancy	88.0%	88.0%	88.0%	88.0%	87.9%	88.0%	87.9%	87.9%	87.9%
	Average Monthly Rate	$ 4,709	$ 5,099	$ 4,723	$ 4,833	$ 4,703	$ 4,834	$ 4,695	$ 4,695	$ 4,782

	Residents Fees and Services	$ 72,761	$ 71,079	$ 72,954	$ 72,277	$ 72,562	$ 72,250	$ 72,451	$ 72,447	$578,781
	Property Operating Expenses	(57,168)	(53,411)	(59,496)	(56,989)	(58,708)	(56,515)	(60,161)	(59,247)	(461,695)
	NOI ⁽³⁾	$ 15,593	$ 17,668	$ 13,458	$ 15,288	$ 13,854	$ 15,735	$ 12,290	$ 13,200	$117,086
	NOI Margin	21.4%	24.9%	18.4%	21.2%	19.1%	21.8%	17.0%	18.2%	20.2%
*Other Operator Managed Communities*
	Number of Properties	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
	Occupancy	82.5%	82.6%	82.6%	82.6%	82.5%	82.6%	82.7%	82.6%	82.6%
	Average Monthly Rate	$ 5,889	$ 6,344	$ 5,929	$ 6,041	$ 5,896	$ 6,011	$ 5,889	$ 5,855	$ 5,977

	Residents Fees and Services	$ 30,304	$ 29,501	$ 30,539	$ 30,100	$ 30,336	$ 29,956	$ 30,355	$ 30,158	$241,249
	Property Operating Expenses	(26,798)	(24,627)	(27,785)	(26,329)	(27,284)	(26,260)	(27,853)	(27,539)	(214,475)
	NOI ⁽³⁾	$ 3,506	$ 4,874	$ 2,754	$ 3,771	$ 3,052	$ 3,696	$ 2,502	$ 2,619	$ 26,774
	NOI Margin	11.6%	16.5%	9.0%	12.5%	10.1%	12.3%	8.2%	8.7%	11.1%
*Total SHOP Comparable*
	Number of Properties	223	223	223	223	223	223	223	223	223
	Number of Units	24,125	24,125	24,125	24,125	24,125	24,125	24,125	24,125	24,125
	Occupancy	86.6%	86.6%	86.6%	86.6%	86.5%	86.5%	86.5%	86.5%	86.5%
	Average Monthly Rate	$ 5,004	$ 5,410	$ 5,024	$ 5,135	$ 5,001

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