(DHC) Diversified Healthcare Trust - Overview
Sector: Real Estate | Industry: REIT - Healthcare Facilities | Exchange: NASDAQ (USA) | Market Cap: 2.085m USD | Total Return: 165.5% in 12m
Avg Turnover: 12.9M
Qual. Beats: 0
Rev. Trend: 94.8%
Qual. Beats: -2
Warnings
High Debt/EBITDA (14.9) with thin interest coverage (-0.4)
High Debt while negative Cash Flow
Interest Coverage Ratio -0.4 is critical
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Altman Z'' -3.44 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind, Pullback 52w
Diversified Healthcare Trust (DHC) is a Real Estate Investment Trust (REIT) managing a $6.7 billion portfolio of 335 properties across 34 states and Washington, D.C. The company specializes in senior living units, medical office buildings, and life science facilities. Externally managed by The RMR Group, DHC focuses on geographic and clinical diversification to mitigate risks associated with specific healthcare sub-sectors.
The healthcare REIT sector typically relies on long-term triple-net leases or operating agreements, benefiting from the demographic tailwinds of an aging U.S. population. Life science properties within this model require specialized laboratory infrastructure, which often commands higher rent premiums and results in higher tenant retention compared to traditional office space. Investors should evaluate the companys detailed valuation metrics on ValueRay to better understand its market positioning.
Headquartered in Newton, MA, and incorporated in 1998, DHC maintains a diversified tenant base of approximately 420 entities. The portfolio includes over 26,000 senior living units and 6.9 million square feet of clinical and research space, integrating essential care delivery sites with scientific innovation hubs.
- Senior housing occupancy rates and labor costs dictate core property net operating income
- Life science and medical office rental demand stabilizes long term portfolio cash flows
- High leverage and debt maturity profiles impact interest expense and dividend capacity
- RMR Group management fee structure and operational decisions influence shareholder capital allocation
- Federal reimbursement policy changes for senior living tenants affect underlying tenant rent coverage
| Net Income: -320.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA 0.98 > 1.0 |
| NWC/Revenue: 7.95% < 20% (prev 28.41%; Δ -20.46% < -1%) |
| CFO/TA -0.00 > 3% & CFO -8.03m > Net Income -320.2m |
| Net Debt (2.42b) to EBITDA (163.1m): 14.86 < 3 |
| Current Ratio: 113.2 > 1.5 & < 3 |
| Outstanding Shares: last quarter (240.7m) vs 12m ago 0.31% < -2% |
| Gross Margin: 2.11% > 18% (prev 0.18%; Δ 193.6% > 0.5%) |
| Asset Turnover: 32.76% > 50% (prev 30.26%; Δ 2.51% > 0%) |
| Interest Coverage Ratio: -0.40 > 6 (EBITDA TTM 163.1m / Interest Expense TTM 232.6m) |
| A: 0.03 (Total Current Assets 121.8m - Total Current Liabilities 1.08m) / Total Assets 4.27b |
| B: -0.70 (Retained Earnings -3.01b / Total Assets 4.27b) |
| C: -0.02 (EBIT TTM -93.4m / Avg Total Assets 4.63b) |
| D: -1.13 (Book Value of Equity -3.00b / Total Liabilities 2.65b) |
| Altman-Z'' = -3.44 = D |
| DSRI: 0.94 (Receivables 66.1m/69.9m, Revenue 1.52b/1.51b) |
| GMI: 8.33 (GM 2.11% / 17.59%) |
| AQI: 18.22 (AQ_t 0.97 / AQ_t-1 0.05) |
| SGI: 1.00 (Revenue 1.52b / 1.51b) |
| TATA: -0.07 (NI -320.2m - CFO -8.03m) / TA 4.27b) |
| Beneish M = 13.71 (Cap -4..+1) = D |
As of June 02, 2026, the stock is trading at USD 8.21 with a total of 1,594,915 shares traded.
Over the past week, the price has changed by -6.52%,
over one month by +10.34%,
over three months by +15.07% and
over the past year by +165.49%.
Diversified Healthcare Trust has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold DHC.
- StrongBuy: 1
- Buy: 0
- Hold: 1
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 8.5 | 3.3% |
P/E Forward = 16.6389
P/S = 1.3737
P/B = 1.3178
P/EG = 1.8917
Revenue TTM = 1.52b USD
EBIT TTM = -93.4m USD
EBITDA TTM = 163.1m USD
Long Term Debt = 2.40b USD (from longTermDebt, last quarter)
Short Term Debt = 1.08m USD (from shortTermDebt, last quarter)
Debt = 2.55b USD (from shortLongTermDebtTotal, last quarter) + Leases 127.8m
Net Debt = 2.42b USD (calculated: Debt 2.55b - CCE 121.8m)
Enterprise Value = 4.51b USD (2.08b + Debt 2.55b - CCE 121.8m)
Interest Coverage Ratio = -0.40 (Ebit TTM -93.4m / Interest Expense TTM 232.6m)
EV/FCF = -33.92x (Enterprise Value 4.51b / FCF TTM -132.9m)
FCF Yield = -2.95% (FCF TTM -132.9m / Enterprise Value 4.51b)
FCF Margin = -8.76% (FCF TTM -132.9m / Revenue TTM 1.52b)
Net Margin = -21.10% (Net Income TTM -320.2m / Revenue TTM 1.52b)
Gross Margin = 2.11% ((Revenue TTM 1.52b - Cost of Revenue TTM 1.49b) / Revenue TTM)
Gross Margin QoQ = -13.62% (prev -13.57%)
Tobins Q-Ratio = 1.06 (Enterprise Value 4.51b / Total Assets 4.27b)
Interest Expense / Debt = 9.14% (Interest Expense 232.6m / Debt 2.55b)
Taxrate = 21.0% (US default 21%)
NOPAT = -73.8m (EBIT -93.4m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 4.16 (Total Current Assets 121.8m / Total Current Liabilities 29.3m)
Debt / Equity = 1.57 (Debt 2.55b / totalStockholderEquity, last quarter 1.62b)
Debt / EBITDA = 14.86 (Net Debt 2.42b / EBITDA 163.1m)
Debt / FCF = -18.24 (negative FCF - burning cash) (Net Debt 2.42b / FCF TTM -132.9m)
Total Stockholder Equity = 1.71b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.91% (Net Income -320.2m / Total Assets 4.27b)
RoE = -6.79% (Net Income TTM -320.2m / Total Stockholder Equity 4.71b)
RoCE = -1.31% (EBIT -93.4m / Capital Employed (Equity 4.71b + L.T.Debt 2.40b))
RoIC = -1.78% (negative operating profit) (NOPAT -73.8m / Invested Capital 4.15b)
WACC = 7.68% (E(2.08b)/V(4.63b) * Re(8.25%) + D(2.55b)/V(4.63b) * Rd(9.14%) * (1-Tc(0.21)))
Discount Rate = 8.25% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 0.28%
[DCF] Fair Price = unknown (Cash Flow -132.9m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.39 | # QB: 0
Revenue Correlation: 94.80 | Revenue CAGR: 4.62% | SUE: -1.92 | # QB: -2
EPS current Quarter (2026-06-30): EPS=-0.16 | Chg30d=-14.29% | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.16 | Chg30d=-14.29% | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=-0.55 | Chg30d=+0.00% | Revisions=N/A | GrowthEPS=+0.0% | GrowthRev=-3.4%
EPS next Year (2027-12-31): EPS=-0.47 | Chg30d=-8.14% | Revisions=N/A | GrowthEPS=+15.4% | GrowthRev=+9.4%