NASDAQ$DHC

Diversified Heal · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a net loss and Normalized FFO per share, with improvements in adjusted EBITDAre compared to the previous quarter. Progressed on transitioning senior living communities and maintained a strong Office Portfolio segment.

Diversified Healthcare Trust announced its Q2 2021 financial results, reporting a net loss attributable to common shareholders of $0.14 per share and normalized FFO of $0.05 per share. The company is transitioning senior living communities to new managers and experienced high leasing activity in its Office Portfolio segment.

  • Net loss attributable to common shareholders was $0.14 per share.
  • Normalized FFO attributable to common shareholders was $0.05 per share.
  • Agreements executed with four new managers for approximately 70% of the senior living communities to be transitioned.
  • Completed approximately 632,000 square feet of new and renewal leases at GAAP rents that were 5.9% higher than prior rents for the same space in the office portfolio.

Headline financials

Total Revenue

$346M

Previous: $410M-15.6%
EPS (adj)

$0.05

Previous: $0.24-79.2%
Capital Expenditures

-$83.5M

Previous: -$74.3M-12.4%
Free Cash Flow

-$118M

Previous: -$100M-17.3%
Net Income

-$34.2M

Previous: -$26.1M-31.3%
Operating Income

-$274M

Previous: -$309M+11.5%
Gross Profit

$81.7M

Previous: $108M-24.6%
Cash & Equivalents

$849M

Previous: $78.5M+981.8%
Total Assets

$7.18B

Previous: $6.6B+8.8%

Revenue & EPS history

Diversified Heal · Revenue · Quarterly

$346M

Q2 2021-15.6%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Diversified Heal · $268M total across 1 segment · Q4 2022

  • SHOP
    $268M+14.2%

Forward guidance

Forward-looking statements involve risks and uncertainties, and actual results may differ materially. DHC's operating results and financial condition may be adversely impacted by current economic conditions, and DHC may fail to comply with the terms of the waiver and other requirements under its credit agreement.

Tailwinds

  • Significant progress on plan to transition 108 senior living communities to new managers.
  • Office Portfolio segment remains strong, with leasing activity at the highest level in DHC's history.
  • Completed approximately 632,000 square feet of new and renewal leases at GAAP rents that were 5.9% higher.
  • Investments being made in SHOP and Office portfolios.
  • Fundamental tailwinds and the aging U.S. population bode well for future performance.

Headwinds

  • Senior living communities may not achieve similar or better results of operations with the new managers.
  • May be unable to identify new managers for the 32 remaining senior living communities.
  • Leasing activity depends on various factors and may decline.
  • May not realize the benefits expected from portfolio investments and positive industry trends may not continue.
  • May fail to comply with the terms of the waiver and other requirements under its credit agreement.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.9%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+7.8%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+51.0%

Q4 2022

Best reaction

-18.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+7.8%+8.9%
Q4 2025-2.3%+9.9%+11.7%
Q3 2025+5.5%+4.9%+12.9%
Q1 2025+30.7%+38.5%+50.5%
Q4 2024+8.6%+12.2%+0.8%
Q3 2024-18.4%-24.2%-25.9%
Q2 2024-2.7%-5.7%+4.2%
Q1 2024-11.8%-13.4%+13.7%
Q4 2023+8.4%+8.8%-18.6%
Q3 2023+7.2%+7.7%+28.0%
Q2 2023+12.0%+29.2%+30.1%
Q1 2023+0.6%+0.0%+163.6%
Q4 2022+51.0%+82.7%+37.8%
Q3 2022-13.2%-5.9%-27.2%
Q2 2022+1.2%+9.9%-16.3%
Q1 2022+6.9%+0.0%-1.8%
Q4 2021-4.5%-7.1%-2.6%
Q3 2021-10.3%-7.1%-29.7%
Q2 2021+1.8%+1.3%-3.1%
Q1 2021-7.1%-6.4%-13.9%
Q4 2020+0.9%+1.5%+6.7%
Q3 2020-6.3%+27.0%+49.5%
Q2 2020+6.9%+3.8%-5.5%
Q1 2020+8.7%-2.0%+104.7%
Q4 2019+6.7%-0.3%-52.9%
Q3 2019-8.7%-14.8%-16.0%
Q2 2019+6.7%+8.2%+3.8%
Q1 2019+2.3%+2.3%+1.5%
Q4 2018-8.2%-8.6%-9.0%
Q3 2018-2.7%-0.2%-15.9%
Q2 2018+0.9%-2.6%+3.6%
Q1 2018+2.0%+1.7%+9.5%
Q4 2017-4.3%-2.8%-1.0%
Q3 2017+1.1%+1.9%+0.4%
Q2 2017-1.8%-1.1%+2.9%
Q1 2017-1.1%-0.5%+3.2%
Q4 2016+1.5%+1.6%+0.7%
Q3 2016-1.8%-5.6%-8.1%
Q2 2016-2.4%-1.1%+2.7%
Q1 2016+2.4%
Q4 2015+0.4%
Q3 2015-2.4%
Q2 2015-1.2%
Q1 2015-1.0%
Q4 2014-0.4%
Q3 2014-1.5%
Q2 2014-1.5%
Q1 2014-0.7%
Q4 2013+4.3%
Q3 2013-1.2%
Q2 2013-4.7%
Q1 2013-0.6%
Q4 2012+0.9%
Q3 2012+1.5%
Q2 2012-0.8%
Q1 2012+0.1%
Q4 2011-1.3%
Q4 2010-1.3%
Q3 2011-2.9%
Q2 2011+0.6%
Q1 2010-2.5%
Q1 2011-0.1%
Q4 2008+4.0%
Q3 2010+1.7%
Q3 2009+1.7%
Q2 2010+1.3%
Q2 2009+1.3%
Q4 2009+1.3%

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