NASDAQ$DHC

Diversified Heal · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced third quarter results with a net loss attributable to common shareholders of $0.45 per share and normalized FFO attributable to common shareholders of $0.06 per share.

Diversified Healthcare Trust announced its third quarter 2020 results, which were materially impacted by COVID-19. The company reported a net loss attributable to common shareholders of $106.9 million, or $0.45 per share, and Normalized FFO attributable to common shareholders of $13.2 million, or $0.06 per share.

  • Net loss attributable to common shareholders was $106.9 million, or $0.45 per share.
  • Normalized FFO attributable to common shareholders were $13.2 million, or $0.06 per share.
  • Same property Cash Basis NOI decreased 32.1% compared to the 2019 period.
  • Entered into new and renewal leases for an aggregate of 201,721 rentable square feet at weighted average rents that were 4.1% higher than prior rents for the same space.

Headline financials

Total Revenue

$394M

Previous: $256M+54.1%
EPS (adj)

$0.06

Previous: $0.29-79.3%
Capital Expenditures

-$121M

Previous: $0.00
Free Cash Flow

-$228M

Previous: -$29.4M-674.3%
Net Income

-$107M

Previous: -$29.4M-263.7%
Operating Income

-$323M

Previous: -$135M-139.5%
Gross Profit

$78.7M

Previous: $131M-39.8%
Cash & Equivalents

$82.2M

Previous: $49.5M+66.3%
Total Assets

$6.54B

Previous: $6.92B-5.5%

Revenue & EPS history

Diversified Heal · Revenue · Quarterly

$394M

Q3 2020+54.1%vs Q3 2019
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

The senior living industry continues to experience significant challenges as a result of the COVID-19 pandemic, which is expected to continue to negatively impact near-term senior living results. The company believes that it is strengthened by the diversity of its portfolio, and that healthcare real estate will benefit from the aging U.S. population in the long term.

Tailwinds

  • Stability of medical office and life sciences portfolio.
  • Steps taken earlier in the year to enhance liquidity put the company in a strong position to withstand the effect of the pandemic.
  • Strengthened by the diversity of the portfolio.
  • Healthcare real estate will benefit from the aging U.S. population in the long term.
  • New 10-year lease at a rental rate that is approximately 20% higher than the prior rental rate for the same space for one of DHC's Torrey Pines buildings located in San Diego, CA that is currently undergoing redevelopment.

Headwinds

  • Significant challenges in the senior living industry due to the COVID-19 pandemic.
  • Continued occupancy declines in senior living communities.
  • Sharp increases in expenses related to employee healthcare and personal protective equipment.
  • Near-term senior living results are expected to be negatively impacted by the pandemic.
  • Six of the 10 wellness centers were in default under their leases as of September 30, 2020.

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 Q3 2020

Historical avgQ3 2020

+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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