Diversified Healthcare Trust Revenue Falls 5.4% as Net Loss Narrows

Diversified Healthcare Trust’s third-quarter revenue fell 5.4% year over year while its net loss narrowed, and stronger property-level measures accompanied an update to its 2026 funds guidance.

Revenue for the three months ended Sept. 30, 2026, was $367.67 million, compared with $388.71 million a year earlier. Net loss was $50.23 million, down from $164.04 million in the third quarter of 2025.

Funds from operations (FFO) totaled $27.43 million, or $0.11 per share. Normalized FFO was $30.73 million, or $0.13 per share. DHC calculates FFO under the National Association of Real Estate Investment Trusts framework and adjusts additional items in Normalized FFO. Both measures are non-GAAP, and the trust cautions that they do not replace net income or cash flow.

Starting in the third quarter, DHC’s Normalized FFO calculation included estimated incentive management fees recognized as expenses under generally accepted accounting principles. Those fees totaled $5.374 million for the quarter and had a reported impact of $0.02 per share.

Same-property cash-basis net operating income rose 25.6% to $77.88 million. Adjusted EBITDAre increased 28.4% to $73.42 million. “Normalized FFO increased to $0.13 per share, from $0.02 last year,” DHC President and CEO Christopher Bilotto said.

DHC updated its full-year 2026 Normalized FFO guidance to $0.46-$0.52 per share using the revised calculation that includes estimated incentive management fees.

The trust focuses on U.S. healthcare real estate, including senior housing, medical offices and life science properties. As of Sept. 30, its portfolio included 285 properties across 33 states and Washington, D.C.