Diversified Healthcare Trust (DHC), a real estate investment trust (REIT), reported its financial results for the fiscal year ending December 31, 2025. The company, which primarily owns senior living communities, medical office and life science properties, and other healthcare-related properties, held 298 properties across 33 states and Washington, D.C. as of the end of the year. DHC's gross book value of real estate assets totaled $6.3 billion, and the company also maintained equity interests in two unconsolidated joint ventures focused on medical office and life science properties.
DHC's total revenues for 2025 reached $1.54 billion, compared to $1.50 billion in 2024. The company experienced a net loss of $285.9 million, a decrease from the $370.3 million net loss reported in the previous fiscal year. This improvement was attributed to a $33.2 million increase in SHOP segment NOI, partially offset by a $7.6 million decrease in Medical Office and Life Science Portfolio NOI and a $6.0 million decrease in All Other NOI. The company's SHOP segment saw an increase in occupancy from 79.3% in 2024 to 81.0% in 2025, with the average monthly rate increasing from $5,193 to $5,455.
Operationally, DHC completed the transition of 116 senior living communities previously managed by Five Star Senior Living to seven different third-party managers. This transition resulted in $10.4 million in acquisition and transaction-related costs. The company's Medical Office and Life Science Portfolio segment reported a 91.2% occupancy rate, with new and renewal leases accounting for 676,000 square feet at an average rental rate change of 12.4%. The company also sold 69 properties for an aggregate sales price of $604.9 million, excluding closing costs.
Looking ahead, DHC faces several challenges and opportunities. The company is focused on managing its debt, with $2.4 billion in consolidated principal amount of debt outstanding as of December 31, 2025. DHC is also navigating the competitive landscape of the senior living and healthcare industries, while also monitoring the impact of economic conditions, including interest rates and inflation, on its operations and financial performance. The company's Board of Trustees will continue to evaluate distribution levels, considering factors such as FFO, Normalized FFO, REIT requirements, and debt agreement limitations.
About DIVERSIFIED HEALTHCARE TRUST
Diversified Healthcare Trust is a REIT specializing in healthcare real estate, including medical office, life science properties, senior living communities, and wellness centers across the U.S. It owns and manages a diverse portfolio of properties leased primarily through triple net and other lease structures. The company focuses on long-term value creation, strategic acquisitions, and portfolio optimization within the resilient healthcare sector.
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