Diversified Healthcare Trust (DHC) completed the sale of 37 non‑core properties for $250 million in the fourth quarter of 2025, adding to a total of 69 properties sold for $605 million during the year. The transaction is part of the company’s capital‑recycling program designed to reduce high‑cost debt and extend liquidity through 2028.
On December 29 2025, DHC fully repaid its 2026 zero‑coupon senior secured notes, freeing 45 collateral properties with an estimated gross book value of $850 million. The repayment eliminates all debt maturities until 2028, giving the company a clean balance sheet and a stronger current ratio of 17.06.
The transition of 116 senior‑housing operating portfolio (SHOP) communities from AlerisLife to new operators was completed on December 31 2025. The change was executed without revenue disruption, allowing DHC to focus on operational performance and future capital allocation.
Despite the balance‑sheet gains, DHC’s diluted earnings per share for the trailing twelve months were –$1.47, and Q3 2025 EPS was –$0.38, missing the consensus estimate of –$0.21. The negative earnings reflect ongoing profitability challenges, including higher operating costs and a lower gross profit margin of 17.49 % compared with prior periods.
CEO Chris Bilotto said the company is pleased to have successfully executed its capital‑recycling initiatives and balance‑sheet optimization. He added that the absence of debt maturities until 2028 and full availability under the revolving credit facility provide a multi‑year runway to drive operational performance and pursue disciplined capital allocation.
RBC Capital upgraded DHC from Underperform to Sector Perform, citing senior housing tailwinds and the company’s improved financial flexibility. The upgrade reflects confidence that the deleveraging and operational transition will support long‑term value creation.
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