Liquidity is under significant pressure, with cash reserves declining to $121.8M in 2026Q1 while heavy capital expenditures of $35.2M drive persistent negative free cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | -8.03M | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M | 158.54M | 265.85M | 392.84M | 407.05M | 426.81M | 405.52M | 350.9M | 306.7M | 283.3M | 255.56M | 215.31M | 209.39M | 184.46M | 135.9M | 112.33M | 104.22M | 95.19M | 79.62M | 99.11M | 17.4M | 31.02M | 64.08M | 60.24M |
| Operating CF Growth % | -166.79% | -117.48% | 970.52% | 125.98% | 36.27% | -139.94% | -40.36% | -32.33% | -3.49% | -4.63% | 5.25% | 15.57% | 14.41% | 8.26% | 10.86% | 18.7% | 2.82% | 13.52% | 35.73% | 20.98% | 7.78% | 9.49% | 19.55% | -19.67% | 469.47% | -43.9% | -51.59% | 6.39% | - |
| Operating CF / Revenue % | -0.53% | -1.28% | 7.5% | 0.74% | -3.14% | -4.58% | 9.71% | 25.56% | 35.16% | 37.87% | 40.34% | 40.6% | 41.53% | 40.28% | 44.63% | 56.79% | 63.51% | 70.32% | 78.31% | 72.28% | 62.48% | 63.87% | 64.09% | 60.71% | 81.04% | 6.24% | 41.08% | 70.59% | 68.21% |
| Net Income | -320.18M | -285.89M | -370.25M | -293.57M | -15.77M | 179.93M | -134.31M | -82.88M | 292.41M | 151.8M | 141.29M | 123.97M | 158.64M | 151.16M | 135.88M | 151.42M | 116.48M | 109.72M | 106.51M | 87.33M | 68.49M | 58.7M | 56.74M | 45.87M | 52.01M | 17.02M | 58.44M | 14.83M | 46.24M |
| Depreciation & Amortization | 256.6M | 262.04M | 285.06M | 283.84M | 239.53M | 263.92M | 262.74M | 282.23M | 280.45M | 271.51M | 282.89M | 253.72M | 183.07M | 157.48M | 143.05M | 113.17M | 91.3M | 79.59M | 63.01M | 47.38M | 44.07M | 45.91M | 41.41M | 35.73M | 31.6M | 19.43M | 20.14M | 22.25M | 18.3M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.22M | 2.15M | 2.19M | 1.37M | 1.91M | 1.96M | 1.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 35.78M | -29.03M | 190.6M | 48.05M | -265.74M | -442.05M | 43.28M | 117.37M | -183.12M | -46.4M | -645K | 26.79M | -4.51M | 7.63M | 308K | -13.97M | 10.79M | 17.83M | 8.11M | 3.51M | 3.29M | -3.1M | -1.22M | 3.19M | -3.63M | -1K | -37.04M | 30M | 0 |
| Working Capital Changes | 19.76M | 33.26M | 6.82M | -27.84M | 1.64M | -65.12M | -13.18M | -50.88M | 3.1M | 30.14M | 3.27M | 1.04M | 13.71M | -9.57M | 4.06M | 4.94M | -3.27M | 2.26M | 6.83M | -2.32M | -3.52M | 2.71M | -1.74M | -5.18M | 19.14M | -19.04M | -10.51M | -3M | -4.3M |
| Cash from Investing | 206.06M | 483.57M | -187.02M | -202.11M | 387.71M | 242.7M | -40.44M | 86.17M | 99.09M | -221.44M | -292.87M | -1.21B | -1.26B | -153.02M | -327.86M | -842.08M | -466.07M | -556.8M | -841.57M | -110.24M | -126.25M | -84.94M | -131.85M | -178.5M | -621.67M | -25.83M | 94.35M | 387K | 306K |
| Acquisitions (Net) | -2.7M | 0 | -21.18M | 0 | 108.42M | 367.03M | 0 | 0 | 0 | 255.93M | 0 | -17.29M | -825K | 0 | 0 | -837.75M | -467.44M | -547.6M | -862.91M | 0 | 0 | 0 | 0 | 0 | -622.46M | -2.18M | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -129.49M | -159.29M | -227.07M | 1.2B | 0 | 0 | 0 | -5M | -76K | -14.09M | 0 | 10.15M | 0 | 0 | 0 | 0 | 728K | 0 | -38.53M | 0 | 0 |
| Sale of Investments | 48.89M | 0 | 0 | 0 | 0 | 0 | 0 | 98.56M | 332.39M | 55.07M | 33.87M | 6.57M | 0 | 0 | 0 | 42M | 0 | 0 | 0 | 0 | 0 | 0 | 5.9M | 288K | 728K | 0 | 0 | 387K | 308K |
| Other Investing | 195.03M | 483.57M | -165.84M | -202.11M | 279.28M | -124.34M | -40.44M | -12.39M | 99.09M | -221.44M | -292.87M | -1.2B | -1.26B | 92.55M | 38M | -80M | 468.89M | 4.9M | 21.34M | -10.15M | 6.88M | 12.54M | -5.9M | 600K | 621.8M | -21.48M | 135.18M | 0 | 0 |
| Cash from Financing | -364.83M | -492.01M | -22.31M | -249.71M | -676M | 746.72M | -79.48M | -369.86M | -469.18M | -186.13M | -139.84M | 817.64M | 901.48M | -156.83M | 63.38M | 599.22M | 251.13M | 351.91M | 619.58M | 12.4M | 4.74M | -8.05M | 36.54M | 93.76M | 188.29M | 352.76M | -141.95M | -47.52M | -60.4M |
| Dividends Paid | -9.67M | -9.66M | -9.63M | -9.6M | -9.57M | -9.54M | -42.83M | -199.72M | -370.75M | -370.61M | -370.49M | -356.39M | -305.77M | -288.94M | -259.54M | -223.53M | -184.76M | -171.47M | -144.41M | -112.56M | -93.37M | -87.72M | -77.79M | -72.47M | -67.37M | -37.39M | -38.95M | -47.52M | -60.4M |
| Common Dividends | -7.25M | -9.66M | -9.63M | -9.6M | -9.57M | -9.54M | -42.83M | -199.72M | -370.75M | -370.61M | -370.49M | -356.39M | -305.77M | -288.94M | -259.54M | -223.53M | -184.76M | -171.47M | -144.41M | -112.56M | -93.37M | -87.72M | -77.79M | -72.47M | -67.37M | -37.39M | -38.95M | -47.52M | -60.4M |
| Debt Issuance (Net) | -2M | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 0 | 0 |
| Share Repurchases | -1.23M | -1.15M | -904K | -393K | -171K | -383K | -171K | -299K | -411K | -341K | -452K | -212K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1K | 0 | 0 | 0 |
| Other Financing | -30.66M | -37.66M | -8.56M | -22.68M | -27.19M | -32.7M | -28.05M | -22M | -25.47M | 229.79M | -12.49M | 655.12M | -8.04M | -3.33M | -12.61M | -13.76M | -4.66M | -12.23M | -1.07M | 0 | -40.94M | -3.64M | 0 | -3.68M | -4.12M | -6.66M | 0 | 0 | 0 |
| Net Change in Cash | -166.8M | -28.05M | -97.11M | -441.34M | -328.64M | 926.1M | 38.63M | -17.85M | 22.75M | -511K | -5.91M | 10.06M | -11.64M | -3.15M | 18.82M | 12.69M | 372K | 4.5M | -37.53M | 38.06M | -9.18M | 11.23M | -121K | -5.12M | -343.37M | 351.51M | -16.58M | 16.95M | 139K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.1M | 7.18M | 0 | 0 | 0 |
| Cash at Beginning | 121.8M | 149.85M | 246.96M | 688.3M | 1.02B | 90.85M | 52.22M | 70.07M | 47.32M | 31.75M | 37.66M | 27.59M | 39.23M | 42.38M | 23.56M | 10.87M | 10.49M | 5.99M | 43.52M | 5.46M | 14.64M | 3.41M | 3.53M | 8.65M | 352.03M | 515K | 17.09M | 139K | 0 |
| Cash at End | 139.85M | 121.8M | 149.85M | 246.96M | 688.3M | 1.02B | 90.85M | 52.22M | 70.07M | 31.24M | 31.75M | 37.66M | 27.59M | 39.23M | 42.38M | 23.56M | 10.87M | 10.49M | 5.99M | 43.52M | 5.46M | 14.64M | 3.41M | 3.53M | 8.65M | 352.03M | 515K | 17.09M | 139K |
| Free Cash Flow | -43.2M | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M | 158.54M | 265.85M | 491.93M | 185.62M | 133.94M | -796.86M | -912.3M | 61.13M | -82.56M | 294.22M | -252.14M | 209.39M | 184.46M | 25.66M | -20.8M | 6.74M | -42.56M | -99.77M | -523.35M | 15.23M | 28.72M | 64.08M | 60.23M |
| FCF Growth % | -153.74% | -117.48% | 970.52% | 125.98% | 36.27% | -139.94% | -40.36% | -45.96% | 165.03% | 38.58% | 116.81% | 12.65% | -1592.39% | 174.05% | -128.06% | 216.69% | -220.41% | 13.52% | 618.86% | 223.38% | -408.47% | 115.84% | 57.34% | 80.94% | -3536.77% | -46.98% | -55.18% | 6.39% | - |
| FCF / Revenue % | -2.85% | -1.28% | 7.5% | 0.74% | -3.14% | -4.58% | 9.71% | 25.56% | 44.03% | 17.27% | 12.66% | -79.78% | -107.98% | 8.03% | -13.01% | 65.38% | -74.37% | 70.32% | 78.31% | 13.65% | -11.57% | 4.13% | -28.66% | -76.08% | -427.93% | 5.46% | 38.03% | 70.59% | 68.21% |
Persistent negative cash flow
According to the latest quarterly financial data, DHC's FFO to net income relationship remains deeply inconsistent, with a reported FFO/NI ratio of -0.19 in 2026Q1, highlighting the significant disconnect between GAAP accounting and the company's actual ability to generate cash from its core healthcare operations.
The extreme volatility in the FFO/NI ratio suggests that non-cash charges and operational impairments are masking the underlying cash flow reality. Investors should monitor this divergence, as it indicates that reported earnings are not providing a reliable proxy for the company's true economic performance.
Based on reported figures for 2026Q1, DHC generated a negative AFFO of $15.5M, which underscores a fundamental inability to cover dividend distributions through recurring cash flow, leaving the company reliant on external capital or balance sheet liquidity to maintain its current payout structure to shareholders.
The absence of positive AFFO over the observed period suggests that the dividend is currently unfunded by operations. This structural shortfall warrants further investigation into how long the company can sustain these distributions without further eroding its capital base or increasing its leverage profile.
As reported in recent financial statements, DHC incurred $35.2M in capital expenditures during 2026Q1, a significant outflow that directly contributed to a negative free cash flow of $26.8M, reflecting the heavy reinvestment requirements necessary to maintain the competitiveness of its aging senior housing and medical office portfolio.
The high level of capital intensity relative to operating cash flow suggests that the company is trapped in a cycle of defensive spending. This level of expenditure appears to be a non-discretionary burden that limits the company's flexibility to pursue growth or deleveraging initiatives.
Financial data indicates that DHC consistently reports significant GAAP net losses, such as the $43.3M loss in 2026Q1, which are only partially mitigated by FFO adjustments, suggesting that the company's depreciation and amortization charges are failing to capture the true economic decline of its asset base.
The persistent gap between net income and FFO suggests that the company's assets may be overvalued on the balance sheet relative to their cash-generating potential. This distortion makes it difficult for investors to gauge the true extent of the operational cash burn occurring within the SHOP segment.
Quick answers to the most common questions about buying DHC stock.
Diversified Healthcare Trust (DHC) generated $-19.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Diversified Healthcare Trust (DHC) reported negative free cash flow of $19.6M in 2025, indicating capital requirements exceeded cash from operations.
Diversified Healthcare Trust (DHC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Diversified Healthcare Trust (DHC) returned $9.7M to shareholders via cash dividends and spent $1.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.