Operational profitability has collapsed, with NOI margins plummeting to -13.6% in 2026Q1, reflecting severe challenges in managing property-level expenses.
| 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 |
|---|
| Revenue | 1.52B | 1.54B | 1.5B | 1.41B | 1.28B | 1.38B | 1.63B | 1.04B | 1.12B | 1.07B | 1.06B | 998.77M | 844.89M | 761.44M | 634.8M | 450.02M | 339.01M | 297.78M | 235.54M | 188.02M | 179.81M | 163.19M | 148.52M | 131.15M | 122.3M | 279.01M | 75.52M | 90.79M | 88.31M |
| Revenue Growth % | 0.39% | 2.84% | 6.04% | 9.87% | -7.2% | -15.25% | 56.9% | -6.89% | 3.95% | 1.58% | 5.93% | 18.21% | 10.96% | 19.95% | 41.06% | 32.74% | 13.85% | 26.43% | 25.27% | 4.57% | 10.18% | 9.87% | 13.25% | 7.24% | -56.17% | 269.44% | -16.82% | 2.81% | - |
| Property Operating Expenses | 1.49B | 1.78B | 1.24B | 1.19B | 1.11B | 1.09B | 1.24B | 502.17M | 451.77M | 413.89M | 401.88M | 384.43M | 329.17M | 303.26M | 207.09M | 68.97M | 19.2M | 14.27M | 2.79M | 85.3M | 21K | 5.93M | 0 | 0 | 106.84M | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 32.05M | -245.33M | 256.38M | 225.3M | 174.5M | 291.4M | 394.86M | 537.98M | 665.39M | 660.83M | 656.15M | 614.34M | 515.72M | 458.18M | 427.71M | 381.05M | 319.81M | 283.51M | 232.75M | 102.72M | 179.78M | 157.26M | 148.52M | 131.15M | 15.46M | 279.01M | 75.52M | 90.79M | 88.31M |
| NOI Margin % | 2.11% | -15.95% | 17.14% | 15.98% | 13.59% | 21.07% | 24.19% | 51.72% | 59.56% | 61.49% | 62.02% | 61.51% | 61.04% | 60.17% | 67.38% | 84.67% | 94.34% | 95.21% | 98.81% | 54.63% | 99.99% | 96.37% | 100% | 100% | 12.64% | 100% | 100% | 100% | 100% |
| Operating Expenses | 70M | -206.06M | 26.52M | 26.13M | 265.71M | 305.22M | 30.59M | 37.03M | 85.89M | 103.69M | 46.56M | 300.81M | 224.33M | 193.67M | 178.59M | 139.31M | 112.27M | 102.25M | 89.14M | 61.54M | 58.72M | 56.81M | 51.16M | 46.22M | 40.07M | 246.76M | 29.13M | 57.19M | 22.78M |
| G&A Expenses | 36.5M | 45.5M | 26.52M | 26.13M | 26.43M | 34.09M | 30.59M | 37.03M | 85.89M | 103.69M | 46.56M | 42.83M | 38.95M | 32.66M | 31.52M | 26.04M | 21.86M | 23.67M | 17.14M | 14.15M | 14.64M | 13.12M | 11.86M | 10.49M | 8.48M | 4.13M | 8.99M | 4.94M | 4.48M |
| EBITDA | 218.62M | 222.66M | 514.92M | 483.01M | 148.31M | 257.31M | 627M | 783.19M | 859.95M | 828.65M | 892.48M | 567.26M | 474.46M | 421.19M | 397.79M | 340.78M | 295.23M | 188.91M | 169.25M | 170.84M | 157.22M | 145.31M | 138.77M | 120.66M | 113.82M | 43.78M | 66.53M | 55.85M | 83.83M |
| EBITDA Margin % | 14.41% | 14.48% | 34.43% | 34.25% | 11.55% | 18.6% | 38.42% | 75.3% | 76.98% | 77.1% | 84.35% | 56.8% | 56.16% | 55.32% | 62.66% | 75.73% | 87.09% | 63.44% | 71.86% | 90.86% | 87.44% | 89.05% | 93.43% | 92% | 93.07% | 15.69% | 88.09% | 61.51% | 94.93% |
| Depreciation & Amortization | 256.57M | 261.92M | 285.06M | 283.84M | 239.53M | 271.13M | 262.74M | 282.23M | 280.45M | 271.51M | 282.89M | 253.72M | 183.07M | 156.68M | 140.64M | 113.27M | 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 |
| D&A / Revenue % | 16.91% | 17.03% | 19.06% | 20.13% | 18.66% | 19.6% | 16.1% | 27.13% | 25.1% | 25.26% | 26.74% | 25.4% | 21.67% | 20.58% | 22.15% | 25.17% | 26.93% | 26.73% | 26.75% | 25.2% | 24.51% | 28.13% | 27.88% | 27.24% | 25.84% | 6.96% | 26.67% | 24.5% | 20.72% |
| Operating Income | -37.95M | -39.27M | 229.86M | 199.17M | -91.22M | -13.82M | 364.26M | 500.95M | 579.5M | 557.14M | 609.59M | 313.53M | 291.39M | 264.51M | 257.15M | 227.51M | 203.93M | 109.32M | 106.25M | 123.46M | 113.14M | 99.41M | 97.36M | 84.93M | 82.22M | 24.35M | 46.39M | 33.6M | 65.53M |
| Operating Margin % | -2.5% | -2.55% | 15.37% | 14.12% | -7.11% | -1% | 22.32% | 48.16% | 51.87% | 51.84% | 57.62% | 31.39% | 34.49% | 34.74% | 40.51% | 50.56% | 60.15% | 36.71% | 45.11% | 65.66% | 62.92% | 60.92% | 65.55% | 64.76% | 67.23% | 8.73% | 61.42% | 37.01% | 74.21% |
| Interest Expense | 4M | 204.5M | 235.24M | 191.78M | 209.38M | 255.76M | 201.48M | 180.11M | 179.29M | 165.02M | 167.57M | 150.88M | 135.11M | 117.82M | 117.24M | 98.26M | 80.02M | 56.4M | 40.15M | 37.76M | 47.02M | 46.63M | 0 | 35.09M | 0 | 0 | 15.37M | 0 | 0 |
| Interest Coverage | - | -0.39x | -0.23x | -0.44x | 0.90x | 1.71x | 0.47x | 1.18x | 1.64x | 1.70x | 1.92x | 2.08x | 2.16x | 2.31x | 2.19x | 1.46x | 2.46x | 2.95x | 3.85x | 3.30x | 2.41x | 2.28x | - | 2.42x | - | - | 4.92x | - | - |
| Non-Operating Income | 55.49M | 40.38M | 284.96M | 284.08M | -279.48M | -450.93M | 270.15M | 289.02M | 286.24M | 276.86M | 287.83M | -194K | 10K | -7.99M | 0 | 84.03M | 7.13M | 1.29M | -48.53M | -1M | 0 | -1.76M | -41.99M | 0 | 0 | -7.9M | -29.24M | 0 | 0 |
| Pretax Income | -317.86M | -284.14M | -369.79M | -293.13M | -15.06M | 181.36M | -133.06M | -82.44M | 292.89M | 152.26M | 141.72M | 125.49M | 162.23M | 184.33M | 132.2M | 151.73M | 116.78M | 109.72M | 106.51M | 85.3M | 66.1M | 58.7M | 56.74M | 45.87M | 50.18M | 16.45M | 73.8M | 0 | 0 |
| Pretax Margin % | -20.95% | -18.48% | -24.73% | -20.78% | -1.17% | 13.11% | -8.15% | -7.93% | 26.22% | 14.17% | 13.39% | 12.56% | 19.2% | 24.21% | 20.83% | 33.72% | 34.45% | 36.84% | 45.22% | 45.37% | 36.76% | 35.97% | 38.2% | 34.98% | 41.03% | 5.9% | 97.72% | 0% | 0% |
| Income Tax | 2.32M | 1.74M | 467K | 445K | 710K | 1.43M | 1.25M | 436K | 476K | 454K | 424K | 574K | 576K | 600K | 375K | 312K | 300K | 71.54M | 0 | 0 | 0 | 47.67M | 41.84M | 39.06M | 84.05M | 15.23M | -12.05M | 18.77M | 19.29M |
| Effective Tax Rate % | -0.73% | -0.61% | -0.13% | -0.15% | -4.71% | 0.79% | -0.94% | -0.53% | 0.16% | 0.3% | 0.3% | 0.46% | 0.36% | 0.33% | 0.28% | 0.21% | 0.26% | 65.2% | 0% | 0% | 0% | 81.2% | 73.73% | 85.14% | 167.49% | 92.58% | -16.33% | - | - |
| Net Income | -320.18M | -285.89M | -370.25M | -293.57M | -15.77M | 174.51M | -139.45M | -88.23M | 286.87M | 147.61M | 141.29M | 123.97M | 158.64M | 151.16M | 131.82M | 151.42M | 116.48M | 109.72M | 106.51M | 85.3M | 66.1M | 58.7M | 56.74M | 45.87M | 50.18M | 17.02M | 58.44M | 14.83M | 46.24M |
| Net Margin % | -21.1% | -18.59% | -24.76% | -20.82% | -1.23% | 12.62% | -8.54% | -8.48% | 25.68% | 13.73% | 13.35% | 12.41% | 18.78% | 19.85% | 20.77% | 33.65% | 34.36% | 36.84% | 45.22% | 45.37% | 36.76% | 35.97% | 38.2% | 34.98% | 41.03% | 6.1% | 77.38% | 16.34% | 52.36% |
| Net Income Growth % | -9.28% | 22.79% | -26.12% | -1761.11% | -109.04% | 225.14% | -58.05% | -130.76% | 94.34% | 4.47% | 13.98% | -21.85% | 4.94% | 14.67% | -12.94% | 29.99% | 6.17% | 3.01% | 24.86% | 29.05% | 12.6% | 3.46% | 23.69% | -8.59% | 194.89% | -70.88% | 293.94% | -67.92% | - |
| Funds From Operations (FFO) | -63.61M | -23.96M | -85.19M | -9.73M | 223.75M | 445.65M | 123.29M | 194M | 567.32M | 419.12M | 424.19M | 377.69M | 341.71M | 307.85M | 272.46M | 264.68M | 207.78M | 189.3M | 169.52M | 132.69M | 110.17M | 104.61M | 98.15M | 81.6M | 81.78M | 36.45M | 78.58M | 37.08M | 64.53M |
| FFO Margin % | -4.19% | -1.56% | -5.7% | -0.69% | 17.43% | 32.22% | 7.55% | 18.65% | 50.78% | 39% | 40.09% | 37.82% | 40.44% | 40.43% | 42.92% | 58.82% | 61.29% | 63.57% | 71.97% | 70.57% | 61.27% | 64.11% | 66.08% | 62.22% | 66.87% | 13.06% | 104.05% | 40.84% | 73.08% |
| FFO Growth % | 226.17% | 71.87% | -775.47% | -104.35% | -49.79% | 261.46% | -36.45% | -65.8% | 35.36% | -1.19% | 12.31% | 10.53% | 11% | 12.99% | 2.94% | 27.38% | 9.76% | 11.67% | 27.76% | 20.43% | 5.32% | 6.58% | 20.28% | -0.22% | 124.37% | -53.61% | 111.91% | -42.54% | - |
| FFO per Share | -0.26 | -0.10 | -0.36 | -0.04 | 0.94 | 1.87 | 0.52 | 0.82 | 2.39 | 1.77 | 1.79 | 1.62 | 1.72 | 1.64 | 1.61 | 1.77 | 1.62 | 1.55 | 1.61 | 1.60 | 1.52 | 1.52 | 1.55 | 1.40 | 1.45 | 1.18 | 3.02 | 1.43 | 2.48 |
| FFO Payout Ratio % | -11.4% | -40.32% | -11.3% | -98.6% | 4.28% | 2.14% | 34.74% | 102.95% | 65.35% | 88.42% | 87.34% | 94.36% | 89.48% | 93.86% | 95.26% | 84.45% | 88.92% | 90.58% | 85.19% | 84.83% | 84.75% | 83.86% | 79.26% | 88.81% | 82.38% | 102.58% | 49.57% | 128.15% | 93.6% |
| EPS (Diluted) | -1.33 | -1.19 | -1.55 | -1.23 | -0.07 | 0.73 | -0.59 | -0.37 | 1.21 | 0.62 | 0.60 | 0.54 | 0.81 | 0.98 | 0.78 | 1.01 | 0.91 | 0.90 | 1.01 | 1.03 | 0.91 | 0.93 | 0.89 | 0.78 | 0.89 | 0.55 | 2.25 | 0.57 | 1.78 |
| EPS Growth % | -9.11% | 23.23% | -26.02% | -1758.01% | -109.07% | 223.73% | -59.46% | -130.58% | 95.16% | 3.33% | 11.11% | -33.33% | -17.35% | 25.64% | -22.77% | 10.99% | 1.11% | -10.89% | -1.94% | 13.19% | -2.15% | 4.49% | 14.1% | -12.36% | 61.82% | -75.56% | 294.74% | -67.98% | - |
| EPS (Basic) | - | -1.19 | -1.55 | -1.23 | -0.07 | 0.73 | -0.59 | -0.37 | 1.21 | 0.62 | 0.60 | 0.54 | 0.81 | 0.98 | 0.78 | 1.01 | 0.91 | 0.90 | 1.01 | 1.03 | 0.91 | 0.93 | 0.89 | 0.78 | 0.89 | 0.55 | 2.25 | 0.57 | 1.78 |
| Diluted Shares Outstanding | 240.69M | 240.29M | 239.53M | 238.84M | 238.31M | 237.97M | 237.74M | 237.6M | 237.55M | 237.45M | 237.38M | 232.96M | 198.89M | 187.41M | 169.67M | 149.58M | 128.09M | 121.86M | 105.15M | 83.17M | 72.53M | 68.76M | 63.41M | 58.45M | 56.42M | 30.86M | 25.98M | 26M | 26M |
SHOP segment operational insolvency
As reported in recent financial filings, DHC’s NOI margin plummeted to -13.6% in 2026Q1, reflecting a profound inability to cover property-level operating expenses within the Senior Housing Operating Portfolio, which warrants significant concern regarding the sustainability of the current cost structure and overall asset-level profitability.
The transition from positive NOI margins in 2025 to double-digit negative territory suggests that the company is currently subsidizing its operations rather than generating cash flow. This deterioration implies that inflationary pressures on labor and facility maintenance are outpacing the company's ability to adjust resident pricing, creating a structural drag on the income statement.
Based on DHC's reported figures, FFO per share has exhibited extreme instability, swinging from a positive $0.17 in 2025Q4 to $0.08 in 2026Q1, a trend that suggests the company's core earnings power is highly susceptible to operational shocks and lacks a reliable growth trajectory.
The erratic nature of FFO, characterized by frequent negative prints, indicates that the REIT is struggling to achieve a stable earnings base. Investors should monitor whether these fluctuations are driven by recurring operational challenges or non-recurring items, as the current lack of consistent FFO generation complicates any valuation based on traditional cash flow multiples.
According to historical income statement data, the persistent gap between GAAP net losses and FFO suggests that DHC faces significant headwinds, as the company has failed to achieve a consistent positive AFFO, which is a critical indicator of the actual cash available for distribution to shareholders.
The recurring net losses, which reached -$43.3M in 2026Q1, highlight the disconnect between the company's asset base and its ability to produce bottom-line results. This pattern may indicate that the capital intensity required to maintain the senior housing portfolio is fundamentally misaligned with the current revenue generation capacity of the assets.
As indicated by the latest quarterly data, revenue growth has decelerated to -5.3% in 2026Q1, marking a sharp reversal from the positive growth trends observed throughout 2025 and suggesting that the company's top-line momentum is stalling amidst a challenging macroeconomic environment for healthcare real estate.
The shift into negative revenue growth suggests that the company is losing its ability to drive top-line expansion, likely due to occupancy pressures or lease expirations within the office portfolio. This trend appears to exacerbate the existing margin compression, leaving the company with fewer levers to improve its overall financial health.
Quick answers to the most common questions about buying DHC stock.
For fiscal year 2025, Diversified Healthcare Trust (DHC) reported total revenue of $1.54B. This represents a 1641.5% increase compared to $88.3M in 1998.
Diversified Healthcare Trust (DHC) reported a net loss of $285.9M for the fiscal year ending 2025.
Diversified Healthcare Trust (DHC) reported an operating income of $-39.3M, resulting in an operating profit margin of -2.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Diversified Healthcare Trust (DHC) generated $-245.3M in gross profit for the year, representing a gross profit margin of -16.0%. This demonstrates the company's core pricing power and production efficiency.