DHC - Diversified Healthcare stock climbs after posting positive Q4 earnings

Diversified Healthcare Trust ( NASDAQ: DHC ) stock jumped 7.5% in Wednesday after-hours trading after the owner of offices and senior housing turned in a profit in Q4 instead of a loss, as occupancy rates in its senior housing assets rose.

Q4 normalized FFO per share of $0.03, exceeding the average analyst estimate of -$0.02 consensus, swung from -$0.06 in Q3 and -$0.07 in Q4 2021.

"Fourth quarter results reflected strong year over year improvement in our SHOP (senior housing operating portfolio) segment," said President and CEO Jennifer Francis. "Occupancy increased 380 basis points and average monthly rates increased nearly 9% from the prior year, resulting in a 14.2% increase in revenues."

Q4 revenue of $336.9M, topping the $329.3M consensus estimate, slipped from $337.4M in the prior quarter and edged up from $336.7M in the year-ago period.

SHOP (average day for period) same-property occupancy of 76.7% improved from 74.9% in Q3. Same-property cash-basis NOI jumped more than five-fold Q/Q vs. -58% in Q3.

On a Y/Y basis, SHOP same-property cash-basis NOI jumped 405%, primarily from an increase in revenue due to higher rates and increased occupancy. The increase in revenue was partly offset by higher operating expenses related to labor, utilities, food, and marketing.

Office portfolio same-property occupancy of 90.0% vs. 90.2% at Sept. 30. Same-property cash basis net operating income fell 3.6% Q/Q vs. +1.2% in Q3.

The cash-basis same-property NOI in the office segment fell 0.9% Y/Y mostly on increases in repairs and maintenance and utility expenses due to higher energy rates, partly offset by increases in property operating expenses reimbursements at certain of DHC's comparable properties.

DHC entered into new and renewal leases for an aggregate of 181,660 rentable square feet at weighted average rents that were 8.9% higher than prior rents for the same space.

In February 2023, Diversified Healthcare ( DHC ) sold three former senior living communities for an aggregate sales price of $2.8M, excluding closing costs.

Conference call on March 2 at 10:00 AM ET.

Earlier, Diversified Healthcare Trust ( DHC ) FFO of $0.03 beats by $0.05, revenue of $336.89M beats by $7.64M

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