DHC - Why Diversified Healthcare Trust Stock Sank by 4% Today
2023-06-26 17:38:00 ET
The latest investor update from specialty real estate investment trust (REIT) Diversified Healthcare Trust (NASDAQ: DHC) didn't make investors happy. Following the update's release, many investors sold out of the stock, sending it to a 4% share-price loss by the end of the day. That contrasted rather unfavorably with the S&P 500 index, which experienced a drop of less than 0.5%.
Diversified publishes monthly business updates, and the edition covering May revealed several points of concern. The first was a metric always front of mind for REIT investors -- occupancy.
In May, Diversified's occupancy tallied just over 78%, a relatively steep decline of more than 8 percentage points from the same month of 2019 (i.e., the last May before the coronavirus pandemic). The figure did improve over the April 2023 level, but only by 0.10 percentage points.
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Why Diversified Healthcare Trust Stock Sank by 4% Today