Share count
240Mpeak FY2025
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DHCNI, Diversified Healthcare Trust
Healthcare market, which collectively represents approximately 18% of the U.S. gross domestic product, or GDP, according to the Centers for Medicare and Medicaid Services, or CMS.
According to The National Investment Center for Seniors Housing and Care, or NIC, annual inventory growth was 0.5% across primary and secondary markets during the fourth quarter of 2025.
We expect improving market fundamentals and constrained supply to continue to result in increased occupancy at our senior living communities.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$1.5B
+2.8% YoY · −1% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $366M −5.3% vs yr-ago qtr
Net income ($43M) yr-ago ($9M)
Net margin −11.8% yr-ago −2.3%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
- What moves the needle
- Occupancy, rents, and the cost of debt. Read on funds from operations and net asset value, because GAAP depreciation distorts the earnings, and a property downturn meets a balance sheet built on leverage. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Funds from operations per share do not form a clean trend in the record. Debt is 74% of assets, heavy for a REIT. The quality and location of the properties, the lease terms and occupancy, and the cost of the debt are what the 10-K settles, and no single ratio captures them.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $1.1B | $1.1B | $1.1B | $1.0B | $1.6B | $1.4B | $1.3B | $1.4B | $1.5B | $1.5B | $1.5B | RevenueRevenue |
| $141M | $148M | $287M | ($88M) | ($139M) | $175M | ($16M) | ($294M) | ($370M) | ($286M) | ($320M) | Net incomeNet inc. |
| Cash flow & returns | |||||||||||
| $425M | $378M | $311M | $161M | $124M | ($47M) | ($98M) | ($11M) | ($66M) | ($142M) | ($70M) | Funds from operationsFFO |
| Balance sheet | |||||||||||
| 87% | 98% | 119% | 124% | 34% | — | — | — | — | — | — | Dividend payout (FFO)Payout |
| $7.6B | $7.8B | $7.9B | $7.5B | $7.4B | $6.8B | $6.7B | $6.8B | $6.4B | $5.9B | $6.0B | Real estate (gross)RE gross |
| $7.2B | $7.3B | $7.2B | $6.7B | $6.5B | $6.6B | $6.0B | $5.4B | $5.1B | $4.4B | $4.3B | Total assetsAssets |
| 24% | 24% | 51% | 27% | 40% | 42% | 39% | — | 59% | 56% | 74% | Debt / assetsDebt/assets |
| $1.7B | $1.7B | $3.7B | $1.8B | $2.6B | $2.8B | $2.3B | $700M | $3.1B | $2.4B | $3.1B | Total debtDebt |
| $1.7B | $1.7B | $3.6B | $1.8B | $2.5B | $2.2B | $1.7B | $454M | $2.9B | $2.3B | $3.0B | Net debt / (cash)Net debt |
| 1.8× | 1.7× | 1.3× | 0.5× | -0.1× | -0.1× | -0.4× | -0.5× | -0.5× | -1.0× | 1.5× | Interest coverageInt. cov. |
| $3.2B | $3.1B | $3.0B | $2.7B | $2.5B | $2.7B | $2.6B | $2.3B | $2.0B | $1.7B | $1.6B | Shareholders’ equityEquity |
| Per share | |||||||||||
| 237M | 237M | 238M | 238M | 238M | 238M | 238M | 239M | 240M | 240M | 241M | Shares out (diluted)Shares |
| $1.79 | $1.59 | $1.31 | $0.68 | $0.52 | $-0.20 | $-0.41 | $-0.04 | $-0.28 | $-0.59 | $-0.29 | FFO / shareFFO/sh |
| $1.56 | $1.56 | $1.56 | $0.84 | $0.18 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | $0.04 | Dividends / shareDiv/sh |
| $13.48 | $13.08 | $12.73 | $11.52 | $10.50 | $11.19 | $11.07 | $9.78 | $8.18 | $6.93 | $6.73 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +4.1%/yr | −1.4%/yr |
| Dividends / share | −33.4%/yr | −25.9%/yr |
| Capital spending / share | +4.3%/yr | −4.8%/yr |
| Book value / share | −7.1%/yr | −8.0%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$1.5Blow FY2019
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Is it a good business?
- Funds from operations (FFO) ($142M)about $-0.59 per shareNet income ($286M) + depreciation $262M − gains on sale $118M
What this means
GAAP net income with property depreciation added back, because the buildings a REIT charges against earnings usually hold or grow their value. This, not net income, is what a REIT is actually priced on. It is an approximation here: where a filing reports gains on property sales, we remove them, the way the NAREIT definition does.
- Not enough data
What this means
FFO or dividends missing.
Is it sound?
- Debt / assets 72%HeavyTotal debt $3.1B ÷ assets $4.4BIndustry peers: median 44%
What this means
Every REIT runs on leverage; how much is the question. Heavy debt is what turns a property downturn into a wipeout, as 2008 showed, so a conservative balance sheet is part of the moat here, not a drag on it.
- Adequate(operating income + depreciation) ÷ interest $204MIndustry peers: median 3.8×
What this means
How many times the property cash earnings cover the interest bill. Comfortable coverage is what lets a REIT refinance through a tight credit market instead of being forced to sell into one.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“RMR incorporates artificial intelligence into some of its business workflows and processes, and challenges with properly managing its use could result in reputational harm, competitive harm, legal liability, and increased regulatory costs and could adversely affect our results of operations.…”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2021 | Christopher J. Bilotto | $280k | $231k | ($291M) |
| 2022 | Christopher J. Bilotto | $124k | −$76k | ($280M) |
| 2023 | Christopher J. Bilotto | $179k | $508k | ($225M) |
| 2024 | Christopher J. Bilotto | $342k | $251k | ($89M) |
| 2025 | Christopher J. Bilotto | $449k | $676k | ($166M) |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership10.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Healthcare REITs
The same industry, side by side on the REIT lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | FFO margin | FFO / assets | Payout (FFO) | Debt / assets |
|---|---|---|---|---|---|
| DOCHealthpeak | $2.8B | 46% | 5.6% | 85% | 44% |
| AHRAmerican Healthcare REIT Inc. | $2.3B | 8% | 2.8% | 59% | 24% |
| DHCNIDiversified Healthcare Trust | $1.5B | 3% | 0.9% | 98% | 40% |
| OHIOmega Healthcare | $1.2B | 59% | 6.1% | 103% | 53% |
| HRHealthcare Realty Trust | $1.2B | 39% | 3.6% | 82% | 42% |
| MPTMedical Properties Trust Inc. | $972M | 52% | 3.8% | — | 53% |
| SBRASabra Health Care REIT | $775M | 43% | 5.1% | 95% | 45% |
| CTRECareTrust REIT | $476M | 61% | 6.5% | 80% | 37% |
| Group median | — | 45% | 4.5% | 85% | 43% |
The price
What a price has to assume.
What the price implies
reverse-DCFA reit / real estate isn't read on an owner-earnings DCF; its economics live on the balance sheet (book value, the return earned on it, and the cash the assets throw off).
Cite: Owner Scorecard, "Diversified Healthcare Trust (DHCNI), the owner's record," https://ownerscorecard.com/c/DHCNI, data as of 2026-07-09.
Manual order: ← DHC its page in the Manual DHCNL →
Industry order: ← DHC the REITs — Specialty & Diversified chapter DHCNL →