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Mar 31, 2021
Diversified Heal Q1 2021 Earnings Report
Announced first quarter 2021 results with a net loss attributable to common shareholders of $0.28 per share and normalized FFO attributable to common shareholders of $0.02 per share.
Key Takeaways
Diversified Healthcare Trust reported a net loss attributable to common shareholders of $67.5 million, or $0.28 per share, and normalized FFO attributable to common shareholders of $5.8 million, or $0.02 per share for the quarter ended March 31, 2021. The company is transitioning 108 senior living communities to new operators to improve profitability and has amended its credit agreement and issued senior notes to provide liquidity.
COVID-19 vaccination clinics at managed senior living communities are complete, with over 96% of residents vaccinated.
Occupancy began to stabilize in February and March following the successful vaccine rollout.
Transitioning 108 senior living communities to new operators to improve profitability.
Office Portfolio segment continues to perform well with same property NOI growth.
Forward Guidance
Diversified Healthcare Trust is working on transitioning 108 senior living communities to new operators to improve profitability. The company's office portfolio continues to perform well, and recent credit agreement amendments and senior notes issuance will provide the necessary liquidity to execute its business plan.
Positive Outlook
- Successful rollout of COVID-19 vaccines at managed senior living communities.
- Occupancy beginning to stabilize in February and March.
- Significant progress in transitioning 108 senior living communities to new operators.
- Office Portfolio segment performing well with same property NOI growth.
- Credit agreement amendments and senior notes issuance providing necessary liquidity.
Challenges Ahead
- Senior living industry may not recover to pre-pandemic levels.
- Changes to management arrangements with Five Star may not improve profitability.
- DHC may be unable to identify new operators for the 108 senior living communities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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