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Mar 31, 2022
Diversified Heal Q1 2022 Earnings Report
Announced first quarter 2022 results, reporting net income attributable to common shareholders of $1.01 per share.
Key Takeaways
Diversified Healthcare Trust reported strong sequential quarter NOI growth in its same property SHOP segment, driven by increases in rate. Leasing results in the Office Portfolio remained resilient. The company generated $653 million of cash through a new joint venture, bringing the total cash position to approximately $1.5 billion at quarter end.
Reported net income attributable to common shareholders of $240.4 million, or $1.01 per share.
Reported normalized funds from operations, or Normalized FFO, attributable to common shareholders of $(21.9) million, or $(0.09) per share.
Recorded a gain on sale of properties of $327.5 million, or $1.38 per share, from DHC's new joint venture.
As of March 31, 2022, DHC had approximately $1.5 billion of cash and cash equivalents and restricted cash.
Revenue by Segment
Forward Guidance
DHC anticipates continued growth and recovery, supported by liquidity and strategic investments. However, the company faces risks related to economic conditions, debt compliance, and the performance of its tenants and managers.
Positive Outlook
- Strong sequential quarter NOI growth in same property SHOP segment driven by rate increases.
- Resilient leasing results in the Office Portfolio supporting overall business recovery.
- Generated $653 million of cash from a new joint venture, increasing cash position to approximately $1.5 billion.
- Amendment and extension of credit facility enhances capacity to fund investment activities.
- Confident in DHC’s growth trajectory moving forward due to ample liquidity, improving operating performance, and solid leasing results.
Challenges Ahead
- SHOP business is subject to various risks, many of which are beyond its control, including the COVID-19 pandemic and other economic and market conditions, such as the current inflationary conditions.
- DHC may not continue to realize positive leasing results, and even if it does, these results may not significantly increase the financial performance of DHC's portfolio.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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