Diversified Healthcare Trust reported third quarter 2026 total revenue of $367.7 million, slightly exceeding analyst expectations of $365.8 million. However, Normalized FFO per share of $0.13 fell short of the $0.15 estimate, impacted by the inclusion of $5.4 million in incentive management fees following revised SEC reporting guidance. The company's Senior Housing Operating Portfolio (SHOP) demonstrated continued operational momentum with significant occupancy and rate growth.
Key Highlights
- SHOP same property occupancy increased 200 basis points year-over-year to 84.4%, while average monthly rates grew 5.2%.
- Medical Office and Life Science leasing reached approximately 130,000 square feet with weighted average rents 25.2% higher than prior levels.
- Updated full year 2026 Normalized FFO guidance was set at $0.46–$0.52 per share, primarily reflecting the $0.12 per share impact of newly required incentive management fee accruals.
- Same property cash basis NOI for the SHOP segment surged 50.4% year-over-year to $48.0 million.