Diversified Healthcare Trust Common Shares of Beneficial Interest (DHC)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business earning honest profits. Diversified Healthcare Trust owns a large healthcare property portfolio, but I see no clear competitive moat in a capital-intensive property portfolio, and the income statement is not healthy. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $365.4 million and net income was -$37.4 million. Fiscal Q1 2026, ended 2026-03-31, had revenue of $366.5 million and net income of -$43.3 million. Full-year fiscal 2025, ended 2025-12-31, produced revenue of $1.5 billion and net income of -$285.9 million; fiscal 2024 lost $370.3 million, and fiscal 2023 lost $293.6 million. The Lynch category is none because the company lost money in each of the last four years. Depreciation distorts REIT earnings, and the right measures, FFO and AFFO, are not in my data. So I lean on dividend yield, leverage, revenue trend and price-to-book. The dividend yield is only 0.50%, debt-to-equity is 1.53, and fiscal Q2 2026 revenue of $365.4 million was below fiscal Q2 2025, the quarter ended 2025-06-30, revenue of $382.7 million. FairStock puts price-to-book at 1.17 and market cap at $1.8 billion based on the 2026-10-13 close. That is not a bargain when FairStock's return on equity is -15.47% and free cash flow is -$22.7 million. FairStock's Altman Z-score of -0.47 and Piotroski F-score of 5/9 point to financial fragility. There may be asset value, but without FFO, AFFO or positive cash generation, I cannot call this a safe value opportunity.

In plain English: Diversified Healthcare Trust owns healthcare properties such as senior housing, medical offices, and life-science buildings. The business looks weak right now: it has lost money in each of the last four years, and recent quarterly revenue slipped, though losses have narrowed from a year earlier. At $7.62 a share, the price is close to the value of its assets minus liabilities, so it looks fair rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer