Diversified Healthcare Trust 6.25% Senior Notes Due 2046 (DHCNL)

Key Financials

AI Analysis

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

I look at this as a distressed senior note, not a common stock. The business owns a roughly $6.3 billion portfolio of 285 healthcare properties as of June 30, 2026, and it generated $1.5 billion of revenue in fiscal year 2025, the period ended 2025-12-31. But it has not earned a profit: fiscal year 2025 net income was -$285.9 million and diluted EPS -$1.19; fiscal year 2024 net income was -$370.3 million; fiscal year 2023 net income was -$293.6 million. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $365.4 million, net income -$37.4 million, and diluted EPS -$0.16, better than the fiscal Q1 2026 quarter ended 2026-03-31 net loss of $43.3 million but still negative. FairStock calculations show ROE -15.47%, ROCE -0.45%, D/E 1.53, P/B 2.78 at the $18.15 close on 2026-10-16, and beta 2.27. The computed Lynch category is none because of losses in each of the last four years. I see no moat in these reported numbers; healthcare real estate can be sticky, but negative returns and leverage dominate. P/E is N/A because there are no earnings, and P/B above 1 is not Graham-cheap. The 6.25% note due 2046 at $18.15 suggests market skepticism; without cash-flow or asset-coverage details, I cannot call it a margin of safety. Growth is unclear: fiscal year 2025, period ended 2025-12-31, revenue was about $1.5 billion versus about $1.5 billion in fiscal year 2024, period ended 2024-12-31, while fiscal Q2 2026 revenue was $365.4 million versus $382.7 million in fiscal Q2 2025, the quarter ended 2025-06-30. Losses are narrowing, but I would need sustained positive net income and lower leverage before trusting a recovery.

In plain English: The issuer owns healthcare properties such as senior housing, medical offices, and life science buildings. It is losing money—in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $365.4 million but net income was -$37.4 million—so the business looks weak. The quoted note price is $18.15; with negative returns and meaningful debt, the price does not look clearly cheap on the numbers.

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Data as of 2026-10-16 close · note generated 2026-10-20 · 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