Diversified Healthcare Trust Provides Monthly SHOP Performance Update
Monthly Unaudited Results in DHC’s
-
January 2024 occupancy was 79.0%, 30 basis points belowDecember 2023 , and 250 basis points aboveJanuary 2023 . -
January 2024 Resident Fees and Services revenue was$102.7 million ,$3.9 million , or 4.0%, aboveDecember 2023 , and$10.7 million , or 11.6%, aboveJanuary 2023 . -
January 2024 net operating income, or NOI, was$7.3 million ,$4.6 million , or 175.6%, aboveDecember 2023 , and$3.3 million , or 83.4%, aboveJanuary 2023 . -
January 2024 NOI margin was 7.1%, 440 basis points aboveDecember 2023 , and 280 basis points aboveJanuary 2023 .
Revenues increased primarily due to increases in average monthly rate and care level increases at DHC’s communities, partially offset by increased use of discounts and decreased community fees.
Operating expenses decreased due to lower repair and maintenance expenses and decreases in contract labor, partially offset by annual wage adjustments and hiring expenses. Year over year, increases were primarily attributable to inflationary effects of higher wages and food expenses, as well as higher property insurance premiums in select markets.
SHOP Segment - Monthly Results of Operations (dollars in thousands, except average monthly rate) |
||||||||||||||||||||
2024 (1) |
2023 |
$ |
% |
2023 |
$ |
% |
||||||||||||||
|
|
Jan |
Dec |
Change |
Change |
Jan |
Change |
Change |
||||||||||||
ALR/Five Star Managed Communities |
||||||||||||||||||||
Number of Properties |
|
|
119 |
|
|
119 |
|
|
|
|
|
|
119 |
|
|
|
|
|||
Number of Units |
|
17,542 |
|
17,655 |
|
17,716 |
||||||||||||||
Occupancy |
|
|
78.8% |
|
|
79.1% |
|
|
|
|
|
|
77.2% |
|
|
|
|
|||
Average Monthly Rate |
$ |
4,638 |
$ |
4,401 |
$ |
237 |
5.4% |
$ |
4,267 |
$ |
371 |
8.7% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residents Fees and Services |
|
$ |
66,669 |
$ |
63,558 |
$ |
3,111 |
4.9% |
$ |
59,539 |
$ |
7,130 |
12.0% |
|||||||
Property Operating Expenses |
|
|
(59,093) |
|
|
(59,851) |
|
|
758 |
|
(1.3)% |
|
|
(53,744) |
|
|
(5,349) |
|
10.0% |
|
NOI (2) |
|
$ |
7,576 |
$ |
3,707 |
$ |
3,869 |
104.4% |
$ |
5,795 |
$ |
1,781 |
30.7% |
|||||||
NOI Margin |
|
|
11.4% |
|
|
5.8% |
|
|
|
|
|
|
9.7% |
|
|
|
|
|||
Other Operator Managed Communities |
||||||||||||||||||||
Number of Properties |
|
|
113 |
|
|
113 |
|
|
|
|
|
|
118 |
|
|
|
|
|||
Number of Units |
|
7,557 |
|
7,554 |
|
7,623 |
||||||||||||||
Occupancy |
|
|
79.5% |
|
|
79.6% |
|
|
|
|
|
|
74.8% |
|
|
|
|
|||
Average Monthly Rate |
$ |
5,841 |
$ |
5,706 |
$ |
135 |
2.4% |
$ |
5,547 |
$ |
(8) |
(0.1)% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residents Fees and Services |
|
$ |
36,059 |
$ |
35,262 |
$ |
797 |
2.3% |
$ |
32,486 |
$ |
3,573 |
11.0% |
|||||||
Property Operating Expenses |
|
|
(36,356) |
|
|
(36,328) |
|
|
(28) |
|
0.1% |
|
|
(34,312) |
|
|
(2,044) |
|
6.0% |
|
NOI (2) |
|
$ |
(297) |
$ |
(1,066) |
$ |
769 |
72.1% |
$ |
(1,826) |
$ |
1,529 |
83.7% |
|||||||
NOI Margin |
|
|
(0.8)% |
|
|
(3.0)% |
|
|
|
|
|
|
(5.6)% |
|
|
|
|
|||
Total SHOP |
||||||||||||||||||||
Number of Properties |
|
|
232 |
|
|
232 |
|
|
|
|
|
|
237 |
|
|
|
|
|||
Number of Units |
|
25,099 |
|
25,209 |
|
25,339 |
||||||||||||||
Occupancy |
|
|
79.0% |
|
|
79.3% |
|
|
|
|
|
|
76.5% |
|
|
|
|
|||
Average Monthly Rate |
$ |
4,999 |
$ |
4,792 |
$ |
207 |
4.3% |
$ |
4,645 |
$ |
354 |
7.6% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residents Fees and Services |
|
$ |
102,728 |
$ |
98,820 |
$ |
3,908 |
4.0% |
$ |
92,025 |
$ |
10,703 |
11.6% |
|||||||
Property Operating Expenses |
|
|
(95,449) |
|
|
(96,179) |
|
|
730 |
|
(0.8)% |
|
|
(88,056) |
|
|
(7,393) |
|
8.4% |
|
NOI (2) |
|
$ |
7,279 |
$ |
2,641 |
$ |
4,638 |
175.6% |
$ |
3,969 |
$ |
3,310 |
83.4% |
|||||||
NOI Margin |
|
|
7.1% |
|
|
2.7% |
|
|
|
|
|
|
4.3% |
|
|
|
|
|||
2023 |
||||||||||||||||||||||||||||||||||||||||
|
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
YTD |
||||||||||||||||||||||||||
ALR/Five Star Managed Communities |
||||||||||||||||||||||||||||||||||||||||
Number of Properties |
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
|
|
119 |
||
Number of Units |
|
17,716 |
|
17,706 |
|
17,704 |
|
17,704 |
|
17,703 |
|
17,699 |
|
17,699 |
|
17,677 |
|
17,655 |
|
17,655 |
|
17,655 |
|
17,655 |
|
17,655 |
||||||||||||||
Occupancy |
|
77.2% |
|
|
77.2% |
|
|
77.7% |
|
|
78.0% |
|
|
78.1% |
|
|
77.6% |
|
|
78.0% |
|
|
78.5% |
|
|
78.7% |
|
|
79.2% |
|
|
79.3% |
|
|
79.1% |
|
|
78.2% |
||
Average Monthly Rate |
$ |
4,267 |
$ |
4,892 |
$ |
4,369 |
$ |
4,527 |
$ |
4,404 |
$ |
4,532 |
$ |
4,384 |
$ |
4,388 |
$ |
4,556 |
$ |
4,396 |
$ |
4,510 |
$ |
4,401 |
$ |
4,464 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residents Fees and Services |
$ |
59,539 |
$ |
61,616 |
$ |
61,307 |
$ |
61,673 |
$ |
62,076 |
$ |
62,268 |
$ |
62,570 |
$ |
62,923 |
$ |
63,276 |
$ |
63,482 |
$ |
63,154 |
$ |
63,558 |
$ |
747,442 |
||||||||||||||
Property Operating Expenses |
|
(53,744) |
|
|
(52,753) |
|
|
(56,145) |
|
|
(51,873) |
|
|
(55,579) |
|
|
(55,416) |
|
|
(56,808) |
|
|
(56,774) |
|
|
(56,355) |
|
|
(56,793) |
|
|
(56,604) |
|
|
(59,851) |
|
|
(668,695) |
||
NOI (2) |
$ |
5,795 |
$ |
8,863 |
$ |
5,162 |
$ |
9,800 |
$ |
6,497 |
$ |
6,852 |
$ |
5,762 |
$ |
6,149 |
$ |
6,921 |
$ |
6,689 |
$ |
6,550 |
$ |
3,707 |
$ |
78,747 |
||||||||||||||
NOI Margin |
|
9.7% |
|
|
14.4% |
|
|
8.4% |
|
|
15.9% |
|
|
10.5% |
|
|
11.0% |
|
|
9.2% |
|
|
9.8% |
|
|
10.9% |
|
|
10.5% |
|
|
10.4% |
|
|
5.8% |
|
|
10.5% |
||
Other Operator Managed Communities |
||||||||||||||||||||||||||||||||||||||||
Number of Properties |
|
118 |
|
|
115 |
|
|
115 |
|
|
115 |
|
|
115 |
|
|
115 |
|
|
115 |
|
|
115 |
|
|
115 |
|
|
114 |
|
|
113 |
|
|
113 |
|
|
113 |
||
Number of Units |
|
7,623 |
|
7,623 |
|
7,623 |
|
7,623 |
|
7,623 |
|
7,623 |
|
7,623 |
|
7,647 |
|
7,647 |
|
7,572 |
|
7,571 |
|
7,554 |
|
7,554 |
||||||||||||||
Occupancy |
|
74.8% |
|
|
76.3% |
|
|
76.5% |
|
|
77.4% |
|
|
77.1% |
|
|
78.0% |
|
|
78.3% |
|
|
78.6% |
|
|
78.6% |
|
|
79.2% |
|
|
79.4% |
|
|
79.6% |
|
|
77.8% |
||
Average Monthly Rate |
$ |
5,547 |
$ |
5,839 |
$ |
5,553 |
$ |
5,569 |
$ |
5,469 |
$ |
5,644 |
$ |
5,576 |
$ |
5,610 |
$ |
5,987 |
$ |
5,627 |
$ |
5,745 |
$ |
5,706 |
$ |
5,654 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residents Fees and Services |
$ |
32,486 |
$ |
31,502 |
$ |
33,142 |
$ |
32,576 |
$ |
32,953 |
$ |
33,300 |
$ |
34,109 |
$ |
34,559 |
$ |
35,697 |
$ |
34,605 |
$ |
34,275 |
$ |
35,262 |
$ |
404,466 |
||||||||||||||
Property Operating Expenses |
|
(34,312) |
|
|
(31,423) |
|
|
(33,952) |
|
|
(32,932) |
|
|
(33,428) |
|
|
(32,731) |
|
|
(33,688) |
|
|
(35,301) |
|
|
(33,519) |
|
|
(34,361) |
|
|
(34,421) |
|
|
(36,328) |
|
|
(406,396) |
||
NOI (2) |
$ |
(1,826) |
$ |
79 |
$ |
(810) |
$ |
(356) |
$ |
(475) |
$ |
569 |
$ |
421 |
$ |
(742) |
$ |
2,178 |
$ |
244 |
$ |
(146) |
$ |
(1,066) |
$ |
(1,930) |
||||||||||||||
NOI Margin |
|
(5.6)% |
|
|
0.3% |
|
|
(2.4)% |
|
|
(1.1)% |
|
|
(1.4)% |
|
|
1.7% |
|
|
1.2% |
|
|
(2.1)% |
|
|
6.1% |
|
|
0.7% |
|
|
(0.4)% |
|
|
(3.0)% |
|
|
(0.5)% |
||
Total SHOP |
||||||||||||||||||||||||||||||||||||||||
Number of Properties |
|
237 |
|
|
234 |
|
|
234 |
|
|
234 |
|
|
234 |
|
|
234 |
|
|
234 |
|
|
234 |
|
|
234 |
|
|
233 |
|
|
232 |
|
|
232 |
|
|
232 |
||
Number of Units |
|
25,339 |
|
25,329 |
|
25,327 |
|
25,327 |
|
25,326 |
|
25,322 |
|
25,322 |
|
25,324 |
|
25,302 |
|
25,227 |
|
25,226 |
|
25,209 |
|
25,209 |
||||||||||||||
Occupancy |
|
76.5% |
|
|
77.0% |
|
|
77.3% |
|
|
77.8% |
|
|
77.8% |
|
|
77.7% |
|
|
78.1% |
|
|
78.5% |
|
|
78.6% |
|
|
79.2% |
|
|
79.3% |
|
|
79.3% |
|
|
78.1% |
||
Average Monthly Rate |
$ |
4,645 |
$ |
5,176 |
$ |
4,722 |
$ |
4,840 |
$ |
4,723 |
$ |
4,866 |
$ |
4,742 |
$ |
4,755 |
$ |
4,986 |
$ |
4,764 |
$ |
4,879 |
$ |
4,792 |
$ |
4,821 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residents Fees and Services |
$ |
92,025 |
$ |
93,118 |
$ |
94,449 |
$ |
94,249 |
$ |
95,029 |
$ |
95,568 |
$ |
96,679 |
$ |
97,482 |
$ |
98,973 |
$ |
98,087 |
$ |
97,429 |
$ |
98,820 |
$ |
1,151,908 |
||||||||||||||
Property Operating Expenses |
|
(88,056) |
|
|
(84,176) |
|
|
(90,097) |
|
|
(84,805) |
|
|
(89,007) |
|
|
(88,147) |
|
|
(90,496) |
|
|
(92,075) |
|
|
(89,874) |
|
|
(91,154) |
|
|
(91,025) |
|
|
(96,179) |
|
|
(1,075,091) |
||
NOI (2) |
$ |
3,969 |
$ |
8,942 |
$ |
4,352 |
$ |
9,444 |
$ |
6,022 |
$ |
7,421 |
$ |
6,183 |
$ |
5,407 |
$ |
9,099 |
$ |
6,933 |
$ |
6,404 |
$ |
2,641 |
$ |
76,817 |
||||||||||||||
NOI Margin |
|
4.3% |
|
|
9.6% |
|
|
4.6% |
|
|
10.0% |
|
|
6.3% |
|
|
7.8% |
|
|
6.4% |
|
|
5.5% |
|
|
9.2% |
|
|
7.1% |
|
|
6.6% |
|
|
2.7% |
|
|
6.7% |
(1) |
The information regarding DHC’s SHOP segment results for |
|
(2) |
The calculation of NOI shown excludes certain components of net income (loss) in order to provide results that are more closely related to DHC's property level results of operations. DHC defines NOI as income from its real estate less its property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that DHC records as depreciation and amortization. DHC uses NOI to evaluate individual and company wide property level performance. Other real estate companies and real estate investment trusts, or REITs, may calculate NOI differently than DHC does. |
|
Calculation and Reconciliation of NOI for SHOP Segment | ||||||
(dollars in thousands) |
||||||
For the Month Ended |
||||||
|
|
|||||
Calculation of NOI: |
SHOP |
SHOP |
||||
Residents fees and services |
$ |
92,025 |
$ |
102,728 |
||
Property operating expenses |
|
(88,056) |
|
(95,449) |
||
NOI |
$ |
3,969 |
$ |
7,279 |
||
For the Month Ended |
||||||||||
|
|
|
||||||||
SHOP |
SHOP |
SHOP |
||||||||
Residents fees and services |
$ |
92,025 |
|
$ |
98,820 |
|
$ |
102,728 |
||
Expenses: |
|
|
|
|
|
|||||
Property operating expenses |
|
88,056 |
|
96,179 |
|
95,449 |
||||
Depreciation and amortization |
|
13,874 |
|
|
15,952 |
|
|
15,595 |
||
Total expenses |
|
101,930 |
|
112,131 |
|
111,044 |
||||
|
|
|
|
|
|
|||||
Gain on sale of properties |
|
940 |
|
- |
|
- |
||||
Interest expense |
|
(178) |
|
|
(24) |
|
|
(23) |
||
Net loss |
|
(9,143) |
|
(13,335) |
|
(8,339) |
||||
|
|
|
|
|
|
|||||
Add (less): |
Interest expense |
|
178 |
|
24 |
|
23 |
|||
Depreciation and amortization |
|
13,874 |
|
|
15,952 |
|
|
15,595 |
||
Gain on sale of properties |
|
(940) |
|
- |
|
- |
||||
NOI |
$ |
3,969 |
|
$ |
2,641 |
|
$ |
7,279 |
About
DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout
Warning Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever DHC uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, it is making forward-looking statements. These forward-looking statements are based upon DHC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements as a result of various factors. For example, the information regarding DHC’s SHOP segment results provided in this press release reflects certain preliminary estimates based on currently available information, and DHC’s final results upon completion of its quarterly financial close process and review may vary from these preliminary estimates, and as a result, the information provided herein may not provide a meaningful measure of DHC’s SHOP segment results as expected.
The information contained in DHC's periodic reports filed with the
You should not place undue reliance upon any forward-looking statements. Except as required by law, DHC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226193173/en/
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