SHOP NOI for May 2023 Declined 36% from April 2023, Evidencing Inconsistency of Ongoing SHOP Recovery
Provides Additional Insight into Calculation of Debt Incurrence Covenant and Reconfirms Debt Incurrence Covenant Compliance is Unlikely Before Mid-Year 2024
Reiterates Unanimous DHC Board Recommendation that Pending Merger with Office Properties Income Trust is Best Alternative for DHC and its Shareholders and that Shareholders vote “FOR” the Transaction
Diversified Healthcare Trust (NASDAQ:DHC) today provided an update regarding the recent performance of its Senior Housing Operating Portfolio, or SHOP, segment. The Company also provided additional insight into the calculation of its debt incurrence covenant that prohibits it from refinancing or issuing new debt.
Monthly Unaudited Results in DHC’s Total SHOP Comparable Properties:
- May 2023 occupancy was 78.1%, 840 basis points below May 2019, and 10 basis points above April 2023.
- May 2023 Resident Fees and Services revenue was $92.5 million, $10.6 million, or 10%, below May 2019, and $0.8 million, or 1%, above April 2023.
- May 2023 net operating income, or NOI, was $5.8 million, $11.1 million, or 66%, below May 2019, and $3.2 million, or 36%, below April 2023.
- May 2023 NOI margin was 6.3%, 1,020 basis points below May 2019, and 360 basis points below April 2023.
Year to Date Unaudited Results in DHC’s Total SHOP Comparable Properties:
- Year to date occupancy through May 31, 2023, was 77.5%, 900 basis points below the same period in 2019.
- Year to date Resident Fees and Services revenue through May 31, 2023, was $456.3 million, $57.3 million, or 11%, below the same period in 2019.
- Year to date NOI through May 31, 2023, was $31.7 million, $62.6 million, or 66%, below the same period in 2019.
- Year to date NOI margin through May 31, 2023, was 6.9%, 1,140 basis points below the same period in 2019.
