10-K annual report · filed Feb 24, 2026

DIVERSIFIED HEALTHCARE TRUST (DHC) FY2025 10-K Annual Report

Short answer

DIVERSIFIED HEALTHCARE TRUST (DHC) filed its fiscal 2025 10-K annual report with the SEC on Feb 24, 2026. It reported revenue of $1.5B (+2.8% year over year) and net income of −$286M.

  • Top risk flagged: Debt refinancing risk: $2.4B principal debt as of Dec 31, 2025, with exposure to high interest rates and potential covenant breaches limiting flexibility

FY2025 key financial metrics · XBRL

Revenue
$1.5B
+2.8% YoY
Net income
−$286M
+22.8% YoY
EPS (diluted)
−$1.19
+23.2% YoY
ROE
-17.2%
+1.7 pp YoY
Operating cash flow
−$20M
−117.5% YoY

Source: XBRL data from the DIVERSIFIED HEALTHCARE TRUST (DHC) FY2025 10-K on SEC EDGAR. USD.

DIVERSIFIED HEALTHCARE TRUST FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business model: Real estate investment trust specializing in senior housing, medical office, life science properties, and wellness centers
  • Emphasis on energy efficiency and ESG initiatives via partnership with RMR and participation in ENERGY STAR and LEED programs
  • No new segments introduced; focus on managing climate change impact and tenant cost pass-through measures
  • Interest and other income $0 in 2025 and 2024, down from $1,581 in 2023 related to CARES and American Rescue Plan Act funds
  • Noteworthy seasonal impact on senior housing earnings with lower Q1 and Q4 results, offset by stable tenant rent payments

Management Discussion & Analysis

  • Revenue $875.5M with net loss $(305.4M) in 2025 vs $(370.3M) net loss in 2024; NOI $278.5M up from $258.9M (+7.5%)
  • Operating margins: NOI growth from $258.9M to $278.5M; no direct margin % given but loss narrowed
  • Best segment SHOP NOI $139.3M up 31% from $106.1M; worst Medical Office NOI $108.1M down 6.5% from $115.7M
  • Cash flow: Operating cash used $(19.6M) vs provided $112.2M prior year; investing cash inflow $483.6M vs outflow $(187.0M); financing cash outflow $(492.0M) vs $(22.3M)
  • Capital expenditures $146.0M in 2025 down from $190.5M; paid $9.7M in dividends; repaid senior notes due 2025 and 2026, issued $375M senior secured notes due 2030
  • Outlook/risks: Focus on redevelopments, liquidity reliance on occupancy and rents; caution on inflation, labor shortages, rising costs, high interest rates, credit market access risks

Risk Factors

  • Debt refinancing risk: $2.4B principal debt as of Dec 31, 2025, with exposure to high interest rates and potential covenant breaches limiting flexibility
  • Geopolitical and macroeconomic exposure: impact from U.S. inflation, interest rate uncertainty, trade policies, tariffs, and economic downturns on real estate demand and tenant payments
  • Operational risk: dependence on third-party managers to operate senior living communities, with limited recourse if performance or management transitions reduce cash flow
  • Competitive risk: increasing labor costs and labor shortages pressuring senior living margins amid competition for qualified staff and wage inflation
  • Regulatory risk: exposure to federal and state healthcare licensure, certification, and reimbursement laws with potential for civil and administrative penalties affecting revenues

Generated from the filing text; verify against the original. How to read a 10-K

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