Diversified Healthcare Trust(DHC) - 2024 Q4 - Annual Results

Financial Performance - The company reported a net loss of $87.4 million, or $0.36 per share, for Q4 2024, compared to a net loss of $98.7 million, or $0.41 per share, in Q3 2024[11]. - DHC's total revenues for Q4 2024 were $379.6 million, up from $373.6 million in Q3 2024[13]. - Total revenues for Q4 2024 were $379,619,000, a 5.4% increase from $361,535,000 in Q4 2023[15]. - The net loss for Q4 2024 was $87,446,000, compared to a net loss of $102,564,000 in Q4 2023, representing a 14.3% improvement[15]. - The net loss for the year ended December 31, 2024, was $(370,255,000), compared to $(293,000,000) for the previous year, representing a deterioration of approximately 26.4%[69]. - Cash Available for Distribution (CAD) for the year ended December 31, 2024, was $(33,037) thousand, a significant decrease from $(45,006) thousand in 2023, showing an improvement of about 26.6%[73]. Occupancy and Leasing - DHC achieved 80% SHOP occupancy for the first time since Q1 2020, with a year-over-year improvement of 56% in SHOP NOI and a 7.3% increase in SHOP revenues[4]. - The occupancy rate for the Medical Office and Life Science Portfolio was 90.1%[19]. - The occupancy rate increased to 80.0% from 79.3% year-over-year, indicating improved utilization of available units[40]. - The average occupancy for the Senior Living segment was 80.0% as of December 31, 2024, compared to 79.3% in the previous year, showing a basis point change of 70[48]. - The company executed 112 leasing activities in the last quarter, including 10 new leases and 102 renewals, resulting in a total of 397 leasing activities for the year[1]. Revenue and Income - Normalized FFO increased by 31.4% year-over-year to $5.3 million, or $0.02 per share, maintaining the same per share value as the previous quarter[11]. - The average monthly rate rose to $5,249, representing a year-over-year increase of 6.7%[40]. - Total residents fees and services for the quarter reached $315,736,000, up from $294,336,000 in the same quarter last year[40]. - The total NOI for the Senior Living segment was $24,933,000 for the three months ended December 31, 2024, an increase of 56.0% from $15,978,000 in the same period of 2023[48]. - The company reported a cash basis NOI of $64,424,000 for the three months ended December 31, 2024, compared to $63,113,000 for the previous quarter, marking an increase of about 2.1%[69]. Assets and Liabilities - DHC's total assets decreased to $5.14 billion as of December 31, 2024, from $5.29 billion in the previous quarter[13]. - Total assets decreased to $5,137,005,000 as of December 31, 2024, down from $5,446,136,000 a year earlier, reflecting a 5.7% decline[14]. - Total liabilities increased to $3,178,162,000, up from $3,109,245,000, marking a 2.2% rise[14]. - The total shareholders' equity decreased to $1,958,843,000 from $2,336,891,000, a decline of 16.1%[14]. Capital Expenditures and Investments - Total recurring capital expenditures for the three months ended December 31, 2024, amounted to $44,241,000, an increase of 15.5% compared to $38,274,000 for the previous quarter[24]. - The total capital expenditures for the same period reached $72,841,000, reflecting a 44% increase from $50,525,000 in the prior quarter[24]. - The company has $340 million in anticipated mortgage loan proceeds and $145 million in cash at year-end, aiding in managing upcoming debt maturities[5]. - DHC executed term sheets for anticipated aggregate loan proceeds of $159 million from property sales, with expected sales representing a 25% premium over allocated fair values[5]. Debt and Interest - The weighted average interest rate for total debt was 4.160% as of December 31, 2024[17]. - Interest expense for the year ended December 31, 2024, was $235,239,000, compared to $191,000,000 in the previous year, indicating an increase of approximately 23.1%[69]. - Interest expense for the three months ended December 31, 2024, was $59,518,000, consistent with $59,443,000 in the previous quarter[71]. Impairment and Expenses - The company incurred impairment of assets totaling $70,734,000 for the year ended December 31, 2024, compared to $18,000,000 in the previous year, indicating a significant increase in asset impairment[69]. - General and administrative expenses for the year ended December 31, 2024, were $26,518,000, compared to $26,000,000 in the previous year, reflecting a slight increase of about 2.0%[69]. Market and Portfolio Overview - DHC's primary markets consist of 31 of the largest Core-Based Statistical Areas (CBSAs) in the United States[96]. - As of December 31, 2024, the company's portfolio includes approximately $7.2 billion in assets, comprising 367 properties across 36 states and Washington, D.C., totaling approximately 8.0 million square feet of medical office and life science properties[61].