# Diversified Healthcare Trust

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Diversified Healthcare Trust).

## Overview

Diversified Healthcare Trust is a U.S. healthcare real estate investment trust that owns and leases senior living communities, medical office buildings, life science properties and other healthcare-related assets. Its portfolio is spread across the United States and is designed to generate rental and operating income from healthcare real estate tied to aging demographics, outpatient care and biotech/life science demand.

## Products & services

• Managed senior living communities (SHOP)
• Medical office properties leased to providers
• Life science properties for biotech and lab tenants
• Triple-net leased wellness centers
• Senior living communities leased to third-party operators

- **SHOP senior living communities** (57%) — Managed senior living communities where the company pays operators to run the facilities and earns revenue from resident activity.
- **Medical office and life science portfolio** (34%) — Medical office buildings and life science properties leased to healthcare providers, biotech labs and related tenants.
- **All Other healthcare properties** (9%) — Triple-net leased wellness centers and senior living communities leased to third-party operators, plus other non-core items.

- Managed senior living communities (SHOP)
- Medical office properties leased to providers
- Life science properties for biotech and lab tenants
- Triple-net leased wellness centers
- Senior living communities leased to third-party operators

## Customers

The company serves senior living residents through its SHOP communities and healthcare tenants through its medical office and life science portfolio. Its tenant base includes medical providers, hospital systems, biotech laboratories and third-party senior housing operators, with demand driven by healthcare utilization, outpatient care trends and aging demographics.

- **Senior living residents** (primary) — Residents and families using managed senior living communities for housing, care and services.
- **Medical providers and health systems** (primary) — Physicians, medical groups and hospital systems leasing medical office space for outpatient care delivery.
- **Biotech and life science tenants** (secondary) — Laboratory and research tenants leasing life science space for R&D and medical manufacturing activities.
- **Third-party senior housing operators** (secondary) — Operators leasing wellness centers and senior living assets under triple-net structures.

- Senior living residents and families seeking managed care communities
- Medical providers leasing office space near care networks
- Hospital systems anchoring multi-practice medical office buildings
- Biotech and life science tenants needing lab and research space
- Third-party senior housing operators leasing wellness and senior assets

## Geography

Diversified Healthcare Trust operates almost entirely in the United States, with 298 properties across 33 states and Washington, D.C. Its joint ventures add medical office and life science exposure in five states, and the business is therefore tied to U.S. healthcare spending, state-level regulation and local real estate markets rather than international demand.

- **United States** (100%) — Company discloses operations only in the U.S.; no country-level revenue split provided.

- Portfolio spans 33 states and Washington, D.C.
- Core business is U.S.-based healthcare real estate
- Joint ventures own assets in five states
- Exposure is driven by local occupancy, rent and reimbursement conditions
- No material non-U.S. operating footprint disclosed

## Strategy

The company is focused on improving performance in its SHOP segment by growing occupancy, rates and margins as senior living supply-demand conditions improve. It also seeks to optimize the portfolio through active asset management, including reviewing underperforming communities for disposition or operator transition, while maintaining long-duration leased exposure in medical office and life science assets.

- **Improve SHOP operating performance** (short-term) — SHOP is the largest revenue driver and benefits directly from occupancy, rate and margin gains.
- **Portfolio optimization and disposition discipline** (medium-term) — Removing underperforming assets can improve returns and reduce drag from weaker communities.
- **Maintain resilient healthcare real estate exposure** (long-term) — Medical office and life science assets provide long-duration lease income and diversification.

- Grow SHOP occupancy, rates and margins
- Use asset reviews to identify non-performing communities
- Dispose of or re-tenant weaker senior living assets
- Preserve long-duration income from medical office and life science leases
- Benefit from outpatient care and life science demand trends

## Risks

The business is exposed to healthcare real estate cyclicality, operator performance and reimbursement pressure, especially in senior living where labor, insurance and food costs can move faster than rates. It also faces regulatory scrutiny of REIT ownership in healthcare, interest-rate and capital-market sensitivity, and valuation risk in life science and senior housing assets if occupancy or demand weakens.

- **Dependence on third-party managers and operators** [high] — SHOP communities are operated by managers on the company's behalf, so operating results depend on their execution.
- **Labor, insurance and food cost inflation** [high] — These are major operating costs in senior living and can outpace rent/rate increases.
- **Government reimbursement and healthcare regulation** [high] — Some tenants and facilities depend on Medicare/Medicaid and are exposed to rate or policy changes.
- **Regulatory scrutiny of REIT investment in healthcare** [medium] — New transparency or ownership restrictions could affect transactions and portfolio strategy.
- **Interest rate and capital market volatility** [high] — Higher borrowing costs and lower asset values can reduce returns and limit capital deployment.

- SHOP margins can be pressured by labor, insurance and food inflation
- Operator dependence creates earnings risk if managers underperform
- Medicare and Medicaid policy changes can affect tenant and resident economics
- Healthcare REIT scrutiny may limit acquisitions or dispositions
- Interest rates and capital markets affect financing and property values

## Accounting

Key accounting judgments include real estate impairment testing, purchase price allocations and useful lives of fixed assets, all of which can materially affect reported asset values and depreciation. Because the company uses a mix of managed operations, leases and joint ventures, investors should also watch how revenue and NOI are allocated across segments and how held-for-sale assets are classified.

- **Impairment of real estate and intangible assets** — Can materially affect earnings and balance sheet carrying values
- **Purchase price allocation** — Affects depreciation, amortization and future reported results
- **Useful lives of fixed assets** — Changes can shift expense recognition across periods
- **Held-for-sale classification** — Affects asset presentation and potential gain/loss recognition

- Real estate impairment testing can create large non-cash charges
- Purchase price allocations affect asset values and future depreciation
- Useful lives of buildings and improvements drive depreciation expense
- Held-for-sale classification changes balance sheet presentation
- Segment reporting affects how SHOP and leased assets are analyzed

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*Last updated: 2026-04-28T20:00:42.075594+00:00*