Diversified Healthcare Trust (DHC) shares plummeted 5.85% during intraday trading on Tuesday as investors reacted to the company's latest financial results.
The healthcare REIT reported a FY2025 net loss of $285.9 million, representing a 22.8% narrowing from the previous year but still reflecting substantial financial challenges. While the company's senior housing operating portfolio (SHOP) showed improvement with occupancy rising to 81.0% and NOI increasing 31.3%, other segments underperformed with Medical Office and Life Science Portfolio revenues declining 9.1% and All Other NOI dropping 16.2%.
The mixed financial performance, combined with $10.4 million in transition costs related to management changes and continued significant losses despite some improvements, contributed to negative investor sentiment during the trading session.