DHC Earnings Prediction
The chart below shows how DHC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DHC sees a -1.38% change in stock price 10 days leading up to the earnings, and a +2.48% change 10 days following the report. On the earnings day itself, the stock moves by +0.18%. This data can give you a slight idea of what to expect for the next quarter's release.
DHC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
373.64M
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Gross Margin
17.11%
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Operating Margin
-5.07%
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Net Margin
-26.41%
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EPS
-0.41
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No Data Available
DHC Earnings Analysis
Diversified Healthcare Trust Common Shares of Beneficial Interest Corporation (DHC.O) Earnings Conference Call
Positive
Senior Housing NOI Surge: 1. Strong NOI Growth: DHC's consolidated SHOP NOI increased by 32.6% year-over-year, driven by operational improvements and favorable market trends in the senior housing portfolio.
Leasing Activity Overview: 2. Leasing Activity: The company completed 83,000 square feet of new and renewal leasing activity with a rent roll-up of 4.8% and a weighted average lease term of 7.4 years.
SHOP Segment Revenue Increase: 3. Revenue Growth: The SHOP segment reported a 6.4% year-over-year revenue growth, supported by a 5.4% increase in average monthly rates and a 130 basis-point year-over-year occupancy growth.
Insurance Premium Reduction: 4. Cost Management: DHC successfully renewed its annual insurance program, resulting in a $6.8 million or 26% reduction in premiums, which will benefit future quarters.
Cash Liquidity Strength: 5. Strong Cash Position: The company ended the quarter with over $256 million in cash, providing a solid liquidity position to address upcoming financial obligations.
Negative
Occupancy Rate Decline: 1. Declining Same-Store Occupancy: Same-store occupancy decreased by 150 basis points to 87.8%, primarily due to a known vacate of a building in Valley Durham, North Carolina, reflecting 126,000 square feet.
Negative NOI from Sales: 2. Negative NOI from Disposed Communities: The 32 SHOP communities targeted for sale generated negative NOI of $2 million with an occupancy rate of only 75.2%.
Reduced SHOP NOI Guidance: 3. Lowered Full-Year SHOP NOI Guidance: Full-year SHOP NOI guidance has been reduced to $102 million to $107 million, reflecting additional insurance and remediation costs from recent hurricanes and lower expected occupancy rates.
Cost Impact on Results: 4. Increased Costs Impacting Results: The company experienced $2.5 million in unexpected expense increases due to a fire incident and hurricane-related remediation, negatively impacting quarterly results.
Cash and Debt Challenges: 5. Cash Position and Debt Maturity Concerns: Despite having over $256 million in cash, the company faces $440 million in unsecured senior notes maturing in June 2025, necessitating a refinancing strategy that has proven slower than anticipated.
