Q3 2024 Diversified Healthcare Trust Earnings Call Transcript
Key Points
- DHC's consolidated SHOP NOI increased by 32.6% year-over-year, supported by operational improvements and favorable market trends in the senior housing portfolio.
- 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.
- DHC is actively managing its leasing pipeline with close to 400,000 square feet of activity, including potential absorption of 117,000 square feet and an overall double-digit rent rollout.
- The company successfully renewed its annual insurance program, resulting in a $6.8 million or 26% reduction in premiums, which is expected to benefit future quarters.
- DHC is under agreements or letters of intent to sell 25 properties for gross proceeds of $333 million, including a significant sale of 18 triple-net leased senior living communities, highlighting its ability to achieve premium valuations.
- Same-store occupancy in the medical office and life science segment decreased by 150 basis points to 87.8%, largely due to a known vacate in Durham, North Carolina.
- DHC lowered its full-year guidance due to slower-than-expected SHOP occupancy growth and varying expense impacts.
- The company experienced certain expense increases totaling $2.5 million, including an insurance deductible related to a fire and water intrusion remediation costs.
- DHC's SHOP NOI for the quarter, despite a year-over-year increase, declined sequentially due to increased expenses and muted occupancy growth.
- The company faces refinancing challenges with $440 million of maturities due in June 2025, requiring a broadened strategy to include financing smaller tranches and tapping diversified financing sources.
Good morning, and welcome to the Diversified Healthcare Trust third-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Melissa Mccarthy, Manager of Investor Relations. Please go ahead.
Thank you, Joe. Good morning. Joining me on today's call are Chris Bilotto, President and Chief Executive Officer; and Matt Brown, Chief Financial Officer and Treasurer. Today's call includes a presentation by management, followed by a question-and-answer session with sell-side analysts. Please note that the recording and retransmission of today's conference call is strictly prohibited without the prior written consent of the company.
Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon DHT's beliefs and expectations as of today,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
