Q2 2024 Diversified Healthcare Trust Earnings Call Transcript
Key Points
- Second quarter results exceeded expectations for normalized FFO, reflecting continued progress on 2024 operating and financial priorities.
- Consolidated GAAP and cash basis NOI increased by 12.2% and 7.1%, respectively, compared to the prior year.
- SHOP segment saw a 27% increase in same property cash basis NOI over the year-ago period, driven by increased occupancy and RevPOR.
- Issued a $120 million mortgage loan secured by 8 Medical Office and Life Science properties, enhancing liquidity and partially redeeming senior notes.
- Medical Office and Life Science segment achieved double-digit rent growth for the fourth consecutive quarter, with weighted average rents 12.1% higher than prior rents for the same space.
- Second quarter occupancy in the SHOP segment was essentially flat sequentially, indicating slower-than-expected growth.
- Properties marketed for sale had negative NOI of approximately $830,000 and an occupancy rate of 72%, reflecting underperformance.
- The company is still working through portfolio optimization, including divesting underperforming or non-core assets, which may indicate ongoing challenges.
- Significant capital expenditures of $41 million in the second quarter, including $27 million in the SHOP segment, may strain financial resources.
- The Life Science campus in Torrey Pines has one building fully vacant, resulting in a collective occupancy of just shy of 50%, indicating potential challenges in leasing.
Good afternoon, and welcome to the Diversified Healthcare Trust second quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the call over to Kevin Brady Director of Investor Relations. Please go ahead.
Thanks, Asia. Good afternoon. 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 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 DHC's beliefs and expectations as of today, Friday,
| 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
