Net operating income has decreased for Diversified Healthcare Trust, or DHC, the real estate investment trust reported Wednesday in its monthly update pertaining to its senior housing operating portfolio, or SHOP.
DHC’s portfolio includes 117 properties managed by AlerisLife / Five Star Senior Living and 106 properties managed by other owners.
Year-to-date through Oct. 31, SHOP NOI was $66 million. That’s $107.6 million (62%) less than the same period in 2019. Year-to-date NOI margin through Sept. 30, 2023, was 7.1%, 990 basis points below the same period in 2019.
The company’s SHOP NOI margin was 7.1% in October, or 210 basis points below September’s figures. Compared with October 2019 data, NOI has declined 750 basis points, DHC reported.
Occupancy in October was 79.9%, for a 50-basis-point, month-over-month increase. SHOP occupancy, however, is still 600 basis points below the October 2019 level, according to the data.
The most recent update from DHC comes after the August collapse of a planned merger with Office Properties Income Trust, or OPI. In September, DHC announced changes to its board and executive leadership team and enlisted the services of a financial adviser as it sought solutions to its financial needs.
Earlier this month, the REIT announced that it will see a change at the top in 2024 with the retirement of President and CEO Jennifer Francis. She will be succeeded effective Jan.1 by Christopher Bilotto, the current president and CEO of OPI, who was to lead DHC if its merger with OPI had been approved.
Both Francis and Bilotto are executive vice presidents for The RMR Group, which manages both DHC and OPI. All three companies are based in Newton, MA. Francis also is resigning from The RMR Group. She will continue as a managing trustee of DHC.
