• Prologis for healthcare properties.
• Simon Property Group for medical facilities and senior living communities.

• Senior Living Communities: DHC owns and leases properties providing independent living, assisted living, and memory care services to seniors.
• Medical Office Buildings: DHC offers specialized office spaces for lease to various healthcare providers, including doctors' offices, clinics, and outpatient facilities.
• Life Science Properties: DHC provides laboratory, research, and development facilities for lease to biotechnology and pharmaceutical companies.

Major Customers of Diversified Healthcare Trust (DHC)

Diversified Healthcare Trust (DHC) is a real estate investment trust (REIT) that owns and leases healthcare-related properties, including medical office buildings, skilled nursing facilities, senior living communities, and wellness centers. Its major customers are other companies that operate healthcare facilities or practices in the properties owned by DHC.

The primary customer company is:

• Five Star Senior Living (FVE): Five Star Senior Living is a significant operator and tenant for a large portion of DHC's senior living communities. DHC leases many of its senior living properties to FVE, which then manages and operates those communities.

Beyond Five Star Senior Living, DHC's other properties (such as medical office buildings, skilled nursing facilities, and wellness centers) are leased to a diverse group of other healthcare operators, medical practices, hospital systems, and wellness providers. These tenants are typically varied, and no single other entity generally constitutes a "major customer" representing a substantial portion of DHC's overall revenue.

• The RMR Group Inc. (RMR)
• AlerisLife Inc. (ALR)

Chris Bilotto, President and Chief Executive Officer

Mr. Bilotto has served as President and Chief Executive Officer of Diversified Healthcare Trust (DHC) since 2024. He is also an Executive Vice President of The RMR Group (RMR), the company that manages DHC, and a member of the RMR Management Committee. Additionally, he holds the positions of Managing Trustee, President, and Chief Executive Officer of Service Properties Trust (SVC). At RMR, Mr. Bilotto is responsible for acquisitions, asset management for all hotel and senior living properties, and development and redevelopment activities across the U.S. Before joining RMR in 2011, he held various management roles at General Growth Properties (NYSE: GGP), focusing on shopping malls and mixed-use assets. He possesses 20 years of experience in the commercial real estate industry, specializing in asset management, leasing, and development.

Matthew Brown, Chief Financial Officer and Treasurer

Mr. Brown has been the Chief Financial Officer and Treasurer of Diversified Healthcare Trust (DHC) since 2023. He also serves as an Executive Vice President, Chief Financial Officer, and Treasurer of The RMR Group (RMR), where he oversees accounting, finance, and tax functions. His roles also include Chief Financial Officer and Treasurer of Tremont Realty Capital and Seven Hills Realty Trust (SEVN). Previously, Mr. Brown was the Chief Financial Officer and Treasurer of Office Properties Income Trust (OPI), another RMR company, and served as Director of Financial Reporting for DHC. Before joining RMR in 2007, he worked in the audit practice of Wolf & Company, a public accounting firm. He is a certified public accountant.

Adam Portnoy, Chair of the Board of Trustees

Mr. Portnoy serves as the Chair of DHC's Board of Trustees. He is also the President and Chief Executive Officer of The RMR Group (RMR), an alternative asset management company founded in 1986 that invests in commercial real estate and related operating businesses, with $32 billion in assets under management. Mr. Portnoy joined RMR in 2003. Prior to his time at RMR, he held various positions in the finance industry and public sector. His experience includes working as a banker at Donaldson, Lufkin & Jenrette and ABN AMRO, and in private equity at the International Finance Corporation (part of The World Bank Group) and DLJ Merchant Banking Partners. He also served as Chief Executive Officer of a telecommunications company. Mr. Portnoy serves on the Boards of several other companies managed by RMR or its affiliates, demonstrating a pattern of involvement with companies managed by The RMR Group, which itself is an alternative asset management company.

Jennifer B. Clark, Secretary

Ms. Clark is the Secretary of Diversified Healthcare Trust. She is also listed as a Co-Managing Trustee at Office Properties Income Trust, a company managed by The RMR Group.

Anthony Paula, Vice President

Mr. Paula serves as a Vice President of Diversified Healthcare Trust.

The key risks to Diversified Healthcare Trust (DHC) primarily revolve around its financial structure and the performance of its core assets:

1. High Leverage and Debt Maturities: Diversified Healthcare Trust carries a substantial debt load, reported at nearly $2.9 billion, which significantly limits its financial flexibility and ability to reinvest or grow the portfolio. The company faces ongoing challenges in refinancing its debt, especially with secured notes maturing in 2026. Rising interest rates could further increase borrowing costs, impacting margins and potentially necessitating asset sales to meet obligations. This high leverage has previously led to a default on a credit facility due to a drop in collateral value and raised "substantial doubt" about DHC's ability to continue as a going concern.
2. Concentration Risk and Performance of Senior Housing Operating Portfolio (SHOP): DHC has a significant concentration in its Senior Housing Operating Portfolio (SHOP) segment, with 118 communities managed by Five Star Senior Living. The underperformance of this segment or its operator would disproportionately affect DHC's overall financial results. Despite some recent improvements in occupancy and net operating income, analysts have expressed concerns about maintaining this performance, particularly if the company must reduce capital expenditures for property upgrades and renovations due to financial constraints.
3. Rising Operating Expenses and Regulatory Changes: The healthcare real estate sector, including DHC's senior living portfolio, is highly sensitive to rising operating expenses, particularly labor costs. These increasing costs directly impact profitability and put pressure on profit margins. Additionally, the sector is exposed to regulatory changes, such as shifts in Medicare or Medicaid reimbursement rates, labor laws, or compliance practices, which can negatively affect operator performance and operating margins.

• The ongoing shift towards the decentralization of healthcare delivery, with an increasing prevalence of outpatient facilities, urgent care centers, and retail health clinics. This trend could diminish the demand for traditional, larger medical office buildings that constitute a significant portion of DHC's portfolio, as care moves closer to where people live and shop, potentially impacting occupancy rates and rent growth.
• The sustained and growing adoption of telehealth services post-pandemic. If a significant portion of routine medical consultations permanently shifts to virtual platforms, it could reduce the overall physical space required by healthcare providers for exam rooms and waiting areas, thereby decreasing future demand for traditional medical office space and potentially impacting DHC's leasing activity and rental income.
• Chronic and worsening labor shortages across the senior living and healthcare sectors. These shortages directly impact the operational viability and profitability of DHC's senior living operators (tenants), limiting their ability to admit residents, maintain occupancy, and generate sufficient revenue. This, in turn, poses a direct threat to DHC's ability to collect rent and maintain stable income from its senior living portfolio.

Diversified Healthcare Trust (DHC) operates as a real estate investment trust (REIT) primarily focused on owning and leasing healthcare properties across the United States. Their main products and services include senior living communities, medical office buildings, and life science properties.

Addressable Markets for Diversified Healthcare Trust's Main Products or Services (U.S. Region):

• Senior Living Communities: The addressable market for senior living in the U.S. was estimated at approximately $907.59 billion in 2024 and is projected to reach $943.90 billion in 2025. This market is expected to grow to around $1.39 trillion by 2033.
• Medical Office Buildings (MOBs): The U.S. medical office buildings market generated approximately $14.08 billion in revenue in 2023. It is projected to reach about $22.04 billion by 2030.
• Life Science Properties: null

Diversified Healthcare Trust (DHC) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market trends:

1. Senior Housing Operating Portfolio (SHOP) Occupancy and Rate Improvements: DHC has demonstrated consistent growth in its Senior Housing Operating Portfolio, with occupancy rising by 210 basis points year-over-year to 81.5%, marking four consecutive quarters of occupancy growth. The company anticipates further gains as occupancy trends continue to improve and average monthly rates increase, with year-over-year same-property SHOP revenue growing by 6.6%. This sustained recovery in senior housing demand is a core belief for DHC shareholders.

2. Medical Office and Life Science Leasing Success: DHC has shown strong performance in its medical office and life science segments, completing approximately 86,000 square feet of leasing at weighted average rents 9% above prior rents, with an average lease term of nearly seven years. This success, coupled with an increase in consolidated occupancy in this portfolio by 370 basis points sequentially to 86.6% (driven by strategic asset sales and new leasing), underscores the company's strong position in these high-growth sectors.

3. Portfolio Optimization and Strategic Asset Sales: The company is actively optimizing its portfolio through asset dispositions. DHC has sold 44 properties for $396 million year-to-date and has agreements to sell an additional 38 properties for $237 million. These sales are aimed at enhancing liquidity, reducing capital expenditures, improving overall occupancy and margins, and contributing to cash flow growth. The full transition of 116 AlerisLife-managed communities to new operators, expected to be completed by year-end, is also anticipated to yield $25 million to $40 million in net proceeds in 2026 and contribute to margin expansion through performance-based incentive structures.

4. Leveraging Aging Demographics and Healthcare Tailwinds: An overarching driver for DHC is the favorable demographic trend of an aging population, combined with advancements in medical technologies. DHC has made significant portfolio-wide investments in its medical office, life science, and senior housing assets, positioning the company to capitalize on these powerful tailwinds and serve increasing demand in the healthcare real estate sector.

Share Repurchases

No specific dollar amount of share repurchases made or authorized to be made by Diversified Healthcare Trust (DHC) over the last 3-5 years was found in the provided information.

Share Issuance

No specific dollar amount of shares issued by Diversified Healthcare Trust (DHC) for capital raising purposes over the last 3-5 years was found in the provided information. Information regarding "DHC Acquisition" and its IPO or business combination refers to a different entity (a SPAC) and not Diversified Healthcare Trust.

Inbound Investments

No significant inbound investments by third-parties (e.g., strategic partners or private equity firms) directly into Diversified Healthcare Trust (DHC) were found in the provided information.

Outbound Investments

• Diversified Healthcare Trust has been engaged in the sale of non-core assets to reduce capital spending, improve occupancy and margins, and enhance cash flow. As of November 3, 2025, DHC had sold 44 properties for $396 million year-to-date.
• The company has agreements or letters of intent to sell an additional 38 properties for $237 million, with $211 million expected to close in Q4 2025 and the remainder in Q1 2026.
• DHC also plans to use expected proceeds of approximately $301 million from asset sales in Q1 2025 to pay down its 2026 zero coupon secured notes.

Capital Expenditures

• Diversified Healthcare Trust's annual capital expenditures were $374.492 million in 2022, $235.007 million in 2023, and $201.702 million in 2024.
• The company reaffirmed its 2025 capital expenditure guidance at $140-$160 million.
• The primary focus of capital expenditures includes refreshes and redevelopments aimed at achieving incremental Net Operating Income (NOI) and occupancy growth in properties.