The performance of Diversified Healthcare Trust’s senior housing operating portfolio, or SHOP, improved slightly in September, despite the company’s uphill climb with a post-pandemic recovery. That’s according to the Newton, MA-based real estate investment trust’s monthly performance update, released Monday.
DHC’s net operating income for its SHOP was $8.8 million in September. That’s $3.5 million, or 66.4%, above August. NOI, however, still is $5.9 million, or 40.0%, below that reported September 2019. Year to date, NOI through Sept. 30 was $59.1 million, an amount $99.4 million, or 62.7%, below the same period in 2019.
The SHOP’s September NOI margin was 9.2%, which was 360 basis points above NOI for the previous month but 550 basis points below NOI in September 2019. Year to date, NOI margin through Sept. 30 was 7.1%; 1,010 basis points below the same period in 2019.
SHOP revenue from resident fees and services was $96.1 million last month. That’s $1.4 million, or 1.5%, above revenue for August but still $4 million, or 4%, below revenue during September 2019. Year to date, resident fees and services revenue through Sept. 30 was $833.9 million; $86.2 million, or 9.4%, below the same period in 2019.
DHC said that occupancy in September was 79.4%, or 10 basis points above August. Monthly occupancy was 660 basis points below September 2019. Year to date, occupancy through Sept. 30 was 78.3%, 820 basis points below the same period in 2019.
DHC announced changes late last month to its board and executive leadership team and has enlisted the services of a financial adviser as it seeks solutions to its financial needs following the calling off of a proposed merger with Office Properties Income Trust last month. DHC has $700 million in debt maturing in the first half of 2024. The company also has said that its SHOP requires significant capital investments to complete a positive turnaround.
