[8-K] DIVERSIFIED HEALTHCARE TRUST Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Diversified Healthcare Trust reported a Q4 2025 net loss of $21.2 million, or $0.09 per share, but significantly stronger cash metrics, including normalized FFO of $21.8 million, or $0.09 per share, and Adjusted EBITDAre of $72.4 million. Same property senior housing operating portfolio (SHOP) cash NOI rose 27.6% year over year to $38.3 million, driven by 82.4% occupancy and a 5.8% increase in average monthly rates. The medical office and life science portfolio generated same property cash NOI of $24.1 million with 94.7% occupancy.
For full year 2025, DHC posted a net loss of $285.9 million, impacted by $165.7 million of impairments and high interest expense, while normalized FFO improved to $64.4 million. Management highlighted approximately $6.3 billion of real estate across 298 properties and noted it fully redeemed its zero‑coupon notes due 2026, reducing net debt to annualized Adjusted EBITDAre to 8.1x. The company issued 2026 guidance calling for NOI of $297–$313 million, Adjusted EBITDAre of $290–$305 million, and normalized FFO of $125–$140 million, with expected SHOP NOI growth of 26%–33%.
Positive
- None.
Negative
- None.
Insights
Operations are improving and leverage is easing, but losses and debt remain material.
Diversified Healthcare Trust showed strong underlying property performance despite a GAAP net loss. Q4 2025 same property SHOP cash NOI rose to
Balance sheet metrics improved as asset sales funded full redemption of zero‑coupon senior secured notes due
Guidance for
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 23, 2026
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation)
| (Commission File Number) | (IRS Employer Identification No.) | |||||||
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title Of Each Class | Trading Symbol(s) | Name Of Each Exchange On Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 23, 2026, Diversified Healthcare Trust, or the Company, issued a summary press release and a detailed earnings presentation announcing the Company's financial results for the quarter ended December 31, 2025. Copies of the Company's summary press release and detailed earnings presentation are furnished as Exhibits 99.1 and 99.2 hereto, respectively.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| 99.1 | Summary Press Release dated February 23, 2026 | ||||
| 99.2 | Earnings Presentation dated February 23, 2026 | ||||
| 104 | Cover Page Interactive Data File. (Embedded within the Inline XBRL document.) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DIVERSIFIED HEALTHCARE TRUST | ||||||||
| By: | /s/ Matthew C. Brown | |||||||
| Name: | Matthew C. Brown | |||||||
| Title: | Chief Financial Officer and Treasurer | |||||||
Dated: February 23, 2026
Exhibit 99.1
FOR IMMEDIATE RELEASE
Diversified Healthcare Trust Announces Fourth Quarter 2025 Results
Provides Full Year 2026 Financial Guidance
Newton, MA (February 23, 2026): Diversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter ended December 31, 2025 and provided full year 2026 financial guidance, which can be found at the Quarterly Reports section of DHC's website at https://www.dhcreit.com/investors/financial-information/quarterly/default.aspx.
A conference call to discuss DHC's fourth quarter 2025 financial results will be held on Tuesday, February 24, 2026 at 10:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 329-4297 or (412) 317-5435 (if calling from outside the United States and Canada); a pass code is not required. A replay will be available for one week by dialing (855) 669-9658; the replay pass code is 7932578. A live audio webcast of the conference call will also be available in a listen-only mode on DHC's website, at www.dhcreit.com. The archived webcast will be available for replay on DHC's website after the call. The transcription, recording and retransmission in any way of DHC's fourth quarter conference call are strictly prohibited without the prior written consent of DHC.
About Diversified Healthcare Trust:
DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2025, DHC’s approximately $6.3 billion portfolio included 298 properties in 33 states and Washington, D.C., with approximately 25,000 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 290 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of December 31, 2025 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com.
| Contact: | |||||
| Bryan Maher, Senior Vice President | |||||
| (617) 796-8234 | |||||
Financial Results and Supplemental Information FOURTH QUARTER 2025 February 23, 2026 Exhibit 99.2
Q4 2025 2 FINANCIAL RESULTS Diversified Healthcare Trust Announces Fourth Quarter 2025 Financial Results .......................................................................................... 3 Fourth Quarter 2025 Highlights.............................................................................................................................................................................. 4 Full Year 2026 Guidance .......................................................................................................................................................................................... 6 FINANCIALS Key Financial Data ..................................................................................................................................................................................................... 7 Condensed Consolidated Balance Sheets ............................................................................................................................................................ 8 Condensed Consolidated Statements of Income (Loss) .................................................................................................................................... 9 DEBT AND LEVERAGE Debt Summary ........................................................................................................................................................................................................... 10 Debt Maturity Schedule ........................................................................................................................................................................................... 11 Leverage Ratios, Coverage Ratios and Bond Covenants ................................................................................................................................... 12 INVESTMENTS Summary of Capital Expenditures .......................................................................................................................................................................... 13 Redevelopment Information .................................................................................................................................................................................... 14 Property Dispositions Information Since January 1, 2025 ................................................................................................................................. 15 Investments in Unconsolidated Joint Ventures .................................................................................................................................................... 16 PORTFOLIO INFORMATION Portfolio Summary by Geographic Diversification and Property Type ........................................................................................................... 18 Portfolio Summary ..................................................................................................................................................................................................... 19 SHOP Units by Operator .......................................................................................................................................................................................... 20 SHOP Segment and Same Property - Results of Operations ............................................................................................................................ 21 Senior Living NOI by Manager ................................................................................................................................................................................ 22 Senior Living Results of Operations by Location ................................................................................................................................................. 23 Medical Office and Life Science Portfolio and Same Property - Results of Operations .............................................................................. 24 Portfolio Leasing Summary ...................................................................................................................................................................................... 26 Tenants Representing 1% or More of Total Annualized Rental Income ......................................................................................................... 27 Medical Office and Life Science Portfolio Lease Expiration Schedule ............................................................................................................ 28 All Other Lease Expiration Schedule ..................................................................................................................................................................... 29 APPENDIX Company Profile and Research Coverage ............................................................................................................................................................ 30 Governance Information........................................................................................................................................................................................... 31 Calculation and Reconciliation of NOI and Cash Basis NOI .............................................................................................................................. 32 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment ....... 33 Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre ............................................................................................ 34 Calculation and Reconciliation of FFO, Normalized FFO and CAD ................................................................................................................. 35 Non-GAAP Financial Measures and Certain Definitions .................................................................................................................................... 37 WARNING CONCERNING FORWARD-LOOKING STATEMENTS ........................................................................................................................................................................ 42 Table of Contents All amounts in this presentation are unaudited. Please refer to Non-GAAP Financial Measures and Certain Definitions for terms used throughout this document. Trading Symbols: Common Shares: DHC Senior Unsecured Notes due 2042: DHCNI Senior Unsecured Notes due 2046: DHCNL Investor Relations Contact: Bryan Maher, Senior Vice President (617) 796-8234 ir@dhcreit.com Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634
Q4 2025 3 "DHC finished an active 2025 on a strong note and is carrying significant positive momentum into 2026. Fourth quarter and full year results came in at the high end of our expectations, with fourth quarter same property SHOP NOI improving 27.6% over last year to $38.3 million, and full year SHOP NOI improving 31.3% to $139.3 million. Same property SHOP occupancy was 82.4% in the fourth quarter, up 90 basis points over last year, while average monthly rates increased 5.8%. Our Medical Office and Life Science segment ended the year with same property occupancy of 94.7% and a WALT of 5.0 years. During the quarter, DHC completed the transition of 116 AlerisLife managed communities to different operators that have proven track records and well-established regional footprints. We also sold 37 non-core properties for approximately $250.0 million in the fourth quarter and used proceeds to fully repay DHC’s zero coupon notes due in 2026, materially improving DHC’s balance sheet. As a result of these initiatives, DHC was the top performing REIT in the U.S. in 2025 with a total shareholder return of 112.6%. We look forward to building on this momentum in the year ahead, supported by our expectations for SHOP NOI growth of 26% to 33% in 2026." Christopher Bilotto, President and Chief Executive Officer Diversified Healthcare Trust Announces Fourth Quarter 2025 Financial Results RETURN TO TABLE OF CONTENTS Newton, MA (February 23, 2026): Diversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter ended December 31, 2025. Distribution On January 15, 2026, DHC declared a quarterly distribution on its common shares of $0.01 per share to shareholders of record as of the close of business on January 26, 2026. This distribution was paid on February 19, 2026. Conference Call A conference call to discuss DHC's fourth quarter 2025 financial results will be held on Tuesday, February 24, 2026 at 10:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 329-4297 or (412) 317-5435 (if calling from outside the United States and Canada); a pass code is not required. A replay will be available for one week by dialing (855) 669-9658; the replay pass code is 7932578. A live audio webcast of the conference call will also be available in a listen-only mode on DHC's website, at www.dhcreit.com. The archived webcast will be available for replay on DHC's website after the call. The transcription, recording and retransmission in any way of DHC's fourth quarter conference call are strictly prohibited without the prior written consent of DHC. About Diversified Healthcare Trust DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2025, DHC’s approximately $6.3 billion portfolio included 298 properties in 33 states and Washington, D.C., with approximately 25,000 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 290 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of December 31, 2025 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com.
Q4 2025 4 Fourth Quarter 2025 Highlights RETURN TO TABLE OF CONTENTS • Net loss of $21.2 million, or $0.09 per share. • Normalized FFO of $21.8 million, or $0.09 per share. • Adjusted EBITDAre of $72.4 million. Same Property Cash Basis NOI For the Three Months Ended (dollars in thousands) December 31, 2025 September 30, 2025 % Change December 31, 2024 % Change SHOP $ 38,291 $ 31,931 19.9 % $ 30,016 27.6 % Medical Office and Life Science Portfolio 24,134 23,893 1.0 % 23,242 3.8 % All Other 7,991 6,828 17.0 % 7,746 3.2 % Consolidated $ 70,416 $ 62,652 12.4 % $ 61,004 15.4 % As of and for the three months ended December 31, 2025, unless otherwise noted As of and For the Three Months Ended December 31, 2025 September 30, 2025 Basis Point Change December 31, 2024 Basis Point Change Occupancy SHOP 81.6% 81.5% 10 80.0% 160 Medical Office and Life Science Portfolio 91.2% 86.6% 460 82.2% 900 Same Property Occupancy SHOP 82.4% 82.4% — 81.5% 90 Medical Office and Life Science Portfolio 94.7% 94.6% 10 94.6% 10 Financial Results Portfolio Update
Q4 2025 5 Fourth Quarter 2025 Highlights (continued) RETURN TO TABLE OF CONTENTS Operating Update • Year over year fourth quarter same property SHOP occupancy increased 90 basis points to 82.4% and average monthly rates increased by 5.8%, resulting in a 5.6% increase in same property SHOP revenues and a 27.6% increase in same property SHOP NOI. • Completed the transition of 116 communities to seven different operators in connection with the previously announced wind-down of AlerisLife. • Leased 81,055 square feet in the Medical Office and Life Science Portfolio at weighted average rents that were 7.9% higher than prior rents for the same space. As of and for the three months ended December 31, 2025, unless otherwise noted Liquidity and Financing Update • DHC fully redeemed the remaining balance of its then outstanding zero-coupon senior secured notes due 2026, using the net proceeds from the sale of 35 properties, together with cash on hand. DHC has no debt maturities until 2028. • Approximately $255.4 million of total liquidity, consisting of $105.4 million of cash and cash equivalents and $150.0 million available on DHC's undrawn secured revolving credit facility. • DHC's net debt to annualized Adjusted EBITDAre decreased to 8.1x compared to 11.2x as of December 31, 2024. • In January 2026, DHC received a $27.2 million cash dividend in connection with the sale of AlerisLife's assets. Acquisition and Disposition Update • In January 2026, DHC provided notice to exercise its purchase option for its properties subject to finance leases for an aggregate purchase price of $14.5 million resulting in $1.9 million of annual rent savings. DHC expects to close this acquisition by April 30, 2026. • DHC sold 16 SHOP and 21 Medical Office and Life Science properties for an aggregate of $251.2 million, excluding closing costs. • As of February 20, 2026, DHC was under agreement to sell 13 unencumbered properties for aggregate proceeds of $23.0 million, excluding closing costs.
Q4 2025 6 Full Year 2026 Guidance Low End High End NOI: SHOP $ 175,000 $ 185,000 Medical Office / Life Science (2) 94,000 98,000 All Other 28,000 30,000 Total NOI $ 297,000 $ 313,000 Adjusted EBITDAre $ 290,000 $ 305,000 Normalized FFO (3) $ 125,000 $ 140,000 Normalized FFO Per Common Share (3) $ 0.52 $ 0.58 Recurring Capital Expenditures: SHOP $ 80,000 $ 90,000 Medical Office / Life Science 20,000 25,000 All Other — — Total Recurring Capital Expenditures $ 100,000 $ 115,000 Full Year 2026 Guidance (1) RETURN TO TABLE OF CONTENTS (dollars in thousands, except per share data) Full year 2026 guidance is based in part on the following assumptions: • Mid-point Same Property SHOP NOI: ◦ Year over year occupancy growth of approximately 300 bps. ◦ Revenue growth of approximately 8.0% and average monthly rate growth of approximately 5.3%. ◦ Operating expense growth of approximately 5.7%, with ExpPOR growth of approximately 3.0%. • Mid-point general and administrative expense of approximately $32,500 (4). • Mid-point share of EBITDAre from unconsolidated joint ventures of approximately $17,500. • Mid-point interest expense of approximately $149,000. • Weighted average shares of approximately 242 million. • No acquisitions. • No dispositions other than 13 communities under contract and expected to close in March 2026. (1) DHC does not provide a reconciliation of non-GAAP measures that it discloses as part of its annual guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts, or at all, including, most notably, impairment of assets, gain (loss) on sale of properties, loss on modification or early extinguishment of debt and equity in net earnings of investees. These items that would be contained in the comparable GAAP measures are not indicative of DHC’s ongoing operations, are uncertain, depend on various factors, and could have a material impact on DHC’s GAAP results for the guidance period. (2) NOI from Medical Office and Life Science properties is expected to decline from $108,130 in 2025 largely because DHC sold 31 Medical Office and Life Science properties during 2025 that contributed $12,331 of NOI during the year ended December 31, 2025. (3) Normalized FFO is expected to increase from $64,421 in 2025 largely because DHC was impacted by discount accretion of $63,241 on DHC's then senior secured notes due 2026. (4) Excludes the impact of business management incentive fees, if any.
Q4 2025 7 The Pointe at Pompano Beach Pompano Beach, FL Key Financial Data RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Selected Balance Sheet Data: Total gross assets $ 6,451,156 $ 6,760,986 $ 6,886,404 $ 7,108,119 $ 7,219,782 Total assets $ 4,361,250 $ 4,683,974 $ 4,756,441 $ 4,995,843 $ 5,137,005 Total liabilities $ 2,695,682 $ 2,995,244 $ 2,901,468 $ 3,047,792 $ 3,178,162 Total equity $ 1,665,568 $ 1,688,730 $ 1,854,973 $ 1,948,051 $ 1,958,843 Selected Income Statement Data: Total revenues $ 379,571 $ 388,706 $ 382,712 $ 386,864 $ 379,619 Net loss $ (21,221) $ (164,040) $ (91,639) $ (8,986) $ (87,446) NOI $ 72,524 $ 63,319 $ 70,132 $ 72,538 $ 64,443 Adjusted EBITDAre $ 72,399 $ 62,866 $ 73,613 $ 75,109 $ 67,049 FFO $ 4,912 $ (5,886) $ 13,577 $ (10,006) $ 11,805 Normalized FFO $ 21,823 $ 9,721 $ 18,572 $ 14,305 $ 5,290 CAD $ (3,170) $ 17,218 $ 5,167 $ 25,985 $ (16,875) Rolling four quarter CAD $ 45,200 $ 31,495 $ 1,470 $ (9,463) $ (33,037) Per Share Data (basic and diluted): Net loss $ (0.09) $ (0.68) $ (0.38) $ (0.04) $ (0.36) FFO $ 0.02 $ (0.02) $ 0.06 $ (0.04) $ 0.05 Normalized FFO $ 0.09 $ 0.04 $ 0.08 $ 0.06 $ 0.02 CAD $ (0.01) $ 0.07 $ 0.02 $ 0.11 $ (0.07) Rolling four quarter CAD $ 0.19 $ 0.13 $ 0.01 $ (0.03) $ (0.13) Dividends: Annualized dividend declared per common share $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 Annualized dividend yield (at end of period) 0.8 % 0.9 % 1.1 % 1.7 % 1.7 % Normalized FFO payout ratio 11.1 % 25.0 % 12.5 % 16.7 % 50.0 % CAD payout ratio (100.0) % 14.3 % 50.0 % 9.1 % (14.3) % Rolling four quarter CAD payout ratio 21.1 % 30.8 % 400.0 % (133.3) % (30.8) % (dollars in thousands, except per share data)
Q4 2025 8 December 31, 2025 December 31, 2024 Assets Real estate properties: Land $ 542,403 $ 605,973 Buildings and improvements 5,406,403 5,817,279 Total real estate properties, gross 5,948,806 6,423,252 Accumulated depreciation (2,089,906) (2,082,777) Total real estate properties, net 3,858,900 4,340,475 Investments in unconsolidated joint ventures 120,126 126,859 Assets of properties held for sale 23,085 276,270 Cash and cash equivalents 105,407 144,584 Restricted cash 16,392 5,270 Equity method investment 27,200 24,590 Acquired real estate leases and other intangible assets, net 20,663 26,300 Other assets, net 189,477 192,657 Total assets $ 4,361,250 $ 5,137,005 Liabilities and Equity Secured revolving credit facility $ — $ — Senior secured notes, net 365,005 826,974 Senior unsecured notes, net 1,580,726 1,957,319 Secured debt and finance leases, net 455,093 126,611 Liabilities of properties held for sale 3,426 6,024 Accrued interest 30,683 23,092 Other liabilities 260,749 238,142 Total liabilities 2,695,682 3,178,162 Commitments and contingencies Common shares of beneficial interest, $.01 par value: 300,000,000 shares authorized, 242,121,025 and 241,271,703 shares issued and outstanding, respectively 2,421 2,413 Additional paid in capital 4,622,572 4,620,313 Cumulative net income 1,122,137 1,408,023 Cumulative other comprehensive loss (12) (17) Cumulative distributions (4,081,550) (4,071,889) Total equity 1,665,568 1,958,843 Total liabilities and equity $ 4,361,250 $ 5,137,005 Condensed Consolidated Balance Sheets (dollars in thousands, except share data) RETURN TO TABLE OF CONTENTS The Court at Palm Aire Pompano Beach, FL
Q4 2025 9 For the Three Months Ended December 31, For the Year Ended December 31, 2025 2024 2025 2024 Revenues: Rental income $ 56,157 $ 63,883 $ 225,198 $ 251,038 Residents fees and services 323,414 315,736 1,312,655 1,244,389 Total revenues 379,571 379,619 1,537,853 1,495,427 Expenses: Property operating expenses 307,047 315,176 1,259,340 1,236,542 Depreciation and amortization 62,008 77,508 261,923 284,957 General and administrative (1) (2) 12,536 (1,245) 45,502 26,518 Acquisition and certain other transaction related costs 9,099 267 10,356 2,510 Impairment of assets 2,994 29,016 165,702 70,734 Total expenses 393,684 420,722 1,742,823 1,621,261 Gain (loss) on sale of properties 13,759 38 117,730 (18,938) Gain on insurance recoveries (3) — — 7,522 — Interest and other income 1,532 1,735 5,839 8,950 Interest expense (including net amortization of debt discounts, premiums and issuance costs of $11,848, $26,795, $77,942 and $103,437, respectively) (46,855) (59,518) (204,498) (235,239) Loss on modification or early extinguishment of debt (2,138) (115) (42,526) (324) Loss before income taxes and equity in net earnings of investees (47,815) (98,963) (320,903) (371,385) Income tax (expense) benefit (514) 38 (1,743) (467) Equity in net earnings of investees 27,108 11,479 36,760 1,597 Net loss $ (21,221) $ (87,446) $ (285,886) $ (370,255) Weighted average common shares outstanding (basic and diluted) 240,662 239,949 240,286 239,535 Per common share data (basic and diluted): Net loss $ (0.09) $ (0.36) $ (1.19) $ (1.55) Condensed Consolidated Statements of Income (Loss) RETURN TO TABLE OF CONTENTS (amounts in thousands, except per share data) (1) DHC recognized incentive management fees of $5,674 during the three months ended December 31, 2025. DHC reversed $6,934 of incentive management fees during the three months ended December 31, 2024. (2) DHC recognized incentive management fees of $17,905 during the year ended December 31, 2025. DHC did not recognize an incentive management fee for the year ended December 31, 2024. (3) During the year ended December 31, 2025, DHC recognized a gain of $7,522 on insurance recoveries from a claim settled during the first quarter of 2025.
Q4 2025 10 Coupon Interest Principal Maturity Due at Years to Rate Rate Balance Date Maturity Maturity Secured Floating Rate Debt: $150,000 revolving credit facility - secured by 14 properties (1) 6.470% 6.470% $ — 6/11/2029 $ — 3.4 Mortgage - secured by 14 properties (2) 6.188% 6.188% 140,000 3/31/2028 138,578 2.2 Weighted average rate / total secured floating rate debt 6.188% 6.188% 140,000 138,578 2.2 Unsecured Fixed Rate Debt: Senior unsecured notes due 2028 4.750% 4.750% 500,000 2/15/2028 500,000 2.1 Senior unsecured notes due 2031 4.375% 4.375% 500,000 3/1/2031 500,000 5.2 Senior unsecured notes due 2042 5.625% 5.625% 350,000 8/1/2042 350,000 16.6 Senior unsecured notes due 2046 6.250% 6.250% 250,000 2/1/2046 250,000 20.1 Weighted average rate / total unsecured fixed rate debt 5.059% 5.059% 1,600,000 1,600,000 9.1 Secured Fixed Rate Debt: Senior secured notes due 2030 (3) 7.250% 7.250% 375,000 10/15/2030 375,000 4.8 Finance leases - two properties (4) 7.700% 7.700% 613 4/30/2026 155 0.3 Mortgage - secured by four properties 6.572% 6.572% 63,499 6/7/2030 58,211 4.4 Mortgage - secured by eight properties 6.864% 6.864% 120,000 6/11/2034 120,000 8.4 Mortgages - secured by seven properties (5) 6.220% 6.220% 108,873 5/1/2035 101,724 9.3 Mortgages - secured by two properties (6) 6.360% 6.360% 30,284 6/1/2035 27,361 9.4 Mortgage - secured by one property 6.444% 6.444% 5,847 7/6/2043 46 17.5 Weighted average rate / total secured fixed rate debt 6.919% 6.919% 704,116 682,497 6.4 Weighted average rate / total debt 5.659% 5.659% $ 2,444,116 $ 2,421,075 7.9 Debt Summary (dollars and sq. ft. in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2025 (1) DHC is required to pay interest on borrowings under this facility at a rate of SOFR plus a premium, which was 2.50% per annum as of December 31, 2025. DHC also pays an unused commitment fee of 25 to 35 basis points per annum based on amounts outstanding under this facility. DHC has two six-month extension options for the maturity date of this facility, subject to satisfaction of certain conditions and payment of an extension fee. (2) This mortgage loan requires that interest be paid at an annual rate of SOFR plus a premium of 2.50%, with interest-only payments through April 2027, and DHC has two six-month extension options for the interest- only period, subject to satisfaction of certain conditions. In connection with this mortgage loan, DHC has purchased an interest rate cap for $47 through March 2026 with a SOFR strike rate equal to 4.50%. DHC has two one-year extension options for the maturity date of this mortgage loan, subject to satisfaction of certain conditions and payment of an extension fee. (3) These notes are secured by first-priority liens on the equity interests of subsidiaries owning 36 properties. (4) In January 2026, DHC provided notice to exercise its purchase option for its two properties subject to finance leases for $14,500, with closing expected in April 2026. (5) This mortgage loan requires interest-only payments through May 2030. (6) This mortgage loan requires interest-only payments through June 2028.
Q4 2025 11 $139,063 $500,000 $500,000 $0 $600,000 $1,866 $2,273 $1,587 $1,883 $435,151 $1,993 $2,122 $2,259 $122,405 $133,514 Secured Floating Rate Debt Unsecured Fixed Rate Debt Secured Fixed Rate Debt 2026 2027 2028 2029 2030 2031 2032 2033 2034 Thereafter $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Debt Maturity Schedule (3) RETURN TO TABLE OF CONTENTS (dollars in thousands) As of December 31, 2025 (1) Represents amount outstanding under DHC's $140,000 mortgage loan. DHC has two one-year extension options for the maturity date of this mortgage loan, subject to satisfaction of certain conditions and payment of an extension fee. (2) DHC had no outstanding borrowings under its $150,000 secured revolving credit facility as of December 31, 2025. This facility matures in 2029, with two six-month extension options, subject to satisfaction of certain conditions and payment of an extension fee. (3) Includes $613 of finance lease obligations due through April 2026. In January 2026, DHC provided notice to exercise its purchase option for its two properties subject to finance leases for $14,500, with closing expected in April 2026. (1) (2)
Q4 2025 12 Leverage Ratios, Coverage Ratios and Bond Covenants RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Leverage Ratios: Net debt / total gross assets 36.3% 38.1% 37.3% 36.4% 40.2% Net debt / gross book value of real estate assets 37.3% 38.7% 37.9% 37.8% 40.5% Secured debt / total assets 19.4% 25.2% 23.4% 18.2% 20.8% Variable rate debt / net debt 6.0% 5.4% 5.4% —% —% Coverage Ratios: Net debt / annualized Adjusted EBITDAre 8.1x 10.0x 8.7x 8.8x 11.2x Adjusted EBITDAre / interest expense 1.5x 1.3x 1.4x 1.3x 1.1x As of and For the Trailing Twelve Months Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Bond Covenants: Maintenance Covenant Total unencumbered assets / unsecured debt - required minimum 150.0% 256.1% 212.5% 238.6% 258.6% 262.2% Incurrence Covenants Total debt / adjusted total assets - allowable maximum 60.0% 37.5% 40.7% 38.9% 40.2% 41.7% Secured debt / adjusted total assets - allowable maximum 40.0% 13.0% 17.3% 16.0% 12.7% 14.6% Consolidated income available for debt service / debt service - required minimum 1.50x 1.80x 1.78x 2.20x 2.09x 1.95x Valencia, CA Greenwood, IN
Q4 2025 13 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) Summary of Capital Expenditures RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 12/31/2025 12/31/2024 SHOP fixed assets and capital improvements $ 18,236 $ 33,306 $ 24,283 $ 21,115 $ 33,406 $ 96,940 93,043 Medical Office and Life Science Portfolio lease related costs 14,370 4,961 3,528 3,847 5,347 26,706 21,289 Medical Office and Life Science Portfolio building improvements 2,465 2,295 1,518 1,524 1,872 7,802 6,002 Subtotal Medical Office and Life Science Portfolio 16,835 7,256 5,046 5,371 7,219 34,508 27,291 Wellness centers lease related costs — — — — 3,616 — 20,618 Total recurring capital expenditures $ 35,071 $ 40,562 $ 29,329 $ 26,486 $ 44,241 $ 131,448 $ 140,952 SHOP avg. units managed during period 24,062 24,889 24,939 25,006 25,065 24,098 25,093 Medical Office and Life Science Portfolio avg. sq. ft. during period 6,245 7,166 7,510 7,787 8,073 6,756 8,282 SHOP fixed assets and capital improvements per avg. unit managed during period $ 758 $ 1,338 $ 974 $ 844 $ 1,333 $ 4,023 $ 3,708 Medical Office and Life Science Portfolio building improvements per avg. sq. ft. during period $ 0.39 $ 0.32 $ 0.20 $ 0.20 $ 0.23 $ 1.15 $ 0.72 Development, redevelopment and other activities - SHOP $ 2,101 $ 1,865 $ 4,660 $ 5,568 $ 27,950 $ 14,194 $ 46,558 Development, redevelopment and other activities - Medical Office and Life Science Portfolio 133 175 — — 650 308 3,012 Total development, redevelopment and other activities $ 2,234 $ 2,040 $ 4,660 $ 5,568 $ 28,600 $ 14,502 $ 49,570 Capital expenditures by segment: SHOP $ 20,337 $ 35,171 $ 28,943 $ 26,683 $ 61,356 $ 111,134 $ 139,601 Medical Office and Life Science Portfolio 16,968 7,431 5,046 5,371 7,869 34,816 30,303 Wellness centers — — — — 3,616 — 20,618 Total capital expenditures $ 37,305 $ 42,602 $ 33,989 $ 32,054 $ 72,841 $ 145,950 $ 190,522
Q4 2025 14 DHC does not have any significant ongoing redevelopments as of December 31, 2025. (1) Reflects units prior to redevelopment. Redevelopment Information (dollars in millions) RETURN TO TABLE OF CONTENTS Medical Office and Life Science Portfolio As of December 31, 2025 Project Location Type of Property Number of Units (1) Estimated Project Costs Total Costs Incurred as of December 31, 2025 Estimated Completion Date Pueblo Norte Senior Living Scottsdale, AZ IL/AL 205 $ 26.2 $ 22.8 Q1 2026 / Q2 2027 Residences of Chevy Chase Chevy Chase, MD IL/AL 310 9.0 1.4 Q2 2026 $ 35.2 $ 24.2 SHOP
Q4 2025 15 Property Dispositions Information Since January 1, 2025 Dispositions: Month Sold Location Segment Number of Properties Gross Sales Price Gross Sales Price Per Unit or Square Foot (1) Occupancy (2) January Wilmington, DE SHOP 1 $ 2,900 $ 28,431 0.0 % January San Diego, CA Medical Office and Life Science Portfolio (3) 3 159,025 $ 855.07 49.2 % February Tempe, AZ Medical Office and Life Science Portfolio 1 16,800 $ 204.22 0.0 % February Various All Other (3) 18 135,000 $ 154,110 100.0 % March Cromwell, CT Medical Office and Life Science Portfolio (3) 1 7,100 $ 109.57 100.0 % May Nashville, TN SHOP 1 11,150 $ 92,917 0.0 % May St. Louis, MO Medical Office and Life Science Portfolio 1 5,250 $ 23.90 0.0 % July Various Medical Office and Life Science Portfolio 2 4,800 $ 19.63 0.0 % July Cherry Hill, NJ All Other 1 4,000 $ 41,237 0.0 % August Pittsburgh, PA Medical Office and Life Science Portfolio 1 1,800 $ 13.64 23.0 % September Macon, GA SHOP 1 1,600 $ 40,000 94.7 % September Silver Spring, MD Medical Office and Life Science Portfolio 1 4,250 $ 46.11 0.0 % October Various SHOP 7 21,430 $ 36,051 71.0 % October Mansfield, MA Medical Office and Life Science Portfolio (3) 1 10,700 $ 85.74 0.0 % November Various SHOP 4 10,000 $ 51,813 58.6 % November Various Medical Office and Life Science Portfolio (3) 2 11,766 $ 165.39 59.3 % December Various SHOP 5 56,510 $ 85,363 90.7 % December Various Medical Office and Life Science Portfolio (3) 18 140,793 $ 128.64 80.1 % Total Dispositions 69 $ 604,874 RETURN TO TABLE OF CONTENTS (dollars in thousands, except gross sales price per unit or square foot) (1) Represents gross sales price per unit for the SHOP segment and All Other properties and gross sales price per square foot for the Medical Office and Life Science Portfolio. (2) Occupancy is presented for the one month ended prior to the date of sale for the SHOP segment and as of the month end prior to the date of sale for the Medical Office and Life Science Portfolio and All Other properties. (3) DHC used aggregate net proceeds of $402,234 from the sales of certain of these properties to partially redeem its senior secured notes due 2026. These senior secured notes were redeemed in full in December 2025. Under Agreement or Letter of Intent as of February 20, 2026: Segment Number of Properties Estimated Gross Sales Price Gross Sales Price Per Unit or Square Foot (1) Occupancy (2) SHOP 13 $ 23,000 $ 34,380 80.0 %
Q4 2025 16 Investments in Unconsolidated Joint Ventures (1) (dollars in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2025 Three Months Ended December 31, 2025 Joint Venture Location Type of Property Number of Properties Square Feet Occupancy Weighted Average Lease Term DHC Ownership DHC Carrying Value of Investment Joint Venture FFO Joint Venture EBITDAre Seaport Innovation LLC Boston, MA Life Science 1 1,134,479 100% 18.2 years 10% $ 73,471 $ 12,669 $ 27,314 The LSMD Fund REIT LLC Various Medical Office / Life Science 10 1,068,763 98% 5.4 years 20% 46,655 3,654 9,402 Total / Weighted Average 11 2,203,242 99% 14.2 years $ 120,126 $ 16,323 $ 36,716 Investments in Unconsolidated Joint Ventures Unconsolidated Debt Joint Venture Secured Debt (2) Coupon Rate Maturity Date Principal Balance (3) DHC Ownership DHC Share of Principal Balance (4) Seaport Innovation LLC Fixed Rate - 1 Property 5.596% 9/1/2030 $ 1,000,000 10% $ 100,000 The LSMD Fund REIT LLC Fixed Rate - 9 Properties 3.457% 2/11/2032 189,800 20% 37,960 The LSMD Fund REIT LLC Floating Rate - 1 Property (5) 5.650% 2/9/2027 266,825 20% 53,365 Total / Weighted Average 5.327% $ 1,456,625 $ 191,325 (1) DHC's property list, including properties owned by these unconsolidated joint ventures, is available on DHC's website. (2) The mortgage loans require interest-only payments until the respective maturity dates. (3) Reflects the entire balance of the debt secured by the properties. DHC provides certain limited recourse guarantees on the debt secured by the Seaport Innovation LLC property, with its liability limited to $100,000. The debt secured by The LSMD Fund REIT LLC properties is non-recourse to DHC. (4) Reflects DHC's proportionate share of the principal debt balances based on its ownership percentage of the joint ventures. (5) The joint venture exercised its final one-year extension option for the maturity date of this mortgage loan and purchased an interest rate cap effective through February 2027 with a SOFR strike rate of approximately 5.94%. This mortgage loan requires that interest be paid at an annual rate of SOFR plus a premium of 1.90%.
Q4 2025 17 Investments in Unconsolidated Joint Ventures (continued) (1) (dollars in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2025 (1) DHC's property list, including properties owned by these unconsolidated joint ventures, is available on DHC's website. (2) Based on the aggregate annualized rental income of DHC's unconsolidated joint ventures. A nn ua liz ed R en ta l I nc om e Seaport Innovation LLC The LSMD Fund REIT LLC 2026 2027 2028 2029 2030 2031 2032 and thereafter $— $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 Unconsolidated Joint Ventures Lease Expiration Schedule Number of Leases Expiring 11 7 14 16 19 12 24 % of Total Annualized Rental Income Expiring 1.5% 0.8% 1.5 % 6.0% 5.1 % 10.3% 74.8% Major Tenants of Unconsolidated Joint Ventures Joint Venture Tenant % of Annualized Rental Income of Joint Ventures (2) Seaport Innovation LLC Vertex Pharmaceuticals Inc. 66.7% The LSMD Fund REIT LLC Cedars-Sinai Medical Center 11.3% The LSMD Fund REIT LLC Seattle Genetics, Inc. 2.6% The LSMD Fund REIT LLC Complete Genomics, Inc. 1.7% The LSMD Fund REIT LLC Stryker Corporation 1.7% Life Science: 76% Medical Office: 24% Property Type (2) MA: 70% CA: 22% TX: 3% WA: 3% NY: 2% Geographic Diversification (2)
Q4 2025 18 FL: 12%TX: 10% CA: 7% GA: 7% WI: 5% MD: 5% NC: 5% IN: 4% VA: 4% IL: 4% 23 Other States + D.C.: 37% (based on Gross Book Value of Real Estate Assets as of December 31, 2025) (1) Senior living communities are categorized by the type of living units which constitute a majority of the living units at the community. (2) Memory care communities are classified as assisted living communities. Portfolio Summary by Geographic Diversification and Property Type Geographic Diversification RETURN TO TABLE OF CONTENTS Independent Living: 36% Medical Office: 28% Assisted Living: 17% Life Science: 11% Wellness Centers: 5% SNFs: 3% Property Type (1) (2) (based on Q4 2025 NOI)
Q4 2025 19 Portfolio Summary RETURN TO TABLE OF CONTENTS (dollars in thousands, except investment per unit or square foot) As of December 31, 2025 Number of Properties Square Feet or Number of Units Gross Book Value of Real Estate Assets % of Total Gross Book Value of Real Estate Assets Investment Per Unit or Square Foot % of Q4 2025 Total Revenues % of Q4 2025 Total NOI Q4 2025 Q4 2025 Revenues NOI SHOP 212 23,217 units $ 4,416,727 70.4 % $ 190,237 $ 323,414 85.2 % $ 36,193 49.9 % Medical office 54 4,370,850 sq. ft. 1,066,095 17.0 % $ 244 34,728 9.1 % 20,002 27.6 % Life science 13 1,187,239 sq. ft. 423,296 6.7 % $ 357 13,061 3.5 % 8,110 11.2 % Subtotal Medical Office and Life Science Portfolio 67 5,558,089 sq. ft. 1,489,391 23.7 % $ 268 47,789 12.6 % 28,112 38.8 % Triple net leased senior living communities 9 1,328 units 161,734 2.6 % $ 121,788 4,457 1.2 % 4,457 6.1 % Wellness centers 10 812,246 sq. ft. 208,110 3.3 % $ 256 3,911 1.0 % 3,762 5.2 % Total 298 $ 6,275,962 100.0 % $ 379,571 100.0 % $ 72,524 100.0 %
Q4 2025 20 SHOP Units by Operator RETURN TO TABLE OF CONTENTS Unit Count as of December 31, 2025 Manager Location Number of Properties (1) Assisted Living Independent Living and Active Adult Memory Care Skilled Nursing Total Discovery Senior Living Various (7 States) 44 2,357 2,117 621 — 5,095 Sinceri Senior Living Various (11 States) 38 2,548 4,252 461 — 7,261 Charter Senior Living FL/IL/MD/TN/VA/ WI 30 1,338 — 421 — 1,759 Phoenix Senior Living AL/AR/KY/MO/ NC/SC 26 1,037 337 284 164 1,822 Tutera Senior Living IL/IN/KS/TN 18 286 1,537 144 — 1,967 Oaks-Caravita Senior Care (2) GA/SC 16 648 40 202 — 890 Stellar Senior Living AZ/CO/NM/TX 14 383 755 131 746 2,015 Northstar Senior Living AZ/CA 7 121 — 297 — 418 WellQuest Living CA/NV 5 280 497 21 — 798 Navion Senior Solutions SC 5 213 — 25 — 238 Oaks Senior Living GA 3 159 — 105 — 264 IntegraCare Senior Living PA 2 113 — 33 — 146 Ciel Senior Living NY 1 75 36 195 — 306 The RMR Group TX 1 — 169 — — 169 Omega Senior Living NE 1 69 — — — 69 Total 211 9,627 9,740 2,940 910 23,217 % of Total 41.5% 42.0% 12.7% 3.9% 100% (1) Excludes one closed senior living community. (2) Includes 13 communities with 669 units (505 assisted living units and 164 memory care units) classified as held for sale as of December 31, 2025. These communities had NOI of $(1,230) for the three months ended December 31, 2025. (dollars in thousands)
Q4 2025 21 SHOP Segment and Same Property - Results of Operations RETURN TO TABLE OF CONTENTS CONSOLIDATED RESULTS OF OPERATIONS As of and For the Three Months Ended 12/31/2025 9/30/2025 12/31/2024 Number of Properties 212 229 232 Number of Units 23,217 24,906 24,978 Occupancy 81.6 % 81.5 % 80.0 % Average Monthly Rate $ 5,497 $ 5,472 $ 5,249 Year Over Year Average Monthly Rate % Change 4.7 % Residents Fees and Services $ 323,414 $ 333,390 $ 315,736 Property Operating Expenses (287,221) (303,770) (290,803) NOI $ 36,193 $ 29,620 $ 24,933 NOI Margin % 11.2 % 8.9 % 7.9 % Sequential NOI % Change 22.2 % Year Over Year NOI % Change 45.2 % SAME PROPERTY RESULTS OF OPERATIONS (1) As of and For the Three Months Ended 12/31/2025 9/30/2025 12/31/2024 Number of Properties 184 184 184 Number of Units 21,201 21,201 21,201 Occupancy 82.4 % 82.4 % 81.5 % Average Monthly Rate $ 5,480 $ 5,414 $ 5,182 Year Over Year Average Monthly Rate % Change 5.8 % Residents Fees and Services $ 288,190 $ 287,516 $ 272,973 Property Operating Expenses (249,899) (255,585) (242,957) NOI $ 38,291 $ 31,931 $ 30,016 NOI Margin % 13.3 % 11.1 % 11.0 % Sequential NOI % Change 19.9 % Year Over Year NOI % Change 27.6 % (1) Same property includes properties classified as same property for the three months ended December 31, 2025 for all periods presented. (dollars in thousands, except average monthly rate) (dollars in thousands, except average monthly rate) Rio Las Palmas Stockton, CA Overture at Plano Plano, TX
Q4 2025 22 Senior Living NOI by Manager (1) RETURN TO TABLE OF CONTENTS Q4 2025 NOI Manager Number of Properties SHOP Triple Net Leased Senior Living Communities Total NOI % of Total Q4 2025 NOI (2) Five Star Senior Living — $ 7,624 $ — $ 7,624 18.8% Sinceri Senior Living 38 5,974 — 5,974 14.7% Stellar Senior Living 18 4,009 1,571 5,580 13.7% Discovery Senior Living 44 3,949 — 3,949 9.7% WellQuest Senior Living 5 3,603 — 3,603 8.9% Phoenix Senior Living, LLC 26 3,283 — 3,283 8.1% Tutera Senior Living 18 3,073 62 3,135 7.7% Oaks Senior Living 3 2,258 — 2,258 5.6% Maxwell Group 1 — 1,787 1,787 4.4% Charter Senior Living, LLC 30 1,660 — 1,660 4.1% Northstar Senior Living 7 961 — 961 2.4% Navion Senior Solutions 5 841 — 841 2.1% Covenant Care 1 — 535 535 1.3% The RMR Group LLC 1 471 — 471 1.2% Ciel Senior Living 1 471 — 471 1.2% Remaining (3) 23 (1,984) 502 (1,482) (3.9)% Total 221 $ 36,193 $ 4,457 $ 40,650 100.0% (1) Managers' NOI for the three months ended December 31, 2025 reflect results of communities transitioned during the quarter. All communities had been transitioned from Five Star to different operators as of December 31, 2025. (2) Percentage calculated based on total NOI for the three months ended December 31, 2025 for SHOP and triple net leased senior living communities. (3) Includes 13 communities with 669 units classified as held for sale as of December 31, 2025. These communities had NOI of $(1,230) for the three months ended December 31, 2025. (dollars in thousands)
Q4 2025 23 Senior Living Results of Operations by Location RETURN TO TABLE OF CONTENTS Q4 2025 NOI Core-Based Statistical Areas Number of Properties SHOP Triple Net Leased Senior Living Communities Total NOI % of Total Q4 2025 NOI New York, NY 4 $ 1,978 $ — $ 1,978 4.9% Indianapolis, IN 4 186 1,787 1,973 4.9% Washington, DC 6 1,838 — 1,838 4.5% Tampa, FL 2 1,777 — 1,777 4.4% Atlanta, GA 13 1,656 — 1,656 4.1% Baltimore, MD 4 1,618 — 1,618 4.0% Miami, FL 10 1,582 — 1,582 3.9% San Diego, CA 3 1,538 — 1,538 3.8% Louisville, KY 1 1,285 — 1,285 3.2% Denver, CO 3 1,231 — 1,231 3.0% Albuquerque, NM 1 1,193 — 1,193 2.9% Tucson, AZ 1 1,028 — 1,028 2.5% Knoxville, TN 3 970 — 970 2.4% San Antonio, TX 4 940 — 940 2.3% Chicago, IL 2 937 — 937 2.3% Virginia Beach, VA 7 893 — 893 2.2% Lexington, KY 2 847 — 847 2.1% Boston, MA 1 775 — 775 1.9% Seattle, WA 2 — 684 684 1.7% Houston, TX 3 657 — 657 1.6% Remaining 145 13,264 1,986 15,250 37.4% Total Senior Living 221 $ 36,193 $ 4,457 $ 40,650 100.0% As of and For the Three Months Ended NOI Occupancy Average Monthly Rate Markets Number of Properties 12/31/2025 % 12/31/2024 Change 12/31/2025 12/31/2024 Basis Point Change 12/31/2025 12/31/2024 Change Primary 78 $ 19,741 54.5% $ 14,472 36.4 % 81.0% 79.0% 200 $ 5,630 $ 5,392 4.4 % Secondary 59 7,236 20.0% 4,226 71.2 % 80.7% 78.6% 210 $ 5,217 $ 4,939 5.6 % Other 75 9,216 25.5% 6,235 47.8 % 83.9% 83.1% 80 $ 5,505 $ 5,269 4.5 % Total / Average SHOP 212 $ 36,193 100.0% $ 24,933 45.2 % 81.6% 80.0% 160 $ 5,497 $ 5,249 4.7 % (dollars in thousands, except average monthly rate)
Q4 2025 24 (1) Same property includes properties classified as same property for the three months ended December 31, 2025 for all periods presented. RETURN TO TABLE OF CONTENTS CONSOLIDATED RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended 12/31/2025 9/30/2025 12/31/2024 Number of Properties 67 88 98 Square Feet 5,558 6,931 7,953 Occupancy 91.2 % 86.6 % 82.2 % Rental Income $ 47,789 $ 48,201 $ 51,715 NOI $ 28,112 $ 26,675 $ 27,331 Cash Basis NOI $ 26,525 $ 26,251 $ 27,579 NOI Margin % 58.8 % 55.3 % 52.8 % Cash Basis NOI Margin % 57.2 % 54.7 % 52.9 % Sequential NOI % Change 5.4 % Sequential Cash Basis NOI % Change 1.0 % Year Over Year NOI % Change 2.9 % Year Over Year Cash Basis NOI % Change (3.8) % SAME PROPERTY RESULTS OF OPERATIONS (1) (dollars and sq. ft. in thousands) As of and For the Three Months Ended 12/31/2025 9/30/2025 12/31/2024 Number of Properties 65 65 65 Square Feet 5,349 5,349 5,349 Occupancy 94.7 % 94.6 % 94.6 % Rental Income $ 40,388 $ 40,761 $ 39,195 NOI $ 24,203 $ 24,116 $ 22,928 Cash Basis NOI $ 24,134 $ 23,893 $ 23,242 NOI Margin % 59.9 % 59.2 % 58.5 % Cash Basis NOI Margin % 59.6 % 58.7 % 58.6 % Sequential NOI % Change 0.4 % Sequential Cash Basis NOI % Change 1.0 % Year Over Year NOI % Change 5.6 % Year Over Year Cash Basis NOI % Change 3.8 % Medical Office and Life Science Portfolio and Same Property - Results of Operations Valencia, CA Golden Valley, MN San Antonio, TX
Q4 2025 25RETURN TO TABLE OF CONTENTS CONSOLIDATED RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended December 31, 2025 As of and For the Three Months Ended December 31, 2024 Medical Office Life Science Total Medical Office and Life Science Portfolio Medical Office Life Science Total Medical Office and Life Science Portfolio Number of Properties 54 13 67 75 23 98 Square Feet 4,371 1,187 5,558 5,180 2,773 7,953 Occupancy 89.5 % 97.5 % 91.2 % 84.4 % 72.0 % 82.2 % Rental Income $ 34,728 $ 13,061 $ 47,789 $ 35,392 $ 16,323 $ 51,715 NOI $ 20,002 $ 8,110 $ 28,112 $ 17,863 $ 9,468 $ 27,331 Cash Basis NOI $ 18,556 $ 7,969 $ 26,525 $ 18,183 $ 9,396 $ 27,579 NOI Margin % 57.6 % 62.1 % 58.8 % 50.5 % 58.0 % 52.8 % Cash Basis NOI Margin % 55.5 % 61.4 % 57.2 % 50.7 % 57.6 % 52.9 % NOI % Change 12.0 % (14.3) % 2.9 % Cash Basis NOI % Change 2.1 % (15.2) % (3.8) % SAME PROPERTY RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended December 31, 2025 As of and For the Three Months Ended December 31, 2024 Medical Office Life Science Total Medical Office and Life Science Portfolio Medical Office Life Science Total Medical Office and Life Science Portfolio Number of Properties 52 13 65 52 13 65 Square Feet 4,162 1,187 5,349 4,162 1,187 5,349 Occupancy 94.0 % 97.5 % 94.7 % 93.8 % 97.5 % 94.6 % Rental Income $ 27,996 $ 12,392 $ 40,388 $ 27,000 $ 12,195 $ 39,195 NOI $ 16,620 $ 7,583 $ 24,203 $ 15,324 $ 7,604 $ 22,928 Cash Basis NOI $ 16,707 $ 7,427 $ 24,134 $ 15,667 $ 7,575 $ 23,242 NOI Margin % 59.4 % 61.2 % 59.9 % 56.8 % 62.4 % 58.5 % Cash Basis NOI Margin % 59.2 % 60.5 % 59.6 % 57.1 % 62.1 % 58.6 % NOI % Change 8.5 % (0.3) % 5.6 % Cash Basis NOI % Change 6.6 % (2.0) % 3.8 % Medical Office and Life Science Portfolio and Same Property - Results of Operations (continued) Three Months Ended December 31, 2025 and 2024
Q4 2025 26 Portfolio Leasing Summary (1) (1) The leasing summary on this page is based on leases entered into during the periods indicated. (2) Percent difference in prior rents charged for same space or, in the case of vacant space acquired, market rental rates for similar space in the building at the date of acquisition. Rents include estimated recurring expense reimbursements paid to DHC, exclude lease value amortization and are net of lease concessions. RETURN TO TABLE OF CONTENTS Medical Office and Life Science Portfolio As of and For the Three Months Ended As of and For the Year Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 12/31/2025 Properties 67 88 92 93 98 67 Total square feet 5,558 6,931 7,400 7,620 7,953 5,558 Occupancy 91.2 % 86.6 % 82.9 % 80.6 % 82.2 % 91.2 % Leasing Activity (sq. ft.): New leases 24 10 4 120 10 158 Renewals 57 76 102 25 102 260 Total 81 86 106 145 112 418 % Change in GAAP Rent: (2) New leases 10.0 % 29.8 % (1.9) % 22.0 % 15.8 % 20.0 % Renewals 7.1 % 6.9 % 12.0 % 4.2 % 6.0 % 8.5 % Total 7.9 % 9.1 % 11.5 % 18.4 % 6.9 % 12.4 % Weighted Average Lease Term (years): New leases 7.4 7.5 6.2 11.6 5.3 10.6 Renewals 8.4 6.6 7.1 3.5 6.7 6.9 Total 8.2 6.7 7.0 10.2 6.5 8.2 Leasing Costs and Concession Commitments: New leases $ 1,603 $ 601 $ 165 $ 9,832 $ 411 $ 12,201 Renewals 1,878 1,793 2,214 291 1,671 6,176 Total $ 3,481 $ 2,394 $ 2,379 $ 10,123 $ 2,082 $ 18,377 Leasing Costs and Concession Commitments per Sq. Ft.: New leases $ 64.67 $ 62.74 $ 36.62 $ 82.19 $ 42.59 $ 76.99 Renewals $ 33.38 $ 23.46 $ 21.75 $ 11.61 $ 16.36 $ 23.79 Total $ 42.95 $ 27.84 $ 22.38 $ 69.96 $ 18.62 $ 43.96 Leasing Costs and Concession Commitments per Sq. Ft. per Year: New leases $ 8.74 $ 8.42 $ 5.91 $ 7.08 $ 8.09 $ 7.27 Renewals $ 3.96 $ 3.54 $ 3.08 $ 3.31 $ 2.46 $ 3.45 Total $ 5.26 $ 4.14 $ 3.18 $ 6.87 $ 2.86 $ 5.33 (dollars and sq. ft. in thousands, except per sq. ft. data)
Q4 2025 27 As of December 31, 2025 Tenants Representing 1% Or More of Total Annualized Rental Income RETURN TO TABLE OF CONTENTS (dollars in thousands) Tenant Type of Property Annualized Rental Income % of Annualized Rental Income Expiration 1 Advocate Aurora Health Medical office $ 16,939 8.8% 2031 2 Life Time Athletic Wellness center 12,285 6.4% 2040 - 2044 3 Alamar Biosciences, Inc. Life science 6,827 3.5% 2034 4 KSQ Therapeutics, Inc. Life science 5,559 2.9% 2032 5 Sonova Holding AG Life science 5,405 2.8% 2033 6 Stratford Retirement, LLC Senior living 5,234 2.7% 2033 7 Stellar Senior Living, LLC Senior living 4,799 2.5% 2027 8 Boston Children's Hospital Medical office 4,377 2.3% 2028 9 AbbVie Inc. Life science 3,916 2.0% 2027 10 Tokio Marine Holdings Inc. Medical office 3,908 2.0% 2026 - 2033 11 McKesson Corporation Medical office 3,823 2.0% 2028 - 2030 12 United Healthcare Services, Inc. Medical office 3,741 1.9% 2026 13 Revvity, Inc. Life science 3,681 1.9% 2028 14 Hawaii Pacific Health Medical office 3,592 1.9% 2029 - 2036 15 Medtronic, Inc. Medical office 3,387 1.8% 2028 16 New York University Medical office 3,335 1.7% 2026 - 2031 17 HCA Holdings Inc. Medical office 3,319 1.7% 2026 - 2031 18 Ultragenyx Pharmaceutical Inc. Life science 3,139 1.6% 2026 19 Sentara Health Medical office 3,008 1.6% 2027 - 2032 20 Orthofix Medical Inc. Life science 2,814 1.5% 2037 21 The University of Kansas Health System Medical office 2,447 1.3% 2027 - 2028 22 Cytek BioSciences, Inc. Life science 2,290 1.2% 2029 23 Think Surgical, Inc. Life science 2,161 1.1% 2026 24 Covenant Care California, LLC Senior living 2,034 1.1% 2030 25 Covenant Health System Medical office 2,022 1.0% 2034 All Other Tenants 78,558 40.8% 2026 - 2045 Total Tenants $ 192,600 100.0%
Q4 2025 28 Medical Office and Life Science Portfolio Lease Expiration Schedule RETURN TO TABLE OF CONTENTS (dollars in thousands) As of December 31, 2025 Annualized Rental Income Expiring Year Medical Office Annualized Rental Income Expiring Life Science Annualized Rental Income Expiring Total Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of Total Annualized Rental Income Expiring 2026 $ 11,036 $ 5,300 $ 16,336 10.1% 10.1% 2027 10,700 3,916 14,616 9.0% 19.1% 2028 20,197 11,776 31,973 19.7% 38.8% 2029 10,783 4,136 14,919 9.2% 48.0% 2030 6,783 1,574 8,357 5.1% 53.1% 2031 22,896 — 22,896 14.1% 67.2% 2032 6,078 5,559 11,637 7.2% 74.4% 2033 7,975 5,405 13,380 8.2% 82.6% 2034 4,368 6,827 11,195 6.9% 89.5% 2035 and thereafter 12,705 4,302 17,007 10.5% 100.0% Total $ 113,521 $ 48,795 $ 162,316 100.0% Average remaining lease term (weighted by annualized rental income) 4.9 years 5.1 years 5.0 years Square Feet with Leases Expiring Year Medical Office Leased Square Feet Expiring Life Science Leased Square Feet Expiring Total Leased Square Feet Expiring % of Total Leased Square Feet Expiring Cumulative % of Total Leased Square Feet Expiring 2026 367,517 138,968 506,485 10.0% 10.0% 2027 367,452 197,976 565,428 11.2% 21.2% 2028 951,572 105,462 1,057,034 20.9% 42.1% 2029 281,796 182,232 464,028 9.2% 51.3% 2030 241,525 97,400 338,925 6.7% 58.0% 2031 821,580 — 821,580 16.2% 74.2% 2032 217,334 54,633 271,967 5.4% 79.6% 2033 182,719 116,444 299,163 5.9% 85.5% 2034 123,856 88,508 212,364 4.2% 89.7% 2035 and thereafter 354,898 175,675 530,573 10.3% 100.0% Total 3,910,249 1,157,298 5,067,547 100.0% Average remaining lease term (weighted by leased square feet) 4.6 years 4.8 years 4.7 years
Q4 2025 29 Annualized Rental Income Expiring Year Number of Properties Number of Units or Square Feet Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of Total Annualized Rental Income Expiring 2026 — — $ — —% —% 2027 4 533 units 4,799 15.8% 15.8% 2028 — — — —% 15.8% 2029 1 155 units 547 1.8% 17.6% 2030 5 277 units and 129,600 sq. ft. 5,046 16.7% 34.3% 2031 — — — —% 34.3% 2032 — — — —% 34.3% 2033 1 215 units 5,234 17.3% 51.6% 2034 — — — —% 51.6% 2035 and thereafter 8 148 units and 682,646 sq. ft. 14,658 48.4% 100.0% Total 19 $ 30,284 100.0% Average remaining lease term (weighted by annualized rental income): 9.7 years. All Other Lease Expiration Schedule As of December 31, 2025 RETURN TO TABLE OF CONTENTS (dollars in thousands) The Horizon Club Deerfield Beach, FL
Q4 2025 30 The Company: DHC is a REIT focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2025, DHC’s approximately $6.3 billion portfolio included 298 properties in 33 states and Washington, D.C., with approximately 25,000 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 290 tenants. Management: DHC is managed by The RMR Group (Nasdaq: RMR). RMR is an alternative asset management company that is focused on both residential and commercial real estate and related businesses. RMR primarily provides management services to publicly traded real estate companies, privately held real estate funds and real estate related operating businesses. As of December 31, 2025, RMR had over $37 billion of real estate assets under management and the combined RMR managed companies owned approximately 1,800 properties. DHC believes that being managed by RMR is a competitive advantage for DHC because of RMR’s depth of management and experience in the real estate industry. DHC also believes RMR provides management services to it at costs that are lower than DHC would have to pay for similar quality services if DHC were self-managed. Company Profile and Research Coverage RETURN TO TABLE OF CONTENTS Equity Research Coverage B. Riley Securities, Inc. Citizens John Massocca Aaron Hecht (646) 885-5424 (415) 835-3963 jmassocca@brileysecurities.com ahecht@jmpsecurities.com RBC Capital Markets Michael Carroll (440) 715-2649 michael.carroll@rbccm.com Rating Agencies and Issuer Ratings Moody’s Investors Service S & P Global Christian Azzi Diandra Prutton (212) 553-9342 (917) 231-4054 christian.azzi@moodys.com diandra.prutton@spglobal.com DHC is followed by the equity research analysts and its publicly held debt is rated by the rating agencies listed on this page. Please note that any opinions, estimates or forecasts regarding DHC's performance made by these analysts or agencies do not represent opinions, forecasts or predictions of DHC or its management. DHC does not by its reference on this page imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.
Q4 2025 31 Board of Trustees Christopher J. Bilotto Alan L. Felder Managing Trustee Independent Trustee Lisa Harris Jones Phyllis M. Hollis Lead Independent Trustee Independent Trustee Dawn K. Neher Adam D. Portnoy Independent Trustee Chair of the Board & Managing Trustee Jeffrey P. Somers Independent Trustee Officers Christopher J. Bilotto Matthew C. Brown President and Chief Executive Officer Chief Financial Officer and Treasurer Anthony Paula Vice President Governance Information RETURN TO TABLE OF CONTENTS Park Summit at Coral Springs Coral Springs, FL
Q4 2025 32 Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 12/31/2025 12/31/2024 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 56,157 $ 55,316 $ 55,167 $ 58,558 $ 63,883 $ 225,198 $ 251,038 Residents fees and services 323,414 333,390 327,545 328,306 315,736 1,312,655 1,244,389 Total revenues 379,571 388,706 382,712 386,864 379,619 1,537,853 1,495,427 Property operating expenses (307,047) (325,387) (312,580) (314,326) (315,176) (1,259,340) (1,236,542) NOI 72,524 63,319 70,132 72,538 64,443 278,513 258,885 Non-cash straight line rent adjustments included in rental income (203) (450) 146 (455) 160 (962) (1,445) Lease value amortization included in rental income 30 29 28 26 22 113 106 Lease termination fees included in rental income (1,399) — — (600) — (1,999) (203) Non-cash amortization included in property operating expenses (199) (199) (199) (199) (201) (796) (798) Cash Basis NOI $ 70,753 $ 62,699 $ 70,107 $ 71,310 $ 64,424 $ 274,869 $ 256,545 Reconciliation of Net Loss to NOI and Cash Basis NOI: Net loss $ (21,221) $ (164,040) $ (91,639) $ (8,986) $ (87,446) $ (285,886) $ (370,255) Equity in net earnings of investees (27,108) (5,083) (3,082) (1,487) (11,479) (36,760) (1,597) Income tax expense (benefit) 514 337 843 49 (38) 1,743 467 Loss on modification or early extinguishment of debt 2,138 11,191 126 29,071 115 42,526 324 Interest expense 46,855 48,886 50,926 57,831 59,518 204,498 235,239 Interest and other income (1,532) 774 (2,982) (2,099) (1,735) (5,839) (8,950) Gain on insurance recoveries — — — (7,522) — (7,522) — (Gain) loss on sale of properties (13,759) (1,260) 7,429 (110,140) (38) (117,730) 18,938 Impairment of assets 2,994 93,243 30,993 38,472 29,016 165,702 70,734 Acquisition and certain other transaction related costs 9,099 1,158 75 24 267 10,356 2,510 General and administrative 12,536 12,789 11,177 9,000 (1,245) 45,502 26,518 Depreciation and amortization 62,008 65,324 66,266 68,325 77,508 261,923 284,957 NOI 72,524 63,319 70,132 72,538 64,443 278,513 258,885 Non-cash straight line rent adjustments included in rental income (203) (450) 146 (455) 160 (962) (1,445) Lease value amortization included in rental income 30 29 28 26 22 113 106 Lease termination fees included in rental income (1,399) — — (600) — (1,999) (203) Non-cash amortization included in property operating expenses (199) (199) (199) (199) (201) (796) (798) Cash Basis NOI $ 70,753 $ 62,699 $ 70,107 $ 71,310 $ 64,424 $ 274,869 $ 256,545
Q4 2025 33 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended December 31, 2025 For the Three Months Ended September 30, 2025 For the Three Months Ended December 31, 2024 Calculation of NOI and Cash Basis NOI: SHOP Medical Office and Life Science Portfolio All Other Total SHOP Medical Office and Life Science Portfolio All Other Total SHOP Medical Office and Life Science Portfolio All Other Total Rental income / residents fees and services $ 323,414 $ 47,789 $ 8,368 $ 379,571 $ 333,390 $ 48,201 $ 7,115 $ 388,706 $ 315,736 $ 51,715 $ 12,168 $ 379,619 Property operating expenses (287,221) (19,677) (149) (307,047) (303,770) (21,526) (91) (325,387) (290,803) (24,384) 11 (315,176) NOI $ 36,193 $ 28,112 $ 8,219 $ 72,524 $ 29,620 $ 26,675 $ 7,024 $ 63,319 $ 24,933 $ 27,331 $ 12,179 $ 64,443 NOI $ 36,193 $ 28,112 $ 8,219 $ 72,524 $ 29,620 $ 26,675 $ 7,024 $ 63,319 $ 24,933 $ 27,331 $ 12,179 $ 64,443 Non-cash straight line rent adjustments included in rental income — (19) (184) (203) — (254) (196) (450) — 427 (267) 160 Lease value amortization included in rental income — 30 — 30 — 29 — 29 — 22 — 22 Lease termination fees included in rental income — (1,399) — (1,399) — — — — — — — — Non-cash amortization included in property operating expenses — (199) — (199) — (199) — (199) — (201) — (201) Cash Basis NOI $ 36,193 $ 26,525 $ 8,035 $ 70,753 $ 29,620 $ 26,251 $ 6,828 $ 62,699 $ 24,933 $ 27,579 $ 11,912 $ 64,424 Reconciliation of NOI to Same Property NOI: NOI $ 36,193 $ 28,112 $ 8,219 $ 72,524 $ 29,620 $ 26,675 $ 7,024 $ 63,319 $ 24,933 $ 27,331 $ 12,179 $ 64,443 NOI of properties not included in same property results 2,098 (3,909) (62) (1,873) 2,311 (2,559) — (248) 5,083 (4,403) (4,175) (3,495) Same Property NOI $ 38,291 $ 24,203 $ 8,157 $ 70,651 $ 31,931 $ 24,116 $ 7,024 $ 63,071 $ 30,016 $ 22,928 $ 8,004 $ 60,948 Reconciliation of Same Property NOI to Same Property Cash Basis NOI: Same Property NOI $ 38,291 $ 24,203 $ 8,157 $ 70,651 $ 31,931 $ 24,116 $ 7,024 $ 63,071 $ 30,016 $ 22,928 $ 8,004 $ 60,948 Non-cash straight line rent adjustments included in rental income — 75 (166) (91) — (113) (196) (309) — 409 (258) 151 Lease value amortization included in rental income — 29 — 29 — 30 — 30 — 30 — 30 Lease termination fees included in rental income — — — — — — — — — — — — Non-cash amortization included in property operating expenses — (173) — (173) — (140) — (140) — (125) — (125) Same Property Cash Basis NOI $ 38,291 $ 24,134 $ 7,991 $ 70,416 $ 31,931 $ 23,893 $ 6,828 $ 62,652 $ 30,016 $ 23,242 $ 7,746 $ 61,004
Q4 2025 34 Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 12/31/2025 12/31/2024 Net loss $ (21,221) $ (164,040) $ (91,639) $ (8,986) $ (87,446) $ (285,886) $ (370,255) Interest expense 46,855 48,886 50,926 57,831 59,518 204,498 235,239 Income tax expense (benefit) 514 337 843 49 (38) 1,743 467 Depreciation and amortization 62,008 65,324 66,266 68,325 77,508 261,923 284,957 EBITDA 88,156 (49,493) 26,396 117,219 49,542 182,278 150,408 (Gain) loss on sale of properties (13,759) (1,260) 7,429 (110,140) (38) (117,730) 18,938 Impairment of assets 2,994 93,243 30,993 38,472 29,016 165,702 70,734 Equity in net earnings of investees (27,108) (5,083) (3,082) (1,487) (11,479) (36,760) (1,597) Share of EBITDAre from unconsolidated joint ventures 4,612 4,511 4,463 4,494 4,515 18,080 16,342 Adjustments to reflect DHC's share of EBITDAre attributable to an equity method investment — 4,831 1,502 1,589 1,679 7,922 18,230 EBITDAre 54,895 46,749 67,701 50,147 73,235 219,492 273,055 General and administrative expense paid in common shares 593 1,164 1,062 592 324 3,411 2,747 Incentive management fees (1) 5,674 5,676 4,148 2,407 (6,934) 17,905 — Acquisition and certain other transaction related costs 9,099 1,158 75 24 267 10,356 2,510 Gain on insurance recoveries — — — (7,522) — (7,522) — Loss on modification or early extinguishment of debt 2,138 11,191 126 29,071 115 42,526 324 Adjustments to reflect DHC's share of Adjusted EBITDAre attributable to an equity method investment — (3,072) 501 390 42 (2,181) (11,815) Adjusted EBITDAre $ 72,399 $ 62,866 $ 73,613 $ 75,109 $ 67,049 $ 283,987 $ 266,821 RETURN TO TABLE OF CONTENTS (1) In January 2026, DHC paid RMR an incentive management fee of $17,905 for the year ended December 31, 2025. DHC did not recognize an incentive management fee for the year ended December 31, 2024.
Q4 2025 35 Calculation and Reconciliation of FFO, Normalized FFO and CAD (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 12/31/2025 12/31/2024 Net loss $ (21,221) $ (164,040) $ (91,639) $ (8,986) $ (87,446) $ (285,886) $ (370,255) Depreciation and amortization 62,008 65,324 66,266 68,325 77,508 261,923 284,957 (Gain) loss on sale of properties (13,759) (1,260) 7,429 (110,140) (38) (117,730) 18,938 Impairment of assets 2,994 93,243 30,993 38,472 29,016 165,702 70,734 Equity in net earnings of investees (27,108) (5,083) (3,082) (1,487) (11,479) (36,760) (1,597) Share of FFO from unconsolidated joint ventures 1,998 2,199 2,715 2,737 2,672 9,649 9,006 Adjustments to reflect DHC's share of FFO attributable to an equity method investment — 3,731 895 1,073 1,572 5,699 13,807 FFO 4,912 (5,886) 13,577 (10,006) 11,805 2,597 25,590 Incentive management fees (1) 5,674 5,676 4,148 2,407 (6,934) 17,905 — Acquisition and certain other transaction related costs 9,099 1,158 75 24 267 10,356 2,510 Gain on insurance recoveries — — — (7,522) — (7,522) — Loss on modification or early extinguishment of debt 2,138 11,191 126 29,071 115 42,526 324 Adjustments to reflect DHC's share of Normalized FFO attributable to an equity method investment — (2,418) 646 331 37 (1,441) (8,755) Normalized FFO $ 21,823 $ 9,721 $ 18,572 $ 14,305 $ 5,290 $ 64,421 $ 19,669 (1) In January 2026, DHC paid RMR an incentive management fee of $17,905 for the year ended December 31, 2025. DHC did not recognize an incentive management fee for the year ended December 31, 2024.
Q4 2025 36 Calculation and Reconciliation of FFO, Normalized FFO and CAD (continued) (amounts in thousands, except per share data) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 12/31/2025 12/31/2024 Normalized FFO $ 21,823 $ 9,721 $ 18,572 $ 14,305 $ 5,290 $ 64,421 $ 19,669 General and administrative expense paid in common shares 593 1,164 1,062 592 324 3,411 2,747 Net amortization of debt discounts, premiums and issuance costs 11,848 20,121 19,886 26,087 26,795 77,942 103,437 Non-cash amortization included in expenses (942) (943) (942) (943) (944) (3,770) (3,772) Non-cash straight line rent adjustments included in rental income (203) (450) 146 (455) 160 (962) (1,445) Lease value amortization included in rental income 30 29 28 26 22 113 106 Recurring capital expenditures (35,071) (40,562) (29,329) (26,486) (44,241) (131,448) (140,952) Share of FFO from unconsolidated joint ventures (1,998) (2,199) (2,715) (2,737) (2,672) (9,649) (9,006) Adjustments to reflect DHC's share of FFO and Normalized FFO attributable to an equity method investment — (1,313) (1,541) (1,404) (1,609) (4,258) (5,052) Unconsolidated joint venture distributions (1) 750 28,250 — — — 29,000 1,231 Equity method investment distribution — 3,400 — 17,000 — 20,400 — CAD $ (3,170) $ 17,218 $ 5,167 $ 25,985 $ (16,875) $ 45,200 $ (33,037) Weighted average common shares outstanding (basic and diluted) 240,662 240,385 240,132 239,957 239,949 240,286 239,535 Per common share data (basic and diluted): Net loss $ (0.09) $ (0.68) $ (0.38) $ (0.04) $ (0.36) $ (1.19) $ (1.55) FFO $ 0.02 $ (0.02) $ 0.06 $ (0.04) $ 0.05 $ 0.01 $ 0.11 Normalized FFO $ 0.09 $ 0.04 $ 0.08 $ 0.06 $ 0.02 $ 0.27 $ 0.08 CAD $ (0.01) $ 0.07 $ 0.02 $ 0.11 $ (0.07) $ 0.19 $ (0.14) (1) In August 2025, DHC received a cash distribution of $28,000 from the Seaport Innovation LLC joint venture in connection with the refinancing of the Seaport Innovation LLC's prior mortgage loan.
Q4 2025 37 Non-GAAP Financial Measures DHC presents certain "non-GAAP financial measures" within the meaning of applicable rules of the Securities and Exchange Commission, or SEC, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property Cash Basis NOI, earnings before interest, income tax, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, Adjusted EBITDAre, funds from operations, or FFO, normalized funds from operations, or Normalized FFO, and cash available for distribution, or CAD. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) as indicators of DHC's operating performance or as measures of DHC's liquidity. These measures should be considered in conjunction with net income (loss) as presented in DHC's condensed consolidated statements of income (loss). DHC considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss). DHC believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization, they may facilitate a comparison of DHC's operating performance between periods and with other REITs and, in the case of NOI, Cash Basis NOI, same property NOI, and same property Cash Basis NOI reflecting only those income and expense items that are generated and incurred at the property level may help both investors and management to understand the operations of DHC's properties. NOI, Cash Basis NOI, Same Property NOI, and Same Property Cash Basis NOI The calculations of NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI exclude certain components of net income (loss) in order to provide results that are more closely related to DHC's property level results of operations. DHC calculates NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI as shown on pages 31 and 32. DHC defines NOI as income from its real estate less its property operating expenses. NOI excludes depreciation and amortization. DHC defines Cash Basis NOI as NOI excluding non-cash straight line rent adjustments, lease value amortization, lease termination fees, if any, and non- cash amortization included in property operating expenses. DHC calculates same property NOI and same property Cash Basis NOI in the same manner that it calculates the corresponding NOI and Cash Basis NOI amounts, except that it only includes same properties in calculating same property NOI and same property Cash Basis NOI. DHC uses NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI to evaluate individual and company-wide property level performance. Other real estate companies and REITs may calculate NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI differently than DHC does. EBITDA, EBITDAre and Adjusted EBITDAre DHC calculates EBITDA, EBITDAre and Adjusted EBITDAre as shown on page 33. EBITDAre is calculated on the basis defined by the National Association of Real Estate Investment Trusts, or Nareit, which is EBITDA, excluding gains or losses on the sale of properties, equity in net earnings or losses of investees, impairment of real estate assets, if any, and including adjustments to reflect DHC's proportionate share of EBITDAre of DHC's equity method investees, as well as certain other adjustments currently not applicable to DHC. In calculating Adjusted EBITDAre, DHC adjusts for the items shown on page 33. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than DHC does. FFO and Normalized FFO DHC calculates FFO and Normalized FFO as shown on page 34. FFO is calculated on the basis defined by Nareit, which is net income (loss), calculated in accordance with GAAP, excluding any gain or loss on sale of properties, equity in net earnings or losses of investees, loss on impairment of real estate assets, gains or losses on equity securities, net, if any, and including adjustments to reflect DHC's proportionate share of FFO of DHC's equity method investees, plus real estate depreciation and amortization of consolidated properties, as well as certain other adjustments currently not applicable to DHC. In calculating Normalized FFO, DHC adjusts for the items shown on page 34, including similar adjustments for DHC's unconsolidated joint ventures, if any, and incentive management fees, if any. FFO and Normalized FFO are among the factors considered by DHC's Board of Trustees when determining the amount of distributions to its shareholders. Other factors include, but are not limited to, requirements to maintain DHC's qualification for taxation as a REIT, limitations in the agreements governing DHC's debt, the availability to DHC of debt and equity capital, DHC's expectation of its future capital requirements and operating performance and DHC's expected needs for and availability of cash to pay its obligations. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than DHC does. Cash Available for Distribution DHC calculates CAD as shown on page 35. DHC defines CAD as Normalized FFO minus DHC's proportionate share of Normalized FFO from unconsolidated joint venture properties and its equity method investment, plus operating cash flow distributions received from DHC's unconsolidated joint ventures and equity method investment, if any, recurring real estate related capital expenditures, adjustments for other non-cash and nonrecurring items, certain amounts excluded from Normalized FFO but settled in cash, and paid incentive management fees, if any, as well as certain other adjustments currently not applicable to DHC. CAD is among the factors considered by DHC's Board of Trustees when determining the amount of distributions to DHC's shareholders. Other real estate companies and REITs may calculate CAD differently than DHC does. Non-GAAP Financial Measures and Certain Definitions RETURN TO TABLE OF CONTENTS
Q4 2025 38 Adjusted total assets Adjusted total assets is the original cost of real estate assets calculated in accordance with GAAP before depreciation and after impairment write downs, if any, and excludes accounts receivable and intangible assets. AlerisLife AlerisLife means AlerisLife Inc. All Other All Other operations consists of triple net leased wellness centers and senior living communities that are leased to third party operators from which DHC receives rents, and any other revenue or expenses that are not attributable to a specific reportable segment. Annualized dividend yield Annualized dividend yield is the annualized dividend declared during the applicable period divided by the closing price of DHC's common shares at the end of the relevant period. Annualized rental income Annualized rental income is based on rents pursuant to existing leases as of December 31, 2025. Annualized rental income includes estimated percentage rents, straight line rent adjustments and estimated recurring expense reimbursements for certain net and modified gross leases, and excludes lease value amortization. Amounts of annualized rental income for DHC's medical office and life science properties also exclude leases that expired on December 31, 2025 and 100% of rents pursuant to existing leases as of December 31, 2025 from the medical office and life science properties owned by unconsolidated joint ventures in which DHC owns an equity interest. Average monthly rate Reflects the average monthly residents fees and services per occupied unit for the period presented. The average monthly rate is calculated based on the actual number of days during the period. Building improvements Building improvements generally include expenditures to replace obsolete building components that extend the useful life of existing assets or other improvements to increase the marketability of the property. Cash basis NOI margin % Cash basis NOI margin % is defined as cash basis NOI as a percentage of cash basis rental income. Cash basis rental income excludes non-cash straight line rent adjustments, lease value amortization and lease termination fees, if any. Consolidated income available for debt service Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, taxes, loss on asset impairment, gains or losses on equity securities, gains or losses on sales of properties and modification or early extinguishment of debt, determined together with debt service for the applicable period. Core-Based Statistical Areas Core-Based Statistical Areas, or CBSAs, are geographic regions that identify areas as either metropolitan or micropolitan or neither. The Office of Management and Budget defined CBSAs in 2000. CBSAs are reclassified in every census using a combination of data and census information. Coupon rate Coupon rate is the interest rate stated in, or determined pursuant to, the contract terms. Development, redevelopment and other activities Development, redevelopment and other activities generally include capital expenditures that reposition a property or result in change of use or new sources of revenue. From time to time DHC invests in revenue producing capital improvements at certain of its triple net leased senior living communities. As a result, annual rents payable to DHC increase pursuant to the terms of the applicable leases. These capital improvements are not included in DHC's development, redevelopment and other activities. Non-GAAP Financial Measures and Certain Definitions (continued) RETURN TO TABLE OF CONTENTS
Q4 2025 39 Estimated completion date Estimated completion date can depend on various factors, including when lease agreements are signed with tenants in DHC's Medical Office and Life Science Portfolio. Therefore, the actual completion date may vary. Estimated project costs Estimated project costs include estimated construction costs and leasing capital up to stabilization. ExPOR ExPOR, or expenses per occupied room, is calculated by dividing total operating expenses by the number of occupied units for the period presented. Five Star Five Star, or Five Star Senior Living, was an operating division of AlerisLife. GAAP GAAP is U.S. generally accepted accounting principles. Gross book value of real estate assets Gross book value of real estate assets is real estate assets at cost plus certain acquisition costs, before depreciation and purchase price allocations, less impairment writedowns, if any. Gross sales price Gross sales price excludes closing costs. Incentive management fees Incentive management fees are estimated and accrued during the applicable measurement period. Actual incentive management fees will be calculated based on common share total return, as defined in DHC's business management agreement, for the three year period ending December 31 of the applicable calendar year, are included in general and administrative expense in DHC's condensed consolidated statements of income (loss) and will be payable to RMR in January of the following calendar year. Incurrence covenants Incurrence covenants are financial covenants which DHC is required to comply with in order to incur debt under its secured revolving credit facility and senior secured and unsecured notes indentures and their supplements. Interest rate Interest rate includes the effect of mark to market accounting for certain assumed mortgages and premiums and discounts on certain mortgages and secured and unsecured notes; excludes effects of debt issuance costs and the unused fee on DHC's secured revolving credit facility. Interest rate reflects the impact of interest rate caps, as applicable. Investment per unit or square foot Investment per unit or square foot represents gross book value of real estate assets divided by number of rentable square feet or living units, as applicable, at December 31, 2025. Lease related costs Lease related costs generally include capital expenditures to improve tenants’ space or amounts paid directly to tenants to improve their space and leasing related costs, such as brokerage commissions and tenant inducements. Leasing costs and concession commitments Leasing costs and concession commitments include commitments made for leasing expenditures and concessions, such as tenant improvements, leasing commissions, tenant reimbursements and free rent. Maintenance covenant DHC's maintenance covenant is a financial covenant which it is required to comply with on a quarterly basis pursuant to the indentures governing DHC's senior secured and unsecured notes. Net debt Net debt is the total outstanding principal of DHC's debt less cash and cash equivalents. NOI margin % NOI margin % is defined as NOI as a percentage of rental income or residents fees and services, as appropriate. Non-GAAP Financial Measures and Certain Definitions (continued) RETURN TO TABLE OF CONTENTS
Q4 2025 40 Occupancy Occupancy for DHC's SHOP segment is presented for the duration of the period shown; occupancy for DHC's Medical Office and Life Science Portfolio is presented as of the end of the period shown. Medical office and life science occupancy data includes (i) out of service assets undergoing redevelopment, (ii) space which is leased but is not occupied or is being offered for sublease by tenants and (iii) space being fitted out for occupancy. Medical Office and Life Science Portfolio Medical Office and Life Science Portfolio consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. DHC's medical office and life science property leases include some triple net leases where, in addition to paying fixed rents, the tenants assume the obligation to operate and maintain the properties at their expense, and some net and modified gross leases where DHC is responsible for the operation and maintenance of the properties and DHC charges tenants for some or all of the property operating costs. A small percentage of DHC's medical office and life science property leases are full-service leases where DHC receives fixed rent from its tenants and no reimbursement for its property operating costs. Other operator managed communities Other operator managed communities are senior living communities in DHC's SHOP segment, which are managed by third party managers other than Five Star. Primary markets Primary markets are made up of 31 of the largest CBSAs in the United States. Data for primary markets is often presented aggregated. Principal balance Principal balances are the amounts stated in the contracts less the principal amount of any repayments made. In accordance with GAAP, DHC's carrying values and recorded interest expense may be different because of market conditions at the time DHC assumed certain of these debts. The principal balance of DHC's secured revolving credit facility includes amounts outstanding as of the date presented, if any. Rolling four quarter CAD Represents CAD for the preceding twelve month period as of the respective quarter end date. Same Property As of and for the three months ended December 31, 2025, same property consists of properties owned, in service and reported in the same segment since October 1, 2024; excludes properties classified as held for sale, closed or out of service, if any, planned dispositions and medical office and life science properties owned by unconsolidated joint ventures in which DHC owns an equity interest. Properties are included in same property once stabilized for the full period in both comparison periods presented. As of and for the year ended December 31, 2025, same property consists of properties owned, in service and reported in the same segment since January 1, 2024; excludes properties classified as held for sale, closed or out of service, if any, planned dispositions and medical office and life science properties owned by unconsolidated joint ventures in which DHC owns an equity interest. Properties are included in same property once stabilized for the full period in both comparison periods presented. Secondary markets Secondary markets are made up of 68 large CBSAs in the United States that are not included in the primary markets. Data for secondary markets is often presented aggregated. SHOP SHOP, or Senior Housing Operating Portfolio, consists of senior living communities managed by third party senior living managers that provide short term and long term residential living and in some cases care and other services for residents where DHC pays fees to the managers to operate the communities. Properties in this segment include independent living communities, assisted living communities, active adult rental communities and SNFs. SNF SNF is a skilled nursing facility. SOFR SOFR is the one-month term secured overnight financing rate. Square feet Square feet measurements are subject to modest changes when space is periodically remeasured or reconfigured for new tenants. Square feet for prior periods exclude space remeasurements made subsequent to those periods. Excludes data from medical office and life science properties owned by unconsolidated joint ventures in which DHC owns an equity interest. Non-GAAP Financial Measures and Certain Definitions (continued) RETURN TO TABLE OF CONTENTS
Q4 2025 41 Total gross assets Total gross assets is total assets plus accumulated depreciation. Total unencumbered assets Total unencumbered assets is the original cost of real estate assets not encumbered by mortgage debt calculated in accordance with GAAP before depreciation and after impairment write downs, if any, and excludes accounts receivable and intangible assets. Triple net leased senior living communities Triple net leased senior living communities include independent and assisted living communities and SNFs. Unit count Unit count is by the type of living units at DHC's senior living communities within its SHOP segment. Weighted average lease term Weighted average lease term is weighted based on annualized rental income pursuant to existing leases as of December 31, 2025. Non-GAAP Financial Measures and Certain Definitions (continued) RETURN TO TABLE OF CONTENTS
Q4 2025 42 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about: DHC's positive momentum, improved balance sheet and strong shareholder return; performance of and improvement in DHC's SHOP segment; DHC's 2026 guidance and related assumptions, including with respect to SHOP NOI growth; DHC's property acquisitions and dispositions; DHC’s potential exercise of extension options for the maturity date of the applicable debt instruments; DHC's ability to continue to fund capital expenditures in accordance with its business plan, including SHOP community upgrades; and DHC's redevelopment, repositioning and construction activities and plans. Forward-looking statements reflect DHC's current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause DHC's actual results, performance or achievements to differ materially from expected future results, performance or achievements expressed or implied in those forward-looking statements. Some of the risks, uncertainties and other factors that may cause DHC's actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: the impact of unfavorable market and commercial real estate industry conditions due to possible reduced demand for healthcare related space and senior living communities, uncertainties surrounding interest rates, wage and commodity price inflation, supply chain disruptions, volatility in the public debt and equity markets, changing tariffs and trade policies and related uncertainty, geopolitical instability and tensions, pandemics, any U.S. government shutdown, economic downturns or a possible recession, labor market conditions or changes in real estate utilization, among other things, on DHC and its managers and other operators and tenants; DHC's senior living operators' abilities to successfully and profitably operate the communities they manage for DHC; the continuing impact of changing market practices on DHC and its managers and other operators and tenants, such as delayed recovery of the senior housing industry, reduced demand for leased medical office, life science and other space of DHC and residencies at senior living communities and increased operating costs; the financial strength of DHC's managers and other operators and tenants; whether the aging U.S. population and increasing life spans of seniors will increase the demand for senior living communities and other medical and healthcare related properties and healthcare services; whether DHC’s tenants will renew or extend their leases or whether DHC will obtain replacement tenants on terms as favorable to DHC as its prior leases; the likelihood that DHC's tenants and residents will pay rent or be negatively impacted by continuing unfavorable market and commercial real estate industry conditions; DHC’s managers’ abilities to increase or maintain rates charged to residents of DHC’s senior living communities and manage operating costs for those communities; DHC's ability to increase or maintain occupancy at its properties on terms desirable to DHC; DHC's ability to increase rents when its leases expire or renew; costs DHC incurs and concessions it grants to lease its properties; risk and uncertainties regarding the costs and timing of development, redevelopment and repositioning activities, including as a result of inflation, cost overruns, tariffs, supply chain challenges, labor shortages, construction delays or inability to obtain necessary permits or volatility in the commercial real estate markets; DHC's ability to manage its capital expenditures and other operating costs effectively and to maintain and enhance its properties and their appeal to tenants and residents; DHC's ability to effectively raise and balance its use of debt and equity capital; DHC's ability to purchase cost effective interest rate caps; DHC’s ability to comply with the financial covenants under its debt agreements; DHC's ability to make required payments on its debt; DHC's ability to maintain sufficient liquidity, including the availability of borrowings under its secured revolving credit facility, and otherwise manage leverage; DHC's credit ratings; DHC’s ability to sell properties at prices or returns it targets, and the timing of such sales; DHC's ability to sell additional equity interests in, or contribute additional properties to, its existing joint ventures, or enter into additional real estate joint ventures or to attract co-venturers and benefit from DHC's existing joint ventures or any real estate joint ventures it may enter into; DHC's ability to acquire, develop, redevelop or reposition properties that realize its targeted returns; DHC’s ability to pay distributions to its shareholders and to maintain or increase the amount of such distributions; the ability of RMR to successfully manage DHC; competition in the real estate industry, particularly in those markets in which DHC’s properties are located; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; compliance with, and changes to, federal, state and local laws and regulations, accounting rules, tax laws and similar matters; exposure to litigation and regulatory and government proceedings due to the nature of the senior living and other health and wellness related service businesses; actual and potential conflicts of interest with DHC's related parties, including DHC’s Managing Trustees, RMR, ABP Trust, AlerisLife and others affiliated with them; limitations imposed by and DHC’s ability to satisfy complex rules to maintain DHC’s qualification for taxation as a REIT for U.S. federal income tax purposes; acts of terrorism, war or other hostilities, outbreaks of pandemics or other public health safety events or conditions, global climate change or other manmade or natural disasters beyond DHC’s control; and other matters. These risks, uncertainties and other factors are not exhaustive and should be read in conjunction with other cautionary statements that are included in DHC's periodic filings. The information contained in DHC's filings with the SEC, including under the caption “Risk Factors” in its periodic reports, or incorporated therein, identifies important factors that could cause differences from the forward-looking statements in this presentation. DHC's filings with the SEC are available on the SEC's website at www.sec.gov. You should not place undue reliance upon DHC's forward-looking statements. Except as required by law, DHC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. Warning Concerning Forward-Looking Statements RETURN TO TABLE OF CONTENTS
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