Diversified Healthcare Trust (DHC) experienced a significant after-hours plunge of 8.74% on Tuesday, extending earlier losses from the regular trading session.
The healthcare REIT's stock movement follows the release of its FY2025 financial results, which showed a net loss of $285.9 million. While this represents a 22.8% improvement from the previous year, the continued substantial losses and mixed segment performance contributed to negative investor sentiment.
The company reported improvement in its senior housing operating portfolio with occupancy rising to 81.0% and NOI increasing 31.3%, but this was offset by declines in other segments including a 9.1% revenue drop in the Medical Office and Life Science Portfolio and a 16.2% decrease in All Other NOI. Additionally, the company incurred $10.4 million in transition costs related to management changes, further impacting financial performance.