DIVERSIFIED HEALTHCARE TRUSTDHC
DIVERSIFIED HEALTHCARE TRUST Segments Disclosure
Segment Reporting
Our operating segments are based on our internal reporting structure and property type and are aligned with how our Chief Operating Decision Maker, or the CODM, reviews the operating results to allocate resources and assess segment performance. The CODM is our President and Chief Executive Officer. Our two reportable segments are SHOP and Medical Office and Life Science Portfolio. Our SHOP segment consists of managed senior living communities that provide short term and long term residential living and, in some instances, care and other services for residents where we pay fees to managers to operate the communities on our behalf. Our Medical Office and Life Science Portfolio segment primarily consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties primarily leased to biotech laboratories and other similar tenants. The significant expense categories and amounts presented below align with the segment-level information that is regularly provided to our CODM. The CODM reviews operating and financial
results, including net income (loss) and its components, to assess performance, allocate resources and guide strategic decisions. The accounting policies of our reportable segments are the same as those described in Note 2. The tables below present information about our segments.
| For the Year Ended December 31, 2025 | ||||||||||||||||||||
SHOP | Medical Office and Life Science Portfolio | Total | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental income | $ | — | $ | 193,809 | $ | 193,809 | ||||||||||||||
| Residents fees and services | 1,312,655 | — | 1,312,655 | |||||||||||||||||
| Total segment revenues | 1,312,655 | 193,809 | 1,506,464 | |||||||||||||||||
| Reconciliation of revenue: | ||||||||||||||||||||
Other revenue (1) | 31,389 | |||||||||||||||||||
| Total revenues | 1,537,853 | |||||||||||||||||||
| Less: | ||||||||||||||||||||
| Senior living labor and benefits | 663,431 | — | 663,431 | |||||||||||||||||
| Dietary | 83,773 | — | 83,773 | |||||||||||||||||
| Utilities | 74,742 | 13,127 | 87,869 | |||||||||||||||||
| Real estate taxes | 45,877 | 22,811 | 68,688 | |||||||||||||||||
| Insurance | 35,071 | 2,185 | 37,256 | |||||||||||||||||
Other operating expenses (2) | 270,505 | 47,556 | 318,061 | |||||||||||||||||
| Interest expense | 18,728 | 9,096 | 27,824 | |||||||||||||||||
| Depreciation and amortization | 189,985 | 62,413 | 252,398 | |||||||||||||||||
Other segment items (3) | 40,543 | 85,254 | 125,797 | |||||||||||||||||
| Segment loss | (110,000) | (48,633) | (158,633) | |||||||||||||||||
| Reconciliation of segment loss: | ||||||||||||||||||||
Other income (1) | 21,602 | |||||||||||||||||||
| General and administrative | (45,502) | |||||||||||||||||||
| Acquisition and certain other transaction related costs | (10,356) | |||||||||||||||||||
| Gain on sale of properties | 99,114 | |||||||||||||||||||
| Interest and other income | 5,839 | |||||||||||||||||||
| Interest expense | (176,674) | |||||||||||||||||||
| Loss on modification or early extinguishment of debt | (42,526) | |||||||||||||||||||
| Income tax expense | (1,743) | |||||||||||||||||||
| Equity in net earnings of an investee | 22,993 | |||||||||||||||||||
| Net loss | $ | (285,886) | ||||||||||||||||||
(1)Revenue and net income from our triple net leased wellness centers and senior living communities that are leased to third party operators, which we do not consider to be sufficiently material to constitute a separate reportable segment.
(2)Other operating expenses for each reportable segment include expenses such as management fees, repairs and maintenance, cleaning and other costs incurred in connection with the operation of our properties.
(3)Other segment items for each reportable segment include impairment of assets, gain (loss) on sale of properties, gain (loss) on modification or early extinguishment of debt, equity in net earnings (losses) of investees and interest and other income, as applicable.
| For the Year Ended December 31, 2024 | ||||||||||||||||||||
| SHOP | Medical Office and Life Science Portfolio | Total | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental income | $ | — | $ | 213,320 | $ | 213,320 | ||||||||||||||
| Residents fees and services | 1,244,389 | — | 1,244,389 | |||||||||||||||||
| Total segment revenues | 1,244,389 | 213,320 | 1,457,709 | |||||||||||||||||
| Reconciliation of revenue: | ||||||||||||||||||||
Other revenue (1) | 37,718 | |||||||||||||||||||
| Total revenues | 1,495,427 | |||||||||||||||||||
| Less: | ||||||||||||||||||||
| Senior living labor and benefits | 630,998 | — | 630,998 | |||||||||||||||||
| Dietary | 85,620 | — | 85,620 | |||||||||||||||||
| Utilities | 70,616 | 13,687 | 84,303 | |||||||||||||||||
| Real estate taxes | 43,624 | 28,483 | 72,107 | |||||||||||||||||
| Insurance | 41,066 | 3,000 | 44,066 | |||||||||||||||||
Other operating expenses (2) | 266,405 | 52,467 | 318,872 | |||||||||||||||||
| Interest expense | 229 | 5,743 | 5,972 | |||||||||||||||||
| Depreciation and amortization | 195,638 | 79,386 | 275,024 | |||||||||||||||||
Other segment items (3) | — | 97,222 | 97,222 | |||||||||||||||||
| Segment loss | (89,807) | (66,668) | (156,475) | |||||||||||||||||
| Reconciliation of segment loss: | ||||||||||||||||||||
Other income (1) | 27,209 | |||||||||||||||||||
| General and administrative | (26,518) | |||||||||||||||||||
| Acquisition and certain other transaction related costs | (2,510) | |||||||||||||||||||
| Interest and other income | 8,950 | |||||||||||||||||||
| Interest expense | (229,267) | |||||||||||||||||||
| Loss on modification or early extinguishment of debt | (324) | |||||||||||||||||||
| Income tax expense | (467) | |||||||||||||||||||
| Equity in net earnings of an investee | 9,147 | |||||||||||||||||||
| Net loss | $ | (370,255) | ||||||||||||||||||
(1)Revenue and net income from our triple net leased wellness center and senior living communities that are leased to third party operators, which we do not consider to be sufficiently material to constitute a separate reportable segment.
(2)Other operating expenses for each reportable segment include expenses such as management fees, repairs and maintenance, cleaning and other costs incurred in connection with the operation of our properties.
(3)Other segment items for each reportable segment include impairment of assets, gain (loss) on sale of properties, gain (loss) on modification or early extinguishment of debt, equity in net earnings (losses) of investees and interest and other income, as applicable.
| For the Year Ended December 31, 2023 | ||||||||||||||||||||
| SHOP | Medical Office and Life Science Portfolio | Total | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental income | $ | — | $ | 220,530 | $ | 220,530 | ||||||||||||||
| Residents fees and services | 1,151,908 | — | 1,151,908 | |||||||||||||||||
| Total segment revenues | 1,151,908 | 220,530 | 1,372,438 | |||||||||||||||||
| Reconciliation of revenue: | ||||||||||||||||||||
Other revenue (1) | 37,870 | |||||||||||||||||||
| Total revenues | 1,410,308 | |||||||||||||||||||
| Less: | ||||||||||||||||||||
| Senior living labor and benefits | 603,711 | — | 603,711 | |||||||||||||||||
| Dietary | 78,508 | — | 78,508 | |||||||||||||||||
| Utilities | 69,280 | 13,918 | 83,198 | |||||||||||||||||
| Real estate taxes | 44,476 | 29,445 | 73,921 | |||||||||||||||||
| Insurance | 39,572 | 2,854 | 42,426 | |||||||||||||||||
Other operating expenses (2) | 239,544 | 51,747 | 291,291 | |||||||||||||||||
| Interest expense | 551 | 449 | 1,000 | |||||||||||||||||
| Depreciation and amortization | 175,926 | 98,205 | 274,131 | |||||||||||||||||
Other segment items (3) | (40) | 36,095 | 36,055 | |||||||||||||||||
| Segment loss | (99,620) | (12,183) | (111,803) | |||||||||||||||||
| Reconciliation of segment loss: | ||||||||||||||||||||
Other income (1) | 26,822 | |||||||||||||||||||
| General and administrative | (26,131) | |||||||||||||||||||
| Acquisition and certain other transaction related costs | (10,853) | |||||||||||||||||||
| Gains on equity securities, net | 8,126 | |||||||||||||||||||
| Interest and other income | 13,955 | |||||||||||||||||||
| Interest expense | (190,775) | |||||||||||||||||||
| Loss on modification or early extinguishment of debt | (2,468) | |||||||||||||||||||
| Income tax expense | (445) | |||||||||||||||||||
| Net loss | $ | (293,572) | ||||||||||||||||||
(1)Revenue and net income from our triple net leased wellness centers and senior living communities that are leased to third party operators, which we do not consider to be sufficiently material to constitute a separate reportable segment.
(2)Other operating expenses for each reportable segment include expenses such as management fees, repairs and maintenance, cleaning and other costs incurred in connection with the operation of our properties.
(3)Other segment items for each reportable segment include impairment of assets, gain (loss) on sale of properties, gain (loss) on modification or early extinguishment of debt, equity in net earnings (losses) of investees and interest and other income, as applicable.
| As of December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Assets (1) | |||||||||||||||||
| SHOP | $ | 2,867,025 | $ | 3,084,101 | $ | 3,134,978 | |||||||||||
| Medical Office and Life Science Portfolio | 1,192,731 | 1,688,034 | 1,866,422 | ||||||||||||||
| All Other | 301,494 | 364,870 | 444,736 | ||||||||||||||
| Total assets | $ | 4,361,250 | $ | 5,137,005 | $ | 5,446,136 | |||||||||||
(1)See Note 3 for further information regarding additions to long-lived assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.