DHCNI · Diversified Healthcare Trust -

Diversified Healthcare Trust’s May 5, 2026 8-K filing centers on its updated 2026 financial guidance and first-quarter operational performance, both disclosed in Exhibit 99.1. The company reported strong SHOP segment momentum: same-property SHOP occupancy reached 82.4% in 1Q26 — a 110 basis point year-over-year increase — supported by 5.9% growth in average monthly resident rates and resulting in 13.5% same-property NOI growth. This underpins the full-year SHOP NOI guidance midpoint of $180 million, representing 29.3% growth versus 2025, driven by new operational initiatives, demographic tailwinds, and a muted supply environment. The guidance also reflects strategic portfolio simplification: MOB/LS NOI is expected to decline to $96 million (midpoint) due to the 2025 disposition of 31 properties, while NNN NOI remains stable. Capital recycling continued in early 2026 with the sale of 13 SHOP communities in March and acquisition of two land parcels in April — reinforcing DHC’s focus on asset quality and balance sheet discipline. Moody’s April 2026 upgrade to B3 with a positive outlook corroborates progress on leverage management and liquidity, with guidance assuming $149 million in interest expense and no material acquisitions beyond the land parcels. Management attributes performance to refined SHOP operator incentives, workflow automation, and personalized care models — all aimed at sustaining occupancy and margin gains. The absence of GAAP reconciliation for Normalized FFO and Adjusted EBITDAre underscores the non-recurring nature of prior-year discount accretion and property sales impacts, which are explicitly excluded from guidance. Collectively, these disclosures signal execution against DHC’s long-term plan to enhance risk-adjusted returns through operational improvement and targeted capital allocation.