DHC REIT Q2 2025: Strong Results & Deleveraging Push

DHC REITs Q2 2025 results exceeded expectations, with revenue up 3% to $382.7M, adjusted EBITDAre up 7% to $73.6M, and FFO surging 172% to $18.6M. The SHOP portfolio led the way, with same-property NOI up 18.5% to $37.4M. Occupancy hit 80.6%, up 160 basis points YoY, and revenue grew 6.2% from higher rates and fewer discounts. Medical office and life science leasing added 116K sq ft at 11.5% above prior rents. DHC sold 5 unencumbered properties for $25.2M and has a $280M pipeline of assets under agreement. They secured $343M in new SHOP mortgages, a $150M credit facility, and paid off $20M in notes, supporting their deleveraging push. Guidance was raised, with SHOP NOI projected at $132M-$142M, up $10M at the midpoint, and CapEx dropping to $140M-$160M. Net debt to EBITDAre is now 8.7x, heading towards 6.5-7.5x. DHC is well-positioned to address January 2026 bonds with sales proceeds, new financing, and strong liquidity, setting the stage for improved cash flows and a focus on high-growth SHOP assets. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/bc9de07b47e4282b