Diversified Healthcare Trust (DHC): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Diversified Healthcare Trust (DHC) right now, and honestly, it's a story of a major operational pivot, not just passive real estate ownership. As someone who's spent two decades mapping these complex structures, I see a REIT actively reshaping a $\mathbf{\$6.7 \text{ billion}}$ portfolio, aiming to clear debt and fund growth, especially with $\mathbf{116}$ senior living communities transitioning to new operators by the end of $\mathbf{2025}$. With projected total revenue near $\mathbf{\$1.54 \text{ billion}}$ for the year, the question isn't what they own, but how they are executing this high-stakes turnaround across their Medical Office Buildings, Life Science space, and the Senior Housing Operating Portfolio. Dive below to see the nine building blocks defining this strategy right now.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Key Partnerships

The RMR Group (RMR) as external manager for property acquisition and operations

Diversified Healthcare Trust is managed by The RMR Group (RMR). As of June 30, 2025, The RMR Group managed approximately $40 billion in assets under management. By September 30, 2025, this figure was approximately $39 billion in assets under management. As of June 30, 2025, Diversified Healthcare Trust's portfolio included 341 properties.

New third-party senior living operators like Discovery Senior Living and Sinceri Senior Living

The transition of management agreements from AlerisLife to new operators involves seven different managers taking over 116 Senior Housing Operating Portfolio (SHOP) communities. Discovery Senior Living is taking on 44 communities comprising 5,338 units. Sinceri Senior Living is assuming management for 38 communities with 7,299 units. Five of the seven operators represent new relationships for Diversified Healthcare Trust. The SHOP segment, which includes these assets, represented almost 47% of the REIT's annual net operating income following the third quarter of 2025. As of the third quarter of 2025, Diversified Healthcare Trust had a total of 228 SHOP assets spanning 24,872 units.

Here's the breakdown of the 116 AlerisLife management agreements being transferred:

• Discovery Senior Living: 44 communities, 5,338 units.
• Sinceri Senior Living: 38 communities, 7,299 units.
• Tutera Senior Living & Health Care: 19 communities, 2,051 units.
• Stellar Senior Living: 6 communities, 1,032 units.
• WellQuest Living: 5 communities, 796 units.
• Phoenix Senior Living: 3 communities, 366 units.
• Ciel Senior Living: 1 community, 308 units.

Financial institutions for debt refinancing and capital recycling

Diversified Healthcare Trust executed several financing activities to manage maturities and enhance liquidity. The company repaid its June 2025 senior notes using proceeds from asset sales and financing arrangements. In June 2025, the company closed two mortgage financings totaling $94.3 million, which, with cash on hand, repaid the remaining $100.0 million of the 9.75% senior notes due June 2025. Since March 2025, an aggregate of $343.0 million of mortgage financings was closed, secured by 27 SHOP communities, reflecting a weighted average interest rate of 6.55%. Also in June 2025, a new $150 million secured revolving credit facility was closed. In September 2025, Diversified Healthcare Trust priced $375 million aggregate principal amount of 7.25% senior secured notes due October 2030, intending to use the proceeds to partially redeem around $307 million of the 2026 notes. S&P Global Ratings expected the company to raise approximately $1 billion in 2025 from asset sales, mortgage loans, and secured note issuance. The company planned to address the remainder of the 2026 note maturity with asset sales between $330 million to $380 million and additional financing.

Key 2025 Financing Events:

Healthcare systems and research firms as long-term tenants in MOB/Life Science

The Medical Office Building (MOB) and Life Science segment provides diversification across scientific research disciplines. As of June 30, 2025, this segment comprised approximately 7.4 million square feet, occupied by approximately 450 tenants. By September 30, 2025, the square footage was approximately 6.9 million square feet, with approximately 420 tenants.

Eureka Capital Markets, LLC for advisory on AlerisLife wind-down

Eureka Capital Markets, LLC served as the financial advisor to AlerisLife and Diversified Healthcare Trust regarding the transactions for the AlerisLife wind-down. Diversified Healthcare Trust expects to receive estimated net proceeds, after debt repayment and wind-down costs, of between $25 million to $40 million for its 34% interest in AlerisLife. AlerisLife expects to complete a full wind-down of its business and operations during the first half of 2026.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Key Activities

You're looking at the core actions Diversified Healthcare Trust (DHC) is taking right now to reshape its balance sheet and portfolio, which is definitely the main story for late 2025. It's all about executing a strategic pivot away from non-core assets and streamlining operations.

Strategic asset sales to reduce leverage and fund capital investments

The primary activity here is aggressive asset recycling to get debt under control. This isn't just trimming; it's targeted selling to hit specific debt milestones. For example, the sale of 18 triple-net leased senior living communities to Brookdale Senior Living Inc. for $135 million in March 2025 was specifically earmarked to pay down senior secured notes due in January 2026. This followed the $159.0 million sale of the MUSE life science asset in San Diego in February 2025.

The pace continued through the third quarter and into the fourth. Since October, DHC sold an additional 12 properties for about $31.4 million and one encumbered property for $42.1 million, excluding closing costs. Furthermore, as of the third-quarter earnings call, the company had 38 properties under agreement or letters of intent to sell for approximately $237.2 million, excluding closing costs. The goal of this activity is clear: use the proceeds to pay the 2026 debt maturity as early as the end of 2025 and enter 2026 with no debt maturities due until 2028.

Completing the transition of 116 senior living communities to new operators by year-end 2025

This is a massive operational undertaking to move away from the AlerisLife management platform. The plan is to complete the transition of all 116 communities to seven new operators by the end of 2025. As of the third-quarter 2025 call, 85 of those communities had already been transitioned. This shift is intended to improve performance, as the Senior Housing Operating Portfolio (SHOP) segment represents almost 47% of the REIT's annual Net Operating Income (NOI). The average occupancy for these communities rose to 81.5% in the third quarter of 2025, an increase of 210 basis points over the same period last year. DHC also expects to receive estimated net proceeds of between $25 million to $40 million for its 34% interest in AlerisLife following its wind-down.

Active property management and capital investment in the portfolio

Diversified Healthcare Trust is actively investing capital to improve existing assets, which CEO Chris Bilotto noted has been a focus over the last couple of years across the medical office, life science, and senior housing assets. This includes prioritizing organic opportunities like improving margins and occupancy, and repurposing former skilled nursing wings with targeted capital. On the financing side to support this, DHC closed a $109 million fixed rate mortgage through Freddie Mac secured by seven senior living communities in April 2025, and had two additional term sheets totaling $94 million expected to close by the end of May 2025.

Leasing and tenant management for the 6.9 million square feet of MOB/Life Science space

Managing the non-senior living portfolio is a key activity, focusing on leasing velocity to offset expirations. As of September 30, 2025, the Medical Office and Life Science portfolio totaled approximately 6.9 million square feet and was occupied by approximately 420 tenants. This compares to approximately 7.4 million square feet as of June 30, 2025. Leasing activity has seen some success, with the company signing 397,000 square feet of new medical office leases at an average rent increase of nearly 9%. However, the runway ahead requires continued focus, as the company is facing 2.6 million square feet of lease expirations from 2026 through 2028.

Balance sheet management, including addressing debt maturities through 2028

This activity underpins all others, focusing on refinancing and managing debt obligations. The company has proactively addressed near-term maturities, aiming to enter 2026 with no debt due until 2028. The next significant unsecured debt hurdle is the $500 million in 4.75% notes maturing in February 2028. The pressure on cash flow is evident, as operating cash flows for the first six months of 2025 dropped to $50 million (down from $73 million the prior year), leading to a negative free cash flow of $24 million after $74 million in real estate investment. The asset sales are directly intended to manage this leverage profile.

Here's a snapshot of the debt structure activity:

The focus on capital recycling in 2026 will include strategic dispositions and considering acquisitions. That's the next step once the current deleveraging phase is complete.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Key Resources

The core of Diversified Healthcare Trust (DHC) business rests on its substantial, high-quality real estate holdings focused on the healthcare and life sciences sectors. As of September 30, 2025, the total investment portfolio was valued at approximately $6.7 billion. This portfolio is geographically diverse, spanning 34 states and Washington, D.C..

The physical assets are segmented to capture demand across different care delivery models. The senior living component is significant, comprising more than 26,000 senior living units across 335 properties.

The commercial real estate side includes Medical Office Buildings (MOB) and Life Science properties, which together total approximately 6.9 million square feet.

Diversified Healthcare Trust relies on a critical external relationship for property management. The company is managed by The RMR Group, which, as of September 30, 2025, managed approximately $39 billion in assets under management.

The tenant base is spread across the specialized properties, providing diversification in revenue sources. Key tenant statistics include:

• Total number of tenants across all properties: Approximately 420.
• MOB and Life Science properties are occupied by these tenants.
• The portfolio is structured for diversification across care delivery and scientific research disciplines.

The balance sheet structure is a key resource for near-term operational focus. Diversified Healthcare Trust has proactively managed its liabilities, resulting in improved flexibility. Specifically, the company has no major unsecured debt maturities scheduled until 2028.

The next significant unsecured debt hurdle is a series of notes due in February 2028. This specific obligation amounts to $500 million with a coupon rate of 4.75%.

This debt laddering allows management to concentrate capital on portfolio initiatives rather than immediate refinancing needs. The company has been executing on asset sales to improve its financial footing.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Diversified Healthcare Trust's properties are valuable to its stakeholders right now, late in 2025. It's about the mix of assets and the recent financial housekeeping.

Diversified exposure to high-demand healthcare real estate sectors (MOB, Life Science, Senior Living).

Diversified Healthcare Trust offers investors a stake in a portfolio strategically spread across critical healthcare real estate types. As of September 30, 2025, the total portfolio value stood at approximately $6.7 billion, spread across 335 properties in 34 states and Washington, D.C.. This diversification is key to weathering sector-specific headwinds.

Here's a quick look at the composition as of that date:

Potential for improved operating margins and occupancy in the Senior Housing Operating Portfolio (SHOP).

The SHOP segment, which represents the largest component of the portfolio, is showing clear operational traction. Occupancy in the Senior Housing Operating Portfolio rose by 210 basis points year-over-year to reach 81.5% in the third quarter of 2025.. Furthermore, average monthly rates grew by 5.3% year-over-year for the same period.. Management is maintaining its full-year SHOP Net Operating Income (NOI) guidance range at $132 million to $142 million for 2025..

The value here is the operational leverage; you see this in the 18.5% year-over-year increase in same-property SHOP NOI reported in the second quarter of 2025..

Stable, long-term rental income from the leased Medical Office and Life Science segments.

The leased segments provide a more predictable income stream. In the Medical Office and Life Science Portfolio during the third quarter of 2025, leasing activity was robust. They leased approximately 85,992 square feet at weighted average rents that were 9.1% higher than prior rents for the same space.. Consolidated occupancy for this segment climbed to 86.6%.. The average lease term on new deals is nearly 7 years..

High-quality, strategically invested properties supporting an aging U.S. population.

Diversified Healthcare Trust's focus is on owning properties that benefit from long-term demographic tailwinds, specifically the growing elderly population in the U.S. The company aims to position its assets in proximity to major population centers and established healthcare networks.. The company is actively managing its operator base, for instance, by planning the sale of AlerisLife's 116 management agreements to enhance operator diversification..

Enhanced balance sheet visibility for investors post-refinancing.

The company took significant steps to manage near-term debt risk. In September 2025, Diversified Healthcare Trust priced $375 million aggregate principal amount of 7.25% senior secured notes due October 2030.. Proceeds were used to partially redeem approximately $307 million of the notes due January 2026.. This action, combined with planned asset sales, is intended to fully repay the January 2026 debt by the end of the fourth quarter of 2025, pushing the next maturity out to February 2028.. S&P projects the adjusted debt to EBITDA ratio will decline to about 10x by year-end 2025 from 11.9x in 2024..

Finance: draft 13-week cash view by Friday.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Customer Relationships

You're looking at how Diversified Healthcare Trust (DHC) manages its relationships across its diverse real estate holdings. It's not one-size-fits-all; you have distinct customer types-from clinical tenants to senior living residents-each requiring a different touchpoint.

Long-term, triple-net lease agreements with MOB/Life Science tenants

For the Medical Office Building (MOB) and Life Science segment, the relationship is purely contractual, centered on long-term, triple-net lease agreements. This structure puts the responsibility for property operating expenses, taxes, and insurance onto the tenant, which is a key feature for a REIT like Diversified Healthcare Trust (DHC).

As of September 30, 2025, Diversified Healthcare Trust (DHC)'s portfolio included approximately 6.9 million square feet of medical office and life science properties, occupied by approximately 420 tenants. The leasing momentum is strong; for the Medical Office and Life Science Portfolio, weighted average rents were 9% above prior rates as of the third quarter of 2025, with occupancy rising to 86.6%. This segment provides a stable, predictable income base, which is what you want from a net-lease customer. To give you a concrete example of how these assets are valued when monetized, a sale of 18 triple-net leased senior living communities in March 2025 fetched $135 million, or approximately $154,000 per unit, reflecting an in-place cap rate on annualized income of 7.3%.

Contractual management agreements with third-party senior living operators

The Senior Housing Operating Portfolio (SHOP) relationship is fundamentally different; here, Diversified Healthcare Trust (DHC) relies on contractual management agreements with third-party operators. This is where the recent, major restructuring of the AlerisLife relationship comes into play, shifting the relationship dynamics significantly.

Diversified Healthcare Trust (DHC) is completing the transition of 116 management agreements from AlerisLife to seven new, well-established operators, with full completion expected by the end of 2025. These new agreements are structured, except for one property, in the RIDEA format (REIT Investment Diversification and Empowerment Act), which aligns operator incentives with Diversified Healthcare Trust (DHC)'s objectives through performance-based terms, including operator investment in the contracts.

Here's the breakdown of the major new operator assignments:

This transition is strategic, as the pre-transition SHOP portfolio had 24,872 units across 229 assets. The SHOP segment itself saw occupancy rise to 81.5% with average monthly rate growth over 5% in Q3 2025. Diversified Healthcare Trust (DHC) expects to receive estimated net proceeds between $25 million to $40 million from its 34% interest in AlerisLife upon its wind-down in 2026.

Institutional investor relations for a publicly traded REIT (NASDAQ: DHC)

As a publicly traded REIT on NASDAQ, Diversified Healthcare Trust (DHC) maintains a formal relationship with its shareholders, managed by The RMR Group, which oversaw approximately $39 billion in assets under management as of September 30, 2025. The relationship is governed by public filings and regular communication, such as the declared common share distribution of $0.01 per share on October 9, 2025.

The institutional ownership structure saw a dramatic shift by the end of the third quarter of 2025. As of September 30, 2025, the institutional ownership percentage fell to 0.0% from 75.1% in June 2025. However, looking at the June 30, 2025, data, major holders included:

• Flat Footed LLC with 23,487,000 shares
• BlackRock, Inc. with 19,627,435 shares
• VANGUARD GROUP INC with 19,621,564 shares

The company is focused on delivering value, positioning itself to repay its 2026 debt maturity and enter 2026 with no debt maturities until 2028. That's a clear action item for the investor base.

Direct relationship with residents in the Senior Housing Operating Portfolio (SHOP) via third-party managers

You don't deal directly with the residents in the SHOP portfolio; that relationship is mediated entirely through the third-party operators like Discovery Senior Living and Sinceri Senior Living. Diversified Healthcare Trust (DHC)'s influence here is indirect, achieved by selecting high-performing operators and structuring agreements that reward them for driving better resident experiences, which translates to higher average monthly rates and occupancy.

The goal is clear: drive operational improvements that benefit the resident experience, which in turn benefits Diversified Healthcare Trust (DHC)'s bottom line. Post-transition, the company anticipates reaching occupancy of 90% or greater across the SHOP portfolio. The operators are incentivized through performance-based terms on rate growth and occupancy gains. The focus is on creating a 'win-win' scenario for the operator and the REIT owner.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Channels

You're looking at how Diversified Healthcare Trust (DHC) gets its value proposition-high-quality healthcare real estate-to its customers. It's a mix of direct management for some assets and heavy reliance on specialized third parties for others, all funded through the public markets.

Direct Leasing for Medical Office and Life Science Properties

For the non-senior housing side of the business, Diversified Healthcare Trust uses its internal teams to manage direct relationships with tenants across its Medical Office (MOB) and Life Science (LS) portfolio. This channel focuses on securing and maintaining leases for specialized space. As of September 30, 2025, this segment comprised approximately 6.9 million square feet across 335 properties in the total portfolio, occupied by roughly 420 tenants. This portfolio represents about 26.7% of Diversified Healthcare Trust's gross book value, according to Q2 2025 data. The direct team handles the leasing for everything from multi-specialty physician offices to multi-building life science campuses.

Third-Party Senior Living Operators

The Senior Housing Operating Portfolio (SHOP) relies almost entirely on third-party operators to run the day-to-day business. This is a critical channel for service delivery. Diversified Healthcare Trust is actively reshaping this channel, notably by transitioning management agreements for 116 senior housing communities formerly managed by AlerisLife to seven different operators by the end of 2025. The lion's share of these units is going to operators like Discovery Senior Living, Sinceri Senior Living, and Tutera Senior Living. Post-transition, Sinceri will manage 7,299 units and Discovery Senior Living will manage 5,338 units within Diversified Healthcare Trust's SHOP segment. This contrasts with the triple-net leased model, where Diversified Healthcare Trust completed the sale of 18 communities totaling 876 units to Brookdale Senior Living for $135 million in March 2025.

Here's a snapshot of the operator shift and portfolio scale:

Public Equity Markets (NASDAQ) for Capital Raising

Diversified Healthcare Trust uses the public equity markets, specifically the NASDAQ listing, as a primary channel for accessing large-scale capital, which is essential for balance sheet management and future growth. The company announced a regular quarterly cash distribution on its common shares of $0.01 per share in October 2025. Investor sentiment appears to be shifting; as of November 2025, the share price was up 103.96% year-to-date, hitting a fresh 52-week high. To manage debt maturities, Diversified Healthcare Trust raised capital through debt issuance, such as pricing $375 million of senior secured notes due October 2030. The company's total market capitalization was reported at $1.15 billion as of the third quarter of 2025.

Investment Banking and Real Estate Brokerage Firms

For portfolio optimization-acquiring new assets or disposing of non-core ones-Diversified Healthcare Trust engages investment banking and real estate brokerage firms. This channel facilitates the execution of its capital recycling strategy. For instance, the March 2025 sale of 18 senior living communities to Brookdale Senior Living for $135 million was a key disposition. Furthermore, as of the Q2 2025 earnings call, Diversified Healthcare Trust was under agreements or letters of intent to sell an additional 49 properties for approximately $279.9 million. On the financing side, the company closed $94.3 million in mortgage financings secured by six SHOP communities in June 2025, and since March 2025, had closed an aggregate of $343.0 million in financings across 27 SHOP communities.

• Financing proceeds from six communities totaled $94.3 million.
• The average per unit valuation on the 27 financed SHOP communities since March 2025 was approximately $174,000.
• The disposition of 18 units to Brookdale was valued at approximately $154,000 per unit.

The management team is definitely using these external channels to actively prune and finance the portfolio.

Finance: draft 13-week cash view by Friday.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Customer Segments

You're looking at the core groups Diversified Healthcare Trust (DHC) serves as of late 2025, based on their latest operational snapshot from September 30, 2025.

Institutional investors and shareholders seeking healthcare REIT exposure.

These are the capital providers. As of the third quarter of 2025, the ownership structure shows significant institutional backing, with 75.86% ownership held by institutions. Insiders hold 10.23%. Total shareholder returns over the past twelve months reached 85.64%. The regular quarterly cash distribution was set at $0.01 per share. The market capitalization as of November 2025 was reported around $1.15 billion.

Healthcare providers and physician groups leasing Medical Office Buildings.

This group occupies the Medical Office and Life Science space. As of September 30, 2025, this segment comprised approximately 6.9 million square feet across over 85 properties, serving approximately 420 total tenants across the entire portfolio. For the third quarter of 2025, the Medical Office and Life Science Portfolio occupancy stood at 86.6%. New leasing activity in that quarter covered 85,992 square feet, with weighted average rents coming in 9.1% higher than prior rates for the same space.

Life science and biotech companies leasing lab and research space.

These tenants are bundled with the MOBs in the reporting structure. The portfolio includes space for scientific research disciplines. The total square footage for both Medical Office and Life Science properties was approximately 6.9 million square feet as of September 30, 2025. In the second quarter of 2025, leasing activity saw rents averaging 11.5% higher than previous rents for the space leased, which totaled 106,274 square feet.

Senior citizens and their families utilizing the Senior Housing Operating Portfolio (SHOP) services.

This is the largest component by unit count. Diversified Healthcare Trust's SHOP portfolio contained more than 26,000 senior living units as of September 30, 2025. For the third quarter of 2025, occupancy in the SHOP segment increased year-over-year by 210 basis points to reach 81.5%. The average monthly rate growth for these units was 5.3% year-over-year, leading to an 8.0% increase in consolidated SHOP Net Operating Income (NOI) to $29.6 million for the third quarter of 2025.

Here's a quick look at the portfolio composition as of September 30, 2025:

You can see the SHOP segment is driving significant NOI growth, up 8.0% year-over-year in Q3 2025, while the MOB/Life Science segment shows strong leasing spreads at 9.1%.

The customer base is clearly segmented by the type of healthcare service provided:

• Institutional Investors: Ownership at 75.86% institutions.
• MOB/Life Science Tenants: Occupying 6.9 million square feet.
• SHOP Residents: Utilizing over 26,000 units.
• Total Occupancy (SHOP): Reached 81.5% in Q3 2025.

Finance: review the impact of the $375.0 million senior secured notes issued in September 2025 on the weighted average interest rate by next Tuesday.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Cost Structure

You're looking at the expense side of Diversified Healthcare Trust (DHC) as of late 2025, and honestly, the immediate costs are dominated by transition expenses and debt servicing. Here's the quick math on the major drains on the bottom line based on the latest filings.

Property operating expenses saw a temporary spike. Specifically, you see elevated labor costs tied to the AlerisLife transitions, hitting approximately $5.1 million in Q3 2025 alone. This was a one-time drag as the company moved communities to new operators.

The leverage profile is a major cost driver. Interest expense on the significant debt load is reflected in the Net Debt to Adjusted EBITDAre ratio, which stood at 10 times for Q3 2025, largely due to those temporary compensation expense increases. This high leverage means debt service remains a primary, non-negotiable cost.

Management fees paid to The RMR Group are a recurring, structural cost. For the nine months ended September 30, 2025, the total management fees incurred were substantial:

The company is actively managing its capital structure, which impacts interest costs. For context, Q3 2025 Adjusted EBITDAre was reported at $62.9 million.

Regarding property maintenance and improvements, while a specific total Capital Expenditure figure for Q3 2025 isn't explicitly broken out in the immediate summaries, the capitalization of management fees suggests ongoing investment activity. The capitalized portion of management fees for the first nine months of 2025 was $1,530 thousand.

General and administrative (G&A) costs are embedded within the overall operating structure, but the reported Net Loss for Q3 2025 was $164.0 million, or $0.68 per share.

Here are the key cost structure elements we can quantify:

• Elevated labor costs in Q3 2025: $5.1 million.
• Net Debt to Adjusted EBITDAre ratio (Q3 2025): 10x.
• Management fees expensed (9 months 2025): $31,721 thousand.
• Total portfolio value as of September 30, 2025: approximately $6.7 billion.
• Quarterly common share distribution cost: $0.01 per share.

Finance: draft 13-week cash view by Friday.

Diversified Healthcare Trust (DHC) - Canvas Business Model: Revenue Streams

You're looking at how Diversified Healthcare Trust (DHC) brings in its money, which, as a real estate investment trust, really boils down to rent and operations from its specialized properties. Honestly, the revenue picture for late 2025 is a mix of steady leasing income and the performance of its managed senior housing assets.

The two core revenue drivers for Diversified Healthcare Trust are clear:

• Rental income from Medical Office and Life Science properties (the leased segment).
• Operating revenue from the Senior Housing Operating Portfolio (SHOP) communities.

For the third quarter ending September 30, 2025, the top-line figure was reported at $388.71 million. That quarterly number contributes to the broader picture; the trailing twelve months revenue was reported at $1.54B. That's up 4.10% year-over-year for the TTM period.

Strategic asset sales are another component, used to optimize the portfolio and boost liquidity. While I don't have the exact figure of $16.5 million from six properties for Q3 2025, the activity around dispositions is significant. Year-to-date through Q3 2025, Diversified Healthcare Trust had sold 44 properties for $396 million and had agreements in place to sell an additional 38 properties for $237 million. Also, subsequent to the quarter-end, they sold another 11 properties for aggregate gross proceeds of $31 million. This focus on sales helps manage the balance sheet, especially considering the refinancing activity, like the $375 million senior secured notes offering completed in late September.

To give you a clearer snapshot of the key financial metrics tied to these revenue streams as of the Q3 2025 report, here's a quick table:

The SHOP portfolio performance is critical, as operating revenue depends heavily on occupancy and effective management, especially during operator transitions. The occupancy rate rose by 210 basis points year-over-year to reach 81.5% in the third quarter. The full fiscal year 2025 guidance for SHOP Net Operating Income (NOI) was maintained in the range of $132 million to $142 million. Also, leasing success in the leased segment saw approximately 86,000 square feet completed at weighted average rents 9% above prior rents.

Finance: draft 13-week cash view by Friday.