DHC: Updating estimates post NAREIT

Research evidence excerpt

DHC: Updating estimates post NAREIT

RBC Capital Markets, LLC

Michael Carroll, CFA (Head of US Real Estate Research)

(440) 715-2649, michael.carroll@rbccm.com

Brad Heffern, CFA (Analyst)

(512) 708-6311, brad.heffern@rbccm.com

Henry Newell (Associate)

(216) 364-0260, henry.a.newell@rbccm.com

June 17, 2026

Diversified Healthcare Trust Sector Perform

NASDAQ: DHC; USD 8.79RESEARCH Updating estimates post NAREIT Price Target USD 8.00 ↑ 6.00

Our view: We are updating our outlook and estimates post our NAREIT Scenario Analysis* meeting. DHC has made solid progress repositioning its in-place SHOP and

is now more active pursuing revenue-generating projects. We believe this Downside Price Current Upside

should drive healthy earnings growth over the next few years. Therefore, Scenario Target Price Scenario

we are raising our estimates and price target. Our Sector Perform rating is 5.00 8.00 8.79 12.00

unchanged. We note our price target is now based on a P/AFFO multiple 43% 9% 37%

given our AFFO estimates are now positive (previously NAV based). *Implied Total ReturnsEQUITY Key Statistics

Key points: SharesDividend:O/S (MM): 240.70.04 MarketYield: Cap (MM): 2,1160.5%

Raising estimates: We are increasing our FFO estimates to largely reflect NAVPS: 8.35 P/NAVPS: 1.05x

slightly stronger SHOP NOI growth. Management highlighted at NAREIT Debt to Cap: 59% Enterprise Val. (MM): 3,200 Avg. Daily Volume: 1,862,643

that its operators have been able to further reduce their operating

expenses in part driven by new food purchasing contracts. Additionally, the RBC Estimates

company is pursuing more revenue-generating capex projects that will fuel FY Dec 2025A 2026E 2027E 2028E

better NOI growth over the next few years. We note a high level of recurring FFO/Sh, Rpt 0.27 0.62 0.78 0.92