Diversified Healthcare Trust REIT Slides To New 2022 Low

It’s been a tough year for Diversified Healthcare Trust DHC, at least for its stock price. 

The real estate investment trust (REIT) dropped to a new 52-week low of $0.74 from a January high of $3.25. The REIT has been sliding since 2017 when it peaked way at $17. That’s a 96% drop in value. 

Newton, Massachusetts-based Diversified Healthcare owns and operates healthcare and life science facilities around the country. It owns 9 million square feet of lab and office space in 36 states and in Washington, D. C. 

With a market capitalization of $182.52 million, the REIT is smaller than almost all others in the sector. With a book value of 0.098%, Diversified Realty trades with a price-earnings ratio of 0.42. This year’s funds from operations (FFO) are up by 225% and its five-year growth is 4.3%. The company has more long-term debt than shareholder equity. 

Average daily volume is 2.65 million shares. Institutions own about 80% of the float. The short float sits at 4.25% of the total shares outstanding. Diversified Realty pays a dividend of 5.43%.

The daily price chart for Diversified Realty Healthcare Trust looks like this:

The REIT is unable to remain above the downtrending 50-day moving average (the blue line), typically not a good sign. The price is well below the 200-day moving average (the red line), which is also downtrending. The relative strength indicator (RSI) below the price chart has entered the Oversold range.

Here’s the weekly price chart for Diversified Realty Healthcare Trust:

The rally in May and June 2020 reflects the post-pandemic scare efforts of the Federal Reserve to reinflate markets — it worked for a while for Diversified. It’s been downhill since then, and the recent heavy selling volume may not be a good sign for future prospects. The relative strength indicator sits in the oversold zone with a positive divergence from the October low to the present.

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Charts courtesy of StockCharts