ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Diversified Healthcare Trust's annualizedNet Income for the quarter that ended in Mar. 2026 was $-173 Mil.
Diversified Healthcare Trust's average Total Assets over the quarter that ended in Mar. 2026 was $4,314 Mil. Therefore, Diversified Healthcare Trust's annualized ROA % for the quarter that ended in Mar. 2026 was -4.01%.
The historical rank and industry rank for Diversified Healthcare Trust's ROA % or its related term are showing as below:
DHC'
s ROA % Range Over the Past 10 Years
Min: -7 Med: -0.77 Max: 3.97
Current: -6.94
During the past 13 years, Diversified Healthcare Trust's highest ROA % was 3.97%. The lowest was -7.00%. And the median was -0.77%.
DHC's ROA % is ranked worse than 94.24% of 938
companies
in the REITs industry
Industry Median: 3.23
vs DHC: -6.94
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Diversified Healthcare Trust ROA % Related Terms
Diversified Healthcare Trust ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Healthcare Facilities subindustry, Diversified Healthcare Trust's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diversified Healthcare Trust ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Diversified Healthcare Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Diversified Healthcare Trust's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Diversified Healthcare Trust (DHC) has a ROA % of -4.01% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diversified Healthcare Trust and its competitors. According to the industry distribution chart, Diversified Healthcare Trust ranks #884 out of 938 companies in the REITs industry, placing it in the top 94.2%.
Is Diversified Healthcare Trust's ROA % too high?
Diversified Healthcare Trust's current ROA % is -4.01%. Based on the distribution chart, Diversified Healthcare Trust ranks #884 out of 938 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Diversified Healthcare Trust has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Healthcare Trust's ROA % compare to LTC and SILA?
According to the REITs industry distribution chart, Diversified Healthcare Trust ranks #884 out of 938 companies for ROA %. This places Diversified Healthcare Trust in the lower half of its industry. The industry median ROA % is 3.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.23, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diversified Healthcare Trust and its competitors. For the REITs industry, the median ROA % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diversified Healthcare Trust's current ROA % is -4.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Healthcare Trust stock overvalued right now?
Based on GuruFocus' analysis, Diversified Healthcare Trust (DHC) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.20, compared to a current price of $9.37 — trading 192.8% above its estimated fair value. The current ROA % is -4.01%. Diversified Healthcare Trust's overall GF Score™ is 56/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Diversified Healthcare Trust (DHC), the current ROA % is -4.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diversified Healthcare Trust (DHC) Overvalued in 2026?
Based on GuruFocus' analysis, Diversified Healthcare Trust stock appears to be overvalued.
The current stock price of $9.37 is trading 192.8% above its estimated GF Value™ of $3.20.
GuruFocus considers Diversified Healthcare Trust to be Significantly Overvalued.
Key valuation signals for DHC:
ROA %: -4.01%
GF Value™: $3.20 vs. price of $9.37 (192.8% above fair value)
No single metric tells the full story. See the DHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diversified Healthcare Trust is a real estate investment trust that focuses on healthcare-related properties, including life science estates, medical offices, and senior living communities. It acquires and owns properties and is engaged in the development and implementation of medical services and technologies. The company has two reportable segments: SHOP (Senior Housing Operating Portfolio) and Medical Office and Life Science Portfolio. The SHOP segment includes managed senior living communities providing residential living and care services. The Medical Office and Life Science Portfolio segment consists of properties leased to medical providers and biotechnology laboratories. It generates the majority of its revenue from the SHOP segment.
56GF Score
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