3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Diversified Healthcare Trust's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -3.48%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Diversified Healthcare Trust 3-Year ROIIC % Related Terms
Diversified Healthcare Trust 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, Diversified Healthcare Trust's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Diversified Healthcare Trust's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -28.912 (Dec. 2025) - -91.219 (Dec. 2022) )
/
( 4215.819 (Dec. 2025) - 6004.69 (Dec. 2022) )
=
62.307
/
-1788.871
=
-3.48%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Diversified Healthcare Trust (DHC) has a 3-Year ROIIC % of -3.48 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Diversified Healthcare Trust and its competitors. According to the industry distribution chart, Diversified Healthcare Trust ranks #562 out of 698 companies in the REITs industry, placing it in the top 80.5%.
Is Diversified Healthcare Trust's 3-Year ROIIC % too high?
Diversified Healthcare Trust's current 3-Year ROIIC % is -3.48. Based on the distribution chart, Diversified Healthcare Trust ranks #562 out of 698 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 3-Year ROIIC % compare to LTC and MPT?
According to the REITs industry distribution chart, Diversified Healthcare Trust ranks #562 out of 698 companies for 3-Year ROIIC %. This places Diversified Healthcare Trust in the lower half of its industry. The industry median 3-Year ROIIC % is 3.51. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a REITs company?
The median 3-Year ROIIC % among REITs companies is 3.51, based on 698 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Diversified Healthcare Trust and its competitors. For the REITs industry, the median 3-Year ROIIC % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diversified Healthcare Trust's current 3-Year ROIIC % is -3.48. 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 $9.29 — trading 190.2% above its estimated fair value. The current 3-Year ROIIC % is -3.48. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Diversified Healthcare Trust (DHC), the current 3-Year ROIIC % is -3.48 as of Dec. 2025. 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 $9.29 is trading 190.2% above its estimated GF Value™ of $3.20.
GuruFocus considers Diversified Healthcare Trust to be Significantly Overvalued.
Key valuation signals for DHC:
3-Year ROIIC %: -3.48
GF Value™: $3.20 vs. price of $9.29 (190.2% 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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