DHC 2026年第3四半期決算説明会：SHOP NOIが50.4%急増、ガイダンスを引き上げ

要点

• ダイバーシファイド・ヘルスケア・トラスト（Diversified Healthcare Trust）の2026年第3四半期の標準化FFOは3,070万ドル（1株当たり0.13ドル）となり、前年同期の1株当たり0.02ドルから増加しました。調整後EBITDAreは前年同期比28.4%増の7,340万ドルとなりました。
• 連結既存物件現金ベースNOIは25.6%増の7,790万ドルとなりました。SHOP（高齢者向け住宅運営）既存物件NOIは、入居率が200ベーシスポイント上昇して84.4%となり、月額平均賃料が5.2%上昇したことで、50.4%増の4,800万ドルに達しました。
• DHCは2026年SHOP既存物件NOI見通しの中央値を500万ドル引き上げ、1億9,000万〜2億ドルとしました。また、継続的設備投資の見通しも中央値で1,000万ドル引き下げ、9,000万〜1億5,000万ドルとしました。
• 同社はコロラド州の専門看護施設7件を、エンサイン・グループ（The Ensign Group）との15年間のトリプルネット・リース契約に移行しました。初年度の契約賃料は約800万ドルで、直近12ヶ月間のNOI（510万ドル）を上回ります。
• 四半期末時点の手元流動性は2億6,100万ドルで、これには1億1,100万ドルの現金および未消化の1億5,000万ドルの有担保回転信用枠が含まれます。年換算調整後EBITDAreに対する純有利子負債倍率は、前年同期の10.7倍から8.2倍に低下し、インセンティブ運用報酬を除くと7.4倍となりました。
• 経営陣は、事業者がそれぞれのNIC（全米高齢者住宅・介護投資センター）市場との乖離を縮小させるに伴い、SHOPの入居率にはさらに500〜600ベーシスポイントの上昇余地があると試算しています。

主要財務データ

2026年第3四半期より、標準化FFOおよび調整後EBITDAreには米国会計基準（GAAP）に基づき未払い計上された見積もりインセンティブ運用報酬が含まれています。過去の期間についても同様の基準に修正再表示されました。当四半期には540万ドル（1株当たり0.02ドル）の未払いインセンティブ報酬が含まれており、年初来累計では2,200万ドル（1株当たり0.09ドル）となります。経営陣は、この表示方法の変更はGAAP業績やキャッシュフローに影響を与えないとしています。

事業および営業業績

SHOPは引き続きDHCの主な成長ドライバーです。既存物件の売上高は前年同期比5.8%増加した一方、営業費用はほぼ横ばいでした。給食調達の取り組みにより、費用は前年から約130万ドル削減されました。

前四半期比では、SHOP既存物件NOIは400万ドル（7.6%）減少しました。経営陣は、第2四半期に計上された一過性の費用軽減効果220万ドルが再現しなかったこと、第3四半期の一時的費用約100万ドル、および季節的な光熱費200万ドルが要因であると説明しています。これらの項目を除くと、第3四半期の既存物件NOIは第2四半期比で2.5%増加していたことになります。

DHCは13のコミュニティにおいて、利用頻度の低い、または閉鎖された専門看護スペースを、約356室の自立型高齢者住宅（インディペンデント・リビング）、アシステッド・リビング、メモリーケア（認知症ケア）ユニットへ改修するプロジェクトを承認しました。経営陣は、安定化後のキャッシュリターンを10%台半ば以上と予想しています。着工は2027年を予定しており、一部のユニットは同年後半に引き渡される見込みです。

既存の運営会社が管理する76のSHOPコミュニティを対象とする新たな管理協定が、2027年1月1日に発効する予定です。DHCは、この協定により当初年間約200万ドルのコスト削減が見込まれるとともに、運営会社のインセンティブが株主利益とより高度に連携すると期待しています。

コロラド州の専門看護施設7件は、10月1日付で15年間のトリプルネット・リースのもとエンサイン・グループへ移管されました。同契約には消費者物価指数（CPI）に連動した年次の賃料増額条項が含まれており、診療報酬、人件費、資本的リスクが借主（テナント）へ移転されます。経営陣によると、見込ベース（プロフォルマ）では、この構造によって第3四半期の連結SHOPマージンが約80ベーシスポイント押し上げられていたことになります。

医療オフィスおよびライフサイエンスのポートフォリオでは、DHCは約13万平方フィートの賃貸契約を新規・更新で完了し、賃料設定は従来比25%高水準、加重平均借入期間は9.7年となりました。7月1日に約21万3,000平方フィートを占めていたテナント2社が退去したため、ポートフォリオ全体の入居率は第2四半期の92.2%から88.4%に低下しました。

DHCは、空室となっている12万6,000平方フィートの物件1件を1,050万ドルで売却する合意に達しており、さらに合計約23万2,000平方フィートの物件2件についての売却案を検討していました。これら3つの資産は、第3四半期に69万ドル（年換算で約280万ドル）のマイナスNOIを発生させていました。

業績予想（ガイダンス）

DHCは2026年のSHOP既存物件NOI見通しを1億9,000万〜2億ドルに引き上げました（中央値で500万ドルの上方修正）。改定後の見通しは以下を前提としています。

• SHOPの営業費用増加率は2.3%（従来予想の2.5%から低下）。
• 月額平均賃料の伸び率は5.6%（従来予想の5.5%から上昇）。
• 入居率の改善は200ベーシスポイント（変更なし）。
• 売上高の伸び率は6.3%。

改定された通期見通しには以下も含まれます。

標準化FFO見通しには、2,930万ドル（1株当たり0.12ドル）の見積もりインセンティブ運用報酬が含まれています。SHOPのNOI増加は見通しを1株当たり約0.02ドル押し上げた一方、インセンティブ報酬は0.12ドル押し下げました。経営陣は、最終的なインセンティブ報酬額は12月31日までのベンチマーク指数に対するDHCの株主総リターン（TSR）に依存し、9月30日時点の未払い計上額と大幅に異なる可能性があると警告しています。

第4四半期の業績には、エンサイン社からの通期の賃料収入による約200万ドルの現金ベースNOIが含まれる見込みです。経営陣は、この取引自体がSHOP既存物件NOI見通しの引き上げ理由ではなく、SHOPの堅調なファンダメンタルズを反映したものであると述べました。

リスクと注目点

7月のテナント退去に伴い、医療オフィスおよびライフサイエンスの入居率は低下しました。さらに、カリフォルニア州フリーモントのライフサイエンス分野のテナント（年換算賃貸収入220万ドル相当）が11月末に退去する予定です。

DHCの次の債務償還期限は2028年2月満期のシニア無担保社債5億ドルです。経営陣は、40億ドルの無担保資産、SHOPのキャッシュフロー改善、財務指標の強化を挙げ、満期に対応できる体制が整っていると述べました。

ターゲットを絞った入居優遇措置はSHOPの入居率上昇を加速させたものの、月額平均賃料は前四半期比で横ばいとなりました。経営陣は高水準の優遇措置が長期化することは想定しておらず、コミュニティの運営が安定するにつれて賃料の上昇傾向がより顕著になると予想しています。

見積もりインセンティブ運用報酬の計上額は、DHCの株価や相対的な株主総リターンに伴って四半期ごとに変動する可能性があり、標準化FFOおよび調整後EBITDAreの変動要因となります。

アナリスト質疑応答のハイライト

経営陣は、継続的設備投資が2027年と2028年にさらに減少する可能性があり、長期的な目標値は1ユニット当たり3,000ドル近くなると示唆しました。

資本配分は引き続きDHCの既存ポートフォリオ、特に専門看護病棟の転換事業に重点が置かれています。資産売却の受取金は再投資やデレバレッジに充てられる可能性があり、物件買収の優先順位は低くなっています。経営陣は、未消化の1億5,000万ドルの信用枠を含む現在の流動性は計画された投資に十分であると述べました。

第3四半期の非経常的費用約100万ドルには、売上・利用税の清算および貸倒損失の増加が含まれていました。経営陣は、これらの項目が第4四半期以降に再度発生することはないと見込んでいます。

経営陣は、入居インセンティブはポートフォリオ全体に対する恒久的な戦略ではなく、選択的に適用されていると述べました。同社は2027年にかけて継続的な賃料の改善に加え、コスト削減や増収施策によるさらなる効果を期待しています。

決算説明会全文文字起こし

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Good morning, and welcome to the Diversified Healthcare Trust Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matthew Murphy, Manager of Investor Relations. Please go ahead.

Matt Murphy

Good morning. Joining me on today's call are Chris Pilato, President and Chief Executive Officer; and Matt Brown, Chief Financial Officer and Treasurer. Today's call includes a presentation by management followed by a question-and-answer session with sell-side analysts.

Please note that the recording and retransmission of today's conference call is strictly prohibited without the prior written consent of the company. Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws.

These forward-looking statements are based upon DHC's beliefs and expectations as of today, Tuesday, November 3, 2026. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call. other than through filings with the Securities and Exchange Commission, or SEC.

Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements.

In addition, this call may contain non-GAAP numbers, including normalized funds from operations or normalized FFO, net operating income or NOI, cash basis net operating income or cash basis NOI and adjusted EBITDAre. A reconciliation of these non-GAAP measures to net income is available in our financial results package which can be found on our website at www.dhcreit.com.

Beginning this quarter, our calculation of normalized FFO and adjusted EBITDAre include estimated incentive management fees accrued under GAAP, and prior periods have been recast to conform to this presentation. And finally, we will be providing guidance on this call, including NOI.

We are not providing a reconciliation of these non-GAAP measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all. such as gains and losses or impairment charges related to the disposition of real estate. With that, I would now like to turn the call over to Chris.

Michael Kodesch

Thank you, Matt. Good morning, everyone, and thank you for joining our call today. Our third quarter results reflect continued execution on the strategy we have laid out for the year. That strategy shows up across stronger operating results in our SHOP portfolio, active optimization of how we own and operate individual assets and a steadily improving financial profile.

Following the market close yesterday, DHC reported normalized FFO of $30.7 million or $0.13 per share and adjusted EBITDAre of $73.4 million, an increase of 28.4% year-over-year. Same property cash basis NOI increased 25.6% to $77.9 million and consolidated NOI increased 27.5% to $80.8 million.

Before going further, I want to note a change in our presentation Beginning this quarter, adjusted EBITDA and normalized FFO include incentive management fees as recognized under GAAP and prior periods have been recast on the same basis.

On a comparable basis, normalized FFO increased from $0.12 per share in the second quarter and from $0.02 per share a year ago and adjusted EBITDA increased both sequentially and year-over-year. The momentum in our portfolio is also reflected in our outlook. Today, we are raising our same-property shop NOI guidance by $5 million at the midpoint and lowering our expected SHOP recurring capital expenditures by $10 million.

Matt will walk through the full guidance update, including the effect of the incentive management fee change. Let me start with our shop segment. Same property NOI increased 50.4% year-over-year to $48 million, this growth was driven by a 200 basis point increase in occupancy to 84.4% and a 5.2% increase in average monthly rate which together expand same-property NOI margin by 470 basis points to 15.8%.

We used targeted move in incentives this quarter to accelerate occupancy which kept average monthly rate flat sequentially. As communities stabilize, we expect to reduce these concessions and allow rate growth to flow through more fully. Expense discipline also continues with our dietary procurement initiatives contributing to an expense reduction by approximately $1.3 million compared with the prior year.

Importantly, we believe significant embedded upside remains with same-property occupancy at 84.4%, we estimate 500 to 600 basis points of occupancy upside as our operators close the occupancy gaps between our communities and their respective NIC markets. Beyond occupancy, we continue to reposition underutilized and close skilled nursing weeks into independent living, assisted living and memory care units.

We have now approved projects across 13 communities that we expect will add approximately 356 units. We expect these investments to generate stabilized cash returns in the mid-teens or better while converting vacant space into revenue-generating units.

Finally, we are putting new management agreements in place across 76 shop communities that are managed by our legacy operators. Implementation is expected on January 1, 2027. These agreements extend the operator framework we initiated across our transition communities in 2025, including more closely aligned incentive structures and appropriately sized base management fees.

We expect them to initially generate approximately $2 million of annual cost savings while further aligning operator incentives with shareholder interests. Turning to our portfolio optimization strategy. Over the past 2 years, DHC has repositioned its portfolio through asset sales, operator transitions and targeted capital investment.

With much of that foundation in place, we are increasingly focused on optimizing individual assets. The clearest example this quarter is our transition of 7 skilled nursing facilities in Colorado to a 15-year triple-net lease with the Ensign Group effective on October 1.

This transition does 2 primary things for us. First, it increases cash flow. First year contractual rent is approximately $8 million with CPI annual escalators, which compares with $5.1 million of NOI over the prior 12 months or about $3.5 million after capital expenditures. Second, it sharpens our SHOP portfolio.

Skilled nursing relies primarily on government reimbursement and is a more labor-intensive which is why these facilities generated only about a 5.8% margin for the quarter. Skilled nursing is also more commonly under triple net leases with specialized operators. The new structure shifts reimbursement, labor and capital exposure to the tenant leads our shop portfolio more focused on private pay senior housing and on a pro forma basis, would have lifted our third quarter consolidated shop margin by about 80 basis points.

We are applying the same asset-by-asset approach to operator alignment. In September, we provided notice to transition 6 shop communities in Georgia, representing 486 units to a new manager, which we expect to begin as early as the fourth quarter. This consolidates these communities with an operator that has deep regional expertise and fits the operator framework we have built across our transition portfolio. We look forward to working closely with them to ensure a seamless transition.

Turning to our medical office and life science portfolio. Leasing activity remained healthy during the quarter. We completed approximately 130,000 square feet of leasing at rental rates 25% above prior rents with a weighted average lease term of 9.7 years. As discussed on our second quarter earnings call, 2 tenants representing approximately 213,000 square feet vacated on July 1, and and total occupancy declined to 88.4% from 92.2% in the prior quarter.

Near-term expirations are limited. Through year-end, $3.3 million of annualized rental income or 2.1% of the total is scheduled to expire. This includes $2.2 million from a life science tenant in Fremont, California that we expect to vacate at the end of November and we are actively marketing that space for lease.

The portfolio's weighted average remaining lease term was approximately 5.1 years at quarter end. As part of our capital recycling efforts, we are actively pursuing disposition opportunities. As of yesterday, we were under agreement to sell 1 vacant property consisting 126,000 square feet for $10.5 million, and we are valuing offers on 2 additional properties totaling approximately 232,000 square feet.

Together, these 3 properties generated negative NOI of $690,000 during the quarter or nearly $2.8 million annually, selling them eliminate that drag and provides capital for reinvestment. Looking ahead, our path to earnings growth is embedded in our existing portfolio. Several drivers are already in motion for 2027, a full year rent from the Ensign lease approximately $2 million of annual savings from our new shop legacy management agreements effective January 1, skilled nursing ROI conversion projects, adding approximately 350 units and the sale of nonearning medical office properties.

Most significant is the continued improvement in shop occupancy and rate on rate concessions normalize. Our third quarter results show this strategy is working with stronger shop operations, active optimization of individual assets and improving financial profile and a higher shot NOI outlook for the year.

These results are clearly resonating with investors at DHC has been the top-performing REIT in the U.S. over the past 3 years, with a total shareholder return in excess of 277% and we remain confident in our trajectory and in our ability to deliver sustainable earnings growth and long-term value for our shareholders. With that, I'll turn the call over to Matt.

Matthew Brown

Thanks, Chris, and good morning, everyone. Before I review our results, I would like to walk through a change to how we present our non-GAAP financial measures. The SEC recently provided its interpretation that incentive management fees accrued under GAAP should be included in normalized FFO and adjusted EBITDAre.

Historically, we excluded the incentive fee in these measures. While we believe our prior approach was appropriate and supported period-to-period comparability, we have adopted the SEC's interpretation and changed our presentation. Beginning this quarter, normalized FFO, adjusted EBITDAre and CAD include estimated incentive management fees as they are accrued under GAAP, and we have recast prior periods to conform.

To be clear, this is a change in presentation only. It does not affect our GAAP results or our cash flows, and it does not change how the incentive fee is calculated or the amount, if any, that would ultimately be payable to RMR because the fee is based on DHC's total shareholder return relative to a benchmark index over a 3-year period ending December 31, the accrual will fluctuate from quarter-to-quarter with our share price.

For the third quarter, normalized FFO and adjusted EBITDA include $5.4 million or $0.02 per share of accrued incentive fees, and year-to-date, we have accrued $22 million or $0.09 per share. Page 8 of our earnings presentation includes a bridge to previously issued guidance. We believe this bridge will assist our investors with comparability between our revised normalized FFO and adjusted EBITDA calculations from prior guidance.

During the third quarter, our normalized FFO was $30.7 million or $0.13 per share, and our adjusted EBITDA was $73.4 million, representing a 28.4% increase year-over-year. Our third quarter results continue to show the earnings power of our SHOP assets, the cash-generating ability of our business and a significantly stronger balance sheet than a year ago.

During the third quarter, consolidated same-property cash basis NOI was $77.9 million, a 25.6% increase year-over-year, Shop continues to drive this growth with same-property NOI increasing 50.4% year-over-year to $48 million and same-property NOI margin expanding 470 basis points to 15.8%. This improvement came from both the top line and expense side.

Same property shop revenue increased 5.8% year-over-year, driven by a 200 basis point increase in occupancy to 84.4% and and 5.2% growth in average monthly rate. At the same time, same property operating expenses were essentially flat year-over-year and expense core declined 30 basis points as our operators continue to capture the dietary maintenance and labor savings we discussed last quarter.

Sequentially, Shop Same property NOI decreased $4 million or 7.6%, driven by second quarter results that included approximately $2.2 million of onetime expense benefits that did not recur. Additionally, the third quarter includes approximately $1 million of nonrecurring expenses and $2 million of higher utility costs due to typical seasonality.

Excluding these items, third quarter same property NOI would have been 2.5% higher than the second quarter. Importantly, same property occupancy increased 130 basis points sequentially, our largest quarterly gain this year, which supports our view that the occupancy ramp on our transition communities is well underway. In our medical office and life science portfolio, same-property cash basis NOI was $22.9 million, a 1.6% decrease year-over-year.

This primarily reflects the previously disclosed tenant who vacated effective July 1 and which also drove the 120 basis point sequential decline in same-property occupancy to 94.5%. Third quarter G&A expense of $14.6 million includes $5.4 million of estimated incentive management fees, as I've discussed, and $2.2 million of noncash share-based compensation.

Excluding these items, G&A was $7 million, consistent with the second quarter. During the quarter, we invested $28.9 million of capital, including $22.6 million into our shop communities and $6.3 million into our medical office and life science portfolio. Year-to-date spending of $76.5 million is $32.1 million or approximately 30% lower than the same period in 2025.

We are reducing our 2026 recurring CapEx guidance by $10 million at the midpoint to $90 million to $105 million. At quarter end, we had total liquidity of $261 million, including $111 million of cash our undrawn $150 million secured revolving credit facility. Net debt to annualized adjusted EBITDAre was 8.2x, a 2.5x reduction from a year ago. This calculation now includes incentive fees, which added 0.8x, excluding them, leverage was 7.4x, within our 6.5 to 7.5x target range.

Adjusted EBITDAre to interest expense improved to 2x from 1.2x a year ago, and we remain comfortably in compliance with all of our bond covenants. Our next debt maturity is our $500 million of senior unsecured notes due February 2028 with $4 billion of unencumbered assets representing over 64% of our portfolio, growing SHOP cash flow and steadily improving credit metrics we believe we are well positioned to address this maturity.

Turning to full year 2026 guidance. Excluding the presentation change regarding estimated incentive fees, we are raising our SHOP same-property NOI guidance by $5 million at the midpoint to $190 million to $200 million, and that increase flows through to adjusted EBITDA and normalized FFO.

The increase reflects lower expected operating expense growth of 2.3% compared with 2.5% previously an average monthly rate growth of 5.6%, up from 5.5% and with occupancy growth unchanged at 200 basis points and revenue growth of 6.3%. It should also be noted that for the 9 months ended September 30, same-property shop NOI was $144.3 million.

Separately, adjusted EBITDAre and normalized FFO guidance now includes estimated incentive management fees of $29.3 million or $0.12 per share. Netting the 2, normalized FFO guidance moves to $0.46 to $0.52 per share from $0.56 to $0.62, up $0.02 from the SHOP NOI increase and down $0.12 for the estimated incentive fee.

The final amount, if any, will be based on our total return relative to the benchmark index through December 31 and could differ materially from the amount accrued as of September 30. Updated guidance ranges are as follows: $2 million to $328 million of same-property NOI, adjusted EBITDAre of $276 million to $291 million, normalized FFO of $111 million to $126 million or $0.46 to $0.52 per share and recurring capital expenditures of $90 million to $105 million which is a reduction of $10 million at the midpoint, as I previously discussed.

Fourth quarter results will also include a full quarter of Ensign Rent for the 7 skilled nursing facilities, which will contribute approximately $2 million of cash NOI. We are confident in our updated full year guidance, and we are building momentum into 2027. We will share our 2027 guidance on our next earnings call which will include changes to our shop segment, mainly driven by the 7 skilled nursing facilities now leased to Ensign being presented in our -- all Other segment. That concludes our prepared remarks. Operator, please open the line for questions.

Operator

[Operator Instructions] Our first question today is from Henry Newell with RBC Capital Markets.

質疑応答

Unknown Analyst

Just hoping you could touch on the updated CapEx outlook briefly. Should we expect really this updated outlook to be a run rate moving forward into '27 and '28. Or is there any reason why we should expect recurring CapEx to decrease in '27 and '28.

Unknown Executive

Yes, it's a good question. I could see it decreasing a little bit into 2027 and 2028. We've been targeting closer to 3,000 per unit as we look forward. So we do expect that to continue to kind of come down as it has been over the last few years.

Michael Kodesch

Wonderful. And then just more generally, how are you viewing your different sources of capital at the moment? Is the current leverage profile and ongoing concern? And do you think you'll continue to finance CapEx or maybe any acquisitions with dispositions or something else moving forward? .

On the latter part of the question, I think right now, most of the investment we plan to make is within the existing portfolio. We've talked about the conversion of closed skilled nursing wings and that being kind of a priority given the returns that come from that profile. So that will be kind of top priority.

We are selling some assets, which we highlighted. I don't think the overall proceeds are overly material, but nonetheless, that will provide optionality for reinvestment to either delever or again, that's part of the flow skilled nursing wing strategy and then maybe in kind of small select cases considering whether or not acquisition makes sense, but I think that's kind of last aligned. So right now, it's really focused on the existing portfolio and kind of the embedded upside opportunities that we see and then Matt.

Yes. Just to add to that on leverage, leverage has been on a nice decline as we've seen the SHOP performance significantly improve over the last 15 to 18 months, and our trajectory should prove that, that will further decline as we move beyond 2026.

And as it relates to just kind of capital and liquidity for the things that we're focused on, which, as Chris mentioned, is mostly in our existing portfolio. We have adequate liquidity to continue making those investments. We have the $150 million credit facility. We have not drawn on that. So that produces us with sufficient liquidity for us.

Operator

[Operator Instructions] The next question is from John Massoca with B. Riley.

Unknown Analyst

Maybe just a quick clarification. With regards to the FLIR 26 guidance, does that include the positive impact you're expecting to NOI from the Ensign transaction?

Michael Kodesch

Yes. I mean it's factored in that we're going to receive $2 million in the fourth quarter. For the 9 months ended September, we've received a little bit over $4 million of NOI there. So there's some moving pieces as it relates to the change, but it is included. Is that part of where the increased shop NOI expectations are coming? Or is that something that was maybe kind of previously contemplated in the guide?

No, it's unrelated to that change in structure. -- on those skilled nursing facilities. But we've been trending towards the higher end of our SHOP NOI guidance for the first several quarters. And we're just shy of $145 million year-to-date through 9 months. So we really have added conviction in our SHOP results, and that's really the driver of the $5 million increase to the guide on this call. .

Unknown Executive

And John, I would just add that going back to the enzyme. The proceeds from the lease we get for the quarter in Q4 is more or less equivalent to what we would have gotten under the RIDEA. So as Matt alluded to, that's a wash. And again, the upside is more just performance base, which is driving the guidance.

Alexander Kubicek

Okay. In terms of the one-timers in 3Q, can you just provide a little more color on what those were? And are those things that we should expect to occur seasonally in 3Q going forward? Or was it just kind of really onetime events?

Unknown Executive

No, they were largely onetime events. It was about $1 million in total. We had some sales and use tax true-ups and a little bit of elevated bad debt. But we don't expect those to recur into Q4 or beyond.

Unknown Analyst

Okay. And then as you think about occupancy versus rate. I mean, should we expect some of these strategies using concessions to kind of promote occupancy before you push rate to continue going forward? Is that something that we can see kind of the next couple of quarters? Or is this kind of really a onetime situation based on an opportunity operator saw or something else in the market?

Unknown Executive

Yes, it's a mix. I mean, look, the concession piece is more hand-to-hand combat on certain assets to drive strategy. It's just -- it's more pronounced now as we think about where we see the opportunity. I don't envision this being something that continues long term. I think this is kind of incremental, and we will continue to see rate lift across the portfolio.

And so I think, generally speaking, we would expect to see at least the same lift we got in 2026. And again, we've also talked about a variety of different strategies we're finding with respect to expense reduction levels of care on the revenue side. So there's kind of a whole suite of different initiatives that we continue to work through, which will be more pronounced as we go into 2027.

Unknown Analyst

Okay. And then last 1 for me. In terms of some of the redevelopment potential within the portfolio, has any of that started? I mean, has there been any spend yet on that? I guess that wouldn't show up in the recurring CapEx guide, right? So are you in process on any of those projects? Or are those still primarily kind of 27 starts?

Unknown Executive

They are all '27 starts. Any spend this year is really soft costs related to design and consultants, but kind of the swinging of hammers will commence next year, and then we'll start to see delivery of some of those towards the back half of the year.

Operator

[Operator Instructions] It is showing no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to Chris Bilotto for any closing remarks.

Christopher Bilotto

Well, thank you for joining our call today. We look forward to seeing many of you at the NAREIT conference in Atlanta this November. That concludes our call.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.