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Diversified Healthcare Trust Announces Changes to the Benchmark Index for Its Business Management Agreement With The RMR Group LLC
MSCI U.S. REIT/Health Care REIT Index to Replace Discontinued SNL U.S. REIT Healthcare Index NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nMSCI U.S. REIT/Health Care REIT Index to Replace Discontinued SNL U.S. REIT Healthcare Index\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) announced today that it has amended its business management agreement with The RMR Group LLC, or RMR LLC, a majority-owned subsidiary of The RMR Group Inc. (Nasdaq: RMR), to replace the benchmark index used in the calculation of incentive management fees. Pursuant to the amendment, for periods beginning on and after August 1, 2021, the MSCI U.S. REIT/Health Care REIT Index will replace the discontinued SNL U.S. REIT Healthcare Index and be used to calculate benchmark returns per share for purposes of determining any incentive management fee payable by DHC to RMR LLC. For periods prior to August 1, 2021, the SNL U.S. REIT Healthcare Index will continue to be used.\n\nFor purposes of calculating any incentive fees, the following lists the historical returns used to calculate incentive fees under the applicable SNL indices for the two years and stub period ending July 31, 2021:\n\n\n\n \n\n\n\n \n\n\n\nTotal Return for the Period\n\n\n\n\n\nBenchmark Return (cumulative % return of SNL Index) at 7/31/2021(1)\n\n\n\n \n\n\n\n12/31/2018 to\n\n\n7/31/2021\n\n\n\n \n\n\n\n12/31/2019 to\n\n\n7/31/2021\n\n\n\n \n\n\n\n12/31/2020 to\n\n\n7/31/2021\n\n\n\n\n\nSNL U.S. REIT Healthcare Index\n\n\n\n \n\n\n\n34.97%\n\n\n\n \n\n\n\n11.10%\n\n\n\n \n\n\n\n18.78%\n\n\n\n\n\n(1) Adjusted for common share issuances during the measurement period.\n\n\n\n\nThe calculation of incentive management fees for the next three measurement periods will continue to use the SNL U.S. REIT Healthcare Index in calculating the benchmark returns for periods through July 31, 2021. Following the announcement that the SNL U.S. REIT Healthcare Index would be discontinued, DHC and RMR sought to replace the expiring index with a comparable, publicly accessible and widely-used index that most closely matched its composition and historical performance. The MSCI U.S. REIT/Health Care REIT Index is a well-known REIT benchmark and the historical returns are comparable to the SNL U.S. REIT Healthcare Index it will be replacing.\n\nAbout Diversified Healthcare Trust\n\nDiversified Healthcare Trust (Nasdaq: DHC) is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties...