Business
Diversified Healthcare Trust Announces Liquidity Measures to Address COVID-19 Impact
Reduces Quarterly Common Share Dividend Per Share to $0.01 to Preserve Capital Deferring Planned Capital Projects Sufficient Liquidity to Fund Operations for
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nReduces Quarterly Common Share Dividend Per Share to $0.01 to Preserve Capital\n\n\nDeferring Planned Capital Projects\n\n\nSufficient Liquidity to Fund Operations for a Sustained Period\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced that, in response to the operating challenges and uncertainty surrounding the COVID-19 (coronavirus) pandemic and market disruptions, DHC’s Board of Trustees has decided to reduce the Company’s regular quarterly cash dividend on its common shares for the first quarter to $0.01 per share, conserving approximately $33.3 million of cash per calendar quarter. The dividend will be paid to DHC’s common shareholders on record as of the close of business on April 13, 2020 and distributed on or about May 21, 2020. The Company’s Board of Trustees believes the dividend reduction is the most prudent course of action as it continues to monitor the Company’s financial performance and expects to reevaluate the level of any subsequent regular quarterly dividends on a quarterly basis. DHC currently expects that its dividends to its common shareholders in 2020 will be at least equal to the minimum amounts required in order for DHC to remain a real estate investment trust, or REIT, for federal tax purposes.\n\n\nDHC also expects to conserve capital by deferring certain previously planned non-essential capital investments which is expected to save up to $150 million in 2020. DHC will re-evaluate all deferred 2020 capital projects later in 2020 as clarity improves on the impact of the COVID-19 pandemic and the overall economic environment on DHC’s financial condition. Since the fourth quarter 2019 earnings conference call, DHC has closed on the sale of four assets for approximately $56 million. However, because of current market conditions, DHC anticipates the pace of future sales will slow considerably.\n\n\nOne of DHC’s highest priorities is the health and well-being of the residents at its senior living communities, the tenants at its medical office buildings, and all of its other stakeholders. As of March 31, 2020, DHC has been notified of 41 confirmed cases of the novel coronavirus (COVID-19) in its managed and leased properties, including 31 residents and tenants, and 10 employees across 23 properties, primarily in its SHOP portfolio.\n\n\nDue to restrictions int...