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Diversified Healthcare Trust Closes $94 Million of Mortgage Financings Secured by Six SHOP Communities
Financing Proceeds and Cash on Hand Will Repay in Full the Remaining Outstanding June 2025 Senior Notes NEWTON, Mass.--(BUSINESS WIRE)-- Diversified
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nFinancing Proceeds and Cash on Hand Will Repay in Full the Remaining Outstanding June 2025 Senior Notes\n\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced that it has closed two fixed rate mortgage financings totaling $94.3 million, secured by six senior housing communities managed by Five Star Senior Living, the operating division of AlerisLife Inc. The financings consist of a $64.0 million five-year mortgage loan and a $30.3 million ten-year Fannie Mae mortgage loan. Proceeds from these loans, together with cash on hand, will be used to repay the remaining $100.0 million of DHC’s 9.75% senior notes due June 2025.\n\n\nThe $64.0 million loan bears a fixed interest rate of 6.57% and is secured by four communities consisting of 1,079 units with an appraised value per unit of approximately $171,000. The Fannie Mae loan bears a fixed interest rate of 6.36%, is interest only for the first three years, and is secured by two communities consisting of 465 units with an appraised value of approximately $142,000 per unit. Based on the 2024 NOI of the six collateral communities, the appraised value reflects an implied cap rate of 5.8%, or approximately $162,000 per unit.\n\n\nSince March 2025, DHC has closed on an aggregate of $343.0 million of mortgage financings secured by 27 SHOP communities. On a combined basis, these financings reflect an average per unit valuation of approximately $174,000 and a weighted average interest rate of 6.55%.\n\n\nMatt Brown, Chief Financial Officer and Treasurer of DHC, made the following statement:\n\n\n“Now that we have completed the financings to repay our 2025 notes with attractive valuations for the collateral assets, we are turning our attention to paying off the balance of our 2026 note. We plan to address this maturity with proceeds from a combination of $330.0 million to $380.0 million of asset sales, and new financings.”\n\n\nAbout Diversified Healthcare Trust\n\n\nDHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of March 31, 2025, DHC’s approximately $6.8 billion portfolio included 343 properties in...