Business
Diversified Healthcare Trust Progresses on Transition of 108 Senior Living Communities to New Operators
Enters into Three Senior Living Management Agreements for 66 Communities Agreements Represent Approximately 61% of the Transitioning Communities DHC Remains
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nEnters into Three Senior Living Management Agreements for 66 Communities\n\nAgreements Represent Approximately 61% of the Transitioning Communities\n\nDHC Remains on Schedule to Complete All Operator Transitions by Year End\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) announced today that it has entered into three new management agreements for a total of 66 communities with 4,084 units in its Senior Housing Operating Portfolio (“SHOP”) as follows:\n\n\nCharter Senior Living will manage communities in Florida, Maryland, Tennessee and Virginia;\n\n\nOaks-CaraVita Senior Care will manage communities in Georgia and South Carolina; and\n\n\nPhoenix Senior Living will manage communities in Alabama, Arkansas, Kentucky, Missouri, North Carolina and South Carolina.\n\n\nThese three agreements represent approximately 61% of DHC’s SHOP communities to be transitioned from Five Star Senior Living Inc. (Nasdaq: FVE), or Five Star, to other third-party operators as previously announced.\n\nJennifer Francis, President and Chief Executive Officer of Diversified Healthcare Trust, commented, “We continue to make progress in ensuring our communities are managed by the best possible operators. We are pleased to announce the transition of communities to operators we have identified as best in class for the markets served. These new agreements are generally for five years at market terms, which include base and incentive management fees. In certain circumstances, these agreements provide terms that are more favorable to the new operators than our existing management agreements with Five Star, which we believe will provide strong incentives for performance and alignment of interests as well as facilitate a faster recovery of the transitioning communities with the new operators. We believe we remain on schedule to complete all of the transitions by year-end and are excited to engage with new operators who bring new perspectives and expertise to our communities as we begin to recover from the COVID-19 pandemic.”\n\nDiversified Healthcare Trust (Nasdaq: DHC) is a real estate investment trust (REIT) 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 discipline...