Business
Diversified Healthcare Trust Provides Business Update
Completes $605 Million of Non-Core Property Sales in 2025 Announces Full Repayment of 2026 Zero Coupon Bonds Completes Transition of SHOP Portfolio to New
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nCompletes $605 Million of Non-Core Property Sales in 2025\nAnnounces Full Repayment of 2026 Zero Coupon Bonds\nCompletes Transition of SHOP Portfolio to New Operators\n\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) (“DHC”) today provided a business update regarding its capital recycling program, the full repayment of its 2026 zero coupon bonds and the transition of operations of its senior housing operating portfolio (“SHOP”) communities from AlerisLife Inc. to new operators.\n\n\nProperty Sales Update\n\n\nDHC continues to advance its previously disclosed capital recycling program focused on the sale of non-core properties. During the fourth quarter of 2025, DHC completed the sale of 37 properties for gross proceeds of approximately $250 million. Including these transactions, DHC completed the sale of 69 properties for gross proceeds of approximately $605 million during 2025. In addition, as of January 5, 2026, DHC is under agreement to sell 13 SHOP communities for expected gross proceeds of approximately $26 million. These sales are expected to close during the first quarter of 2026, subject to the satisfaction of customary closing conditions.\n\n\nFull Repayment of 2026 Zero Coupon Bonds\n\n\nDHC also announced its repayment in full of its zero coupon senior secured notes due 2026 on December 29, 2025, using cash on hand and proceeds from asset sales. This repayment addressed DHC’s significant near-term debt maturity, further strengthening its balance sheet and releasing 45 collateral properties, representing approximately $850 million in gross book value, and enhancing DHC’s financial flexibility. DHC now has no debt maturing until 2028.\n\n\nSHOP Operator Transitions Update\n\n\nDHC has completed the previously announced transition of its 116 SHOP communities managed by AlerisLife Inc. to new operators, with all 116 communities transitioned as of December 31, 2025.\n\n\nChris Bilotto, President and Chief Executive Officer of DHC, made the following statement:\n\n\n“Looking back over the past year, we are pleased to have successfully executed on our stated strategies, including capital recycling initiatives and balance sheet optimization, in addition to portfolio enhancements with operator transitions across our senior housing operating portfolio. As we enter 2026, DHC has no debt maturit...