Business
Diversified Healthcare Trust Provides Update Regarding the 116 AlerisLife Management Agreements Transitioning to New Operators
NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust (Nasdaq: DHC) (“DHC”) today reiterated that, as part of the previously disclosed wind-down of
About this update from Diversified Healthcare Trust
[{"type":"text","content":" NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) (“DHC”) today reiterated that, as part of the previously disclosed wind-down of AlerisLife Inc. (“AlerisLife”), the management agreements for 116 of DHC’s senior housing operating portfolio (“SHOP”) communities are being sold and the operations transferred. Seven different managers, with established records of senior living operations will take over the 116 communities.\n\n\nThe seven operators assuming the AlerisLife SHOP community management responsibilities are as follows:\n\n\n\nSinceri Senior Living – 38 communities with 7,299 units\n\n\n\nDiscovery Senior Living – 44 communities with 5,338 units\n\n\n\nTutera Senior Living & Health Care – 19 communities with 2,051 units\n\n\n\nStellar Senior Living – 6 communities with 1,032 units\n\n\n\nWellQuest Living – 5 communities with 796 units\n\n\n\nPhoenix Senior Living – 3 communities with 366 units\n\n\n\nCiel Senior Living – 1 community with 308 units\n\n\n\nThe management transitions began in mid September and are expected to be completed by year end.\n\n\nChris Bilotto, President and Chief Executive Officer of DHC, made the following statement:\n\n\n“The transitions of these management agreements to well-established operators marks a strategic milestone for DHC’s SHOP segment. These operators have a record of proven performance and have made meaningful investments in acquiring our agreements, aligning their interests with ours through performance-based terms. Combined with our recent debt refinancing, this transaction reflects our continued focus on strengthening our SHOP segment and enhancing our financial position. We believe these initiatives will drive improved operating performance, support the long-term vitality of our communities and generate sustainable value for our shareholders.”\n\n\nAlerisLife is also selling its 17 owned communities and expects to complete a full wind-down of its business and operations during the first half of 2026. DHC expects to receive estimated net proceeds, after repayment of debt and payment of estimated wind-down costs, of between $25 million to $40 million for its 34% interest in AlerisLife, which it plans to use to reduce leverage and for other general business purposes, including reinvestment in its SHOP segment. Eureka Capital Markets, LLC serves as financi...