Diversified Healthcare Trust Completes the Sale of Four Assets for a Combined Sales Price of Approximately $53 Million
Diversified Healthcare Trust (Nasdaq: DHC) has finalized the sale of four assets totaling approximately $53 million. This includes a portfolio of three senior living communities for $46 million and a 78,747 square foot medical office property for $7.3 million. These transactions are part of DHC's plan to dispose of up to $900 million in assets, aimed at restructuring its business relationship with Five Star Senior Living Inc. Proceeds will help repay debts and support general business needs.
- Completed sale of four assets for approximately $53 million.
- Assets sold include three senior living communities and a medical office property.
- Proceeds from the sales will be used to repay debt and for general business purposes.
- DHC's ability to reach the $900 million asset sale goal is uncertain.
- Potential delays in further asset sales due to COVID-19 may hinder financial flexibility.
- Future debt incurred could offset any debt repayment from asset sales.
NEWTON, Mass.--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) has completed the previously announced sale of four assets for a combined sales price of approximately
These sales include:
-
A portfolio of three senior living communities with a combined 239 units located in Washington and Montana for
$46 million . -
A 78,747 square foot medical office property located in Hattiesburg, MS for approximately
$7.3 million .
These sales were part of DHC’s previously announced disposition plan to sell up to
Diversified 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 disciplines, and by property type and location. As of June 30, 2020, DHC’s
WARNING REGARDING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever DHC uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, DHC is making forward-looking statements. These forward-looking statements are based upon DHC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond DHC's control. For example:
-
This press release states that the asset sales announced today were part of DHC’s previously approved disposition plan to sell up to
$900 million of assets. DHC cannot be sure that it will be able to sell additional assets or that any additional assets it may sell, when combined with proceeds from previous DHC sales, will aggregate$900 million . Further, DHC is not obligated to continue to pursue its disposition plan and may elect to abandon its current disposition plan at any time. If DHC does not complete its disposition plan, its credit ratings may be adversely impacted and it may be limited in pursuing its business strategies. - This press release states that DHC expects to use the net proceeds from the sales of these assets announced today to repay debt and for general business purposes. However, DHC may elect to use these proceeds for other reasons. Further, any reduction in DHC’s debt that may result from any repayment of its debt with these sales proceeds may be offset by future debt that DHC may incur.
- Further, the COVID-19 pandemic that is currently prevalent across the globe, including within the United States, has had profound negative consequences on economic activity, which DHC expects will slow its disposition program considerably for an indefinite, extended period. This may imply that asset sales will re-commence if market conditions improve; however, any future asset sales may be delayed indefinitely, they may not occur or, if they do occur, assets may be sold at prices less than previously expected and DHC may realize losses from those assets and any reduction in its financial leverage resulting from any such sales may be less than previously planned.
The information contained in DHC’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in DHC’s periodic reports, or incorporated therein, identifies other important factors that could cause DHC’s actual results to differ materially from those stated in or implied by DHC’s forward-looking statements. DHC’s filings with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, DHC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
