Diversified Healthcare Trust Completes $159.0 Million Sale of MUSE Life Science Asset in San Diego, California
Diversified Healthcare Trust (DHC) has completed the sale of MUSE, a life science property in San Diego, for $159.0 million. The property, spanning 186,000 square feet across three buildings in Torrey Pines, was 49% leased with a weighted average lease term exceeding eight years at the time of sale.
DHC plans to utilize the proceeds to reduce its senior secured notes due in January 2026. Additionally, DHC provided an update on its previously announced $135 million sale of 18 triple net leased senior living communities to Brookdale Senior Living, which is expected to close in the first quarter of 2025.
Diversified Healthcare Trust (DHC) ha completato la vendita di MUSE, una proprietà nel settore delle scienze della vita a San Diego, per 159,0 milioni di dollari. La proprietà, che si estende su 186.000 piedi quadrati distribuiti su tre edifici a Torrey Pines, era affittata per il 49% con una durata media ponderata del contratto di locazione superiori a otto anni al momento della vendita.
DHC prevede di utilizzare i proventi per ridurre i propri note senior garantiti in scadenza a gennaio 2026. Inoltre, DHC ha fornito un aggiornamento sulla sua precedente vendita di 135 milioni di dollari di 18 comunità per anziani con contratto di locazione triplo netto a Brookdale Senior Living, che si prevede si concluderà nel primo trimestre del 2025.
Diversified Healthcare Trust (DHC) ha completado la venta de MUSE, una propiedad de ciencias de la vida en San Diego, por $159.0 millones. La propiedad, que abarca 186,000 pies cuadrados distribuidos en tres edificios en Torrey Pines, estaba arrendada al 49% con un período de arrendamiento promedio ponderado que supera los ocho años en el momento de la venta.
DHC planea utilizar los ingresos para reducir sus notas senior garantizadas que vencen en enero de 2026. Además, DHC proporcionó una actualización sobre su venta previamente anunciada de $135 millones de 18 comunidades de vida para adultos mayores con arrendamiento triple neto a Brookdale Senior Living, que se espera se cierre en el primer trimestre de 2025.
다양화된 헬스케어 트러스트 (DHC)는 샌디에고에 있는 생명 과학 부동산 MUSE를 1억 5,900만 달러에 매각 완료했습니다. 이 부동산은 토레 피니스(Torrey Pines)의 세 개 건물에 걸쳐 186,000 평방피트를 차지하며, 매각 당시 49%가 임대되고 평균 임대 기간은 8년을 초과했습니다.
DHC는 이번 매각을 통해 확보한 자금을 2026년 1월에 만기가 도래하는 선순위 담보 노트 상환에 사용할 계획입니다. 또한 DHC는 Brookdale Senior Living에 18개의 트리플 넷 리스 계약을 체결한 노인 커뮤니티에 대한 1억 3,500만 달러의 판매에 대한 최신 정보를 제공했으며, 이는 2025년 첫 분기에 계약이 체결될 것으로 예상됩니다.
Diversified Healthcare Trust (DHC) a finalisé la vente de MUSE, une propriété dans le domaine des sciences de la vie à San Diego, pour 159,0 millions de dollars. La propriété, s'étendant sur 186 000 pieds carrés dans trois bâtiments à Torrey Pines, était louée à 49 % avec une durée moyenne pondérée de bail de plus de huit ans au moment de la vente.
DHC prévoit d'utiliser les recettes pour réduire ses notes senior sécurisées arrivant à échéance en janvier 2026. De plus, DHC a fourni une mise à jour sur sa vente précédemment annoncée de 135 millions de dollars de 18 communautés de vie pour personnes âgées à bail triple net à Brookdale Senior Living, qui devrait se clôturer au premier trimestre de 2025.
Diversified Healthcare Trust (DHC) hat den Verkauf von MUSE, einer Immobilie im Bereich der Lebenswissenschaften in San Diego, für 159,0 Millionen Dollar abgeschlossen. Die Immobilie erstreckt sich über 186.000 Quadratfuß in drei Gebäuden in Torrey Pines und war zum Zeitpunkt des Verkaufs zu 49 % vermietet, mit einer gewichteten durchschnittlichen Mietdauer von mehr als acht Jahren.
DHC plant, die Erlöse zu nutzen, um seine im Januar 2026 fälligen gesicherten Senioranleihen zu reduzieren. Darüber hinaus gab DHC ein Update zu dem zuvor angekündigten Verkauf von 135 Millionen Dollar für 18 triple-net vermietete Seniorenwohnanlagen an Brookdale Senior Living, der voraussichtlich im ersten Quartal 2025 abgeschlossen wird.
- Sale of MUSE property for $159.0 million provides significant cash influx
- Strategic debt reduction through paydown of senior secured notes
- Additional $135 million expected from Brookdale Senior Living sale in Q1 2025
- MUSE property was only 49% leased at time of sale, indicating potential underutilization
- Significant asset disposition may impact future revenue generation capacity
Insights
The $159 million sale of the MUSE life science asset represents a strategic pivot for DHC, particularly noteworthy given the property's 49% occupancy rate. The transaction demonstrates DHC's ability to extract value from underutilized assets in premium markets, even amid challenging conditions in the life science real estate sector.
The decision to immediately allocate proceeds toward paying down senior secured notes due in 2026 is financially astute, as it addresses near-term debt obligations while potentially improving DHC's debt service coverage ratios. This debt reduction, combined with the pending $135 million Brookdale transaction, could collectively reduce DHC's debt burden by nearly $300 million in Q1 2025.
The timing of these transactions is particularly strategic, occurring when:
- Interest rates remain elevated, making debt reduction especially valuable
- Life science real estate valuations in premier markets like Torrey Pines remain resilient despite occupancy challenges
- Healthcare REITs are actively repositioning portfolios to optimize capital structure
The combined effect of these transactions positions DHC for improved financial flexibility, though it does come at the cost of reducing potential future revenue streams from both the life science and senior living segments. However, the trade-off appears favorable given the immediate strengthening of the balance sheet and the current market environment.
DHC to Use Proceeds to Pay Down its Senior Secured Notes Due January 2026
Provides Update on Timing of Brookdale Closing
Chris Bilotto, President and Chief Executive Officer of DHC, commented:
“The sale of MUSE, located in one of the nation’s leading life science markets, monetizes this high-quality asset at an attractive valuation and provides DHC with accretive debt reduction that strengthens its overall financial position.”
DHC also provided an update on its previously announced sale of 18 triple net leased senior living communities to Brookdale Senior Living for
About Diversified Healthcare Trust
DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout
WARNING CONCERNING 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. For example, this press release states that DHC plans to use the proceeds from the sale of MUSE to pay down its senior secured notes due January 2026, and that the sale provides DHC with accretive debt reduction that further strengthens its overall financial position. However, DHC may not achieve the results it expects from MUSE sale or may incur losses on the sale. Further, DHC may not be able to successfully use the proceeds from this sale as it currently intends to reduce its debt and, as a result, DHC may be unable to sustain or improve its overall financial position. This press release also states that DHC expects that the sale of 18 senior living communities leased to Brookdale Senior Living will close in the first quarter of 2025; however, this sale is subject to closing conditions, and it may not close on the contemplated terms or at all or it may be delayed.
Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond DHC’s control.
The information contained in DHC’s filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in DHC’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from 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.
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Timothy Bonang
(617) 796-8234
www.dhcreit.com
Source: Diversified Healthcare Trust
FAQ
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