Expects to Close $94 Million of Additional Secured Financings by the End of May 2025

NEWTON, Mass., April 28, 2025--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced that it closed a $109 million 10-year fixed rate mortgage financing through Freddie Mac. The loan is secured by seven senior living communities consisting of 1,184 units located in five states that are managed by Five Star Senior Living, the operating division of AlerisLife Inc. The loan has a 6.22% fixed interest rate, with interest only payable during the first 5 years and matures on May 1, 2035. DHC intends to use the loan proceeds to redeem a portion of its outstanding 9.750% senior notes due 2025.

Based on the 2024 NOI for the seven collateral communities, the appraised value of $236 million reflects an implied cap rate of 7.3%, or approximately $199,000 per unit. The loan-to-value ratio on the financing is approximately 47%.

As previously disclosed, DHC has two additional executed term sheets with different lenders for total loan proceeds of approximately $94 million. Those loans are expected to close by the end of May 2025. Those proceeds, in combination with the $109 million of Freddie Mac loan proceeds and cash on hand, provide ample liquidity to redeem DHC’s 9.75% senior notes due 2025.

Matt Brown, Chief Financial Officer and Treasurer of DHC, made the following statement:

"This new 10-year loan through Freddie Mac highlights DHC’s ability to execute on refinancing opportunities and accretively reduce our interest expense. We believe the appraised value of approximately $199,000 per unit highlights the quality and value of assets within our portfolio."

About Diversified Healthcare Trust

DHC is a real estate investment trust 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 December 31, 2024, DHC’s approximately $7.2 billion portfolio included 367 properties in 36 states and Washington, D.C., occupied by approximately 450 tenants, and totaling approximately 8.0 million square feet of medical office and life science properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $40 billion in assets under management as of December 31, 2024 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com.

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:

• DHC currently intends to use the proceeds from this financing to redeem a portion of its outstanding 9.750% senior notes due 2025; however, the redemption may not occur or may be delayed;
• DHC has executed two term sheets with lenders for total loan proceeds of approximately $94 million, which loans are expected to close by the end of May 2025. However, DHC cannot be sure it will close either or both of these loans for the expected proceeds or at all or that the closings of these loans will not be delayed; and
• Mr. Brown’s statement regarding DHC’s ability to execute on refinancing opportunities and accretively reduce its interest expense and the quality and value of assets within DHC’s portfolio may imply that DHC will be able to execute additional secured financings at reduced interest rates; however, DHC may not be able to execute on its financing strategies or have sufficient liquidity available to fund its upcoming debt maturities and capital needs.

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 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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Contacts

Bryan Maher, Senior Vice President
(617) 796-8234