Flat Footed LLC Comments on Termination of Diversified Healthcare Trust’s Merger with Office Properties Income Trust

Rhea-AI Summary

DHC terminates merger with OPI due to shareholder opposition. FFL, a top shareholder, supports decision. FFL aims to work with DHC to explore value-maximizing alternatives.

Positive

• DHC terminates merger with OPI due to shareholder opposition
• FFL supports decision and wants to explore value-maximizing alternatives

Negative

• None.

Pleased DHC Has Abandoned Merger with OPI Following Widespread Opposition From Shareholders and Independent Proxy Advisory Firms

Appreciates Thoughtful Engagement with Fellow Shareholders in Recent Months

Reiterates Interest in Working with DHC Leadership to Explore Value-Maximizing Alternatives for All Stakeholders

WILSON, Wyo.--(BUSINESS WIRE)-- Flat Footed LLC (together with its affiliates, “FFL” or “we”), a top shareholder of Diversified Healthcare Trust (Nasdaq: DHC) (“DHC” or the “Company”) and the owner of approximately 9.8% of the Company’s outstanding common shares, today commented on DHC’s termination of its merger agreement with Office Properties Income Trust (Nasdaq: OPI) (“OPI”).

Marc Andersen, Managing Member of FFL, commented:

“We are pleased that management and the Board of Trustees concluded that the transaction with OPI is not in the best interests of DHC and its shareholders. In recent months, a critical mass of shareholders and independent proxy advisory firms voiced their dissatisfaction with the consideration and strategic rationale for the proposed deal.

FFL looks forward to putting this campaign behind us and working with DHC leadership to expeditiously pursue superior paths. We continue to believe that a standalone DHC can address its near-term debt maturities and realize the full potential of the Company’s senior housing portfolio to ultimately maximize shareholder value.”

About Flat Footed

Flat Footed LLC is a special situation, value-oriented investment management firm focused on leveraged, asset-heavy companies with complex capital structures. The Flat Footed LLC team has cumulatively managed $2.8 billion since founding their first fund together in 1999. For more information, visit www.flatfootedllc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230905708432/en/

Flat Footed LLC

ir@flatfootedllc.com

Okapi Partners LLC

Mark Harnett, 212-297-0720

mharnett@okapipartners.com

or

Longacre Square Partners

Greg Marose / Charlotte Kiaie, 646-386-0091

FFL@longacresquare.com

Source: Flat Footed LLC