Diversified Healthcare Tr Stock Price, News & Analysis

Diversified Healthcare Trust (Nasdaq: DHC) has announced a regular quarterly cash distribution of $0.01 per common share, translating to $0.04 annually. The distribution is set to benefit shareholders who are on record as of April 24, 2023, with a payment date scheduled on or about May 18, 2023.

DHC's portfolio, as of December 31, 2022, was valued at approximately $7.1 billion, comprising 379 properties across 36 states and Washington, D.C. The REIT’s focus is on high-quality healthcare properties, which include about 27,000 senior living units and 500 tenants occupying approximately 9 million square feet of life science and medical office properties.

Office Properties Income Trust (Nasdaq: OPI) announced a reduction in its quarterly cash distribution to $0.25 per share, totaling $1.00 annually. This change will take effect for shareholders of record on April 24, 2023, with payment expected on or about May 18, 2023.

Additionally, OPI is moving forward with a proposed merger with Diversified Healthcare Trust (Nasdaq: DHC), expected to close in the third quarter of 2023, pending shareholder approval and other necessary conditions. As of December 31, 2022, OPI owned 160 properties across 30 states, with 63% of revenues coming from investment-grade rated tenants.

Office Properties Income Trust (Nasdaq: OPI) has announced a merger with Diversified Healthcare Trust (Nasdaq: DHC), where OPI will acquire all outstanding common shares of DHC in an all-share transaction. The merger, unanimously approved by both boards, aims to create a diversified REIT with enhanced growth potential by accessing DHC’s portfolio of medical office and life science properties and senior living communities. DHC shareholders will receive 0.147 shares of OPI for each DHC common share, leading to OPI shareholders owning approximately 58% of the new entity. The transaction is expected to close in Q3 2023 and is projected to be accretive to OPI’s normalized funds from operations starting in H2 2024, with a cash distribution reset to $0.25 per share quarterly beginning Q2 2023.

Diversified Healthcare Trust (Nasdaq: DHC) has announced a definitive merger agreement with Office Properties Income Trust (Nasdaq: OPI), wherein OPI will acquire all DHC shares in an all-share transaction. Shareholders of DHC will receive 0.147 shares of OPI for each DHC share, reflecting a 20% premium based on the 30-day average closing price of DHC.

This merger aims to enhance financial flexibility, ensure immediate compliance with debt covenants, and support ongoing capital plans. DHC shareholders will benefit from a substantial increase in expected distributions, rising from $0.04 to $1.00 annually, marking a 267% increase. The merger is anticipated to be accretive to DHC’s normalized funds from operations and lead to annual savings of $2 million to $3 million.

The RMR Group (Nasdaq: RMR) has been recognized as one of the fastest growing middle market companies in Massachusetts by the Boston Business Journal in its 2023 Middle Market Leaders ranking. RMR reported total revenues of $832.5 million for Fiscal 2022, securing the 28th position in the rankings. This marks RMR's third appearance on the BBJ's list, which includes companies with revenues between $25 million and $1 billion. President & CEO Adam Portnoy highlighted the company's steady growth and dedication to clients. Additionally, RMR received multiple awards, including recognition from the U.S. Environmental Protection Agency and the U.S. Department of Energy.

Diversified Healthcare Trust (Nasdaq: DHC) reported a net loss attributable to common shareholders of $65.3 million, or $0.27 per share, for Q4 2022. However, the SHOP segment showed a promising occupancy increase of 380 basis points year-over-year to 76.3%, contributing to a 14.2% rise in revenues. Normalized Funds From Operations (FFO) were positive at $0.03 per share. The company amended its credit facility in February 2023, extending waiver terms, which is aimed at enhancing property investments. DHC's total assets stood at approximately $6 billion with significant liquidity of $688.3 million in cash and equivalents.

Diversified Healthcare Trust (Nasdaq: DHC) will release its fourth quarter 2022 financial results on March 1, 2023, after Nasdaq closes. A conference call hosted by President & CEO Jennifer Francis and CFO Richard Siedel will take place on March 2, 2023, at 10:00 a.m. ET.

Participants can join the call at (877) 329-4297 or (412) 317-5435 for international callers. A live audio webcast of the call will be available on the company's website, with a replay available until March 9, 2023.

As of September 30, 2022, DHC's portfolio includes approximately $7.0 billion in assets across 379 properties.

Diversified Healthcare Trust (Nasdaq: DHC) announced amendments to its credit facility, offering needed covenant relief. Key terms include the extension of the Fixed Charge Coverage Ratio waiver until January 15, 2024 and a decrease in the minimum liquidity requirement from $200 million to $100 million. DHC will retain the ability to fund up to $400 million in capital expenditures annually but is restricted from additional real property investments. The credit facility commitments were reduced from $586.4 million to $450 million, and the interest rate premium increased by 40 basis points.

AlerisLife Inc. (Nasdaq: ALR) has agreed to be acquired by ABP Acquisition LLC for $1.31 per share, an 85% premium over its recent average price of $0.71. The total transaction value is approximately $43.8 million, with no financing conditions attached. ABP, controlled by ALR's managing director Adam Portnoy, owns about 6.1% of ALR's shares, while Diversified Healthcare Trust (DHC) holds approximately 31.9% and has consented to the deal. The tender offer is expected to launch soon, with the completion aimed for Q1 2023. The acquisition has been unanimously approved by ALR's Board of Directors, with Citigroup as the financial advisor.