Feb 01, 2021
As of
Expects to Substantially Complete Vaccinations at DHC’s SHOP Communities by End of First Quarter 2021
Rolling Four-Week Sales Leads as of
Obtains Waivers of Financial Covenants through
- Approximately 18,000 total residents and staff, or more than 65% of residents and more than 30% of staff at DHC’s SHOP communities, have received vaccinations. This includes over 2,000 residents and staff who have received both doses of the vaccine;
- Approximately 93% of DHC’s SHOP communities are currently open to new admissions; and;
-
Approximately 3.5% of DHC’s total SHOP community residents have or have had active cases of COVID-19, and approximately 67% of those who have tested positive for COVID-19 during the pandemic have since recovered, as defined by
CDC guidelines.
For the months ended
“The progress made to vaccinate residents and staff within our communities is a significant step toward recovery from the COVID-19 pandemic,” stated
DHC also announced today that it has amended the agreements governing its revolving credit and term loan facilities. The amendments provide for a waiver of certain financial covenants under its credit and term loan agreements through
-
Certain financial covenants under the credit and term loan facilities have been waived through
June 30, 2022 ; -
DHC has an additional option to extend the maturity of the revolving credit facility to
January 2024 ; -
The revolving credit facility commitments have been reduced from
$1 billion to$800 million ; -
DHC has pledged the equity interests of certain of its subsidiaries which own properties with an undepreciated book value of
$1.4 billion as ofDecember 31, 2020 , and has agreed to provide first mortgage liens on 91 medical office and life science properties owned by these subsidiaries to secure its obligations under the credit and term loan facilities; - The interest rate premiums over LIBOR under the credit and term loan facilities increased by up to 30 basis points;
-
DHC has the ability to fund up to
$250 million of capital expenditures, as defined, per year, which amount increases to$350 million per year following DHC’s repayment of its$200 million term loan; -
Certain other covenants and conditions, including restrictions on DHC’s ability to make distributions, to incur debt and to acquire real property (in each case subject to various exceptions), and the requirement that DHC maintain a minimum liquidity of
$200 million , remain in place through the waiver period; and -
DHC is generally required to apply any net cash proceeds from dispositions or debt refinancings to repay its senior notes due in
December 2021 , its$200 million term loan and any outstanding borrowings under its revolving credit facility.
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 more than 65% of residents and more than 30% of staff at DHC’s SHOP communities have received vaccinations and that DHC expects vaccination clinics for SHOP community residents and staff to be substantially complete by the end of the first quarter of 2021. However, the availability and rate of vaccinations may not continue at the current pace and may be delayed, including for reasons beyond the control of DHC.
- This press release discusses recent increases in sales leads and that sales leads are often an indicator of future move-ins. However, recent increases in sales leads may not result in substantial move-ins by residents in the future, SHOP segment occupancy rates may not improve and could decline further, and senior living performance may take longer to recover than DHC expects.
-
Although DHC obtained a limited waiver of certain financial covenants under its revolving credit and term loan facility agreements through
June 2022 , DHC may fail to satisfy other covenants or conditions contained in those agreements or in the agreements governing its public debt. DHC’s ability to borrow under its revolving credit facility is subject to DHC satisfying those covenants and other conditions. If DHC’s operating results and financial condition are further significantly and adversely impacted by the COVID-19 pandemic and its aftermath or otherwise, DHC may fail to satisfy those covenants and conditions.
The information contained in DHC’s filings with the
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
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005256/en/
(617) 796-8234
www.dhcreit.com
Source: