Diversified Healthcare Trust Completes $159.0 Million Sale of MUSE Life Science Asset in San Diego, California

DHC to Use Proceeds to Pay Down its Senior Secured Notes Due January 2026

Provides Update on Timing of Brookdale Closing

NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust (Nasdaq: DHC) today announced it has completed the $159.0 million sale of MUSE, a 186,000 square foot, three building life science property located in Torrey Pines, San Diego. At the time of sale, the property was 49% leased, with a weighted average lease term of over eight years. DHC plans to use the proceeds from the sale to pay down its senior secured notes due in January 2026.

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 $135 million. DHC expects that transaction will close in the first quarter of 2025.

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 September 30, 2024, DHC’s approximately $7.2 billion portfolio included 368 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.2 million square feet of life science and medical office 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 nearly $41 billion in assets under management as of September 30, 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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250131128947/en/

Timothy Bonang
(617) 796-8234
www.dhcreit.com

Source: Diversified Healthcare Trust