Diversified Healthcare Trust (DHC) saw its shares surge 5.65% in pre-market trading on Monday, following the company's announcement of the sale of 18 triple-net leased senior living communities to Brookdale Senior Living (BKD) for $135 million.
The deal involves the divestment of 876 senior living units located across 10 states, with a valuation of approximately $154,000 per unit. DHC stated that it plans to utilize the proceeds from this transaction to pay down a significant portion of its senior secured notes due in January 2026.
Chris Bilotto, President and Chief Executive Officer of DHC, commented, "By divesting of these non-core assets, we are continuing to focus DHC's portfolio on high-performing communities with significant upside potential. The proceeds from this transaction will enable us to reduce our leverage, positioning us more favorably to capitalize on future opportunities that can further enhance shareholder value."
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