NEWTON, Mass.— Diversified Healthcare Trust (Nasdaq: DHC) announced it has closed two mortgage financings totaling $94.3 million, secured by six senior housing communities managed by Five Star Senior Living, a division of AlerisLife Inc.
The proceeds, combined with existing cash on hand, will fully repay the remaining $100 million in 9.75% senior notes due in June 2025.
The financing package includes a $64.0 million five-year loan bearing a fixed interest rate of 6.57%, secured by four senior housing communities with 1,079 units. The average appraised value per unit is approximately $171,000. The second component is a $30.3 million ten-year Fannie Mae mortgage loan with a fixed rate of 6.36%. Interest-only for the first three years, this loan is secured by two communities comprising 465 units, with an average appraised value of about $142,000 per unit.
The combined appraised value of all six properties reflects an implied capitalization rate of 5.8%, translating to roughly $162,000 per unit based on 2024 net operating income (NOI).
Since March 2025, DHC has closed $343 million in mortgage financing across 27 senior housing operating portfolio (SHOP) communities. These transactions represent an average unit valuation of $174,000 and a weighted average interest rate of 6.55%.
“With the completion of these financings, we have successfully addressed the maturity of our 2025 notes using capital raised at attractive valuations,” said Matt Brown, Chief Financial Officer and Treasurer of DHC. “Our focus now turns to our 2026 debt maturity, which we plan to manage through a combination of $330 million to $380 million in asset sales and additional financing arrangements.”
