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Diversified Healthcare Trust (Nasdaq: DHC) has announced a $135 million sale of 18 triple net leased senior living communities to Brookdale Senior Living Inc. (NYSE: BKD). The properties, comprising 876 units across 10 states, have been leased and operated by Brookdale since 2003. The sale price equates to $154,000 per unit, reflecting a 7.3% in-place cap rate on the lease’s annualized income.
DHC plans to use the proceeds to pay down its $941 million senior secured notes due January 2026. The transaction, expected to close in Q4 2024, is part of DHC’s strategy to optimize its portfolio and enhance liquidity. The communities primarily serve assisted living and memory care residents, with properties located in Arizona, Colorado, Florida, Indiana, Michigan, Minnesota, North Carolina, Pennsylvania, South Carolina, and Tennessee.
Diversified Healthcare Trust (Nasdaq: DHC) ha annunciato una vendita di 135 milioni di dollari di 18 comunità per anziani con contratto triple net a Brookdale Senior Living Inc. (NYSE: BKD). Le proprietà, che comprendono 876 unità in 10 stati, sono state affittate e gestite da Brookdale dal 2003. Il prezzo di vendita equivale a 154.000 dollari per unità, il che riflette un tasso di capitalizzazione del 7,3% sul reddito annualizzato del contratto di locazione.
DHC prevede di utilizzare i proventi per ridurre i suoi 941 milioni di dollari in note senior garantite in scadenza a gennaio 2026. La transazione, prevista per chiudere nel Q4 2024, fa parte della strategia di DHC per ottimizzare il suo portafoglio e migliorare la liquidità. Le comunità servono principalmente residenti in assistenza e per cure della memoria, con proprietà situate in Arizona, Colorado, Florida, Indiana, Michigan, Minnesota, Carolina del Nord, Pennsylvania, Carolina del Sud e Tennessee.
Diversified Healthcare Trust (Nasdaq: DHC) ha anunciado una venta de 135 millones de dólares de 18 comunidades de vida asistida con contrato triple neto a Brookdale Senior Living Inc. (NYSE: BKD). Las propiedades, que comprenden 876 unidades en 10 estados, han sido alquiladas y operadas por Brookdale desde 2003. El precio de venta equivale a 154.000 dólares por unidad, lo que refleja un tasa de capitalización del 7.3% sobre los ingresos anuales del arrendamiento.
DHC planea usar los ingresos para reducir sus notas garantizadas senior de 941 millones de dólares que vencerán en enero de 2026. La transacción, que se espera cierre en el cuarto trimestre de 2024, es parte de la estrategia de DHC para optimizar su cartera y mejorar la liquidez. Las comunidades sirven principalmente a residentes de asistencia y cuidado de la memoria, con propiedades ubicadas en Arizona, Colorado, Florida, Indiana, Michigan, Minnesota, Carolina del Norte, Pennsylvania, Carolina del Sur y Tennessee.
다각화된 헬스케어 신탁(Diversified Healthcare Trust, Nasdaq: DHC)은 Brookdale Senior Living Inc. (NYSE: BKD)에게 1억 3500만 달러에 18개의 트리플 넷 리스 노인 생활 커뮤니티를 판매한다고 발표했습니다. 이 자산은 10개 주에 걸쳐 876개 유닛으로 구성되어 있으며, 2003년부터 Brookdale에 의해 임대되고 운영되고 있습니다. 판매 가격은 단위당 154,000달러로, 임대의 연간 수익에 대한 7.3%의 자산 수익률을 반영합니다.
DHC는 수익금을 사용하여 2026년 1월 만기인 9억 4100만 달러의 선순위 담보 부채를 상환할 계획입니다. 이번 거래는 2024년 4분기 마감될 예정이며, DHC의 포트폴리오 최적화 및 유동성 강화를 위한 전략의 일환입니다. 커뮤니티는 주로 지원 거주자 및 기억 관리 거주자를 대상으로 하며, 애리조나, 콜로라도, 플로리다, 인디애나, 미시간, 미네소타, 노스캐롤라이나, 펜실베니아, 사우스캐롤라이나 및 테네시에 위치한 자산입니다.
Diversified Healthcare Trust (Nasdaq: DHC) a annoncé la vente de 135 millions de dollars de 18 communautés de vie assistée sous bail triple net à Brookdale Senior Living Inc. (NYSE: BKD). Les propriétés, composées de 876 unités réparties sur 10 États, sont louées et exploitées par Brookdale depuis 2003. Le prix de vente représente 154 000 dollars par unité, ce qui reflète un taux de capitalisation de 7,3% sur le revenu annualisé du bail.
DHC prévoit d’utiliser les recettes pour rembourser ses 941 millions de dollars en obligations sécurisées senior arrivant à échéance en janvier 2026. La transaction, qui devrait se clôturer au quatrième trimestre 2024, fait partie de la stratégie de DHC pour optimiser son portefeuille et améliorer sa liquidité. Les communautés servent principalement des résidents nécessitant une assistance et des soins de mémoire, avec des biens situés en Arizona, au Colorado, en Floride, en Indiana, au Michigan, au Minnesota, en Caroline du Nord, en Pennsylvanie, en Caroline du Sud et au Tennessee.
Diversified Healthcare Trust (Nasdaq: DHC) hat den Verkauf von 135 Millionen Dollar von 18 Seniorenwohnanlagen mit Triple-Net-Leasing an Brookdale Senior Living Inc. (NYSE: BKD) bekannt gegeben. Die Immobilien, die 876 Einheiten in 10 Staaten umfassen, wurden seit 2003 von Brookdale vermietet und betrieben. Der Verkaufspreis entspricht 154.000 Dollar pro Einheit und spiegelt eine Kapitalisierungsrate von 7,3% auf das annualisierte Einkommen des Mietverhältnisses wider.
DHC plant, die Erlöse zu verwenden, um seine 941 Millionen Dollar an gesicherten Seniorennotes, die im Januar 2026 fällig sind, zu tilgen. Die Transaktion, die für das vierte Quartal 2024 erwartet wird, ist Teil der Strategie von DHC, sein Portfolio zu optimieren und die Liquidität zu verbessern. Die Gemeinschaften dienen hauptsächlich Bewohnern mit Unterstützungs- und Gedächtnispflege, wobei sich die Immobilien in Arizona, Colorado, Florida, Indiana, Michigan, Minnesota, North Carolina, Pennsylvania, South Carolina und Tennessee befinden.
Positive
- Sale price of $135 million represents a premium valuation of over $154,000 per unit
- Transaction reflects a 7.3% in-place cap rate on the lease’s annualized income
- Proceeds will be used to reduce leverage by paying down senior secured notes
- Optimizes portfolio and enhances liquidity
Negative
- Reduction in DHC’s property portfolio and potential loss of future rental income
Insights
The sale of 18 triple net leased senior living communities by Diversified Healthcare Trust (DHC) to Brookdale Senior Living for $135 million is a significant transaction with several key implications:
- The sale price of $154,000 per unit represents a premium valuation, indicating strong demand for senior living assets.
- The 7.3% in-place cap rate on the lease’s annualized income suggests a favorable deal for DHC, as it’s above average for the sector.
- DHC’s intention to use the proceeds to pay down its $941 million senior secured notes due January 2026 is a prudent move to reduce leverage and improve the company’s financial position.
- This transaction aligns with DHC’s strategy to optimize its portfolio and enhance liquidity, which could potentially lead to improved financial flexibility and stronger balance sheet metrics.
For investors, this deal demonstrates DHC’s ability to execute on its strategic initiatives and capitalize on market opportunities. The premium valuation achieved in the sale could positively impact the perceived value of DHC’s remaining assets. However, the reduction in the company’s property portfolio may affect future revenue streams and investors should monitor how DHC plans to reinvest or redeploy capital for growth post-debt reduction.
This transaction highlights several important trends in the senior living real estate market:
- The $154,000 per unit valuation underscores the robust demand for quality senior living assets, particularly those with established operators like Brookdale.
- The deal structure, transitioning from a triple net lease to outright ownership by Brookdale, reflects a trend of operators seeking more control over their real estate.
- The geographic diversity of the portfolio, spanning 10 states, indicates the broad appeal of senior living investments across different markets.
- With most properties built in 1998, the age of the assets suggests potential for value-add opportunities through renovations or repositioning.
For DHC, this sale represents a strategic shift, potentially signaling a move towards a more focused portfolio. The premium valuation achieved could set a benchmark for future transactions in the sector. Investors should consider how this divestiture might impact DHC’s overall portfolio composition and long-term growth strategy in the senior living space.
DHC Will Use the Proceeds to Pay Down Debt
NEWTON, Mass.–(BUSINESS WIRE)– Diversified Healthcare Trust (Nasdaq: DHC) today announced it has entered into a purchase and sale agreement with Brookdale Senior Living Inc. (NYSE: BKD) (“Brookdale”) whereby Brookdale will acquire 18 triple net leased senior living communities that Brookdale currently leases from DHC for $135 million. Brookdale has leased and operated these 18 communities since February 2003. The 18 communities include 876 units located across 10 states serving primarily assisted living residents as well as memory care residents. DHC intends to use the proceeds from the transaction to pay down its $941 million of senior secured notes due January 2026.
Chris Bilotto, President and Chief Executive Officer of DHC, made the following statement:
“This transaction is a further implementation of our ongoing initiatives to optimize our portfolio and enhance our liquidity. The sale opportunistically monetizes this NNN portfolio at a premium valuation of over $150,000 per unit. The proceeds from the transaction reflect an in-place cap rate on the lease’s annualized income of 7.3% and will allow us to reduce our leverage.”
The properties that Brookdale will acquire as part of the transaction include:
|
Address |
City |
State |
Year Built |
Living Units |
|
14001 W. Meeker Boulevard |
Sun City West |
AZ |
1998 |
46 |
|
8271 South Continental Divide Road |
Littleton |
CO |
1998 |
50 |
|
1416 Country Club Blvd. |
Cape Coral |
FL |
1998 |
42 |
|
17441 State Road 23 |
South Bend |
IN |
1998 |
42 |
|
4004 & 4012 Waldo Road |
Midland |
MI |
1998 |
37 |
|
1605 & 1615 Fredericks Drive |
Monroe |
MI |
1998 |
38 |
|
3150 & 3100 Old Centre Road |
Portage |
MI |
1998 |
93 |
|
720 & 734 N. Pine Road |
Bay City |
MI |
1998 |
38 |
|
2445 & 2485 Mc Carty Road |
Saginaw |
MI |
1998 |
38 |
|
1365 Crestridge Lane |
Eagan |
MN |
1998 |
46 |
|
305 & 315 Thompson Avenue |
West St. Paul |
MN |
1998 |
38 |
|
2220 & 2230 Farmington Drive |
Chapel Hill |
NC |
1996 |
92 |
|
5300 Old William Penn Highway |
Murrysville |
PA |
1998 |
34 |
|
7151 Saltsburg Road |
Penn Hills |
PA |
1997 |
24 |
|
1920 Ebenezer Road |
Rock Hill |
SC |
1998 |
41 |
|
251 Springtree Drive |
Columbia |
SC |
1998 |
41 |
|
511 Pearson Springs Road |
Maryville |
TN |
1998 |
92 |
|
2025 Caldwell Drive |
Goodlettsville |
TN |
1998 |
44 |
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
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 June 30, 2024, DHC’s approximately $7.2 billion portfolio included 370 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.4 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 over $41 billion in assets under management as of June 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 the transaction is expected to close in the fourth quarter of 2024, and that DHC intends to use the proceeds to pay down debt under its senior secured notes due January 2026. This press release also states that t that the transaction is a further implementation of DHC’s ongoing initiatives to optimize its portfolio and enhance its liquidity and the proceeds will allow DHC to reduce its leverage. However, the transaction is subject to closing conditions, and it may not close on the contemplated terms or at all or it may be delayed. DHC may not achieve the results it expects from the transaction or may incur losses on the transaction. Further, DHC may not be able to successfully use the proceeds as it currently intends. As a result, DHC may be unable to sustain or improve its liquidity or reduce its leverage.
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/20240929035474/en/
Timothy Bonang, Senior Vice President
(617) 796-8234
Source: Diversified Healthcare Trust
FAQ
What is the value of the sale between DHC and Brookdale for the 18 senior living communities?
Diversified Healthcare Trust (DHC) is selling 18 senior living communities to Brookdale Senior Living Inc. for $135 million, which equates to approximately $154,000 per unit.
How many units are included in the DHC-Brookdale transaction?
The transaction includes 876 units across 18 senior living communities located in 10 different states.
What is the cap rate for the DHC-Brookdale senior living communities sale?
The sale reflects an in-place cap rate of 7.3% on the lease’s annualized income.
How does DHC plan to use the proceeds from the Brookdale transaction?
DHC intends to use the proceeds from the $135 million sale to pay down its $941 million of senior secured notes due January 2026.
When is the DHC-Brookdale senior living communities sale expected to close?
The transaction between DHC and Brookdale is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
