NEWTON, Mass. — Diversified Healthcare Trust (NASDAQ: DHC) has completed the management transitions for 107 communities within its senior housing operating portfolio (SHOP). Management was transitioned to 10 regionally focused operators.
The transitions were completed as part of the agreement between DHC and Five Star Senior Living Inc. (NASDAQ: FVE) to move communities out of Five Star’s operational portfolio. One additional community, located in Delaware, was closed.
The moves result in Five Star completely exiting the skilled nursing sector. The company still operates 140 seniors housing communities, with 120 of those owned by DHC. The company’s portfolio totals approximately 20,000 units in 28 states.
In addition, Five Star’s rehabilitation and wellness services segment, primarily comprised of Ageility-branded businesses, now serves approximately 14,600 seniors in 223 outpatient clinics across 28 states. Five Star will retain all of the 45 Ageility outpatient clinics located in transitioning communities.
“We completed the management transitions in our SHOP portfolio to 10 new operators well ahead of the year-end timeline that we announced in April,” says Jennifer Francis, president and CEO of DHC. “This diversified group of new operators was carefully selected to drive performance and maximize value on a community-by-community basis. We also expect that the results for the 120 communities that Five Star continues to manage for DHC will improve as Five Star continues to refocus its business and align its structure to optimize operations.”
DHC is a Newton-based REIT focused on healthcare properties. Its portfolio spans 392 properties in 36 states.