NEWTON, Mass. — Diversified Healthcare Trust (NASDAQ: DHC) has entered into three new management agreements for 66 of its seniors housing communities totaling 4,084 units.
Charter Senior Living will manage communities in Florida, Maryland, Tennessee and Virginia; Oaks-CaraVita Senior Care will manage communities in Georgia and South Carolina; and Phoenix Senior Living will manage communities in Alabama, Arkansas, Kentucky, Missouri, North Carolina and South Carolina.
These three agreements represent approximately 61 percent of DHC’s seniors housing operating portfolio (SHOP) communities to be transitioned from Five Star Senior Living Inc. (NASDAQ: FVE) to other third-party operators as previously announced.
“These new agreements are generally for five years at market terms, which include base and incentive management fees,” says Jennifer Francis, president and CEO of Diversified Healthcare Trust. “In certain circumstances, these agreements provide terms that are more favorable to the new operators than our existing management agreements with Five Star, which we believe will provide strong incentives for performance and alignment of interests as well as facilitate a faster recovery of the transitioning communities with the new operators.
“We believe we remain on schedule to complete all of the transitions by year-end and are excited to engage with new operators who bring new perspectives and expertise to our communities as we begin to recover from the COVID-19 pandemic.”
Diversified Healthcare Trust is a Newton-based real estate investment trust (REIT) focused on owning healthcare properties located throughout the United States.