Newton, Mass. — Diversified Healthcare Trust (Nasdaq: DHC) has closed two mortgage financing deals totaling $94.3 million, using six senior housing properties as collateral. The funds, along with existing cash reserves, will be used to fully repay the remaining $100 million of the company’s 9.75% senior notes due in June 2025.
The financing includes a $64 million five-year mortgage loan at a fixed interest rate of 6.57%, secured by four senior housing communities totaling 1,079 units. The second component is a $30.3 million ten-year Fannie Mae loan with a fixed rate of 6.36%, interest-only for the first three years, backed by two communities with 465 units. The combined appraised value of the six properties reflects an implied cap rate of 5.8%, or about $162,000 per unit.
All six properties are operated by Five Star Senior Living, a division of AlerisLife Inc.
This transaction is part of a broader effort by DHC to strengthen its financial position. Since March 2025, the company has completed $343 million in mortgage financings secured by 27 senior housing operating portfolio (SHOP) communities. Those financings have achieved an average unit valuation of roughly $174,000 and a weighted average interest rate of 6.55%.
“With the 2025 notes now fully addressed through these financings at favorable asset valuations, we are shifting our focus to the 2026 maturity,” said Matt Brown, Chief Financial Officer and Treasurer of DHC. “We intend to meet that obligation through a combination of $330 million to $380 million in planned asset sales and additional financings.”
The move signals DHC’s continued push to manage its debt obligations while leveraging its senior housing portfolio for long-term financial stability.
