Diversified Healthcare Belief (Nasdaq: DHC) has accomplished transitioning 116 communities previously managed by AlerisLife to different operators.
The corporate outlined the transition plan in October 2025 and accomplished shifting the communities to seven different operators by the tip of 2025, with the vast majority of the portfolio going to Discovery Senior Dwelling, Sinceri Senior Dwelling and Tutera Senior Dwelling. All however one of many transition agreements are below a REIT Funding Diversification and Empowerment Act (RIDEA) format.
Diversified’s administration chosen operators based mostly on a lot of components, together with regional density, monitor document with working efficiency, know-how and monetary reporting capabilities and high quality operational efficiency.
Now, Diversified Healthcare Belief has no debt maturities till 2028, President and CEO Chris Bilotto stated in a enterprise replace.
“Trying again over the previous yr, we’re happy to have efficiently executed on our acknowledged methods, together with capital recycling initiatives and steadiness sheet optimization, along with portfolio enhancements with operator transitions throughout our senior housing working portfolio,” Bilotto stated within the press launch. “We consider that this offers a multi-year runway to deal with driving operational efficiency and pursuing disciplined capital allocation, whereas persevering with to drive long-term worth for shareholders.”
Alongside the transition announcement, Diversified Healthcare Belief bought 37 properties within the fourth quarter of 2025 for $250 million. Together with these properties, all through 2025 the REIT bought a complete of 69 properties for gross proceeds of roughly $605 million, and is below settlement to promote an extra 13 senior housing communities within the first quarter of 2026 for anticipated gross proceeds of $26 million.
Diversified Healthcare Belief first transitioned 108 senior residing communities to different operators in 2021, the identical yr the operator rebranded from 5 Star to its AlerisLife identify. The next yr, a agency managed by RMR Group CEO Adam Portnoy acquired AlerisLife for about $43.8 million and took the corporate personal. Final September, Diversified introduced that AlerisLife was winding down its enterprise totally.
In an interview with Senior Housing Information final yr, Bilotto stated the transitions permit Diversified to “transfer to offense.” The transfer comes from a restricted debt maturities till 2028, and altering operators for the portfolio will drive margin and occupancy progress.
“Whenever you have a look at this portfolio, earlier than the transition, we’ve carried out plenty of work over the previous a number of years investing in communities,” Bilotto stated. “We’ve carried out plenty of work that has grown efficiency.”
