Diversified Healthcare Trust has filed a prospectus with the Securities and Exchange Commission related to a $1.5 billion mixed securities shelf offering and sale.
The Newton, MA-based real estate investment trust said in the Thursday filing that it intends to use the net proceeds for general business purposes, “which may include acquiring and investing in additional properties and the repayment of debt.” Until the proceeds are applied for those purposes, the REIT said, DHC may use them to make short-term investments, “including repurchase agreements, some or all of which may not be investment grade.”
As of March 31, DHC’s approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, DC, occupied by approximately 500 tenants and totaling approximately 8.5 million square feet of life science and medical office properties and more than 27,000 senior living units. According to the prospectus, the properties include four classified as held for sale and two closed senior living communities.
In February, DHC executives said that 2023 had been a “pivotal year” for the company, which had made “significant” progress in operational performance across its portfolio, setting 2024 up for the pursuit of capital investment opportunities.
In December, DHC took steps to support its growth by repaying in full all $700 million of its outstanding debt maturing in 2024, simultaneously regaining debt covenant compliance. As a result, DHC noted in a supplemental report, the conditions that had created substantial doubt about its ability to continue as a going concern were “alleviated.”
