Company Common Shares to Trade Under the Ticker
“DHC” Beginning January 2, 2020
Senior Housing Properties Trust (Nasdaq: SNH), today announced
that it will change its name to “Diversified Healthcare Trust”
effective January 1, 2020 at 12:02 a.m. SNH’s common shares will
continue to be listed for trading on the Nasdaq, but under the new
ticker symbol “DHC” beginning as of the opening of trading on
January 2, 2020. The company’s new website will be
www.dhcreit.com.
“We are excited to change our name to
Diversified Healthcare Trust, which we believe more accurately
depicts both our portfolio of diverse, high-quality healthcare real
estate and our strategy moving forward,” said Jennifer Francis,
President & Chief Operating Officer. “Over the past 10 years,
we have made considerable progress in diversifying and enhancing
what was once a pure-play senior living portfolio by strategically
acquiring state-of-the-art life science properties and well-located
medical office buildings in order to meet the broader real estate
needs of the continually evolving healthcare industry.”
Rebranding to Diversified Healthcare Trust marks a key milestone
in the company’s transformation, which includes the anticipated
conversion of SNH’s existing triple-net leases with Five Star
Senior Living Inc. (Nasdaq: FVE) into management agreements, which
is expected to occur on January 1, 2020, pursuant to the
transaction agreement that SNH entered into with FVE in April 2019,
along with SNH’s continued investment and recycling of capital into
high quality healthcare real estate, including, but not limited to,
the life science and medical office property types.
Also effective January 2, 2020, SNH’s 5.625% senior notes due
2042 will no longer trade under the ticker “SNHNI” but will trade
under “DHCNI”. Similarly, SNH’s 6.25% senior notes due 2046 will no
longer trade under the ticker “SNHNL” but will trade under the
ticker “DHCNL”.
A REAL ESTATE PLATFORM FOCUSED ON THE
DIVERSE SPECTRUM OF HEALTH SERVICES
With an $8.6 billion investment portfolio, Diversified
Healthcare Trust is one of the leading owners of real estate
focused on healthcare and life sciences located throughout the
United States. DHC seeks to acquire and own properties that take
strategic advantage of demographic trends, investments in
biological breakthroughs and the development and implementation of
medical services and technologies.
DIVERSIFIED ACROSS CARE DELIVERY AND
PRACTICE TYPES
From elective procedures to life-saving treatments, DHC’s
properties provide a platform for healthcare delivery. Nationally
renowned health systems as well as individual specialist physicians
and health practitioners lease DHC’s properties which house
clinics, outpatient centers, surgery centers and doctors’ offices.
DHC is also poised to benefit from changing demographic trends,
with a portfolio of more than 270 active adult, independent living,
assisted living and memory care facilities to serve the anticipated
‘silver tsunami.’
DIVERSIFIED ACROSS RESEARCH SCIENCE
DISCIPLINES
DHC’s life sciences properties include laboratory and research
space, manufacturing facilities and corporate offices, and are home
to forward-thinking companies delivering and supporting the
development of tomorrow’s cutting-edge therapies, which cover a
wide variety of ailments.
DIVERSIFIED ACROSS GEOGRAPHIES,
LOCATIONS AND SETTINGS
With over 12 million square feet of lab and medical office space
and more than 32,000 living units, DHC has no “typical” property or
location. Properties range from multi-specialty physician offices,
to more than 270 senior living communities, to multi-building life
science campuses. DHC’s properties are located in both urban and
suburban settings across the U.S., in 41 states and Washington,
D.C.
DIVERSIFIED FINANCIAL
PROFILE
The foundation of DHC’s solid financial profile includes revenue
sources lacking concentration in any one property type, a
well-laddered lease expiration schedule for over 600 tenants,
strong tenant credit profiles and a conservative capital structure
with a healthy balance sheet. The diversification of DHC’s revenue
streams allows the company to produce cash flows from the entire
healthcare continuum, leading to more stable and predictable
returns on investments.
WARNING REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other securities laws.
Also, whenever DHC uses words such as “believe”, “expect”,
“anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and
negatives or derivatives of these or similar expressions, DHC is
making forward-looking statements. These forward-looking statements
are based upon DHC’s present intent, beliefs or expectations, but
forward-looking statements are not guaranteed to occur and may not
occur. Actual results may differ materially from those contained in
or implied by DHC’s forward-looking statements as a result of
various factors. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, some of which are
beyond DHC's control. For example:
- DHC expects that the changes in ticker symbols to “DHC” for the
listing of its common shares, “DHCNI” for its 5.625% senior notes
due 2042 and “DHCNL” for its 6.25% senior notes due 2046 will begin
on January 2, 2020. However, effecting these changes are subject to
conditions and will depend on actions of third parties. As a
result, these changes could be delayed.
- Ms. Francis states that DHC has made considerable progress in
diversifying and enhancing its portfolio in order to meet the
broader real estate needs of the continually evolving healthcare
industry. This may imply that this progress will enable DHC to meet
these needs and that DHC may make further progress that addresses
the broader real estate needs as the healthcare industry continues
to evolve. However, DHC’s progress may not continue to address
these needs and DHC may not be able to make further progress to
address any changing needs. As a result, DHC may not achieve the
benefits it expects from the progress it has made in these
regards.
- DHC intends to continue to invest and recycle capital into high
quality healthcare real estate, including, but not limited to, the
life science and medical office property types. However, the
competition for these types of investments is significant. As a
result, DHC may not be able to acquire additional properties of
these types in the future or it may overpay for any such
acquisition. Moreover, DHC not be able to successfully recycle
capital at the amounts it expects. Further, DHC may not realize the
returns or benefits it expects from any additional acquisitions it
may make.
- DHC believes that it is poised to benefit from changing
demographic trends. However, the demand for senior living
communities, wellness centers and other medical and healthcare
related properties and healthcare services may not increase,
despite the aging U.S. population and increasing life spans of
seniors, due to a variety factors, including improved medical
advances and seniors’ electing to age in place, to delay or forego
relocating, to not purchase the products and services DHC’s tenants
and manager provide, or due to other changes in market demands. In
addition, DHC may be unable to retain its existing tenants, attract
new tenants and maintain or increase current rental rates. Further,
circumstances that adversely affect the ability of seniors or their
families to pay for DHC’s tenants' and manager's services, such as
economic downturns, weak housing market conditions, higher levels
of unemployment among DHC’s residents' family members, lower levels
of consumer confidence, stock market volatility and/or changes in
demographics generally could affect the profitability of DHC’s
senior living communities. As a result, DHC may not benefit from
changing demographic trends.
- DHC expects to complete the conversion of its existing master
leases with FVE into management agreements, as of January 1, 2020.
These transactions are subject to conditions, including, among
others, the continued effectiveness of FVE’s registration statement
on Form S-1 for the related FVE common share issuances and the
receipt of certain regulatory approvals. DHC cannot be sure that
any or all of such conditions will be satisfied. Accordingly, these
transactions may not become effective as of January 1, 2020 or at
all, or the terms of such transactions may change. Further, if the
transactions contemplated by the Transaction Agreement are
completed, the conversion of the master leases to management
agreements will be a significant change in DHC’s arrangements with
FVE and may result in DHC realizing significantly different
operating results from its senior living communities, including
increased variability.
- DHC believes the foundation of its solid financial profile
includes diversified revenue sources lacking concentration in any
one property type, a well-laddered lease expiration schedule for
over 600 tenants, high credit quality tenants and a conservative
capital structure with a healthy balance sheet. Some of DHC’s
tenants may not renew expiring leases, and DHC may be unable to
obtain new tenants to maintain or increase the historical occupancy
rates of, or rents from, its properties, its tenants may experience
losses and default on their rent obligations to DHC, rents that DHC
can charge at its properties may decline upon renewals or
expirations because of changing market conditions or otherwise and
continued availability of borrowings under its revolving credit
facility is subject to DHC’s satisfying certain financial covenants
and other credit facility conditions that DHC may be unable to
satisfy. In addition, DHC’s tenants and manager may realize
deteriorating financial conditions if they cannot successfully
operate their businesses or if they are adversely impacted by
factors beyond their control, including deteriorating market
conditions or changes in market demands. Further, DHC may not be
successful in conducting its business activities in a manner that
will afford it reasonable access to capital for investment and
financing activities, which may result in DHC’s capital structuring
becoming less conservative and a decline in the health of its
balance sheet.
- DHC believes the diversification of DHC’s revenue streams
allows it to produce cash flows from the entire healthcare
continuum, leading to more stable and predictable returns on
investments.
The information contained in DHC’s filings with the SEC,
including under “Risk Factors” in DHC’s periodic reports, or
incorporated therein, identifies other important factors that could
cause DHC’s actual results to differ materially from those stated
in or implied by DHC’s forward-looking statements. DHC’s filings
with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking
statements.
Except as required by law, DHC does not intend to update or
change any forward-looking statements as a result of new
information, future events or otherwise.
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed on the Nasdaq. No
shareholder, Trustee or officer is personally liable for any act or
obligation of the Trust.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191230005299/en/
Michael Kodesch, Director, Investor Relations (617) 796-8234
www.snhreit.com
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Apr 2024 to May 2024
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From May 2023 to May 2024