AlerisLife, one of the nation’s largest senior living providers, is winding down its business in a process that is expected to be completed in the first half of 2026.
As part of that process, seven different operators will be taking on the management of 116 properties in the portfolio of Diversified Healthcare Trust (Nasdaq: DHC), the real estate investment trust announced this morning. The communities are currently managed by Five Star Senior Living, the operating division of AlerisLife. AlerisLife also is selling all its assets, including 17 owned communities.
“In connection with the sale of AlerisLife’s assets and after repayment of debt and payment of estimated wind-down costs, DHC expects to receive estimated net proceeds of between $25 million to $40 million for its 34% interest in AlerisLife,” the DHC press release stated. “DHC plans to use these net proceeds to reduce leverage and for other general business purposes, including reinvestment in its SHOP segment.”
The transition of the 116 communities to the new operators will enable more geographically focused management arrangements, and these transactions are expected to close starting in the third quarter of this year.
“These transactions are also expected to allow us to build on the momentum from the improved performance of the Five Star managed communities over the past few years, further strengthen our asset base and drive enhanced NOI growth across our SHOP communities,” Chris Bilotto, president and CEO of DHC, said in the release. “We extend our gratitude to the AlerisLife team members, under the leadership of Jeff Leer, for the remarkable accomplishments achieved over the past several years. The team’s dedication and focus have been the driving force behind the improved performance of the Five Star managed communities, enabling us to create lasting value.”
This is a developing story and will be updated.
The post AlerisLife Winding Down Business, Transitioning 116 DHC Communities To 7 Operators appeared first on Senior Housing News.
Source: For the full article please visit Senior Housing News
Be First to Comment