Diversified Healthcare Trust (Nasdaq: DHC) has entered into a definitive merger agreement with Office Properties Income Trust (Nasdaq: OPI), under which OPI will acquire all the outstanding common shares of DHC to create a combined entity to be called Diversified Properties Trust.

DHC shareholders will receive 0.147 shares of OPI for each common share of DHC, representing an implied value of $1.70 per common share of DHC. This is a 20% premium to the average closing price of DHC shares for the 30 trading days ending April 10, 2023.

“The merger with OPI greatly benefits DHC both strategically and financially,” said Jennifer Francis, DHC president and CEO, in a press release. “Strategically, the combined company will be in immediate compliance with debt covenants, have immediate access to multiple capital sources through its greater scale and diversity to address upcoming debt maturities and increase liquidity to continue funding the ongoing SHOP recovery and capital improvement plan.”

As of December 31, 2022, DHC’s approximately $7.1 billion portfolio included 379 properties in 36 states and Washington, D.C., and encompassed 27,000 senior living units.

The combined company will be managed by the RMR Group and headquartered in Newton, Massachusetts.

This is a developing story and will be updated.

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