Diversified Healthcare Trust is nearing the complete transition of its operations away from Five Star Senior Living, agreeing to add five assisted living communities in Wisconsin to an existing management agreement with Cedarhurst Senior Living, and two AL communities in Pennsylvania to a new agreement with IntegraCare. The Wisconsin communities total 300 units, while the two Pennsylvania communities have a combined 182 units. Cedarhurst had previously taken over eight properties totaling 486 units in Illinois on behalf of the REIT.
Diversified Healthcare Trust originally had 108 communities in its Five Star portfolio, and is now left with about 10. Those remaining properties are expected to find new operators by the end of the year. The REIT has entered into seven new management agreements to complete these transitions. These Five Star properties were smaller senior living communities and did not fit in with Diversified Healthcare Trust’s strategy of focusing on larger communities. The REIT is also exiting the skilled nursing business, with Five Star closing and repositioning all skilled nursing units in the CCRCs it will continue to manage for DHC.
