Diversified Healthcare Trust announced a series of business updates Monday regarding the ongoing effects of the COVID-19 pandemic on the real estate investment trust’s business and operating results.
First, the REIT noted that more than 65% of residents and more than 30% of staff members in the independent and assisted living communities within its senior living portfolio have received COVID-19 vaccinations. This number includes more than 2,000 residents and staff members who have received both doses of the vaccine. The Newton, MA-based REIT also noted that it expects vaccination clinics for its senior living community residents and staff members to be substantially complete by the end of the first quarter.
Further, although occupancy continued to decline in the fourth quarter, dropping to an average of 70.7% at the end of December, sales leads have increased substantially since the end of last year, DHC said. The rolling four-week average sales leads as of Jan. 24 were 83% higher than the rolling four-week average sales leads at the beginning of the fourth quarter of 2020, according to the company.
“The progress made to vaccinate residents and staff within our communities is a significant step toward recovery from the COVID-19 pandemic,” said Jennifer Francis, president and chief operating officer of DHC. “We expect growing confidence in the resident experience to drive resident move-ins, help stabilize our SHOP segment occupancy and lead to a recovery in senior living performance over time. We are also encouraged by the substantial increase in sales leads since the beginning of 2021, which is often an indicator of future move-in activity.”
DHC also announced Monday that it had amended the agreements governing its revolving credit and term loan facilities. The amendments provide for a waiver of certain financial covenants under its credit and term loan agreements through June 30, 2022, during which period, subject to certain conditions, DHC continues to have access to undrawn amounts under its revolving credit facility, and also provide DHC with the option to further extend the revolving credit facility maturity date.