After receiving warning from the Nasdaq stock market in January, Newton, MA-based Diversified Healthcare Trust has boosted its stock price above $1 per share and no longer faces delisting.
March 16, the real estate investment trust received a notification letter from Nasdaq confirming that it had regained compliance with the minimum bid price continued listing standard, the REIT said Monday in a filing with the Securities and Exchange Commission.
A dollar is the minimum required closing bid price for continued listing on Nasdaq. As of Jan. 19, for at least 30 days before the notification, the bid price of the REIT’s stock price had fallen below $1. DHC was given until July 18 to come into compliance with the minimum bid price continued listing standard, the company announced in January. If the REIT had failed to come into compliance by the July 18 deadline, it could have received a second 180-calendar-day grace period under certain conditions.
DHC had been operating at a loss for at least the past two fiscal years, Seeking Alpha reported in December. The company, however, experienced a “year of recovery,” President and CEO Jennifer Francis said during the REIT’s fourth-quarter and full-year 2022 earnings call earlier this month, noting year-over-year improvement in the company’s senior housing operating portfolio.DHC amended its credit facility in February, which Francis stated “provides us needed covenant relief while we continue to execute on our plan to invest capital in our properties and work with our senior living operators as they recover from the effects of the pandemic.
