DHC collateral appraised value falls below credit facility threshold, triggering event of default

DIVERSIFIED HEALTHCARE TRUST

Appraised value of 61 medical office and life science properties declined 22% to $1.05B from $1.34B, below $1.09B threshold.
Non-monetary event of default under $450M secured credit facility; negotiating limited waiver to reduce required value through Sept 30, 2023.
Not in compliance with debt incurrence covenants for over 2 years; cannot issue new debt or refinance expiring debt.
$700M of indebtedness becomes due in first half 2024; earliest compliance expected mid-2024.
Board cites financial constraints as primary reason for recommending pending merger with OPI.

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