Diversified Healthcare Trust inks 15-yr net lease with Ensign Group for Colorado SNF portfolio

Diversified Healthcare Trust said it has entered into a new 15-year triple net lease with independent operating subsidiaries of The Ensign Group, Inc. for a portfolio of seven skilled nursing facilities in Colorado. The portfolio totals 807 licensed units and the lease is effective October 1, 2026. The Ensign Group, Inc.

has guaranteed the lease. DHC said the transaction moves the communities from a RIDEA structure to a long-term triple net lease. It expects the shift to stabilize cash flows and significantly reduce future capital needs. 0 million, substantially above the prior year’s rent.

Diversified Healthcare Trust said the deal shifts property-level costs to the tenant and includes annual rent escalators tied to the Consumer Price Index (CPI), supporting ongoing cash flows. Chris Bilotto, President and Chief Executive Officer of DHC, said the company is pleased to announce the partnership with Ensign, describing it as a strong operator with experience in the skilled nursing sector. Bilotto said the transaction is expected to immediately increase the financial contribution from the communities and reduce DHC's future capital expenditure requirements under a long-term triple net lease structure.

He added that Ensign's operating platform and local market expertise, together with a structure suited to skilled nursing facilities, should support stable performance at the communities and create long term value for shareholders. Bilotto also said the deal fits DHC's broader strategy of optimizing its portfolio structure, partnering with high quality operators and driving sustainable NOI growth. DHC described itself as a real estate investment trust focused on owning high-quality healthcare properties. DHC said its portfolio is made up of senior housing, medical office and life science assets designed to address demand across the healthcare continuum.

6 million square feet of medical office and life science properties, and roughly 250 tenants. The company said it is managed by The RMR Group (Nasdaq: RMR), which had over $37 billion in assets under management as of June 30, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is based in Newton, MA. The release includes forward-looking statements under the Private Securities Litigation Reform Act of 1995 and other securities laws.

It says the company uses words such as “believe” to identify those statements. 0 million, materially above the portfolio’s rent in the prior year. The company said the lease is expected to immediately increase the financial contribution from these communities and reduce future capital expenditure requirements and operational volatility. DHC added that receipt of rent under the lease depends on the tenant’s ability to pay, which may be affected by occupancy levels, labor costs, staffing availability and changes in Medicare, Medicaid and other third-party reimbursement rates and healthcare regulations.

The company also said CPI-based escalators under the lease may not keep pace with DHC’s costs, and that it may incur additional capital expenditures or other costs at the communities. DHC said the lease is structured as a triple net agreement, but cautioned that it may not capture the expected benefits from the new arrangement. Bilotto said DHC believes Ensign's operating platform and local market expertise, together with a structure suited to skilled nursing facilities, should support stable performance at the communities and help create long-term value for shareholders.

The company said the deal fits its wider plan to optimize its portfolio structure, work with high-quality operators and drive sustainable NOI growth. DHC also said it may not be able to carry out those portfolio strategies successfully, partner with high-quality operators or otherwise optimize the portfolio to drive NOI growth. As a result, the company said it may not achieve NOI growth or otherwise create long-term value for shareholders. DHC added that actual results may differ materially from those in or implied by its forward-looking statements and that the statements involve known and unknown risks, uncertainties and other factors, some beyond its control.

DHC’s SEC filings, including the risk factors in its periodic reports and any incorporated material, identify other factors that could cause actual results to differ materially from forward-looking statements. DHC says its filings are available on the SEC website. It warns not to place undue reliance on forward-looking statements and says it does not intend to update or change them because of new information, future events or otherwise, except as required by law. DHC is a Maryland real estate investment trust with transferable shares of beneficial interest listed on Nasdaq.

It says no shareholder, trustee or officer is personally liable for any act or obligation of the trust. Bryan Maher, Senior Vice President, 617 796-8234.