Diversified Healthcare Trust (NASDAQ:DHC) shares are moving higher on Monday after the company announced it will sell 18 senior living communities to Brookdale Senior Living Inc. (NYSE:BKD).
The Details: Since February 2003, Brookdale has leased and operated these 18 senior living communities across various states which the company will now acquire for $135 million.
Chris Bilotto, CEO of Diversified Healthcare, said, "This transaction is a further implementation of our ongoing initiatives to optimize our portfolio and enhance our liquidity. The sale opportunistically monetizes this NNN portfolio at a premium valuation of over $150,000 per unit. The proceeds from the transaction reflect an in-place cap rate on the lease's annualized income of 7.3% and will allow us to reduce our leverage."
Diversified Healthcare intends to use the proceeds from this sale to pay down its $941 million of senior secured notes due January 2026.
How To Buy Diversified Healthcare Shares
By now you're likely curious about how to participate in the market for Diversified Healthcare (NASDAQ:DHC) – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Diversified Healthcare (NASDAQ:DHC), which is trading at $4.13 as of publishing time, $100 would buy you 24.21 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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DHC Price Action: At the time of writing, Diversified Healthcare Trust stock is moving 10.61% higher at $4.17 per data from Benzinga Pro.
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