Newton, Mass.-based real estate investment trust Diversified Healthcare Trust said it had defaulted under a $450 million credit facility.
Diversified Healthcare, which specializes in medical offices, life sciences properties and senior living, said the preferred option for its continued existence is a planned merger with Office Properties Income Trust.
"DHC's financial constraints are among the primary reasons that DHC's board of trustees has unanimously recommended that DHC shareholders vote in favor of the pending merger with OPI," according to a company statement.
The earliest the trust is expected to be in compliance with its debt covenants is mid-2024, Diversified Healthcare said.