09:03 AM EDT, 09/03/2025 (MT Newswires) -- Diversified Healthcare Trust ( DHC ) said Wednesday it signed agreements with AlerisLife and seven operators to shift management of 116 senior living communities run by AlerisLife unit Five Star Senior Living.

Closing of the sale of the management contracts is expected to start in Q3 and finish by the end of the year, the company said.

AlerisLife plans to sell all its assets, including 17 owned communities, and expects to wind down its business in H1 2026, according to Diversified Healthcare ( DHC ).

The company said it expects $25 million to $40 million in net proceeds for its 34% stake in AlerisLife after debt repayment and wind-down costs.

Diversified Healthcare ( DHC ) said it plans to use the funds to reduce leverage and for general business purposes, including reinvestment in its SHOP segment.