Diversified Healthcare Trust

Diversified Healthcare Trust has no corporate employees. Its officers are employees of The RMR Group, which provides property management, leasing, and administrative services under a master management agreement. The trust's board of trustees retains full authority over major investment and financing decisions, and the management fee is calculated as a percentage of the trust's historical cost of assets under management, subject to annual review by independent trustees.

The January 2025 sale to Brookdale eliminated the trust's largest triple-net tenant relationship, which had represented a substantial portion of rental income. Post-transaction, Five Star Senior Living remains the primary operator for the managed senior living portfolio, while the medical office and life science tenant roster is diversified across hospital systems, academic medical centers, and physician groups, with no single tenant dominating the medical office book (per the firm's 2025 filings).

The trust operates across three healthcare real estate verticals: senior housing operating communities managed primarily by Five Star Senior Living; medical office buildings and life science facilities, most leased to regional health systems; and a smaller portfolio of wellness centers. The firm has been actively divesting triple-net leased senior housing while growing its managed senior housing and medical-oriented property base.

The trust primarily acquires existing stabilized properties and recapitalizes portfolios from regional operators. For its medical office and life science segment, it has historically executed off-market transactions with health systems seeking to monetize real estate, often entering long-term net leases at closing, a posture that keeps development risk low (per the firm's investor materials).

RMR manages several publicly traded REITs that sometimes target overlapping property types. Diversified Healthcare Trust's board, composed of a majority of independent trustees, must approve any overlapping investment opportunity. The trust's investment policy specifies that senior living, medical office, and wellness assets are its exclusive real estate mandate, and it does not compete with RMR-managed office or hospitality trusts for the same property types.