Diversified Healthcare Trust (Nasdaq: DHC) has received a warning from the Nasdaq Stock Market to boost its stock price above $1 per share or face delisting from the index.
That’s according to a Jan. 23 public filing from the Newton, Massachusetts-based real estate investment trust (REIT).
As is standard when companies face delisting warnings, the REIT has a 180 day grace period — a deadline of July 18 — to get its stock price above $1 per share for a period of 10 consecutive days. Should that not occur, the company may also have a second grace period of an additional 180 days following the first.
“We are monitoring the bid price of our common shares and are considering options available to us to achieve compliance with the minimum bid price continued listing standard,” the REIT noted in its Jan. 23 filing.
Diversified Healthcare stock price registered at 78 cents per share by the time the markets closed Monday.
Diversified Healthcare Trust’s portfolio spans 379 senior living communities and medical office buildings in 36 states and Washington, D.C. The company, along with operating partner AlerisLife, are both externally managed by The RMR Group (Nasdaq: RMR).
The Nasdaq warning occurred as AlerisLife is facing its own stock delisting warning from Nasdaq. Last November, the company reported it also received a delisting notice from Nasdaq. The senior living operator has until May 8 to raise its stock price above $1 for a consecutive 10 days.
The delisting warning amounted to the second such warning for AlerisLife since 2018, when it was doing business as Five Star Senior Living and faced a similar warning that ultimately was rectified in a reverse stock split.
Companies featured in this article:
