Shares of healthcare-focused real estate investment trust (REIT) Diversified Healthcare Trust (NASDAQ: DHC) rose 10% out of the gate on June 1. That came after strong gains in the previous week. The advances were all helped along by some big news on the financing front.
First, the good news: Diversified Healthcare Trust was able to issue $1 billion worth of bonds. It made that announcement on May 28, leading to a big price move in the stock. To show just how important this was, the stock is up by about a third over the past five days. Most of that gain came following the debt announcement. For comparison, other diversified healthcare REITs, like Ventas, Welltower, and Healthpeak, were up between 2% (or so) and 8% over the same span. Clearly, investors were pleased that Diversified Healthcare was able to get a bit of extra cash to help it through the current COVID-19 difficulties facing healthcare property owners.
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