Discovery Senior Living Structures and Participates in Strategic Off-Market Transaction Between Capital Providers, Retains 36-Community Portfolio

Discovery Senior Living ("Discovery" or the "Company"), and its affiliated companies, one of the largest and most trusted seniors housing operators in the U.S., today announced it has retained management of a 36-community assisted living portfolio following multi-party transactions between two long-standing capital providers on the Discovery platform, Discovery and certain principals of the Company. Discovery played a central role in the transaction, identifying the parties, facilitating the off-market process, and helping structure an economically aligned framework designed to meet the strategic objectives of all stakeholders while preserving operational continuity across the portfolio. As part of the transaction, 13 communities acquired by National Healthcare Properties, Inc. ("NHP") (NASDAQ: NHP), consist of 592 assisted living units across eight states. The acquisition was completed under a RIDEA joint venture structure with Discovery. Under the structure, NHP owns approximately 98.5% of the joint venture. Discovery continues to operate the communities following its recent closing. The remaining 23 communities were acquired by HF Acquisitions Holding, LLC ("HFAH"), a joint venture between certain principals of Discovery and a long-term capital provider of Discovery. This portion of the transaction includes 20 communities currently managed by Discovery, as well as the addition of 3 new communities not currently under Discovery management, totaling approximately 883 units. The venture includes a combination of common and preferred equity interests and a promoted return structure. In connection with the closing of the transactions, Discovery has entered into new long-term management agreements with both ownership groups through its regional management companies. These agreements are structured to align Discovery with ownership performance through a combination of base management fees and performance-based ...