DIVERSIFIED HEALTHCARE TRUST 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk. We are exposed to risks associated with market changes in interest rates. We manage our exposure to this market risk by monitoring available financing alternatives. Other than as described below, we do not currently foresee any significant changes in our exposure to fluctuations in interest rates or in how we manage this exposure in the near future. We may in the future enter into hedge arrangements or derivative contracts from time to time to mitigate our exposure to changes in interest rates. Fixed Rate Debt In May 2024, we executed a $120.0 million fixed rate, interest only mortgage loan secured by eight medical office and life science properties. This mortgage loan matures in June 2034 and requires that interest be paid at an annual rate of 6.864%. Interest payments are due monthly and no principal payment is due until maturity. We used $60.0 million of the net proceeds to partially redeem our then outstanding $500.0 million senior notes due 2025. Other than the transaction described above, there have been no material changes to market interest rate risks associated with our fixed rate debt during the three and nine months ended September 30, 2024. For a discussion of market interest rate risks associated with our fixed rate debt, see "Quantitative and Qualitative Disclosures About Market Risk" included in Part II, Item 7A of our Annual Report. Floating Rate Debt At September 30, 2024, we did not have any floating rate debt obligations.