On December 19, 2023, Flat Footed LLC delivered a letter to the Board of Trustees of Diversified Healthcare Trust regarding the Company?s decision to (i) sell its 31.9% stake in AlerisLife, Inc. to ABP Acquisition 2 LLC, an entity indirectly controlled by the Managing Trustee of the Board, and (ii) waive certain defaults under the master management agreement between AlerisLife and the Company, without any apparent consideration. Flat Footed stated that the December letter indicated that it is particularly interested in knowing what, if any, analysis the Board has conducted to determine whether the Company should exercise its right to repurchase its 31.9% share of AlerisLife at $1.31 per share because (i) the sale to ABP Acquisition significantly undervalued AlerisLife, (ii) AlerisLife was acquired at a time when its 2023 EBITDA projections were abnormally depressed, and (iii) by reacquiring AlerisLife, the Company would regain some ability to influence and oversee an entity vital to its business. Flat Footed added that pursuant to the December letter, it strongly encouraged the Company to exercise its AlerisLife repurchase option by the December 31, 2023, deadline.