Diversified Healthcare Trust

during the quarter primarily related to agency staffing. Our operators are very focused on this and have plans in place to reduce the use of agency labor in our communities. Interest expense of $46.9 million represented a decrease of approximately $9 million from the second quarter following the $500 million redemption of 9.75% senior notes in June. This redemption reduces our annual interest expense by approximately $49 million. In July, we prepaid a mortgage note due to mature in October on two senior living communities for approximately $15 million. At quarter end, we had total outstanding debt of $3.1 billion and net debt of $2.3 billion was equal to just 29% of gross assets. Aside from the $114 million partial repayment of the revolver scheduled for January of 2023, We have no significant maturities until 2024, and we have almost $5.8 billion of unencumbered gross real estate assets. At quarter end, we had over $800 million of cash and restricted cash on hand, which we plan to use for capital investments and debt repayment. In the third quarter, we spent $70 million on capital expenditures across our portfolio, which included approximately $52.9 million of capital improvements within the shop segment, and $16.9 million of capital was deployed in the office portfolio. During the first three quarters, we spent approximately $195 million on capital improvements across the portfolio. Based on projects previously underway and starting in the fourth quarter, we anticipate spending approximately $115 million for the remainder of the year. As we've discussed previously, investing our portfolio is a priority for us, and we continue to develop plans to improve our properties in order to grow occupancy, push rental rates, and enhance the overall value of our portfolio. That concludes our prepared remarks. Operator, please open up the line for questions.

We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster. Our first question is from Brian Mayer with B Reilly Securities. Please go ahead.

Good morning, Jennifer and Rick, and thank you for all those comments thus far. A few from me. On the Hurricane Ian, can you drill down a little bit more on the actual damage to the property? And I think you said you're going to start reopening in phases later this month, but how long will it take to fully reopen the property?