Invesque Continues Strategic Initiative to Streamline and Strengthen Portfolio via Disposition of Approximately US$75 Million of Assets
Toronto, Ontario, April 4, 2022 – Invesque Inc. (TSX: IVQ.U and IVQ) (the “Company” or “Invesque”) today announced the closing of three separate sales transactions totaling approximately US$75 million that occurred in late March and early April.
On March 31, 2022, the Company closed on the sale of a vacant community in Port Royal, South Carolina.
- The standalone memory care community was previously managed by Phoenix Senior Living and will be repurposed for an alternate use by its new owner.
- The gross sale price of US$3.5 million generated proceeds which were used entirely to pay down debt.
On April 1, 2022, Invesque closed on the sale of two seniors housing communities with 99 units in New York.
- The assets were previously subject to an absolute triple-net master lease with Premier Senior Living, which was terminated in October 2021, and subsequently managed by affiliates of Hearth Management.
- The gross sale price of US$19.2 million generated proceeds which were used entirely to pay down the Company’s corporate credit facility and further de-lever the balance sheet.
On April 1, 2022, the Company also closed on the sale of four transitional care skilled nursing facilities comprised of 339 beds in Texas previously managed by Bridgemoor Transitional Care (“Bridgemoor”).
- The four facilities were operated by Bridgemoor pursuant to an absolute triple-net master lease through the closing of the sale.
- The Bridgemoor portfolio was owned in a joint venture in which the Company holds an approximate 66% ownership interest.
- The gross sale price of approximately US$52 million generated proceeds which were used to fully satisfy the debt secured by the four facilities and the remaining proceeds will be distributed to the joint venture owners.
“This flurry of transaction activity is a continuation of our established strategy of reducing our investment concentration in skilled nursing and strengthening our balance sheet,” said Scott White, CEO of the Company. “Invesque’s proforma NOI consists of 58% from private-pay seniors housing assets, which represents a dramatic change from where we stood as a Company three years ago. The simplification of our portfolio and reduced leverage will give us additional flexibility over time which will provide various options to generate shareholder value with our best in class portfolio of health care real estate.” Following the completion of these transactions, the Company’s portfolio consists of 96 properties with approximately 6,000 units, 8,000 beds, and 580,000 square feet of medical office buildings across 18 states and two Canadian provinces.
Invesque is a North American health care real estate company with an investment thesis focused on the premise that an aging demographic in North America will continue to utilize health care services in growing proportion to the overall economy. Invesque currently capitalizes on this opportunity by investing in a highly diversified portfolio of income generating properties across the health care spectrum. Invesque’s portfolio includes investments in independent living, assisted living, memory care, skilled nursing, transitional care, and medical office properties, which are operated primarily under long-term leases and joint venture arrangements with industry leading operating partners. Invesque’s portfolio also includes investments in owner-occupied seniors housing properties in which Invesque owns the real estate and provides management services through its subsidiary management company, Commonwealth Senior Living.
Certain statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future, including the allocation of capital to create maximum value for shareholders. Readers are cautioned that such statements may not be appropriate for other purposes. In some cases, forward-looking information can be identified by such terms as “will”, “would”, “anticipate”, “anticipated”, “expect”, “expected” and other similar expressions. The forward-looking statements in this news release are based on certain assumptions. Such statements are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Such risks include but are not limited to the risks described in the Corporation’s current annual information form and management’s discussion and analysis, available on SEDAR at www.sedar.com, which risks may be dependent on market factors and not entirely within the Corporation’s control. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. These forward-looking statements reflect current expectations of the Corporation as at the date of this news release and speak only as at the date of this news release. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
For more information, please visit www.invesque.com.