Invesque Inc. Announces Sale of Final Skilled Nursing Facility Previously Leased by Symphony Care Network
Toronto, Ontario, July 5, 2023 – Invesque Inc. (TSX: IVQ.U and IVQ) (the “Company” or “Invesque”) today announced the sale of the final skilled nursing facility in the portfolio of eight assets previously leased to Symphony Care Network (“SymCare”). As announced last month, the Company sold seven of the eight assets on June 1, 2023. The final asset was sold on July 1, 2023, for US$19.7 million. Following that closing, the Company has no remaining lease relationship with SymCare, and continues to focus on its private pay seniors housing portfolio.
As noted in the Company’s press release in June, Invesque’s portfolio of properties leased to SymCare was acquired as part of Invesque’s initial public offering (“IPO”) in 2016 with subsequent additions in 2019 and the sale of a number of assets in 2021. At the time of the Company’s IPO in 2016, SymCare represented approximately 75% of Invesque’s net operating income (“NOI”). The Company has reduced its exposure and concentration to SymCare through strategic acquisitions in recent years. Following this transaction, the proportion of the Company’s NOI from all skilled nursing facilities will be approximately 20% of Company NOI on a pro forma basis.
“I am extremely proud to follow up our sale announcement last month and confirm the completion of this final step in our exit of the SymCare investments. Our team has executed a number of transactions over the last two and a half years that position us as a predominantly private pay seniors housing company,” noted Scott White, Chairman and Chief Executive Officer. “Our company story has evolved over the last seven years, and I believe we are at a really exciting time. The expected increase in demand for private pay seniors housing from the aging population, combined with our best-in-class operating partners, positions us well for the future.”
The Company 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. The Company currently capitalizes on this opportunity by investing in a portfolio of income-generating predominantly private pay seniors housing communities. The Company’s portfolio includes investments primarily in independent living, assisted living, and memory care, which are operated under long-term leases and joint venture arrangements with industry-leading operating partners. The Company’s portfolio also includes investments in owner-occupied seniors housing properties in which the Company owns the real estate, the licensed operations, and provides management services through Commonwealth Senior Living, LLC, a Delaware limited liability company. For more information, please visit www.invesque.com.
This press release (this “Press Release”) contains certain forward-looking information and/or statements (“forward-looking statements”), that reflect and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future, including, without limitation, statements regarding the Company’s utilization of proceeds of dispositions and statements regarding the closing of the sale of a skilled nursing facility the Company currently leases to SymCare. Forward-looking statements is typically identified by terms such as “anticipate,” “believe,” “continue,” “expect,” “expectations,” “look,” “may,” “plan,” “project,” “should,” “will,” and other similar expressions that do not relate solely to historical matters and suggest future outcomes or events. Readers should not place undue reliance on forward-looking statements and are cautioned that forward-looking statements may not be appropriate for other purposes. Forward-looking statements in this Press Release are based on current beliefs, expectations, and certain assumptions of the Company’s management. Forward-looking statements in this Press Release are subject to significant known and unknown risks, uncertainties, and other factors that are beyond the Company’s ability to predict or control, including the risk that the sale of one or more of the Company’s medical office buildings will not close due to the inability to satisfy closing conditions, and 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. The Company’s actual results may differ as a result of various factors, including without limitation, the status of the economy; the status of capital markets, including, without limitation, availability and cost of capital; issues facing the health care industry, including, without limitation, compliance with, and changes to, regulations and payment policies, responding to government investigations and settlements and operators’/tenants’ ability to cost effectively obtaining and maintaining adequate liability and other insurance; the risk that the Company’s operators/tenants and borrowers may become subject to bankruptcy or insolvency proceedings; changes in financing terms; the impact of staffing shortages and inflation; competition throughout the health care and senior housing industries; the operating results or financial condition of operators/tenants, including, without limitation, their ability to pay rent and repay loans, the Company’s ability to transition, buy, or sell properties with profitable results as and when anticipated, and occupancy levels; the effect of other factors affecting the Company’s business and facilities outside of the Company’s or operators’/tenants control, including without limitation, natural disasters, other health crises or pandemics, governmental action, particularly in the healthcare industry, protests, strikes, and shortages in supply chains, as well as the risks described in the Company’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 Company’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 Company as of the date of this Press Release and speak only as of the date of this Press Release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which are given as of the date hereof, and not to use such forward-looking statements for anything other than the intended purpose. Further, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements contained in this Press Release are expressly qualified by this cautionary statement.
The Company reports its financial results in accordance with International Financial Reporting Standard (“IFRS”). Included in this Press Release is a certain non-IFRS financial measure as a supplemental indicator used by the Company’s management to track the Company’s performance. This non-IFRS measure is NOI. The Company believes that this non-IFRS financial measure provides useful information to both the Company’s management and investors in measuring the financial performance and financial condition of the Company. This measure does not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies, nor should it be construed as an alternative to other financial measures determined in accordance with IFRS. For a full definition of this measure, please refer to the Financial Measures section of the March 31, 2023, MD&A available on the Company’s website and on SEDAR at www.sedar.com, which information is incorporated herein by reference, and the full reconciliation to which are included below.
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