Invesque Inc. Reports First Quarter 2018 Results
Toronto, Ontario, May 15, 2018 – Invesque Inc. (TSX: IVQ.U) (the “Company”) today announced its results for the three months ended March 31, 2018.
First Quarter Highlights
• Closed on previously announced US$425 Million acquisition of Care Investment Trust
• Announced US$142 Million acquisition of Medical Mohawk Properties REIT
• Closed US$96.2 Million in additional acquisitions
• Addition of Lis Wigmore to Board of Directors
• Closed on second and third tranches of Preferred Equity Private Placement for an aggregate US$45 Million
• Reported funds from operations (“FFO”) of US$$0.27 per common share, and adjusted funds from operations (“AFFO”) of US$0.23 per common share
“After a transformative 2017 for Invesque, we started 2018 off with significant activity,” commented Scott White, Chief Executive Officer for the Company. “During the first quarter, we continued to execute on our strategy by scaling the platform, diversifying the portfolio, strengthening our balance sheet and enhancing the quality of our team. We have come a very long way in less than two years.”
Financial Highlights
| (in thousands of U.S dollars, except per share values) | Three months ended March 31, 2018 |
Three months ended March 31, 2017 |
|---|---|---|
| Revenue | $23,029 | $14,437 |
| Net Income | $2,319 | $4,983 |
| Funds from operations (“FFO”) (1) | $11,707 | $6,784 |
| Funds from operations per share | $0.27 | $0.21 |
| Adjusted funds from operations (“AFFO”) (1) | $10,092 | $8,071 |
| Adjusted funds from operations per share | $0.23 | $0.25 |
(1) FFO and AFFO are measures used by management to evaluate operating performance. Please refer to the section “Non-IFRS Measures” in this press release for more information.
Balance Sheet and Portfolio Highlights
| (in thousands of U.S. dollars, except number of properties) | March 31, 2018 | December 31, 2017 |
|---|---|---|
| Total assets | $1,178,848 | $785 |
| Number of owned properties | 89 | 40 |
| Debt | $623,782 | $428,377 |
| Debt / Gross Book Value | 52.9% | 54.6% |
“As we grow, an essential component to the platform is our ability to raise capital and maintain our financial strength,” noted Scott Higgs, Chief Financial Officer for the Company, “We have been able to raise attractive capital through our preferred equity private placement, and share takebacks as part of our strategic acquisitions.”
Subsequent Events
The Company announced the expansion of the management team with the addition of Adam Zeiger, Senior Vice President and Chief Relationship Officer, and Bryan Hickman, Senior Vice President – Investments. Adam has an extensive career in healthcare real estate, which spans more than 15 years. Bryan was previously Vice President – Investments at Welltower (NYSE:WELL) where he was involved in closing more than $15 billion in transactions.
On May 2nd, the Company closed the previously announced acquisition of Medical Mohawk Properties REIT (“Mohawk REIT”). The addition of the Mohawk REIT portfolio adds 14 medical office buildings, including 11 in Canada and 3 in the United States. The acquisition of Mohawk REIT provides a solid platform in the medical office building sector, delivering the Company continued avenues for growth.
Additionally, the Company announced a development partnership with Ellipsis Real Estate Partners (“Ellipsis”) for exclusive access to the current and future development pipeline.
The Company’s portfolio has expanded to 103 properties with more than 9,000 beds across 19 U.S. states and two Canadian provinces.
Investor Conference Call
A conference call hosted by the Company’s senior management team will be held Wednesday, May 16, 2018 at 9:30 AM ET. The telephone numbers for the conference call are: Local: (647) 427-7450 or Toll Free: (888) 231-8191. The passcode for the conference call is: 4285068. The conference will also be available via webcast at https://invesque.com/investor-events-presentations/. Please log on at least 15 minutes before the call commences. The telephone numbers to listen to the call after it is completed (taped replay) are: Local: (416) 849-0833 or Toll Free: (855) 859-2056. The Passcode for the taped replay is 4285068.
About Invesque
Invesque Inc. is a North American healthcare real estate company with a growing portfolio of high-quality properties located in the United States and Canada and operated by best-in-class operators primarily under long-term leases and joint ventures. Invesque’s mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.invesque.com.
Forward-Looking Information
This press release contains forward-looking information that reflects the current expectations of management about the future results and opportunities for the Company. Forward-looking statements generally can be identified by words such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “project”, or “continue” or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect the Company’s current beliefs and are based on information currently available to management. This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results or performance to vary from those current expectations or estimates expressed or implied by the forward-looking information. See risk factors highlighted in materials filed with the securities regulatory authorities in Canada from time to time, including, but not limited to, the Company’s annual information form available on SEDAR at www.sedar.com.
Non-IFRS Measures
The Company reports its financial results in accordance with International Financial Reporting Standard (“IFRS”). Included in this news release are certain non-IFRS financial measures as supplemental indicators used by management to track the Company’s performance. These non-IFRS measures are FFO and AFFO.
The Company believes that these non-IFRS financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. For a full definition of these measures and a reconciliation to net profit for the three months ended March 31, 2018, please refer to the Financial Measures section of the March 31, 2018 MD&A available on the Company’s website and on SEDAR at www.sedar.com.
For Information Contact:
Investor Relations
1-317-582-6971
ir@invesque.com