Invesque Inc. Reports Second Quarter 2018 Results
Toronto, Ontario, August 14, 2018 – Invesque Inc. (TSX: IVQ.U) (the “Company”) today announced its results for the three and six months ended June 30, 2018.
Second Quarter Highlights
Closed on previously announced US$137.2 Million acquisition of Mohawk Medical Properties REIT (“Mohawk REIT”)
- Expanded management team with the addition of industry veterans:
- Adam Zeiger, SVP & Chief Relationship Officer
- Bryan Hickman, SVP – Investments
- Entered into a development agreement with Ellipsis Real Estate Partners, providing exclusive access to a pipeline of development opportunities, and purchase options on five projects currently in development
- Reported funds from operations (“FFO”) of US$0.57 per common share, and adjusted funds from operations (“AFFO”) of US$0.49 per common share for the six months ended June 30, 2018
“We successfully executed numerous strategic initiatives in the second quarter,” commented Scott White, Chief Executive Officer for the Company. “We are excited about the strong additions to our management team. Adam and Bryan bring significant industry expertise and experience. We are pleased to add a new development relationship with Ellipsis and look forward to growing our medical office building (MOB) platform with Mohawk.”
Financial Highlights
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| (in thousands of U.S dollars, except per share values) | 2018 | 2017 | 2018 | 2017 |
| Revenue | $29,354 | $16,087 | $52,393 | $30,524 |
| Net income | $10,527 | $4,706 | $12,846 | $9,689 |
| Funds from operations (“FFO”) (1) | $15,042 | $7,671 | $27,222 | $14,455 |
| Funds from operations per share | $0.29 | $0.24 | $0.57 | $0.45 |
| Adjusted funds from operations (“AFFO”) (1) | $12,953 | $8,278 | $23,037 | $16,349 |
| Adjusted funds from operations per share | $0.25 | $0.26 | $0.49 | $0.51 |
(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) | June 30, 2018 | December 31, 2017 |
|---|---|---|
| Total assets | $1,328,568 | $785,005 |
| Number of owned properties | 103 | 40 |
| Debt | $728,216 | $428,377 |
| Debt / Gross Book Value | 54.8% | 54.6% |
“Two key strategic initiatives for 2018 were to add new development partners and to add a new asset class as part of our strategic healthcare focus,” stated Adlai Chester, Chief Investment Officer for the Company. “During the second quarter we accomplished both. We see growth potential within our MOB platform and more opportunity for development.”
Subsequent Events
On July 9th, the Company closed the US$7.7 Million acquisition of a 35,000 ft2 medical office building (“Property”) in Williamsville, NY. The Property is 93% occupied and will be managed by Mohawk Medical Management Corp.
The Company’s portfolio has expanded to 104 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, August 15, 2018 at 10:00 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: 6299723. The conference will also be available via webcast at http:// www.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 6299723.
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 June 30, 2018, please refer to the Financial Measures section of the June 30, 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