Invesque Inc. Reports Third Quarter 2025 Results
TORONTO, ON, November 7, 2025 – Invesque Inc. (TSX: IVQ.U and IVQ) (the “Company”) today reported its results for the three months and nine months ended September 30, 2025.
Third Quarter and Subsequent Highlights
The Company closed on several sales transactions during the third quarter of 2025:
- As previously announced, on July 14, the Company sold a senior housing asset in Syracuse, New York for US$5.8 million
- As previously announced, on July 25, the Company sold ten memory care assets in Texas, Indiana, Arkansas and Michigan for US$83.2 million
- As previously announced, on August 15, the Company sold two skilled nursing facilities in Illinois for US$23.7 million
- On September 15, the Company sold a senior housing asset in Zachary, Louisiana for US$9.3 million
- On September 16, the Company sold a senior housing asset in Syracuse, New York for US$5.0 million
- On October 1, the Company sold a senior housing asset in Chesapeake, Virginia for US$6.6 million
Consistent with the previously announced disposition and de-leveraging strategy, the Company used sales proceeds to repay US$67.2 million of property-level mortgages and US$35.0 million of the KeyBank corporate credit facility during the third quarter.
Additionally, the Company strategically refinanced US$54.0 million of joint venture property-level mortgages during the third quarter on attractive terms that provide initial interest-only periods and prepayment flexibility moving forward.
“We had an extremely busy third quarter, executing on the sale of 15 assets and significantly reducing the Company’s debt level. Of specific importance was the full repayment of the KeyBank corporate credit facility, which featured onerous covenants and restrictions, and will provide additional flexibility for the Company in the coming months,” commented Adlai Chester, Chief Executive Officer for the Company. “There are a handful of additional assets that are under definitive contract to be sold prior to year-end, subject to satisfaction or waiver of due diligence and other customary closing conditions.”
Financial Highlights
| Three months September 30, | Six months ended September 30, | ||||
| (in thousands of U.S dollars, except per share values) | 2025 | 2024 | 2025 | 2024 | |
| Revenue | $6,558 | $42,381 | $73,498 | $129,122 | |
| Net income (loss) | $(33,164) | $(7,523) | $(26,160) | $(29,581) | |
| FFO1 | $(2,046) | $1,081 | $(1,485) | $5,009 | |
| AFFO2 | $31 | $1,003 | $2,664 | $4,195 | |
Balance Sheet and Portfolio Highlights
| (in thousands of U.S. dollars, except number of properties) | September 30, 2025 | December 31, 2024 | |
| Total assets | $179,939 | $638,878 | |
| Number of properties3 | 7 | 28 | |
| Debt | $39,971 | $394,839 |
About Invesque
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 joint venture arrangements, and third-party management contracts.
Forward-Looking Information
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 anticipated progress on debt repayments and that the new managers of certain assets will stabilize operations. Forward-looking information 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 information is generally based on a number of assumptions, opinions, and estimates. While these assumptions, opinions, and estimates are considered by the Company to be appropriate and reasonable in the circumstances as of the date of this Press Release, they are subject to a number of known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: the Company not having the funds to repay a portion of its debt, including, without limitation, as a result of the failure or inability to sell assets, the failure of one or more of the new managers of certain assets to stabilize operations, and the risks described in the Company’s current annual information form and management’s discussion and analysis, available on SEDAR+ at www.sedarplus.ca, 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.
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.
Non-IFRS Measures
The Company reports its financial results in accordance with International Financial Reporting Standard (“IFRS”). Included in this Press Release are certain non-IFRS financial measures as supplemental indicators used by the Company’s management to track the Company’s performance. These non-IFRS measures are NOI, FFO, and AFFO. The Company believes that these non-IFRS financial measures provide useful information to both the Company’s 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, please refer to the Financial Measures section of the MD&A available on the Company’s website and on SEDAR+ at www.sedarplus.ca, which information is incorporated herein by reference, and the full reconciliation to which are included below.
Contact: ir@invesque.com
FFO Tables
| Three months ended September 30, | Nine months ended September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Net loss from continuing operations for the period | $(32,820) | $(7,294) | $(25,730) | $(28,256) |
| Add/(deduct): | ||||
| Change in fair value of investment properties | 21,521 | 2,260 | 34,756 | 5,753 |
| Property taxes accounted for under IFRIC 21 | (1,586) | (1,999) | 374 | 843 |
| Depreciation and amortization expense | 359 | 2,860 | 1,096 | 9,815 |
| Amortization of tenant inducements | — | 61 | 120 | 182 |
| Accretion expense and amortization of non-cash adjustments to the 2016 Convertible Debentures | — | 2,645 | — | 7,176 |
| Change in fair value of financial instruments | (113) | 2,228 | 818 | 3,386 |
| Transaction Costs | 1,396 | 20 | 3,166 | 338 |
| Loss on sale of property, plant and equipment | 682 | (209) | (29,641) | (235) |
| Impairment of property, plant and equipment | 44 | 280 | 65 | 2,110 |
| Executive severance | — | — | 492 | 3,060 |
| Deferred income tax recovery | — | — | — | (1,605) |
| Allowance for credit losses on loans and interest receivable | 2,333 | 429 | 4,240 | 884 |
| Change in non-controlling interest liability in respect of the above | (3) | (12) | (6) | (181) |
| Adjustments for equity accounted entities | 6,231 | 84 | 8,926 | 2,685 |
| FFO from continuing operations | $(1,956) | $1,353 | $(1,324) | $5,955 |
| FFO from discontinued operations | (90) | (272) | (161) | (946) |
| Total FFO | $(2,046) | $1,081 | $(1,485) | $5,009 |
AFFO Tables
| Three months ended September 30, | Nine months ended September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Cash flows provided by (used in) operating activities | $(2,416) | $5,336 | $(12,182) | $5,879 |
| Change in non-cash working capital | 2,192 | (2,026) | 7,020 | 338 |
| Less: interest expense | (1,605) | (9,785) | (15,322) | (30,191) |
| Less: change in non-controlling interest liability | (24) | (214) | 4 | (526) |
| Plus: loss from joint ventures | (6,558) | (605) | (10,477) | (3,259) |
| Plus: interest paid | 1,803 | 8,613 | 23,098 | 27,953 |
| Less: interest received | (76) | (32) | (265) | (156) |
| Plus: debt extinguishment costs | — | — | — | (412) |
| Plus: realized loss on currency exchange | — | 2 | — | 8 |
| Plus: amortization of lease asset | — | (10) | 20 | 18 |
| Plus: non-cash portion of non-controlling interest expense | — | (12) | — | (168) |
| Plus: adjustments for equity accounted entities | 6,913 | 121 | 9,488 | 2,835 |
| Plus: deferred share incentive plan compensation | — | (9) | 2 | (68) |
| Plus: executive severance | — | — | 492 | 3,060 |
| Plus: interest expense | — | — | 671 | — |
| Plus: bad debt at previously disposed properties | — | — | 463 | — |
| Plus: property taxes account for under IFRIC 21 | — | — | 246 | — |
| Less: capital maintenance reserve | (198) | (372) | (594) | (1,116) |
| AFFO | $31 | $1,003 | $2,664 | $4,195 |
Contact: ir@invesque.com