TORONTO, May 11, 2022
/CNW/ - Invesque Inc. (TSX: IVQ.U and IVQ) (the "Company") today
announced its results for the three-month period ending
March 31, 2022.
First Quarter 2022 and Subsequent Highlights
- Effective January 1, 2022, the
Company repaid US$10.0M to the
Municipal Capital Appreciation Partners ("MCAP") preferred equity
holders. The paydown reflects the Company's continued focus on
reducing fixed costs and strengthening the balance sheet.
- On February 1, 2022, the Company
closed on the purchase of a 38-unit memory care community located
in Grand Rapids, Michigan, which
was added to the existing master lease with Constant Care
Management Company ("Constant Care"). The acquisition expands the
Company's relationship with Constant Care to nine properties and
increases the Company's overall private-pay seniors housing
exposure.
- To date in 2022, the Company has completed a number of sale
transactions, all of which align with the stated goal of disposing
of non-strategic assets to focus on building a high-quality
portfolio of private-pay seniors housing assets. Relative to first
quarter performance, the sales of the communities discussed below
will have a positive aggregate impact to AFFO per share of
approximately US$0.11 – $0.12 per share on an annual basis.
-
- On March 1, 2022, the Company
sold a non-core assisted living and memory care community in
Harrisburg, Pennsylvania. The
community was sold for approximately US$5.5M, and proceeds were used to further reduce
the Company's existing indebtedness. The community was previously
managed by Greenfield Senior Living
and operational management was transitioned to the Company's
subsidiary management company, Commonwealth Senior Living
("Commonwealth") in 2019.
- On March 31, 2022, the Company
closed on the sale of a vacant community in Port Royal, South Carolina for US$3.5M. All proceeds were used to pay down the
debt associated with these assets. The standalone memory care
community that was previously managed by Phoenix Senior Living and
will be repurposed for an alternate use by its new owner.
- On April 1, 2022, the Company
sold two seniors housing communities with 99 units in New York. The gross sale price of US$19.2M generated proceeds used to pay down the
Company's corporate credit facility and further de-lever the
balance sheet.
- On April 1, 2022, the Company
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 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$52M generated proceeds used to
fully satisfy the debt secured by the four facilities. The
remaining proceeds were distributed to the joint venture
owners.
- The majority of the seniors housing communities operated by
Commonwealth have earned the highest possible rating from U.S. News
& World Report's inaugural Best Senior Living ratings.
- Reported funds from operations ("FFO") of US$0.07 per common share for the three-month
period ending March 31, 2022. The
Company reported adjusted funds from operations ("AFFO") of
US$0.06 per common share for the
three-month period ending March 31,
2022.
"As we close out the first quarter of 2022, I want to highlight
the progress we are making in executing on our strategy. We
continue to streamline our portfolio to focus more on private-pay
seniors housing assets. As a result of our transaction activity
over the last 18 months, we have made significant progress toward
executing on this strategy," noted Scott
White, Chairman and Chief Executive Officer of the Company.
"In addition to streamlining our portfolio, we want to grow with
our preferred operating partners. I'm very pleased with the
continued growth of our relationship with Constant Care. I'm proud
of the progress our team has made and where we are as a company
today, and I am optimistic that we will see continued improvement
in the operations of our portfolio over the rest of 2022."
Financial Highlights
|
Three months ended
March 31,
|
(in thousands of U.S
dollars, except per share values)
|
2022
|
2021
|
|
|
|
Revenue
|
$
52,050
|
$
53,671
|
Net income
(loss)
|
$
3,337
|
$
1,800
|
FFO
(1)
|
$
3,906
|
$
5,032
|
FFO per
share
|
$
0.07
|
$
0.09
|
AFFO
(1)
|
$
3,194
|
$
5,677
|
AFFO per
share
|
$
0.06
|
$
0.10
|
|
|
|
(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,
2022
|
|
December 31,
2021
|
|
|
|
|
Total assets
|
1,304,888
|
|
1,301,011
|
Number of
properties
|
96 (1)
|
|
102 (2)
|
Debt
|
916,810
|
|
893,746
|
(1) Excludes two
consolidated assets held for sale as of March 31, 2022, and four
joint venture properties held for sale as of March 31,
2022.
|
(2) Includes the
asset sold in Harrisburg, PA during the first quarter of
2022. Excludes one asset held for sale as of December 31,
2021.
|
Investor Conference Call
A conference call hosted by the Company's senior management team
will be held on May 12, 2022, at
10:00 AM EST. The telephone numbers
for the conference call are Local: (647) 794-4605, or Toll-Free: (888) 204-3590. The passcode for
the conference call is 8323162. The conference will also be
available via webcast at
https://www.invesque.com/company-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: (647) 436-0148, or Toll
Free: (888) 203-1112. The Passcode for the taped replay is
8323162.
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
properties across the health care spectrum. The Company's portfolio
includes investments in independent living, assisted living, memory
care, skilled nursing, transitional care, and medical office
properties, 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 and provides management services through Commonwealth.
Forward-Looking Information
This press release (this "Press Release") contains
forward-looking information and / or statements ("forward-looking
statements") that reflect the current expectations of the Company's
management about the future results and opportunities for the
Company. Forward-looking statements are generally 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. By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are
beyond the Company's control. Although the Company believes that
the expectations in its forward-looking statements are reasonable,
its forward-looking statements have been based on factors and
assumptions concerning future events which may prove to be
inaccurate. Those factors and assumptions are based upon currently
available information. Such statements are subject to known and
unknown risks, uncertainties, and other factors that could
influence actual results or events and cause actual results or
events to differ materially from those stated, anticipated, or
implied in forward-looking statements. Accordingly, readers are
cautioned not to place undue reliance on forward-looking
statements. Additional risks, uncertainties, material assumptions,
and other factors that could affect actual results are discussed in
the Company's public disclosure documents available at
www.sedar.com, including in the risk factors described in the
Company's current annual information form. In addition, the Company
is subject to the risk and uncertainties related to the COVID-19
pandemic. In particular, a novel strain of coronavirus causing the
disease known as COVID-19 has spread throughout the world,
including across the United States
and Canada, causing the World
Health Organization to declare the COVID-19 outbreak a pandemic in
March 2020. To contain the spread and
impact of the pandemic, authorities throughout the United States and Canada have implemented measures such as
travel bans and restrictions, stay-at-home orders, social
distancing guidelines, and limitations on other business
activities. The pandemic has resulted in a significant economic
downturn in the United States,
Canada, and globally, and has also
led to disruptions and volatility in capital markets. The Company
has already experienced negative impacts on its financial results
due to the pandemic and is not able to fully quantify the impact
that the COVID-19 pandemic will have on the Company's financial
results in the future, but the Company expects that the pandemic
could continue to have a material adverse effect on its results of
operations, financial position and/or cash flows, particularly if
negative economic and public health conditions in the United States and Canada persist for a significant period of
time. The ultimate impact of the pandemic on the Company's
financial results will depend on, among other factors, the
duration, and severity of the pandemic as well as negative economic
conditions arising therefrom, the impact of the pandemic on
occupancy rates in our communities, the volume of COVID-19 patients
cared for across our portfolio, rent deferral rates, and the impact
of government actions on the seniors housing industry and the
broader economy, including through existing and future stimulus
efforts. The impact of COVID-19 has been partially offset to date
by certain government stimulus programs which have helped to offset
COVID-19 related expenses and compensate for lost revenues, but the
Company is not able to assure that such programs may continue to be
available in the future. 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 to not 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 and a reconciliation to net profit and/or net
loss for the three months ended March 31,
2022, please refer to the Financial Measures section of the
March 31, 2022, MD&A available on
the Company's website and on SEDAR at www.sedar.com.
SOURCE Invesque Inc.