TORONTO, March 15, 2024 /CNW/ - Invesque Inc. (TSX: IVQ.U) (TSX: IVQ) (the "Company") today reported its results for the three and twelve months ended December 31, 2023.
Fourth Quarter and Subsequent Highlights
- As previously announced, on October 27, 2023, the Company received final licensure approval for a newly constructed seniors housing community in Parker, Colorado. The assisted living and memory care community is part of a joint venture between the Company and Health Dimensions Group.
- As previously announced, on November 1, 2023, the Company sold two seniors housing communities in Georgia and two seniors housing communities in South Carolina for US$25.1 million.
- As previously announced, on November 8, 2023, the Company executed an Amended and Restated Credit Agreement (the "A&R Credit Agreement") with a syndicate of lenders led by KeyBank. The A&R Credit Agreement extended the maturity from December 19, 2023, to March 31, 2025.
- Reported funds from operations ("FFO")1 of US$0.03 and US$0.33 per common share for the three- and twelve-months ending December 31, 2023. The Company reported adjusted funds from operations ("AFFO")2 of US$0.03 and US$0.30 per common share for the three- and twelve-months ending December 31, 2023.
- As previously announced, on January 31, 2024, the Company sold a seniors housing community in South Carolina for US$4.0 million.
- On February 29, 2024, the Company sold two skilled nursing facilities in Pennsylvania for gross proceeds of $12.9 million. Proceeds generated by the sale were used to paydown the KeyBank credit facility.
- On March 5, 2024, the Company executed an amendment to the A&R Credit Agreement (the "A&R Credit Agreement Amendment"). Subject to the Company meeting specific conditions, including further repayment of the outstanding principal balance, the A&R Credit Agreement Amendment provides for the following adjustments to the covenant requirements:
- Reduction of the minimum fixed charge coverage ratio
- Reduction of the minimum required liquidity
- Reduction of the assumed debt service coverage ratio for assets pledged to the borrowing base
- On March 5, 2024, the Company sold two skilled nursing facilities in Texas and one skilled nursing facility in Missouri previously operated under a triple-net lease for gross proceeds of $55.5 million. Following the payoff of applicable property-level debt, proceeds were used to further paydown the KeyBank credit facility.
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| 1 FFO is a measure used by management to evaluate operating performance. Please refer to the section "Non-IFRS Measures" in this press release for more information. |
| 2 AFFO is a measure used by management to evaluate operating performance. Please refer to the section "Non-IFRS Measures" in this press release for more information. |
"I am pleased to announce the disposition of five skilled nursing facilities over the last 30 days. A few years ago, Invesque set out to become a predominately private pay seniors housing company and with only four skilled nursing facilities remaining in our portfolio today, the Company has successfully achieved that goal," commented Scott White, Chairman and Chief Executive Officer for the Company. "We will continue to focus on our seniors housing portfolio, which we believe is positioned well to take advantage of the expected increase in demand throughout 2024 and beyond. Where possible, we will continue to sell non-strategic assets, and make improvements to our balance sheet, as evidenced by the A&R Credit Agreement Amendment that was executed last week."
Financial Highlights
| | Three months ended December 31, | | Year ended December 31, |
| (in thousands of U.S dollars, except per share values) | 2023 | 2022 | | 2023 | 2022 |
| | | | | | | | | | |
| Revenue | $ | 46,290 | $ | 50,044 | | $ | 192,829 | $ | 198,035 |
| Net income (loss) | $ | (38,308) | $ | (30,965) | | $ | (99,240) | $ | (48,810) |
| FFO | $ | 1,970 | $ | 6,852 | | $ | 18,920 | $ | 23,940 |
| FFO per share | $ | 0.03 | $ | 0.12 | | $ | 0.33 | $ | 0.42 |
| AFFO | $ | 1,613 | $ | 5,611 | | $ | 17,128 | $ | 22,071 |
| AFFO per share | $ | 0.03 | $ | 0.10 | | $ | 0.30 | $ | 0.39 |
| | | | | | | | | | |
Balance Sheet and Portfolio Highlights
| (in thousands of U.S. dollars, except number of properties) | December 31, 2023 | | December 31, 2022 |
| | | | |
| Total assets | $828,283 | | $1,097,340 |
| Number of properties3 | 66 | | 77 |
| Debt | $588,245 | | $765,457 |
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| 3 Excludes two medical office buildings and one seniors housing community held for sale as of December 31, 2023. Excludes three medical office buildings held for sale as of December 31, 2022. |
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 c