TORONTO, Aug. 30, 2022 /CNW/ - Invesque Inc. (TSX: IVQ.U) (TSX: IVQ) (the "Company" or "Invesque") today announced the sale of two skilled nursing facilities comprised of 148 beds in Nebraska for US$25 million to the existing tenant and operator, Hillcrest Health Services ("Hillcrest").
Invesque acquired the facilities in 2017 shortly after they were constructed and leased both assets to Hillcrest, a leading regional skilled nursing operator concentrated in Nebraska.
The sale price of US$25 million reflected the high quality of the underlying real estate and represented a price per unit of US$168 thousand which compares very favorably to the average price per unit for skilled nursing facilities.
Proceeds from the sale were used by the Company to pay down debt associated with its credit facility with Key Bank, continuing its strategy to de-lever and simplify its balance sheet.
Following the sale, Hillcrest no longer operates any facilities owned by Invesque.
"As mentioned on our second quarter earnings call earlier this month, we are laser-focused on reshaping our portfolio to concentrate our holdings in private pay seniors housing assets. The sale of these two skilled nursing facilities to affiliates of Hillcrest represents another step toward achieving that goal," noted Scott White, Chairman and CEO of the Company. "Our team was able to execute on this sale quickly and efficiently given Hillcrest's familiarity with the properties, and we believe the pricing achieved is very favorable for skilled nursing facilities in Nebraska. We have enjoyed our relationship with the Hillcrest team, and I wish them continued success in their delivery of exceptional care."
Following the completion of this sale, the Company's total portfolio consists of 81 properties with approximately 5,600 units, 7,650 beds, and 190,000 rentable square feet of medical office buildings across 17 states and one Canadian province. The seniors housing portion of the portfolio consists of 60 properties with approximately 4,150 units and 4,800 beds across 13 states and one Canadian province.
Invesque 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. Invesque currently capitalizes on this opportunity by investing in a portfolio of income generating properties across the health care spectrum. Invesque's portfolio includes investments in independent living, assisted living, memory care, skilled nursing, transitional care, and medical office properties, which are operated primarily under long-term leases and joint venture arrangements with industry leading operating partners. Invesque's portfolio also includes investments in owner-occupied seniors housing properties in which Invesque owns the real estate and provides management services through its subsidiary management company, Commonwealth Senior Living.
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 the utilization of proceeds of dispositions. Forward-looking information are typically identified by terms such as "believe," "continue", "expect," "expected," "expectations," "may," "plan," "plans," "should," "will," "would," and other similar expressions that do not relate solely to historical matters. 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 statements in this Press Release are based on current beliefs, expectations, and certain assumptions of the Company's management and are subject to significant known and unknown risks, uncertainties, and other factors that are beyond the Company's ability to predict or control and may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Such risks include, but are not limited to, the risks described in the Company's current annual information form and management's discussion and analysis, available on SEDAR at www.sedar.com, 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 at the date of this news release and speak only as at the date of this news release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
SOURCE Invesque Inc.
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