TORONTO, Feb. 23, 2018 /CNW/ - Invesque Inc. (TSX:IVQ.U) (the "Company") announced it acquired two state-of-the-art post-acute transitional care facilities (collectively, the "Properties") from Mainstreet Property Group, LLC ("MPG") for a total price of $51.9 million. The properties are located in desirable locations in San Antonio, Texas and Webster, Texas. Both of the properties are leased to Rapid Recovery Center of Texas, and add 175 beds to the portfolio.
"Our development platform is a great compliment to our other strategic acquisitions. We continue to expand development strategies to generate a pipeline of off market, class A buildings, in high quality markets, just like these two facilities," noted Adlai Chester, the Company's Chief Investment Officer.
The Company intends to fund the transaction through a combination of the assumption of debt, the retirement of a mezzanine loan on the Webster project, and cash on hand. The acquisition is expected to be immediately accretive to the Company's Adjusted Funds from Operations ("AFFO").
Upon closing the transactions, the Company's portfolio will expand to 89 properties with over 9,000 beds/units across 19 U.S. States and one Canadian province.
Invesque Inc. is a North American health care real estate company with a growing portfolio of high quality properties located in the United States and Canada and operated by best-in-class senior living and care 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.
NON-IFRS FINANCIAL MEASURES:
AFFO is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Such a measure is presented in this news release because management of the Company believes that such a measure is relevant in interpreting the purchase price metrics and performance of the acquisition. Such a measure, as computed by the Company, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to the measure reported by such other organizations. Please see the Company's most recent management's discussion and analysis, which is available on SEDAR at www.sedar.com, for how the Company reconciles AFFO and net operating income to the nearest IFRS measure.
CAUTIONARY STATEMENT REGARDING 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 "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", or "continue" or similar expressions suggesting future outcomes or events. More particularly and without limitation, this press release contains forward looking statements and information concerning the effect of the Acquisition on the Company's operations and AFFO. Such forward-looking statements reflect the Company's current beliefs and are based on information currently available to management. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof and to not use such forward looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Invesque Inc.