Invesque Inc. Provides Update on Year-to-Date Activities
TORONTO, Feb. 20, 2024 /CNW/ - Invesque Inc. (TSX: IVQ.U) (TSX: IVQ) (the "Company" or "Invesque") today announced a number of Company updates.
- On January 31, 2024, the Company sold a seniors housing community in South Carolina for US$4.0 million. This community was the final asset owned in a joint venture that the Company had with Phoenix Senior Living.
- The Company has entered into definitive agreements to sell five skilled nursing facilities for a combined gross sales price of US$68.4 million. The contemplated sales are expected to close prior to the end of the first quarter, subject to satisfaction or waiver of customary due diligence and closing conditions. Excess proceeds above property specific debt will be used to pay down debt associated with the Company's KeyBank credit facility.
- To further enhance its liquidity position and consistent with the recent sales of a significant number of properties, Invesque recently completed certain personnel cutbacks. The Company believes that the corporate level reductions will result in US$0.9 million of annual cost savings excluding severance payments.
"Our team has been busy so far in 2024, continuing to prioritize pruning our real estate portfolio and cleaning up our balance sheet. Following the sale of the skilled nursing facilities expected to close in the next 40 days, the Company will only own four skilled nursing facilities, successfully achieving our previously stated goal of becoming a private pay senior housing focused platform," commented Adlai Chester, Chief Financial Officer, and Executive Vice President of Investments for the Company. "Going forward, we will continue to assess the portfolio to determine which assets, if any, are suitable disposition candidates."
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 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, the licensed operations, and provides management services through Commonwealth Senior Living, LLC, a Delaware limited liability company. For more information, please visit www.invesque.com.
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 utilization of proceeds of dispositions and statements regarding the closing of the sale of certain skilled nursing facilities. Forward-looking statements 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 statements in this Press Release are based on current beliefs, expectations, and certain assumptions of the Company's management. Forward-looking statements in this Press Release 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. These risks include the possibility that the Company's sale of five skilled nursing facilities will not close due to an inability to satisfy or waive one or more closing conditions. The forward-looking statements in this press release are also subject 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 of the date of this Press Release and speak only as of the date of this Press 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.
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.
SOURCE Invesque Inc.
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