Invesque Inc. Reports First Quarter 2025 Results
TORONTO, May 15, 2025 /CNW/ - Invesque Inc. (TSX: IVQ.U) (TSX: IVQ) (the "Company") today reported its results for the three months ended March 31, 2025.
First Quarter and Subsequent Highlights
- As previously announced, during the first quarter, the Company reduced the KeyBank credit facility balance to below US$35.0 million and exercised the first of two six-month extension options, extending the maturity to September 30, 2025.
- On April 9, 2025, the Company sold a seniors housing asset in Syracuse, New York for US$25.1 million. The Company used sale proceeds to pay off the property level mortgage debt associated with the community and retained the remaining cash proceeds to maintain appropriate liquidity levels.
- As previously announced, during 2024 the Company entered into definitive agreements to sell 22 assets for a total gross sales price of US $319.8 million. This is comprised of three separate transactions, which are expected to close within the next 60 days.
- The Company has also entered into a definitive agreement to sell ten memory care communities that are currently managed under a triple-net lease. Invesque expects this sale to close during the third quarter of 2025, subject to satisfaction or waiver of a due diligence condition in favour of the purchaser and other customary closing conditions.
"Our focus for the remainder of 2025 will be on the execution of several sale transactions as we look to optimize and return value to shareholders," commented Quinn Haselhorst, Chief Financial Officer for the Company. "Transaction activity in the seniors housing industry has picked up over the last few quarters, and we believe that the values being achieved by the announced sales represent the ongoing interest in this sector."
Financial Highlights
Three months ended March 31, |
|||
(in thousands of U.S dollars, except per share values) |
2025 |
2024 |
|
Revenue |
$ 37,392 |
$ 43,642 |
|
Net loss |
$ (8,943) |
$ (6,244) |
|
FFO1 |
$ 2,052 |
$ 2,504 |
|
AFFO2 |
$ 2,215 |
$ 2,081 |
|
________________________________ |
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. |
Balance Sheet and Portfolio Highlights
(in thousands of U.S. dollars, except number of properties) |
March 31, 2025 |
December 31, 2024 |
|
Total assets |
$631,247 |
$640,138 |
|
Number of properties3 |
28 |
28 |
|
Debt |
$389,189 |
$394,839 |
|
______________________________ |
3 Excludes one medical office building and 24 seniors housing assets held for sale as of March 31, 2025, and December 31, 2024 |
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 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 ("Commonwealth").
Forward-Looking Information
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 closing of the sale of certain assets under definitive agreements and the timing thereof, as well as the Company's plan to strategically dispose of additional assets to optimize and return value to shareholders. Forward-looking information 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 information is generally based on a number of assumptions, opinions, and estimates, including, but not limited to: that the conditions to closing in respect of the sale of assets under definitive agreements will be satisfied or waived and that such transactions will close within the expected timeline and that the Company will be in a position to dispose of certain of its portfolios in the future and return value to shareholders. While these assumptions, opinions, and estimates are considered by the Company to be appropriate and reasonable in the circumstances as of the date of this Press Release, they are subject to a number of known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: the conditions to closing in respect of one or more of the sale of assets under definitive agreements, including the satisfaction or waiver of any due diligence conditions, will not be satisfied or waived and that such transactions will not close at all or within the expected timeline; the Company will not be in a position to dispose of certain of its portfolios in the future as a result of there being no buyers or as a result of other market conditions and the risks described in the Company's current annual information form and management's discussion and analysis, available on SEDAR+ at www.sedarplus.ca, 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.
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.
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, please refer to the Financial Measures section of the March 31, 2025, MD&A available on the Company's website and on SEDAR+ at www.sedarplus.ca, which information is incorporated herein by reference, and the full reconciliation to which are included below.
FFO Tables
Three months ended March 31, |
||
2025 |
2024 |
|
Net loss from continuing operations for the period |
$ (8,878) |
$ (5,834) |
Add/(deduct): |
||
Change in fair value of investment properties |
5,527 |
(4,092) |
Property taxes accounted for under IFRIC 21 |
2,990 |
4,451 |
Depreciation expense |
368 |
3,458 |
Amortization of tenant inducements |
60 |
61 |
Accretion expense and amortization of non-cash adjustments to the 2016 |
— |
2,148 |
Change in fair value of financial instruments |
424 |
381 |
Transaction Costs |
135 |
276 |
Loss on sale of property, plant and equipment |
— |
(8) |
Impairment of property, plant and equipment |
10 |
1,376 |
Deferred income tax recovery |
— |
(889) |
Allowance for credit losses on loans and interest receivable |
333 |
260 |
Property taxes accounted for under IFRIC 21 |
369 |
— |
Change in non-controlling interest liability in respect of the above |
(1) |
2 |
Adjustments for equity accounted entities |
781 |
1,302 |
FFO from continuing operations |
$ 2,118 |
$ 2,892 |
FFO from discontinued operations |
(66) |
(388) |
Total FFO |
$ 2,052 |
$ 2,504 |
AFFO Tables
Three months ended March 31, |
||
2025 |
2024 |
|
Cash flows provided by (used in) operating activities |
$ 197 |
$ 640 |
Change in non-cash working capital |
2,482 |
3,514 |
Less: interest expense |
(7,530) |
(10,597) |
Less: change in non-controlling interest liability |
(24) |
(124) |
Plus: loss from joint ventures |
(1,183) |
(1,206) |
Plus: interest paid |
7,442 |
9,414 |
Less: interest received |
(105) |
(170) |
Plus: debt extinguishment costs |
— |
(412) |
Plus: realized loss on currency exchange |
— |
7 |
Plus: amortization of lease asset |
10 |
36 |
Plus: non-cash portion of non-controlling interest expense |
— |
14 |
Plus: adjustments for equity accounted entities |
753 |
1,322 |
Plus: deferred share incentive plan compensation |
2 |
15 |
Plus: property taxes accounted for under IFRIC 21 |
369 |
— |
Less: capital maintenance reserve |
(198) |
(372) |
AFFO |
$ 2,215 |
$ 2,081 |
SOURCE Invesque Inc.
Share this article