Invesque’s activity in the second quarter included selling properties and restructuring debt. The sales are in keeping with the Fishers, IN-based healthcare real estate investment company’s previously stated priority of focusing on private-pay senior living.
The company, which released second-quarter results on Thursday, said it expects additional refinancings and asset sales this year.
June 24, Invesque sold a skilled nursing facility in Glendale, WI, for $5.1 million, bringing total year-to-date property sales to $77.5 million. Invesque said an additional $1 million was paid and applied as a non-refundable deposit toward future sales of SNFs to the same buyer. Sale proceeds in excess of closing costs were used to pay down a portion of a KeyBank credit facility.
Also during the second quarter, Invesque refinanced or extended the maturity of $209.5 million of debt. Including the Wisconsin transaction, the company reduced its KeyBank credit facility by approximately $33 million and increased its consolidated average debt maturity to almost three years.
Executive Vice President of Investments and Investor Relations Kari Onweller said that the company expects to continue to make progress in reducing the credit facility during the second half of the year “with additional refinancings and asset sales on the horizon.”
“Our primary goal as a company right now is to right-size leverage, and to achieve that goal, we expect to continue disposing of assets in the coming months,” he said.
Inveque’s cash on hand as of June 30 was $10.7 million, net loans receivable were $8.6 million, investments in joint ventures were $42.8 million, total derivative assets were $718,000 and other assets were $12.6 million.
As of June 30, owner-occupied properties in Invesque’s portfolio included 28 locations operated by Commonwealth Senior Living, Invesque’s subsidiary management company.
In the United States, the REIT as of Aug. 8 owned or had a majority interest in 58 properties across 13 states — Arkansas, Colorado, Illinois, Indiana, Louisiana, Maryland, Michigan, New Jersey, New York, Pennsylvania, Tennessee, Texas and Virginia — including 53 assisted living and memory care communities, three skilled nursing facilities and two medical office buildings. Invesque said it has decided to exit the medical office building segment, however, and expects to complete the sale of those remaining two medical office buildings this year. The company also had an interest in four senior housing properties in Ontario.
“Management believes that certain characteristics of the North American seniors housing and care industry, including favorable demographic trends, increasing demand with stagnant supply of new facilities and the shift from high cost hospitals for post-acute care to lower cost settings such as skilled nursing, assisted living and memory care facilities, provide for a unique investment opportunity,” Invesque said in a document for investors posted on its website. “Management also believes that, as a result of the high quality of the Company’s properties, its triple-net lease and joint venture structures and its relationships with reputable operators, including Commonwealth and industry participants, the Company is well-positioned to succeed in the industry by capitalizing on these market opportunities.”
