Invesque continues to sell the skilled nursing facilities in its portfolio to focus predominantly on private-pay senior living, the Fishers, IN-based healthcare real estate company reported in a full-year and fourth-quarter 2023 earnings release Friday. Five SNF sales have occurred in the past 30 days, Invesque Chairman and CEO Scott White said Friday.
“We will continue to focus on our seniors housing portfolio, which we believe is positioned well to take advantage of the expected increase in demand throughout 2024 and beyond,” he said.
That plan doesn’t mean that there haven’t been sales of senior housing properties. As previously reported, the company sold four such properties, two in Georgia and two in South Carolina, Nov. 1, and another in South Carolina on Jan. 31. But Invesque also received final licensure approval in October for a newly constructed assisted living and memory care community in Parker, CO, that is part of a joint venture between the company and Health Dimensions Group.
Invesque owned a total of 77 properties at the end of 2022, a number that was reduced to 66 by the end of 2023 after sales.
“A few years ago, Invesque set out to become a predominately private-pay seniors housing company, and with only four skilled nursing facilities remaining in our portfolio today, the company has successfully achieved that goal,” White said.
Since the beginning of this year, the company has sold two SNFs in Pennsylvania for gross proceeds of $12.9 million, as well as two SNFs in Texas and one in Missouri previously operated under a triple-net lease; on those latter three sales, Invesque realized gross proceeds of $55.5 million.
Other action
After the quarter and year ended, on March 5, the company executed an amendment to its A&R credit agreement, which will result in reduction of the minimum fixed charge coverage ratio, a reduction of the minimum required liquidity and a reduction of the assumed debt service coverage ratio for assets pledged to the borrowing base, the company said.
White said that the move is evidence that Invesque “will continue to sell non-strategic assets and make improvements to our balance sheet.”
For the full year 2023, Invesque reported $198.8 million in revenues, an amount consistent with the prior year. The company’s net loss, however, was greater in 2023 than in 2022 at $99.2 million and $48.8 million, respectively.
Invesque’s revenue for the fourth quarter was $46.2 million, compared to $50 million for the fourth quarter of 2022.
Funds from operations were $18.9 million in 2023, compared with $23.9 million in 2022. In the fourth quarter of the year, FFO was $1.9 million compared with $6.8 million in the same quarter in 2022.
