In a busy second quarter, Invesque continued carrying out its strategy to focus its portfolio predominantly on private-pay senior living through sales, operator transitions and acquisitions.
“We remain bullish on the seniors housing industry and believe the efforts we have taken over the last two to three years to focus our portfolio specifically on this asset type will prove beneficial in the coming years as the demand for seniors housing reaches a level we have never seen before,” Chairman and CEO Scott White said. “The company strategically set out to simplify, with a focus on pruning the portfolio and improving our balance sheets. We have made significant progress on the portfolio through dispositions and operation transitions, and are now hyper-focused on the balance sheet.”
As previously reported, on April 1, the Fishers, IN-based healthcare real estate company entered into a 15-year lease with Chapters Living to manage three stand-alone memory care communities previously managed by Memory Care of America. Chapters has made progress implementing policies and processes to improve operations and results, he said.
April 10, the company acquired a 34-unit memory care community in Carrollton, TX, which then was leased to Constant Care Management.
Later in the quarter, Invesque sold seven skilled nursing facilities previously leased to SymCare during the second quarter. The eighth and final property sold in early June, ending Invesque’s relationships with SymCare and reducing Invesque’s skilled nursing portfolio to nine properties.
During Monday’s earnings call, White said that the company’s senior housing portfolio grew in occupancy and net operating income during the quarter.
The company’s Commonwealth Senior Living and Heritage Senior Living communities reached and maintained pre-pandemic occupancy levels in the second quarter, and Commonwealth has seen additional occupancy growth into the third quarter.
Occupancy in Invesque’s triple-net leased and senior housing operating portfolio buildings was 76% and 81%, respectively, as of March 31, according to Adlai Chester, who assumed the roles of chief financial officer and executive vice president of investments on Aug. 1.
In the second quarter, senior living operators also successfully increased revenue per resident, Invesque said. Commonwealth grew year-over-year average revenue per resident by 6%, whereas Heritage grew by 5.2%. Both Commonwealth and Heritage also continued to see improvements in the availability and retention of staff.
In addition, the company continues to negotiate with its primary credit facility lender, KeyBank National Association, to refinance or extend the maturity date on its existing credit facility.
