Regional Health Properties said Monday that it expects to move into growth mode heading into the third quarter. The Suwanee, GA-based real estate investment trust reported its second-quarter earnings in a statement.
Regional Health Properties ended the quarter with $5.6 million of unrestricted cash, an increase from $4.2 million at the beginning of 2021, and it secured refinancing commitments on $3.6 million of debt. The company also collected 97.1% of second-quarter contractual cash rent, compared with 97.2% in the first quarter.
Amortization of outstanding debt balances lead to an interest expense decrease of 2.6% compared with the same period in 2020, the REIT said.
“I’m excited to say we are pursuing a process to reconfigure the company’s capital structure and have already engaged with both the [Securities and Exchange Commission] and our investor base to exchange our Series A preferred shares for common shares. We believe this transaction will unlock value for the company and benefit all stakeholders,” CEO and President Brent Morrison said.
The REIT said it terminated a lease with the operator of two facilities located in Georgia as planned at the end of 2020. One facility was transitioned to Empire Care Centers, a new operator to Regional Health Properties, and the second is being managed by Vero Health Care, a current lessee of the company.
“Both the equity and debt capital structure improvements that we are pursuing should allow the company to move into a growth mode and take advantage of opportunities presented by the COVID-19 disruption,” Chief Financial Officer Ben Waites said.