“Our financing continues to be busy exploring opportunities to take advantage of the current capital market, with a renewed focus on consolidating debt to further ladder our maturity,” Invesque Chief Financial Officer Scott Higgs said in Thursday’s earnings call.
“We are actively looking up and down our capital structure to maximize cash flow savings to maximize value for all of our stakeholders,” he said.
Invesque instituted a series of financing transactions that reduced company leverage by approximately 150 basis points relative to the previous quarter, will provide annual cash flow savings of approximately $3.4 million, and will provide for annual accretion of approximately $1.9 million, according to Higgs.
“We believe our portfolio reached its low point from an occupancy standpoint in the first half of the year and will continue to trend positively throughout the remainder of 2021 and into 2022,” Chief Investment Officer Adlai Chester said.
Higgs said the company is continuing to focus on reducing leverage and strengthening its balance sheet. The company utilized its corporate credit facility with KeyBank to refinance portfolio debt of approximately $47 million, which allows for $2.5 million of annual cash flow savings and approximately $1million of accretion. Higgs said the company now stands at approximately 58% leverage.
The company repaid in full the $10 million outstanding debt on the Magnetar Capital credit facility, which provides for annual cash savings and accretion of approximately $900,000.
“Real estate investing is a long-term strategy that requires vision and patience. With one of the youngest portfolios in the industry and exceptional operation partners, I am very optimistic about our business and our portfolio.” Chairman and CEO Scott White said.
See more coverage of the earnings call by McKnight’s Senior Living.