Regional Health Properties ended the third quarter “with a healthy cash balance” and collected 97.4% of the cash rent it was owed contractually for the quarter, the company said Monday.

“We continue to collect all rent from our operators (outside of a partial rent deferral on one facility). Our efforts to refigure our capital structure remain ongoing,” President and CEO Brent Morrison said.

The Suwanee, GA-based real estate investment company completed the refinancing of two facilities in the quarter, and four HUD refinancings are expected to be filed in the coming months, Chief Financial Officer Ben Waites said.

The organization ended a lease with the operator of two facilities in Georgia. One of them was moved to Empire Care Centers, an operator new to RHP’s portfolio. The second building (the “Tara facility”), which had been managed by Vero Health Care through Sept. 30, is now managed by Peach Health Group, which leases three additional properties from RHP. 

Total rental revenues decreased 4% to $4.1 million, compared with $4.3 million in the same period last year. The company attributed the decrease to the ending of subleases for two skilled nursing facilities in the fourth quarter of 2020 (the “Wellington transition”). 

Patient/resident care revenues for RHP’s new healthcare services are from the operations of the Tara facility as a part of the Wellington transition. At the start of this year, RHP began to operate the 134-bed skilled nursing facility. Patient care expenses of $2.5 million for the three months ended Sept. 30 relate to the costs of operating the Tara facility, RHP said.

Cash on hand as of Sept. 30 totaled $6.2 million, an increase of $2 million since Dec. 31. The company attributed the increase in cash primarily to they approximately $3.3 million of lease termination cash collected, $1 million in Medicaid overpayments and approximately $0.6 million in variable rent collections, which were partially offset by approximately $1 paid for past due bed taxes related to the Wellington transition and $1.9 million debt payments. Restricted cash on  Sept. 30 totaled $3.4 million, $0.1 million more than on Dec. 31. Total debt outstanding amounted to $53.4 million on Sept. 30 and $54.4 million on Dec. 31 (net of $1.3 million and $1.4 million of deferred financing costs at Sept. 30 and Dec. 31, respectively).