Atlanta-based Regional Health Properties plans to further simplify its capital structure and reduce corporate expenses, President and CEO Brent Morrison said in a press release announcing the company’s third-quarter results.

The announcement comes after RHP reduced losses from operations from $2 million in the third quarter of last year to $0.4 million in the third quarter of 2023. Reduced net loss per share of common stock for the quarter was $0.52 compared with $1.48 in the same quarter of 2022.

“As our stock price continues to trade well below net asset value, management remains committed to improving transparency for investors,” he added.

The company said it collected 93% of contractual rent in the third quarter.

For the third quarter of 2023, RHP reported total revenue of $4.1 million, representing a net loss of $1 million; EBITDA (earnings before interest, taxes, depreciation and amortization) of $0.3 million; and adjusted EBITDA of $0.7 million.

“Our operating partners continue to make progress mitigating lower than average occupancy and tight labor markets. As a result, our EBITDAR [earnings before interest, taxes, depreciation, amortization, and restructuring or rent cost] coverage remains strong at 1.5x,” Morrison said. “We remain hopeful this momentum will continue into the fourth quarter as well as 2024.”

As of Sept. 30, the REIT had $51.4 million of outstanding indebtedness, with a weighted-average annual interest rate of 5.1% and a weighted-average maturity of approximately 19 years.

Through the first three quarters of the year, net cash provided by operating activities was $3.4 million as compared with net cash used in operating activities of $2.2 million for the first nine months of 2022.

Other highlights of the third quarter:

  • Aug. 3, RPH began trading its 12.5% Series B preferred stock on the OTCQB Venture Market, operated by the OTC Markets Group, under the symbol “RHEPB.”

Aug. 7, the New York Stock Exchange accepted RHP’s plan to regain compliance with the exchange’s continued listing standards, as previously reported by the McKnight’s Business Daily. In July, the REIT had received notice from the NYSE American that it was not in compliance with one of the stock exchange’s continued listing standards. RHP said it was informed of its second noncompliance issue of 2023 in a June 29 letter. RHP has until Nov. 10, 2024, to come into compliance or face delisting.