Invesque is continuing to focus on streamlining its portfolio and balance sheet in 2022.
“Following an extremely busy third and fourth quarters last year, activity has not slowed down in 2022,” Invesque Chairman and CEO Scott White said Thursday on the company’s first-quarter earnings call. “We opened the year with a flurry of transactions.”
Feb. 1, the company closed on the purchase of a 38-unit memory care community in Grand Rapids, MI, and it was added to the existing master lease with Constant Care Management, according to a press release issued in conjunction with the earnings call. The acquisition expands the company’s relationship with Constant Care to nine properties and increases the company’s overall private-pay seniors housing exposure.
Between March 1 and April 1, Invesque closed on four separate deals and sold eight assets for a gross sale price of almost $80 million, White said.
April 1, the company closed on the sale of four transitional care skilled nursing facilities including 339 beds in Texas; they previously were managed by Bridgemoor Transitional Care. The Bridgemoor portfolio was owned in a joint venture in which the company holds an approximate 66% ownership interest. The gross sale price of approximately $52M generated proceeds used to fully satisfy the debt secured by the four facilities. The remaining proceeds were distributed to the joint venture owners.
“It was a big win for Invesque,” White said.
In addition to the Bridgemoor sale, Invesque sold “a handful” of underperforming assets, White said. The company closed on the sale of a vacant community in Port Royal, SC for $3.5 million. All proceeds were used to pay down the debt associated with those assets. The stand-alone memory care community that previously was managed by Phoenix Senior Living will be repurposed for an alternate use by its new owner, Invesque said.
The company also sold two New York senior living communities with a total of 99 units for a gross sale price of $19.2 million. The proceeds were used to pay down the company’s corporate credit facility and further de-lever the balance sheet.
“We continue to manage the rest of our portfolio, look for opportunities to sell properties for attractive values and network with potential buyers,” White said.
The company will continue streamlining its portfolio and balance sheet throughout the year.
“You will likely see us continue to explore property sales for the remainder of 2022. However, it is important to note that we’re not in a rush to sell properties at discounted pricing. Our strategy is to seal non-core assets when we believe there’s an opportunity to maximize value for our shareholders and strengthen our balance sheet,” White said.
See more coverage of the earnings call in McKnight’s Senior Living.
