Second-quarter earnings calls continued Wednesday with updates from Welltower and Invesque.

Welltower: 120 senior housing properties have negative cash flow

Shankh Mitra headshot
Welltower CEO Shankh Mitra

Although revenue has surpassed pre-pandemic levels, Welltower CEO Shankh Mitra said he would characterize the real estate investment trust’s second-quarter financial results as “mediocre at best.” 

On the Toledo, OH-based REIT’s earnings call Wednesday, he said that Welltower’s portfolio is much bigger than it was 18 months ago, and the company has deployed much capital. Still, he said, the quarterly results are not reflecting commensurate cash flow. In fact, Mitra said, 120 of Welltower’s senior housing properties have a negative cash flow.

“In other words, if we just shut down these buildings, our earnings would be significantly higher,” he said.

The second quarter of the year started out with better-than-expected results, Mitra said, but business was adversely affected by a surge in COVID-19.

“Only this time, we didn’t see it coming, as the testing requirements have been lowered in recent months, particularly for those residents who are not experiencing symptoms,” he said.

See more coverage of the earnings call on McKnight’s Senior Living.

Invesque: $190 in property sales so far this year

Invesque CEO Scott White, Invesque chairman and CEO

Toronto-based Invesque has been selling some of its assets as it moves to “simplify our portfolio, simplify our story and simplify our balance sheet,” Chairman and CEO Scott White said Wednesday on the real estate investment trust’s earnings call.

The company, he said, has sold 21 properties this year, valued at more than $190 million. 

“These sale transactions have helped us make great strides to becoming a predominantly private-pay seniors housing-focused company. First, by reducing our skilled nursing exposure, and second, by reducing our medical office building investments,” White said. 

Invesque is continuing its strategy to scale back its skilled nursing footprint. The real estate investment company sold four transitional care skilled nursing facilities in Texas that previously were managed by Bridgemoor Transitional Care to LTC Properties in April for approximately $52 million. The properties are being operated as Ignite Medical Resorts, which is leasing them from LTC.
See more coverage of the earnings call on McKnight’s Senior Living.