portfolio cloeup
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Before the end of the second quarter, Invesque should have only nine skilled nursing facilities left in its portfolio, as the Fishers, IN-based healthcare real estate company continues to change its focus to predominantly private-pay senior living.

The close of the previously announced sale of the eight remaining SymCare-leased skilled nursing facilities in Invesque’s portfolio, expected this quarter, will continue the transition.

“We continue to make strides repositioning our portfolio for future success and creating a portfolio of private-pay seniors housing assets, operated by some of the country’s best operators,” Invesque Chairman and CEO Scott White said Thursday on a first-quarter earnings call.

The company is poised to take advantage of the upcoming increase in demand for senior living, he said.

Performance in the first quarter, Chief Investment Officer Adlai Chester said in a news release, “illustrates the outcome of our strategy to streamline our portfolio and focus on our strongest-producing assets. Our portfolio included nearly 20 fewer properties compared to the first quarter of 2022, but our bottom-line results doubled, which was precisely the desired outcome.”  

In the first quarter, annual resident rate increases of between 5% and 10% went into effect, and additional rate increases are expected to take effect in this quarter.

“The increases in rental rates have been an important tool used by our operators to offset continued increases in expenses, including staff,” Chester said. “While certain markets remain challenging, our SHOP operators are feeling better about staffing availability and reductions in agency staffing than they were 12 months ago,” he added.

Occupancy in its triple-net leased and SHOP buildings was 77% and 79%, respectively, for the quarter, the CFO said.

After the quarter ended, in April, the company’s actions further solidified its presence in senior living.

Invesque entered into a 15-year lease with Chapters Living to manage three memory care communities in Texas and Arkansas previously managed by Memory Care of America. St. Louis–based Chapters Living managed the portfolio under an interim management structure in April and received full licensure approval effective May 1. Chester said that Invesque already has seen improvement in occupancy and rates in the portfolio and that he expects to see even better performance as staffing is stabilized and expenses are better managed.

Also in April, the company closed on a 34-unit memory care community in Carrollton, TX, that is being operated by Constant Care Management Co. Chester said that Invesque may see additional similar opportunities to acquire underperforming properties and partner with strong operators to improve the performance of those communities.