During a “transformational” 2022, Invesque continued working toward its goal of simplifying its portfolio to become a company focused predominantly on private-pay senior housing.
Thursday during a fourth-quarter and full-year 2022 earnings call, Chairman and CEO Scott White said that the Fishers, IN-based healthcare real estate company has sold $450 million in “nonstrategic” properties over the past two years.
After selling the majority of its medical office portfolio last summer, Invesque closed on the sale of its last remaining Canadian medical center in the fourth quarter. The company still has two medical office buildings in the United States, with sales of both of them expected over the next few months.
Invesque also announced an agreement on the sale of its remaining SymCare-leased skilled nursing facilities, with the deal expected to close in the second quarter. Following completion of that transaction, Invesque will have nine skilled nursing facilities remaining in its portfolio, and the company anticipates that 80% of its net operating income will come from its senior housing portfolio, which is anchored by Commonwealth Senior Living.
“Invesque remains focused on executing on the simplification plan, and we expect continued progress over the next few months,” White said.
Senior housing occupancy rebounds
Occupancy in the Invesque senior housing operating portfolio was 80.2% for the year, up from 73.1% at the end of 2021. Chief Investment Officer Adlai Chester said that many of the senior housing operators in the portfolio have bounced back to pre-pandemic occupancy levels, with some achieving 100% occupancy.
Commonwealth rebounded to pre-pandemic occupancy levels in the second half of 2022, gaining more than 600 basis points from the first quarter to the fourth quarter.
Despite continued expense pressures from labor, utility and food costs, White said, Commonwealth continues to be successful in raising resident rental rates. Chester said that most of the operators in Invesque’s portfolio have increased rates 5% to 10%, continuing trends of larger-than-normal increases. Those increases, he added, have been met with “minimal resistance” from resident families, “highlighting the critical value of the services our operators provide.”
“I continue to be optimistic about growing demand for the industry in the coming years and the opportunity it will create for investors in the space,” White said.